nai member name - NAI Earle Furman

NAIEarle
MEMBER
NAI
Furman,NAME
LLC
OfficeReport
Report | Fourth
First Quarter
2007
Retail
Quarter
2011
Upstate Market
UPSTATE STATISTICS:
TRENDS:
Vacancy Rate
Net Absorption
Overall Vacancy (%)
8.5%
Number of Buildings........................................................9,038
Market Size (SF)......................................................80,065,102
Overall Vacancy Space (SF).......................................5,048,021
Overall Vacancy (%)..........................................................6.3%
Direct Vacancy (SF)...................................................4,957,671
Sublease Vacancy (SF)...................................................90,350
Net Absorption.............................................................233,144
Average Asking Rental Rate ($/SF/YR)............................$9.82
SECOND Quarter MARKET OVERVIEW
By: Jimmy Wright, Retail Division Broker & Principal
8.0%
7.5%
7.0%
6.5%
6.0%
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
Average Asking Rental Rate
$11.00
$10.50
$10.00
$9.50
$9.00
Construction
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
New retail development seems to be picking up as evidenced by two new Wal-Mart stores under
discussion (Church Street, Greenville and Hwy 153, Powdersville). Also, an additional Kohl’s location
has been announced on Wade Hampton Boulevard (Greer) in the former KMart building. New
development is still tenant driven versus speculative. Retail land is moving slow, but is showing signs
of life for the 1-2 acre user like QuikTrip and Wendy’s.
Asking Rents
Leasing activity is improving with decreasing vacancy rates, while rental rates have increased but are
still relatively in line with previous quarters. Retail investment sales are very active and cap rates are
going down because of the pent up demand for quality investment products.
We anticipate 2012 to be a year of growth in the retail sector as retailers appear to have improving
sales and growth plans are being discussed and implemented. The Upstate should see its fair share of
growth with continued re-positioning and new tenants coming to the market such as REI, QuikTrip and
Petco.
Click here to contact
Jimmy Wright
Top Lease Transactions
Tenant:
*NAI Earle Furman transaction
Size (SF):
Address:
Country at Heart
50,000 SF
WestGate Mall, Spartanburg
Yellow Mana Music
10,000 SF
200 Greenville Highway, Spartanburg
Factory Mattress
9,743 SF
1425 Woodruff Road, Greenville
Size (SF):
Address:
Sale Price:
Cole Real Estate Investments
173,226 SF
Anderson Midtowne Park, Anderson
$25,600,000
Top Sale Transactions
Buyer:
*LFR Holdings
*Investor
11,000 SF
7,200 SF
3 Benton Road, Travelers Rest
$1,640,000
1490 WO Ezell Boulevard, Spartanburg
$2,460,200
Some of the data in this report has been gathered from third party sources including CoStar Group, Inc. and has not been independently verified by NAI Earle Furman, LLC. NAI Earle Furman, LLC makes no
warranties or representations as to the completeness or accuracy thereof. All rents are per SF/per YR unless otherwise noted. Construction is defined as total RBA under construction. The Upstate Market
is defined by: Greenville, Anderson, Spartanburg, Cherokee and Pickens counties.
NAI Earle Furman, LLC | 101 East Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
NAI Earle Furman, LLC
Retail Report | Fourth Quarter 2011
SUBMARKET/
# BLDGS. TOTAL RBA
TOTAL AVAIL. TOTAL VACANT TOTAL NET
TOTAL AVERAGE
UNDER
CLASS
(SF)
(SF)
AVAIL (%)
Absorption (SF)
RATE ($/SF/YR)
CONSTRUCTION
(SF)
Anderson/Pickens
1,840
17,544,775
1,800,916
7.76%
Greenville
3,784
34,935,343
2,931,047
5.9%
106,685
$10.48
40,000
Travelers Rest/
Cherrydale
390
3,226,220
254,795
5.3%
(10,864)
$8.11
**14,360
Wade Hampton
576
4,774,035
556,129
8.6%
(2,463)
$8.32
0
West Greenville
Pelham Rd.
631
4,213,449
294,880
6.3%
5,632
$5.41
0
144
1,495,046
124,206
7.1%
(5,882)
$13.28
I-385/Woodruff Rd.
290
3,683,357
271,272
4.3%
32,498
$13.95
Mauldin
196
1,838,512
83,768
3.4%
2,602
$8.96
0
Fairview Rd.
253
2,631,031
228,335
5.2%
40,324
$10.18
0
South Greenville
Stone Ave/
E. North St.
253
1,426,862
107,436
5.9%
5,500
143
700,768
71,272
6.6%
Greenville CBD
95
671,310
43,368
Pleasantburg Dr.
150
1,184,468
Augusta Rd.
248
Haywood/Congaree 415
& Woodruff Corridor
Spartanburg
East Side
West Side
$8.06
*51,561
0
***14,000
$6.64
0
13,173
$7.97
0
6.9%
9,113
$15.35
***40,000
173,884
11.3%
(5,317)
$10.90
0
1,697,061
145,836
5.1%
13,027
$11.41
0
7,393,224
575,866
4.9%
9,342
$13.97
0
23,045,018
2,032,028
6.5%
39,909
$10.14
0
761
4,365,016
334,587
7.0%
7,514
$6.40
1,123
9,109,657
813,394
8.9%
11,172
$11.47
0
622
7,039,386
660,565
6.0%
19,119
$11.26
0
223,482
5.9%
2,104
2,912
Upper Spartanburg
94,375
Lower Spartanburg 406
2,530,959
$7.06 0
0
*Easley Town Center (Easley)
**Auto Zone and O’Reily Automotive (Travelers Rest)
***Petco (Woodruff Road)
****ONE development (Greenville CBD)
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
NAI Earle Furman, LLC
Methodology / Definitions / Submarket Map
Absorption (Net)
The change in occupied space in a given time period.
Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.
Average Asking Rental Rate
Rental rate as quoted from each building’s owner/
management company, For office space, a full service
rate was requested; for retail, a triple net rate requested;
for industrial, a triple net basis.
Upper Spartanburg
15.3 million SF vacant
Side &
4.13% vacancyEastHwy
rate
9
$54.14 SF/YR avg. rental
Wade
Hampton
Market Size
Includes all existing and under construction office
buildings (office, office condo, office loft, office medical,
all classes and all sizes, both multi-tenant and singletenant, including owner-occupied buildings) within
each market.
Overall Vacancy
All unoccupied lease space, either direct or sublease.
SF/PSF
Square foot/per square foot, used as a unit of
measurement.
West Side
Pelham Rd
West Greenville
Building Class
Class A product is office space of steel and concrete
construction, built after 1980, quality tenants, excellent
amenities & premium rates. Class B product is office
space built after 1980, fair to good finishes & wide range
of tenants.
Direct Vacancy
Space currently available for lease directly with the
landlord or building owner.
Uptown
Travelers Rest/Cherrydale
I-385/
Woodruff
Rd
Lower Spartanburg
Midtown
4.88 million
SF vacant
Mauldin
4.7% vacancy rate
Fairview Road
$37.53 SF/YR
avg. rental
S. Greenville
Stone Ave/E. North St.
Anderson
Downtown
Greenville CBD
N. Pleasantburg Road
11.3 million SF vacant
4.o% vacancy rate Augusta Road
S. Pleasantburg Road
$42.03 SF/YR avg. rental
Haywood/
Congaree
& Woodruff Rd.
Corridor
Sublease
Arrangement in which a tenant leases rental property to
another, and the tenant becomes the landlord to the
subtenant.
Sublease Space
Total square footage being marketed for lease by the tenant.
Sublease space is not considered in the overall occupancy
or absorption numbers - only direct leases are included.
Sublease Vacancy
Space currently available in the market for sublease with
an existing tenant within a building acting as the landlord.
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
Upstate in the News
Bi-Lo to acquire Winn-Dixie for $560 Million
By Scott Miller, GSA Business
[email protected]
Published Dec. 19, 2011
Bi-Lo Inc. CEO Michael Byars said today the grocery store chain could relocate its corporate headquarters from Mauldin
following its acquisition of Winn-Dixie for $560 million.
The company will maintain some presence in both Mauldin and Winn-Dixie’s headquarters in Jacksonville, Fla., he said, but the
extent of that remains undetermined.
“There are a number of details that are being worked on right now,” Byars said.
The merger agreement was announced today. Both the Bi-Lo and Winn-Dixie brands will survive the merger, but Bi-Lo will be the
parent company. Winn-Dixie shareholders must approve the acquisition.
If approved, Winn-Dixie shareholders would receive $9.50 in cash per share of Winn-Dixie common stock, representing a
premium of approximately 75% over the closing price on Friday.
Combined, the grocery chains will operate approximately 690 grocery stores and employ 63,000 people in eight states. BiLo employs approximately 17,000 people and operates 207 supermarkets in North Carolina, South Carolina, Georgia and
Tennessee. Winn-Dixie operates approximately 480 retail grocery locations in Florida, Alabama, Louisiana, Georgia and
Mississippi. The company employs approximately 46,000 people.
No stores are expected to close, the companies said.
“With no overlap in our markets, the combined company will have a perfect geographic fit that will create a stronger platform
from which to provide our customers great products at a great value, while continuing to offer exceptional service,” said Bi-Lo
Chairman Randall Onstead. “Bi-Lo and Winn-Dixie are both strong regional brands with similar heritages, compelling customer
connections and outstanding employees. Both have been an important part of the communities and families they serve, and we
look forward to building upon these two iconic brands and serving loyal customers for years to come.”
Bi-Lo emerged from bankruptcy protection in May 2010, and reports surfaced months later saying that the grocery chain was
marketing some stores for sale.
Byars noted that Bi-Lo filed for bankruptcy to restructure pending debt; it remained well financed and didn’t have any cash
liquidity issues. He declined to discuss figures but said Bi-Lo sales have been strong.
“We’ve had a good run the past couple of years,” he said.
The acquisition of Winn-Dixie is expected to close in 60 to 120 days. Following the completion of the merger, Winn-Dixie will
become a privately-held, wholly-owned subsidiary of Bi-Lo and Winn-Dixie’s common stock will cease trading on Nasdaq.
“This transaction with Bi-Lo provides Winn-Dixie shareholders with a significant cash premium for their shares. We believe this
transaction is in the best interests of our shareholders,” said Peter Lynch, chairman, CEO and president of Winn-Dixie. “By
combining Bi-Lo and Winn-Dixie, we anticipate building a company that is stronger than our individual businesses and creating
opportunities for continued advancement through the cross-pollination of our people and the sharing of ideas across our
organizations, all to the benefit of our guests, suppliers, team members and the neighborhoods that Winn-Dixie serves.”
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
Upstate in the News
Augusta Road residents, businesses look to the future
Area just outside downtown aims for balance
By: Cindy Landrum
The Greenville Journal - Published December 21, 2011
If Greenville’s commercial corridors were family members, Augusta Street would be a family’s well-to-do, quirky aunt.
“Augusta Street is unique to the city,” said Tracy Ramseur, the city’s development coordinator for the city’s economic
development department who grew up in the area just outside of downtown and the West End. “There’s really no other area quite
like it.”
Augusta has been called the city’s “boutique” with locally owned businesses that have been there for generations, such as
Pickwick Pharmacy and The Grey Goose, and businesses that have opened recently, such as Zoe’s Kitchen.
“Many of the owners are from Greenville and they know their customer base well,” said Cheryl Hoskins, owner of The Grey
Goose, a children’s store that started on Cleveland Street across from Sirrine Stadium before moving to the Augusta area about
a dozen years ago. “They know their retail niche.” But parts have lost some of their luster in recent years. Some of the street’s
shopping areas are looking old and tired and others have seen retailers come and go. Retail sales have decreased from $141.4
million in 2008 to $99.8 million in 2010, the years hardest hit by the recession.
“Businesses have come and gone over the years, but you’ll find that in older areas anywhere,” Hoskins said. “It looks a little
more prominent than if you look at some of the strip centers in other areas, but there are holes there as well.”
Kelly Odom, owner of Pickwick and president of the Augusta Road Business Association, said Augusta is vital because it is often
the first thing visitors see. But, he said, some areas of Augusta that need sprucing up are outside the city limits.
Mayor Knox White said a lot of older buildings exist in the corridor. “It’s looking a little blighted on Augusta Road,” he said.
But the area is still strong, he said. “Its secret of economic success is the hospital,” he said. “Augusta leans on the
neighborhood on weeknights and weekends, but depends on hospital employees during the week.”
Augusta is one of the commercial areas the city officials plan to concentrate on when it comes to façade improvements,
streetscaping and pedestrian access. An example is Augusta Village, Ramseur said. The space occupied by the Rite-Aid
Pharmacy was divided into space occupied by three businesses: Wisteria Spa, Bella’s Bridesmaid and Vestidi.
“That’s a great example of an older shopping center with not a lot of interest putting some money into their property and
generating interest,” Ramseur said. “It will be used as a model for other parts of Augusta.” Ramseur said Augusta needs a
balance of locally owned higher-end boutique-type shops with national and regional chain retailers and restaurants.
“The chains interested in Augusta Road fit in with the character of the neighborhood,” Ramseur said. Retailers that would fit on
Augusta Road are different from those who want to locate on Woodruff Road or Haywood Road.
“The national retailers know which ones are successful in places like Augusta Road. They want to be there,” Ramseur said.
“That’s their niche.”
Ramseur said retailers such as Talbots and Chico’s coincide with Augusta’s boutique feel.
“I think you need both on Augusta. You need the local stores as well as the Panera Bread and Starbucks,” she said. Hoskins
said while chains locating in the area concern her, it’s inevitable.
“Any profitable popular shopping area will end up with them at some point,” she said. “Sometimes it makes a nice mix as long as
it fits in with the flavor of the shopping area.”
Odom agrees, saying it depends on how it’s developed.
article continued on next page
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
Upstate in the News
Augusta Road residents, businesses look to the future
Area just outside downtown aims for balance
“Big box chains have come in, and I don’t want to say bullied their way in, but what they did is not cohesive with the rest of the
neighborhood,” he said. “There’s room for chains on Augusta Road, but it really all depends on how it’s developed.”
Odom said national chains are building smaller buildings in other cities such as Charlotte. “But we’re not seeing it in Greenville
yet,” he said.
Zoe’s Kitchen, which opened recently, is a regional chain that looked for a location on Augusta or in downtown for two years
before locating in the shopping center that houses Starbucks and 32 Degrees, a regional frozen yogurt restaurant.
Ramseur said she expects redevelopment of the Augusta@Faris shopping center to occur in the next year to 18 months. The
shopping center is about half empty, and faded canopies tell passers-by of the businesses that used to be there.
White said the shopping center could be demolished and new retail space built.
“It’s a challenging site with topography issues and parking,” Ramseur said.
City officials want to continue streetscaping like the work done near Starbucks in other areas of Augusta, White said. It also
plans on relocating power poles from beside the street to the back of properties from Capers to Lupo Street.
“Streetscaping and infrastructure improvements send the signal to private investors that this is a good place to do business,”
White said. “Our biggest challenge on Augusta is what to do with the old buildings and out-of-control signage.”
The city will have to have one-on-one discussions with landowners and businesses to improve and upfit their properties, he said.
Ramseur said one of the challenges on Augusta is it is not as walkable in some areas as it needs to be. Odom said he’s seeing
more pedestrians on Augusta, but said the area needs crosswalks.
“Residents and businesses are predominantly multi-generational who live, work, play, go to school, go to church in the Augusta
Road area as did their fathers and grandfathers,” said Odom, who said Pickwick has been in the Augusta Road area since 1933
and at its current site since 1947. “You don’t see that anywhere else in Greenville.”
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
Contact Us
For more information on the Upstate Retail market please contact one of our specialists:
Jimmy Wright
Principal and Broker
[email protected]
Ted Lyerly, CCIM
Broker
[email protected]
Harry Croxton
Renee Dunlap
Tommy Diangikes
Broker
[email protected]
Broker
[email protected]
Broker
[email protected]
Tim Roller
Bill Sims
Jake Van Gieson
Broker (Anderson Area)
[email protected]
Broker
[email protected]
Broker
[email protected]
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com
Additional Resources
www.naiearlefurman.com – Complete listings of NAI Earle Furman’s available properties
www.greenvilleeconomicdevelopment.com – The Greenville Area Development Corporation (GADC) is dedicated
to the growth and prosperity of Greenville County, SC. Since its founding in 2001, GADC efforts have resulted
in the creation of nearly 10,000 new jobs and more than $2 billion in capital investment in Greenville County.
The organization’s continued successes are demonstrated by the innovative, dynamic, and inviting nature of our
community.
www.upstatealliance.com – Formed in 2000, the Upstate South Carolina Alliance is a public/private regional
economic development organization designed to market the dynamic 10-county Upstate region to the world. The 10
counties of the Alliance represent the commerce-rich northwestern corner of South Carolina
www.greenvillechamber.org - The Greater Greenville Chamber at its core is dedicated to promoting quality
development of Upstate South Carolina through managed growth, service to members and the public, and a
community-wide approach to issues shaping the region's future.
www.sccommerce.com - Provides information on trade, grants, rural development, and recycling. Includes
databases of community profiles, labor market information, etc..
www.sciway.net - South Carolina's Information Highway is the largest directory of South Carolina information on
the Internet.
www.southcarolinapowerteam.com - The South Carolina Power Team promotes industrial sites & industrial
buildings in South Carolina and the state's unique advantages for industry.
www.greenvillesc.gov - Official website of the City of Greenville
www.spartanburgcounty.org – Official website of Spartanburg County government
www.greenvillecounty.org – Official website of Greenville County government
www.AndersonCountySC.org - Official website of Anderson county government
www.cherokeecountysc.com - Official website of Cherokee county government
NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601
864 232 9040 | www.naiearlefurman.com