oncor international 4th quarter marin county submarkets … · 2017-08-15 · petaluma - (707)...

MARIN COUNTY SUBMARKETSQUARTERLY NEWSLETTER

Keegan & Coppin Company, Inc.ONCOR International

4th Quarter

2013

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein.

O N C O R I N T E R N A T I O N A L

1099 D Street, San Rafael

101 Larkspur Landing Circle, Larkspur

1101 Fifth Avenue, San Rafael

INSIDE THIS ISSUE:

Check out our Website:www.keegancoppin.com

Market HighlightsNotable Transactions

Vacancy TrendsArea Maps

Southern MarinCentral Marin

San RafaelNovato

OFFICE LOCATIONS:Santa Rosa

1355 North Dutton AvenueSanta Rosa, CA 95401

(707) 528-1400

Petaluma1201 N. McDowell Blvd.

Petaluma, CA 94954(707) 664-1400

Larkspur101 Larkspur Landing Circle

Larkspur, CA 94939(415) 461-1010

Napa 477 Devlin Road #104

Napa, CA 94558(707) 252-1400

Southern MarinSauSalito, tiburon, belvedere & Mill

valley

NOTABLE TRANSACTIONS

Santa Rosa - (707) 528-1400 Larkspur - (415) 461-1010 Petaluma - (707) 664-1400 Napa - (707) 252-1400

October 2013: 100 and 150 Shoreline, two class A office buildings on Richardson Bay, Mill Valley - 98,652± sf sold for $22,250,000.00

AREA MAP

100 Shoreline, Mill Valley

The fourth quarter of 2013 in southern Marin saw a continuation of the recovery felt throughout the year. Leasing for small businesses remained brisk, with office rents averaging between $2.50 and $4.00 per square foot, depending on location and building quality, and a return of the high demand seen in years past. Well-appointed suites in the most sought after locations rarely languished on the market, and inventory tightened considerably. Class A spaces in new buildings, such as Belvedere Place, command up to $4.50 per square foot, while offices in more marginal locations lease for less than $2.00 per square foot. Sausalito and Mill Valley remained in highest demand, with Tiburon lagging behind, both in vacancies and in pricing per square foot. All business types seem to be benefitting from an economic resurgence, from professional services to medical office. Small, locally based companies tend to be the most common, with a smattering of financial institutions forming the majority of the corporate leases.

Although most southern Marin tenants are looking for spaces under 2,500 square feet, several notable leases were signed in the last quarter of 2013, including the relocation and expansion of Glassdoor, an online career and

jobs resource, from 1 Harbor Drive in Sausalito to just under 30,000 square feet at 100 Shoreline in Mill Valley. With this lease, the property will be 80% occupied, and rents have stabilized in the $3.50 per square foot range. 100 and 150 Shoreline were also the object of Southern Marin’s most notable sale. The two-building, 98,652 square foot, class-A office project on Richardson Bay was sold to Basin Street properties for $22,250,000, at $225 per square foot in late October 2013. This property was part of the portfolio of Equity Office properties. Southern Marin investment properties generally have traded at rates of return between five and seven percent, although there was little sale activity in Tiburon, because of the constrained supply. Several smaller sales exemplify the typical southern Marin transaction. 167 Throckmorton, a high-quality 9,243 square foot mixed use building in the heart of downtown Mill Valley, sold in November, 2013 for $3,250,000. The property traded at a 5 cap. 240 Miller Avenue, Mill Valley, a class C 3,882 multi-tenant office investment property, sold for $1,660,000 , after 552 days on the market, at a 6.5 cap.

SOUTHERN MARIN - RETAILSOUTHERN MARIN - OFFICE


AREA MAP


Sept 2013: 12,825sf (19 units) at 801

Meadowsweet Dr., Corte Madera; multifamily;

Trust; Erich Reichenbach of M&M; $4.38

million

Nov 2013: 151-153 Upper Via Casitas in

Greenbrae sold for $2,275,000

Both sales were in the $470/sf price range.

Central MarinCorte Madera, Greenbrae, Kentfield,

roSS & San anSelMo The major transactions in the Central Marin market occured when Equity Office sold major parts of their portfolio. Drake’s Landing, a 130,000 sf 3 building office complex at the Sir Francis Drake Blvd entrance to 101 sold just before the end of the year for approximately $470/sf to New York Life. The 82,000sf Wood Island complex also sold for approximately the same price per sf. The 5 buildings had a combined occupancy of 90.7% and represented more than 210,000sf of investment sales. Multifamily was strong again in the submarket with multiple transactions closing escrow. Multifamily price per unit trended up and continued to allow local investment groups a healthy return with interest rates remaining mostly unchanged during the fourth quarter. Office absorption continued in the market with the majority of leases in the 1,500-3,500sf range and rates continuing to increase due to the lack of quality supply. Rates in December for Drakes Landing were north of $4/sf and Larkspur Landing has seen $3.75/sf rents.

The success of major retail centers like the Village, Town Center, Bon Air Center and the increasingly popular Marin Country Mart have supplied more workforce dining options and increased investment activity in the local area including 1177 Magnolia which sold in November for $1,750,000. The former bank building will be repurposed for office space in the desireable Kentfield/Larkspur boundary market.

MacFarlane Partners has continued the development of 180 apartment units adjacent to Hwy 101 in Corte Madera and should begin leasing in the late spring.

CENTRAL MARIN - OFFICE CENTRAL MARIN - RETAIL

Drakes Landing, Greenbrae


AREA MAP


October 2013: 88 Vivian Way, San Rafael, 37,800 sq. ft. bowling alley sold for $4,200,000November 2013: 2597 Kerner Blvd., San Rafael, lease extension by Tissue Banks International of 28,689 sq. ft. of highly improved laboratory/light industrial spaceDecember 2013: 4040 Civic Center Dr., San Rafael, 20,809 sq. ft. of office space leased to Vionic Group LLC

88 Vivian Way

San rafael San Rafael saw quite a bit of activity at the end of 2013, primarily in new office leases and office renewals, and retail investments.

Office: San Rafael’s 4th quarter leasing activity primarily occurred toward the end of the year, with a strong amount of activity in the northern San Rafael/Terra Linda market. Class A rents remained at an elevated level; with impending sales of several major office projects, including the San Rafael Corporate Center to would-be occupant BioMarin. A lack of inventory in Class A opportunities threaten businesses whose leases were expiring. With such large scale sales to owner-occupants, a higher demand for multi-tenant office buildings downtown will keep Class A rates strong, or force businesses to relocate north. Near the Northgate mall in Terra Linda, 899 Northgate Drive and 1050 Northgate Drive absorbed some new tenancies, and 1650 Los Gamos Drive is now home to 10,000 Degrees, who signed a 6,000 sq. ft. lease in December. Downtown rates for Class A hovered at $3.00 to $3.25 per sq. ft., full service, while the TL market commanded $2.35 to $2.50 per sq. ft. The overall vacancy level increased from 20.3% to 21.9%.

Industrial: The San Rafael industrial market maintained its health with a 3.7% vacancy rate. For pure warehouse space, rents ranged from $.85 to $1.10 per square foot,

industrial gross, while light industrial product ranged $1.25 to $1.45 per sq. ft. Additionally, there was one sale this quarter: 26 Duffy Place, a 4,650 sq. ft. concrete-block offering sold for $800,000 to an owner-user in December. As always in San Rafael, there was an uptick in leasing requirements from automotive-related businesses, including car rentals, used car sales, and body repair shops.

Retail: Boasting a 4.4% vacancy rate, San Rafael’s retail sector saw some positive activity at the end of the year. Several sales occured: the well known Country Club Bowl property at 88 Vivian Way; the highway visible, mixed-use 647 East Francisco Blvd. (formerly housing MASA); 1300 Fourth Street, Classic Billiards; and the 16,000 sq. ft. 514 Fourth Street, near Whole Foods. Leasing was slow this quarter. Downtown rental rates ranged from $1.50 to $3.50 per sq. ft., and are NNN or gross, depending on size and location.

Multi-Family: The apartment sector had some activity with a sale at 211 Marin Street, a six unit investment property.

SAN RAFAEL - OFFICE SAN RAFAEL - RETAIL


AREA MAP


Hamilton Hangers

novatoOverall office vacancy improved substantially in the fourth quarter of 2013 due in large part to several leases that were signed in the long vacant former Disney studio space at the Hamilton Hangers. EDG Interior Architecture signed a lease for 18,813 sq. ft. and Raptor Pharmaceutical secured an additional 10,892 square feet bringing their total Hamilton leasehold to just under 42,000 sq. ft. Another large expansion at Hamilton Hangers had 2K, a video game publishing label of New York based Take Two Interactive Software, lease another 45,000 square feet which expands its holdings at the Hamilton Hangers to 105,000 square feet. Sublease vacancy has remained somewhat high which is generally attributable to large floor plate vacancies at the Fireman’s Fund’s north Novato office campus remaining empty. The overall office vacancy rate has shown signs of stabilizing, finishing the 2013 calendar year at 20.8%.

Novato’s historically stable industrial market has continued to show signs of real improvement with vacancy rates finishing 2013 below 10% for the first time since before the recession. The overall industrial vacancy is at 9.1% as of the end of 2013, down from a peak

of nearly 18% in 2011. Most of this absorption came from smaller entrepreneurial tenants that have long been the backbone of the Marin Industrial market, coming back into the market to look for space, or expanding their businesses with growing confidence in the North Bay economy.

The continually healthy retail market for Novato saw a slight uptick in vacancy posting an overall vacancy rate 6.1%. Retail vacancy in Novato has been steady between 5% and 6% for quite some time.

Sales activity went into a typical end of year holiday slumber in the last quarter of 2013, but interest from Buyers, both owner-users and investors, remains stronger than we have seen in recent years. Low interest rates are the main driver of this activity with several properties on the sale market ending the year under contract to close in the first or second quarter of 2014.

NOVATO - RETAILNOVATO - OFFICE

October 2013: Hamilton Hangers, Novato, Take Two Interactive Software increases their lease an additional 45,000 sf.

oncor international 4th quarter marin county submarkets … · 2017-08-15 · petaluma - (707)...

Documents