2013 fort wayne, indiana retail market survey

2013 FORT WAYNE, INDIANA
RETAIL MARKET SURVEY
The Zacher Company/CORFAC International
444 E. Main Street, Suite 203
Fort Wayne, IN 46802
260/422-8474
www.zacherco.com
E-Mail: [email protected]
Prepared with the assistance of:
Steven K. Zacher SIOR, CCIM
Alfred J. Zacher SIOR
John M. Adams CCIM
Fletcher Moppert
Brent L. Overholt, MAI
Brian G. Bean
Joy Neuenschwander, CPM
Dan Reese
Zach Meyer
Scott Griffith
Rachel Romary
FORT WAYNE, IN
QUADRANT
2013
2013 RETAIL
2013% RETAIL
2012 RETAIL
2012% RETAIL
RETAIL TOTAL
VACANT SQ.
VACANCY
VACANT SQ.
VACANCY
PERCENT
CHANGE
2012-2013
Northwest
3,378,890
267,243
7.9%
310,766
9.7%
-1.8%
Northeast
6,339,152
1,103,030
17.4%
1,419,420
22.0%
-4.6%
Southwest
3,116,227
317,943
10.2%
334,041
10.7%
-0.5%
Southeast
1,152,981
362,340
31.4%
318,525
28.0%
3.4%
TOTALS
13,987,250
2,050,556
14.7%
2,382,752
17.2%
-2.5%
MAJOR RETAIL TRANSACTIONS—2013
RETAILER
Costco
TYPE
Superstore
Carson’s Department Department
Store
Store
NEW
SIZE
RETAILER
TYPE
NEW
FORT WAYNE
FORT WAYNE
LOCATION
LOCATION
SIZE
SEC Lima Rd. & I69, Exit 311
150,000 Sq. Ft.
Belmont Beverage
Liquor Store
3718 Dupont Rd.
7,700 Sq. Ft.
Glenbrook
Square Mall
121,958 Sq. Ft.
Planet Fitness
Fitness
Dupont & Lima
Approx. 20,000
Sq. Ft.
Marshall’s
Department
Store
Jefferson Pointe
25,000 Sq. Ft.
Red Rok BBQ & Bourbon Saloon
Restaurant
Downtown
The Landing
2,577 Sq. Ft.
Burlington Coat Factory
Clothing &
Misc.
Glenbrook
Commons
50,187 Sq. Ft.
Cosmos
Restaurant
Lima & Dupont
Rd.
4,870 Sq. Ft.
Dunham’s Sporting
Goods
Retail
Glenbrook
Commons
37,465 Sq. Ft.
Dunkin Donuts
Donut
Shoppe
Scott & Illinois
Rds.
1,500 Sq. Ft.
Goodwill Industries
of NE Indiana, Inc.
Retail
Glenbrook
Commons
12,855 Sq. Ft.
Tucanos Brazillian
Grill
Restaurant
Jefferson Pointe
Undetermined
Ollie’s Bargain City
Retail
Glenbrook
Commons
22.159 Sq. Ft.
Asakusa
Restaurant
Village at Time
Corners
3,200 Sq. Ft.
Fleet Feet Sport
Running
Village of
Coventry
2,300 Sq. Ft.
Main Street Bistro &
Martini Lounge
Restaurant/
Lounge
1st Source
Building
Downtown
5,050 Sq. Ft.
Human Motor Works
Multi Sport
Covington Plaza
5,000 Sq. Ft.
Subway Restaurant
Sub Restau- 1903 W. Coliseum
rant
Blvd.
1,464 Sq. Ft.
Hancock Fabrics
Fabric
Apple Glen
8,000 Sq. Ft.
Culvers
Restaurant
6026 Stellhorn Rd.
4,850 Sq. Ft.
Ashley Furniture
Furniture
Lima Rd.
Undetermined
O’Reilly’s Irish Bar &
Restaurant
Restaurant
The Harrison
Downtown
4,000 Sq. Ft.
3 Rivers Federal
Credit Union
Finance
The Harrison
Downtown
3,800 Sq. Ft.
Taco Bell
Restaurant
3950 E. Dupont
Rd.
2,002 Sq. Ft.
Aaron’s Sales &
Leasing
Household
Rental and
Sales
206 E. Rudisill
Blvd.
8,000 Sq. Ft.
O’Charley’s
Restaurant
6709 Lima Rd.
6,358 Sq. Ft.
Autozone
Auto Parts
3025 N. Clinton St.
14,940 Sq. Ft.
Marshall’s
Department
Store
Southgate Plaza
Closed
Autozone
Auto Parts
Southtown
Crossing
7,360 Sq. Ft.
American Health
Fitness
Fitness
Illinois Rd. & N.
Clinton St.
Closed
CVS
Pharmacy
770 E. Dupont Rd.
13,680 Sq. Ft.
Fashion Bug
Apparel
Closed 3 Locations
Closed
CVS
Pharmacy
4225 Hobson Rd.
13,680 Sq. Ft.
K-Mart
Department
Store
S. Anthony
Location
Closed
10/14/2013
MARKET OVERVIEW:
2013 Review:
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Vacancy rates declined by 2.5% over the total market. The largest declines were in the northeast quadrant and the northwest
quadrant. Vacancy rates increased in the southeast quadrant.
Costco opened their first Fort Wayne area warehouse club on October 16 at I-69 (Exit 311) and Lima Rd./State Road 3.
Kelley Chevrolet opened a new dealership adjacent to Costco at I-69 (Exit 311) and Lima Rd./State Road 3.
Carson’s Department store reoccupied the long vacant 122,000 sq. ft. former Marshall Fields/Hudson’s department store at Glenbrook
Square Mall.
Retail users are returning to downtown Fort Wayne including the opening of Anytime Fitness in the Anthony Wayne building and
3 Rivers Credit Union at The Harrison.
Three new restaurants opened downtown: The Main Street Bistro and Martini Lounge opened on the first floor of the 1st Source
building in the former Park Place restaurant, O’Reilly’s Irish Pub occupied space in The Harrison, and Red Rok BBQ and Bourbon
Saloon opened a new restaurant on The Landing.
Aldi’s started construction on a new store on West Jefferson Blvd. next to the Village at Time Corners.
Marshall’s opened a new store in Jefferson Pointe in the former Old Navy space. Old Navy relocated to the west side of the center.
Tucano’s Brazillian Grill opened in the former Food Court at Jefferson Pointe.
Eagle Pointe, a new retail strip center, is under development at Illinois Rd. (State Road 14) and Scott Rd. and will include First Federal
Savings Bank and Starbucks.
Planet Fitness will be opening their third location in Fort Wayne at Dupont Road and Lima Rd.
CVS built two new pharmacies, at Dupont & Coldwater Rds. and at Stellhorn & Hobson Rds.
The K-Mart on South Anthony Blvd. will close in the first quarter of 2014, leaving only one open K-Mart in Fort Wayne.
In October, 2013 there were 16 vacant free-standing big boxes of 20,000 sq. ft. or greater totaling 994,954 sq. ft.
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2014 Forecast:
 Interest in retail space downtown will continue to accelerate enhanced by the Ash Brokerage/Hanning & Bean development at Harri
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son between Wayne and Berry Streets, and other recent downtown residential developments.
Lease rates will be steady or slightly increasing for the most popular locations with high traffic and high visibility, especially for first
generation developments. Lease rates will be stable to falling for second generation space in less desirable locations.
Second generation users will pay significantly less than the original tenants.
The Parkview Regional Medical Center continues to attract new development to the Dupont Rd. corridor.
We anticipate that several vacant free-standing big box spaces will be converted to non-retail uses such as warehousing and selfstorage.
10/14/2013
Fort Wayne, IN Retail Properties
Quadrant
2012 Retail
2013 New
Adjust-
2013 Retail
Properties
Construc-
ments*
Properties
Sq. Ft.
tion
NW
3,209,300
169,590
0
3,378,890
NE
6,349,963
59,448
-70,259
6,339,152
SW
3,121,427
0
-5,200
3,116,227
SE
1,133,568
19,413
0
1,152,981
Totals
13,814,258
248,451
-75,459
13,987,250
Sq. Ft.
*NE - The former Kroger on E. State Blvd. was converted to climate controlled self storage units.
The Hooters Restaurant on Coliseum Blvd. burned and was demolished. SW - A Richard’s restaurant on W. Jefferson was demolished and has not been rebuilt.
Type of Center
Size (Sq. Ft.)
# of Available
Spaces
Average Asking
Rental Rates
Neighborhood
Strip
1,000 - 2,500
130
$6.00 - $18.00
2,500 - 5,000
31
$7.00 - $14.00
5,000 - 20,000
37
$5.00 - $12.50
20,000 +
4
$7.50 - $12.00
1,000 - 2,500
21
$9.00 - $14.50
2,500 - 5,000
12
$7.00 - $12.50
5,000 - 20,000
10
$7.00 - $14.50
20,000 +
3
$8.00 - $14.00
1,000 - 2,500
10
$12.00 - $20.00
2,500 - 5,000
2
$10.00 - $19.00
5,000 - 20,000
4
$9.00 - $18.00
20,000 +
1
$5.00 - $15.00
64
$4.25 - $28.00
Grocery
Anchored
Power
Stand Alone
10/14/2013
Vacant Sq.
Absorption
Vac. Rate
Ft. (000)
Sq. Ft.
Percentage
(000)
2009
2271
n/a
16.4%
2010
1895
376
13.7%
2011
2692
-797
19.5%
2012
2383
309
17.2%
2013
2051
505
14.7%
Main Street Bistro & Martini Lounge
Market Survey Areas:
NW Area Includes Zip Codes:
NE Area Includes Zip Codes:
SW Area Includes Zip Codes:
SE Area Includes Zip Codes:
46818, 46808
46805, 46815, 46825, 46835, 46845
46804, 46814, 46809
46803, 46806, 46807, 46816, 46819, 46774
Methodology:
The Zacher Company/CORFAC International retail market survey report is a compilation of data from many sources. The total amount of
square footage in the market place area was originally gleaned from reports prepared by Costar. It is reviewed annually and adjusted due
to circumstances in the market, such as new construction, re-positioning of existing buildings to another type of use, and demolition. It
includes retail buildings only and does not include flex space. The vacancy square footage is compiled from a combination of online data
from multiple major listing services, broker’s listing information from their websites and their mailings, and industry knowledge. New construction is added to the inventory upon delivery of the space, during the reporting period. Available space also includes retail spaces
available for sub-lease. The brokers in our office are involved in the creation of this report to provide the most accurate information possible.
We cannot be responsible, however, for errors, omissions, prior sale or lease or withdrawal from the market.
Prepared: 10/14/2013
10/14/2013