Download Triad Office Market - NC-CCIM

Triad Office Market
• Total Office Market: 27, 467,542
• Total Sq. Ft. Vacant: 5,264,359
• Vacancy Rate 19.2%
• Forsyth: 18.8%/Guilford 21%
•
•
•
•
Average Rental Rate: $15.80
Average Class A Rental Rate: $17.65
Net Absorption YTD: -229,284
36,000 sq. ft. under construction
Industrial Market
 Warehouse Market: 54,404,184
 Total Sq. Ft. Vacant: 12,312,107
 Vacancy Rate: 22.6%
 Average Asking Rent: $3.49
 Sq. ft. Under Construction: 301,910
 Net Absorption YTD: -121,347
 Over 8,000,000 sq. ft. vacant in buildings over
100,000 sq. ft.
Industrial Market
 Flex Market: 13,019,283
 Total Vacant Sq. Ft.: 2,300,783
 Vacancy Rate: 17.7%
 Average Asking Rent: $5.60
 Under Construction: 16,200
 Net Absorption YTD: -107,201
Retail
 Total Retail Market: 36,617,044
 Total Sq. Ft. Vacant: 10.8%
 Average Asking Rent: $16.12
 Sq. Ft. Under Construction: 379,000
 Net Absorption: -159,138
 Largest new retail is the 312,000 sq. ft. Tanger
Factory Outlet in Mebane
Multifamily
 Total # of Units: 55,576
 # Vacant: 7,745
 Vacancy Rate: 13.9%-increased from 11.6% in
September 2008
 2007-2009- 4300 new units with 791
absorbed, resulting in a 6% increase in
vacancy
 Construction has slowed, with only 665 units
under construction.
Investment Sales
 What is a market CAP rate?
 Equity requirements are increasing
 Walgreen’s no cash developer now needs
$1,300,000
 CAP rates are rising for most product types
 Exceptions are in areas with barriers to entry
 Value oriented purchasers are looking at long
term potential
 Lots of money on the sidelines waiting on the
bottom
Land
 Is there a market for Land?
 Public Facilities-schools, fire stations, parks
 Borrowing money on Dirt
 Cash or owner paper
 Residential Land Demand
 Lot sales at low numbers in select markets
 No townhome construction
 Equity requirements have slowed demand for
apartment land
Land
 Office Site Demand
 Owner/Users in the market-particularly medical
 Commercial Site Demand




Fast Food
Convenience Stores
Self Storage
Drug store demand in targeted areas at reduced
price
 Demand from Anchor retailers will not return until
at least 2012