2016 Market Report - Plaza Commercial Realty

Plaza Commercial Realty
2016 Market Report
for Columbia, Missouri
Le s s o n s i n
C O M M E RC I A L R E A L E S TAT E
LOCATION + TIMING
Sale
OUTCOME
lease
OUTCOME
RIGHT
RIGHT
SOLD
full
RIGHT
WRONG
HOLD
show
WR0NG
RIGHT
cOLD
slow
WRONG
WRONG
fOLD
no
573-445-1020
www.PlazaCommercialRealty.com
©2016 Plaza Commercial Realty
Plaza Commercial Realty 2016 Market Report
Introduction​ The Plaza Commercial Realty 2016 Market Report is a snapshot of the Columbia, MO
commercial real estate market. It is intended to provide objective data to parties involved in real estate
transaction and investment decisions. We are confident that our 29-year history of providing sound
commercial real estate perspectives in this area will provide our customers and clients with valuable
insights, contributing to informed business and investment decisions throughout 2016.
Suburban Market Method​ The suburban market survey encompasses metro Columbia, MO. We
included privately owned facilities leased to government agencies, universities, colleges and schools in the
surveyed square footage, as well as facilities that these entities own and occupy, when such described
facilities are situated off their main campus.
Owner-occupied property, as well as investor-owned property, is included in the suburban market
surveyed square footage. Actual use of the facility, and not its underlying zoning district, is the basis for
each property’s inclusion in the stated category of retail, office, or industrial. In instances where mixed uses
occur, we used our best judgment in allocating the appropriate square footage to each category: “actual
use” if occupied, and “most likely use” if unoccupied.
The suburban market survey does not include: churches, daycare facilities, elementary, middle, and
secondary education schools, colleges and universities, and other buildings on those main campuses. Also
not included are: convenience stores, car washes, self-storage facilities, hotels and motels or their banquet
facilities, government owned and occupied facilities such as city hall or county administrative buildings,
hospitals, transitional housing and shelters, park offices and recreational buildings within those public parks,
the county fairgrounds, or commercial multifamily housing and its “on-site” management offices. The
Central Business District totals are excluded from the overall suburban market totals and are instead the
subject of an entirely different methodology and report detailed below.
CBD Market Method
The Central Business District, (CBD) is defined by the boundaries of Columbia’s
Downtown Community Improvement District (DCID). Its surveyed results are detailed separately within this
report from those of the suburban market. Unlike the suburban market, the CBD survey includes city hall,
county administrative buildings, churches, university and college buildings, and schools, located within the
DCID boundaries. We have categorized these broad range uses of facilities as “tax generating” properties
(i.e. those that pay property taxes) and “tax exempt” properties (i.e. those that do not pay real estate taxes).
Other business use categories are also summarized.
Sincerely,
Paul Land, SIOR
Mike Grellner, SIOR
Owner, Plaza Commercial Realty
Vice President, Plaza Commercial Realty
Individual Membership
Society of Industrial and
Office Realtors®
Individual Membership
Society of Industrial and
Office Realtors®
Building DefinitionS (from Commercial Investment Real Estate Journal)
Class A Building has an excellent location and access to attract the highest-quality tenants. Meets or exceeds building
code. Building is of superior construction and finish, relative to new or competitive with new buildings, and provides
professional on-site management. Rents are competitive with new construction.
Class B Building has a good location, management, construction, and tenancy. Construction and physical condition
are good and meet building code. May suffer some physical deterioration or functional obsolescence. Rents are below
those of Class A buildings and new construction, but may be able to compete at the low end of Class A market.
Plaza Commercial Realty 2016 Market Report for Columbia, Missouri • ©2016
2
573-445-1020
COLUMBIA, MISSOURI
Office Summary
January 1, 2015
Total Square Footage Total Vacant Square Footage Columbia Vacancy Rate
U.S. Vacancy Rate 5,448,784
354,679
6.51 %
15.60 %
Total Square Footage Total Vacant Square Footage Columbia Vacancy Rate
U.S. Vacancy Rate 7,410,720
440,526
5.94 %
9.60 %
Total Square Footage Total Vacant Square Footage Columbia Vacancy Rate
U.S. Vacancy Rate 8,487,505
539,720
6.36 %
8.40 %
Rental Range
COLUMBIA, MISSOURI
Retail Summary
January 1, 2015
Rental Range
COLUMBIA, MISSOURI
Industrial Summary
January 1, 2015
Rental Range
3
Plaza Commercial Realty 2016 Market Report for Columbia, Missouri • ©2016
Columbia
College
Rogers
9th
Cherry
Hitt
8th
6th
5th
Peace
Park
10th
Missouri
Theatre
Elm
MK
Providence
Locust
Locust
T Trail
Chamber of
Commerce/
Convention and
Visitors Bureau
Stephens
College
College
Flat
Branch
Park
The
District
Office
Walnut
Waugh
8th
7th
6th
5th
4th
10th
City
Hall
North Village
Arts District
Short
Orr
Walnut
East Broadway
St James
10th
9th
Boone Co
Courthouse
Ash
Hitt
Walnut
8th
Ash
6th
4th
163
7th
5th
Park Ave
St Joseph
Otto
Lyon
University
of Missouri
Boundaries of survey area (DCID)
Tax exempt properties
Downtown Community Improvement District
Commercial Property Highlights
(excluding residential)
Total Square Footage: 37% is tax-exempt sq ft
63% is tax-generating sq ft
1.78% of total space VACANT
2,940,920
1,085,654
1,855,266
50,949
Use Categories
(as a % of total sq ft excluding residential)
9.45% Restaurant/Entertainment
9.49% Government 21.11%Education/Religious
6.73% Financial Services
Plaza Commercial Realty 2016 Market Report for Columbia, Missouri • ©2016
4
278,000
279,228
621,026
197,787
573-445-1020
Unemployment Rates Boone County vs. Missouri
10%
Source: Missouri Economic Research and Information Center
8%
6%
6.5%
0
5.4%
4.7%
4%
2%
9.6%
5.4%
3.3%
3.8%
3.5%
1.8%
2.1%
1995
2000
Missouri
Boone
County
2005
2010
2015
University of Missouri-Columbia Enrollment History
Boone County Assessed Valuation
40,000
Business Licenses
Data courtesy of Boone County Assessor’s Office
Data courtesy of City of Columbia
Billions
35,000
30,000
25,000
20,000
15,000
40000
5
35000
1965
1975
1985
1995
2005
Plaza Commercial Realty 2016 Market Report for Columbia, Missouri • ©2016
2015
573-445-1020
Columbia, Missouri Metro Area
Rd
B rown Rd
Station
N Brown
B
rc
he
N Rte
N R oge r s R d
N W yat t Ln
N Lake of the W oods Rd
N B a l l e nger L n
Sa
Keene St
131
To Fulton 34 miles
To St. Louis 125 miles
70
I-70 Dr SE
E Rich l and Rd
American
Legion
Park
E New Haven Rd
A. Perry
Phillips
Park
Discovery
Ridge
Gans Rd
Gans
Creek
Recreation
Area
E Bass Ln
E Bonne Femme Church Rd
163
To Jefferson City 32 miles
To Lake of the Ozarks 74 miles
63
David Allen Rd
2 miles
1 mile 1/2 mile
M
iss
ou
ri
Ri
ve
r
N
Three Creeks
Conservation
Area
Office Buildings
n Buyer/Tenant Representation
Retail Buildings
Industrial Buildings
Investments
n Market Studies/Review
n Opinion of Market Value
n Corporate Relocation,
Expansion and Exit Strategies
n Lease Agreement Review
n Sale Contract Review
n Build-To-Suit Offerings
573-445-1020 • www.PlazaCommercialRealty.com
2501 Bernadette, Columbia, MO 65203 • Fax: 573-445-2613 • E-mail: [email protected]
6
Plaza Commercial Realty 2016 Market Report for Columbia, Missouri • ©2016
E Bowling Ln
E Ve m e r s F o r d R d
Business Property Leasing & Sales
E C a r t e r S c h o o l Rd
S Olivet Rd
New Haven Ave
PI ERPONT
n Seller/Landlord Representation
133
E Turner
Farm Rd
o
Rock Bridge
State Park
n Exclusive Representation of:
CAJF
WW
Maguire Blvd.
Lemone Industrial
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Sta
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Bro
Rd
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Nifong
Park
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nc
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Saint Ch arles Rd
S Rangeline Rd
Po
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Lake of the
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Tradewinds Pkwy
nR
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N
Ki
N Oakland Gravel Rd
Oakland Gravel Rd
Conley
Old 63 S
Grindstone Pkwy
E Ni f on g Bl v d
163
© 2014 Maximum Media, Inc.
800-795-5207
PO Box 776 Columbia, MO 65205
www.maximummediainc.com
Sa i n t
Club at
Old Hawthorne
S Ro c k Q u a r r
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Bethel St
AC
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Columbia
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Rd
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S Bear field Rd
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Brown
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Country Club
740
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Creek Rd
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163
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Creek Rd
Tr
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Pa
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College
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Stewart
Gr
70
127
E Moun t Hope R d
r Rd
S Ben Williams Rd
s
126
Vandiv er Dr
Al Gustin
Golf Course
Country Club
of Missouri
chool Rd
ay
S tadiu
Hill Rd
(Boone County
Fairgrounds)
a r ry R d
at
W Va w t e r S
La
HH
E H el ler Rd
Waco Rd
E Sm iley Ln
Albert
Oakland
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SR
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W Broadw
r
Bl ue Ri dge R
d
70
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Chapel
Twin Lakes
Recreation Area
N C r easy
S p rings Rd
Rd
B la c k f o o t
Ind
ustr
ial
Sunflower
Rd
Grant Ln
Chap el Hill
R o l l in s Rd
Hulen
Lk
763
125
Dr
Central Missouri
Events Center
Boone Industrial
d
Columbia
Cosmopolitan
Recreation
Park
740
rail
TT
MK
La
Nickell
Golf
Course
Fair view Rd
Scott Blvd
ville
w Trout
Louis
a de tte
E O a k l a n d C h u rc h R d
E Stark e Av e
Rainforest Pkwy
124
Bonnie View
Nature
Sanctuary
Fairview
Park
Rainbo
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Bern
S i l v e y St
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m
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Barberry
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70
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tad
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UU
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rR
Manor
Hitt
WW
Wilcox Rd
NS
To Rocheport 12 miles
To Boonville 22 miles
To Kansas City 126 miles
W Gil
Tower
N e a l Rd
B r o w n S c h o o l Rd
kR
10th
E
University
of Missouri
121
UU
E P r a t h e r s vi l l e R d
O
Hitt
9th
10th
8th
6th
5th
8th
Elm
Peace
Park
He
W We hmey e r Rd
To Moberly 35 miles
To Kirksville 90 miles
Locust
M I D WAY
nd
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Rd rson
Wagon Trail
re asy S
NC
p ri n g s R d
Walnut
VV
N
Locust
T Trail
W
7th
6th
5th
4th
Prov idence
Cherry
Flat
Branch
Park
MK
40
10th
Walnut
East Broadway
N Locust Grove
Church Rd
W We s t l a k e R d
Ash
Short
Walnut
North
Village
Arts
District
Orr
l Rd
4th
Ash
E Oaklan d Chu rch R d
N Lidde l l
Ln
e
7th
5th
Ch
N Locust Grove Church Rd
o
ap
9th
Park Ave
n
8th
t
6th
WH
at
B
Rd
63
W Mauller Rd
E
S R olling Hills Rd
WOB
is
N B e ll R d