Florida Retail Report - Strathmore Development Co.

Transcription

2009
Florida Retail Report
ICSC 2008 West Florida
Idea Exchange
February 2-3, 2009
Grand Hyatt Tampa Bay
Tampa, FL
International Council of Shopping Centers
2009
rEGIONAL oVERVIE W
2
Tuesday, February 3, 2009 9:45AM - 10:45AM
This panel will feature industry experts who will be speaking on a wide range of topics affecting the
retail market, specifically in West Florida. The discussion will review recent activity in the market,
insights for where the market is headed, as well as discussions of hot projects and key factors to
watch. Justin Greider will also be presenting the 2009 Spring Retail Report.
Steven Steubs
Rod Castan
John Crossman
Justin Greider
President
AVID Group
Vice President
Courtelis Company
President
Crossman & Company
Seth Layton
Associate Director
Holliday, Fengolio, Fowler L.P.
Written Report Authors & Contributors
Justin M Greider
Claire Thomas
HFF
Crossman & Company
[email protected]
[email protected]
Ben Carter Properties
Brandon Partners
CBRE
Colliers Arnold
Courtelis Company
CREC
Crossman & Company
Edens & Avant
Equity One
Florida Retail Development
Florida Retail Partners
Haskel Realty
HFF (Holliday Fenoglio Fowler, L.P.)
Joyce Development Group
Lake Nona Development
Madison Marquette
Michael Collard Properties
North American Properties
Pelican Bay Development
Phoenicia Development
RAM Real Estate
Regency Centers
Retail Planning Corp
The Sembler Company
SouthLand Commercial, Inc.
The Shopping Center Group
Southeast Centers / SEC Commercial
Stiles Corp / Stiles Retail Group
Strathmore Development Company
Unicorp Development
Weingarten Realty Investors
The Wilder Company
Woolbright Development
Table
of
Contents
The Consumer...............................................................................4
Fundamentals - The Florida Retail Market.................................6
UF Survey of Emerging Conditions..............................................7
Capital Markets Overview...........................................................8
Tampa / St. Petersburg................................................................6
Pasco & Hernando.......................................................................8
Port St. Lucie...............................................................................9
Miami / Dade..............................................................................10
Orlando.......................................................................................12
Central Florida...........................................................................15
Broward......................................................................................16
Palm Beach................................................................................18
Jacksonville................................................................................20
Fort Myers / Cape Coral............................................................22
Naples.........................................................................................24
Sarasota / Bradenton................................................................25
The Panhandle...........................................................................26
Tallahassee................................................................................27
The Villages................................................................................28
Ocala..........................................................................................29
tABLE OF cONTENTS
3
2009
Existing Home Sales
Florida Grocery Market Share
Existing Home Sales
5,750,000
# of Stores
% Mkt.
Publix
680
40.2%
0.4%
2
Walmart Superctr.
159
24.0%
-0.5%
3
Winn-Dixie
357
13.4%
-0.7%
4
Albertsons
93
4.1%
-0.1%
5
Sweetbay
110
3.0%
0.1%
6
SuperTarget
38
2.6%
0.6%
7
Walmart Neigh.
20
1.4%
0.3%
$190,000
8
Save-A-Lot
76
1.2%
-0.1%
9
Military
10
0.8%
0.0%
$180,000
10
Whole Foods
15
0.8%
N/A
11
Sedano's
29
0.7%
0.0%
All Others
558
7.8%
-0.8%
$230,000
Median Sale Price
5,500,000
$220,000
5,250,000
$210,000
5,000,000
$200,000
4,750,000
4,500,000
4,250,000
08
De
c-
8
t-0
gAu
Oc
08
08
n-
08
r-
Ju
Fe
Ap
b-
07
c-
7
De
Au
Oc
t-0
07
g-
nJu
08
$170,000
07
4,000,000
Source: National Association of Realtors
Residential Housing Starts (In Thousands)
600
500
400
300
200
08
20
07
20
06
20
05
20
04
20
03
100
Source US Census Bureau
Retail Spending
13.0%
$1,200,000
Total Retail Sales
$1,150,000
Grocery Store Sales
(As % of Overall Sales)
12.5%
$1,100,000
12.0%
$1,050,000
$1,000,000
11.5%
$950,000
11.0%
$900,000
08
20
07
20
06
20
05
20
20
20
04
10.5%
03
$850,000
Source: US Census Bureau
Consumer Confidence - US vs Florida
100
90
80
70
US
Florida
60
08
20
07
20
06
20
05
20
04
20
20
03
50
US Data Source University of Michigan Survey of Consumers / Florida Data Source University of Florida
4
Retailer
1
$240,000
6,000,000
20
The Consumer
12
Source: Shelby Report of the Southeast
vs YE07
Florida Statewide Capital Markets Trends
Florida Historical Rent & Occupancy
$9.00
9.0%
Occupancy
Rolling 12-Mo Volume
(In Billions)
$8.00
$18.50
96.0%
8.5%
Average Cap Rate
$7.00
8.0%
$6.00
95.0%
Rental Rate
$18.00
94.0%
$17.50
93.0%
$5.00
$17.00
7.5%
92.0%
9.0%
(In Billions)
6.5%
$15.00
6.0%
8
YE
Y
'0
'0
8
7
M
YE
Y
'0
'0
7
6
M
YE
Y
'0
'0
6
5
'0
M
YE
93.0%
$17.50
'0
Occupancy
92.5%
$17.00
Rental Rate
92.0%
$16.50
91.5%
$16.00
91.0%
$15.50
8
YE
M
Y
'0
'0
8
7
M
YE
Y
'0
'0
7
6
M
YE
Y
'0
'0
6
5
'0
YE
M
YE
Y
'0
5
4
'0
4
'0
Y
M
Neighborhood and Community Center Rental & Occupancy Rates taken from REIS, Inc
National Completions & absorptions
45
Completions
Net Absorption
35
25
15
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
-5
03
5
20
Source: Real Capital Analytics
5
$18.00
YE
M
Y
'0
7
'0
YE
M
Y
'0
6
'0
YE
M
Y
'0
5
'0
YE
M
Y
'0
4
'0
YE
8
$25.00
8
7.0%
7
$35.00
6
7.5%
5
$45.00
4
8.0%
'0
National Historical Rent & Occupancy
93.5%
8.5%
Average Cap Rate
$55.00
Y
YE
Y
M
Nationwide Capital Markets Trends
$75.00
M
'0
'0
8
M
Neighborhood and Community Center Rental & Occupancy Rates taken from REIS, Inc
$65.00
$15.50
'0
89.0%
$16.00
4
6.0%
Y
'0
YE
M
90.0%
'0
7
7
Y
'0
M
YE
'0
6
6
Y
'0
YE
'0
5
5
'0
Y
M
M
YE
Y
'0
'0
4
4
$1.00
6.5%
Y
$2.00
$16.50
91.0%
M
7.0%
$3.00
4
$4.00
-15
Source: REIS, Inc
5
2009
Tampa / St Petersburg Market Highlights
• Renovations of University Mall were completed in 2008
• BayWalk retail / entertainment complex is being put up for auction,
stirring hope the project will be able to be rejuvenated
• Super Bowl XLIII hosted in Tampa
Local Economy
The Tampa/St. Petersburg/Clearwater area has been
a premier location for 2008/2009 sports fans, bringing
in 1,811,986 attendees during the season as well as
the recent Super Bowl XLIII.
Workforce Size
Unemployment Rate
MY08
YE08
Change
1,348,365
1,356,433
0.59%
5.6%
7.8%
2.20%
Source: Florida Research and Economic Database
Occupancy
8
'0
'0
Y
M
YE
8
7
'0
YE
M
Y
'0
7
6
YE
M
Y
'0
'0
6
5
'0
YE
M
Y
'0
5
4
'0
YE
Y
'0
4
Rental Rate
Neighborhood and Community Center Rental and Occupancy Rates taken from REIS, Inc
Tampa Retail Leasing Data
Submarket Name
Clearwater / North Pinellas
East Hillsborough County
NW Hillsborough / Westshore
Pasco
St. Petersburg / South Pinellas
Inventory
8,717,000
8,392,000
8,637,000
6,514,000
6,456,000
Tampa-St. Pete Market Total 38,716,000
Neighborhood and Community Center Rental and Occupancy Rates Source: REIS, Inc.
6
Tampa MSA Employment Data
Tampa is a largely populated city with infinite opportunities available for all ages. In 2008, Forbes ranked
Tampa as the 5th best outdoor city. City leaders are looking to draw more people to the downtown
area in hopes to support the local market. Putting aside the downturn in condo projects, this should
attract some traffic to the area where many
Tampa Historical Rent & Occupancy
will find vacant spaces. St. Petersburg
95.0%
$14.50
has finished major renovations to the fine
$14.00
94.0%
arts museum downtown, which is located
$13.50
next to retail. Additionally, the Salvador
93.0%
Dali Museum has broken ground on a new
$13.00
museum in downtown St. Petersburg, as
92.0%
$12.50
well as a new Chihuly Museum. These
91.0%
$12.00
updates and additions will draw some
appeal to these areas.
90.0%
$11.50
M
Tampa / St. Pete
Occupancy Rate
MY08
YE08
Change
MY08
Rental Rate
YE08
Change
91.6%
92.3%
94.8%
92.2%
91.2%
90.5%
91.7%
94.1%
86.4%
91.1%
-1.0%
-0.6%
-0.7%
-5.8%
-0.1%
$15.92
$15.74
$18.39
$13.04
$13.60
$13.72
$12.41
$15.46
$9.89
$11.76
-13.8%
-21.2%
-15.9%
-24.2%
-13.5%
92.5%
91.0%
-1.5%
$13.94
$12.85
-7.8%
Market Makers
Tampa Capital Markets Trends
Gibsonton Square
Strathmore Development Company - Riverview
225,000 SF - Wal-Mart Shadow - Breaks Ground 1Q 2009
8.5%
$1.10
(In Billions)
8.0%
Average Cap Rate
$0.95
$0.80
7.0%
$0.50
6.5%
$0.35
8
M
Y
'0
7
'0
YE
7
M
Y
'0
6
'0
YE
6
M
Y
'0
5
'0
YE
'0
M
YE
Y
'0
'0
4
5
6.0%
4
$0.20
Y
City Plaza at Tampa Palms
Crossman & Company - New Tampa
154,000 SF Publix & SteinMart - Renovation Late 2009
$0.65
M
MetWest International
MetLife - Westshore
75,000 SF of Retail in 1 Million SF Project - Underway
7.5%
Riverview Bell Plaza - Phase I
DeBartolo Development - Riverview
205,107 SF Big Box Anchored - Opening 2010
Pavilion Shoppes
Stiles Corp. / Adler Group JV - Brandon
85,000 SF Grocery-Anchored - Opening Late 2009
Publix at Southshore Village
Concordia Properties - Ruskin
82,000 SF Publix Anchored - Opening Spring 2010
Woodlands Square
RAM Real Estate - Oldsmar
298,883 SF - AMC, Marshalls - Renovated 2008
Mears Town Center
DeBartolo Development, AG Development, Forge Capital
96,000 SF Sweetbay Anchored - Phase I Starting Feb-09
Walden Woods Shopping Center
Publix / RMC Property Group - Plant City
Redevelopment Including New Publix - Completed 2008
University Mall
GGP / Someroch Holdings
Renovations Completed November 2008
Publix at Treasure Island
Publix / Equity Ventures - Treasure Island
28,888 SF Publix Opened August 2008
Barclay Square
Edens & Avant - Largo
Redevelopment into Wal-Mart Neighborhood Market
Completion Summer 2009
Recent Shopping Center Sales
Property
City
SF
Land 'O
80,000
(Anchor)
Arbor Square at
Connerton
(Publix)
2007
$17.8
CAP
Rate
N/A
Lakes
Midway Plaza
Largo
127,198 1958/
$8.7
N/A
1985
Riverview
Dec.
Buyer
Seller
96%
Familat Holdings
Stiles Corp.
61,676
2002
Jul
92%
Equity Investment
Lincoln National
2008
$6.4
N/A
(Albertson's)
Jan
Group
100%
Mimms Enterprises
2008
Marketplace at
Cypress Creek
Sale
Date Occ.
2008
(Publix)
Bloomington Hills
Year Price
Built $Mil
Tampa
(Sweetbay)
75,100
1989
$8.6
N/A
Sept.
2007
Developers
Diversified
N/A
Praedium Group
Capital Realty
Investors
Sales Comps From HFF, L.P. Proprietary Research & Real Capital Analytics
7
2009
Pasco / Hernando
Pasco / Hernando Economy
Hernando County development activity continues to
be most prevalent in the southwest sector within the
Spring Hill area. Employment in Hernando County
is influenced by the retail trade, health care, and
the accommodations/food service industries. These
employment industries account for approximately
53% of the jobs in Hernando County.
Pasco County Employment Data
Workforce Size
Unemployment Rate
MY08
YE08
Change
197,347
198,842
0.75%
6.5%
8.9%
2.40%
Hernando County Employment Data
Workforce Size
MY08
YE08
Change
63,346
64,187
1.31%
7.4%
10.2%
2.80%
Pasco County is ranked as one of the fastest growing Unemployment Rate
counties in Florida, according to The St. Petersburg
Times. The increasing growth of relocating families
is shown in its student enrollment to the local schooling system, increasing from 46,458 students in the
1999-2000 school year to 65,126 in the 2007-2008 school year, an increase of 40.2%. The proximity of
Pasco County to the Bay Area enables residents to commute to work.
Market Makers
Summertree Plaza
Century Retail - Zephyrhills
64,200 SF Publix Anchored - Recently Opened
Nature Coast Commons
Opus South Corporation - Spring Hill
350,000 SF JC Penny Anchor - Phase I Open
Hays Town Center
Dunphy Properties - SR 52
105,000 SF Publix-Anchored
Delivery Feb 2011
Terra Bella
Boyd Development Corporation - Wesley Chapel
14 Acre Retail Development
Shoppes at Avalon
Stiles Corp JV Publix
62,450 SF Publix Anchored - Break Ground 1Q 09
Shoppes at Sunlake
Equity One - Pasco County
120,000 SF Publix Anchored - Opened Dec-08
Suncoast Crossings
Regency Centers - Spring Hill
381,856 SF Target & Kohl’s Anchored
Kohl’s Open, Target Opening July-09
Property
(Anchor)
Fairway Oaks
City
SF
Port Richey
79,283
Year Price
Built $Mil
1994
$7.6
CAP
Rate
N/A
(Publix)
Holiday
Universal Plaza
New Port
Merchant's Square
67,363
90,631
1994
$8.5
N/A
1978
$5.3
7.5%
Richey
Zephyrhills
(Sweetbay)
8
Sept.
84%
2008
Holiday Centre
(Publix)
(Unanchored)
Sale
Date Occ.
Buyer
Seller
Forge Capital
Case Pomeroy
Partners
Nov.
2007
96%
Sunray Holiday LLC
Robert Schmidt
Jun.
N/A
N/A
Equity Partners RE
Phillips Edison
DDR
2007
74,848
1993
$7.6
7.3%
Jun.
2007
100%
Martin / St. Lucie Economy
St. Lucie County Employment Data
MY08
YE08
Change
Martin County is a great location for growth, has an Workforce Size
189,912
192,721
1.46%
educated workforce and a pro-business government. Unemployment Rate
6.9%
9.5%
2.60%
St. Lucie County’s 572 square miles contain two major Source: Florida Research and Economic Database
cities, Fort Pierce in the north and Port St. Lucie in the
south. In 2004, Port St. Lucie ranked the 2nd safest city in Florida and the 24th safest city in the country.
In 2007, Port St. Lucie’s Mann Research Center closed on a 22-acre parcel. It intends to build up to six
buildings, which would include approximately 100,000 SF of medical office space and 300,000 SF of research
and development facilities, with a small amount of support retail. In September 2006, Torrey Pines Institute
for Molecular Studies announced an expansion commitment to St. Lucie County. On January 8, 2008
the Economic Development Council of St. Lucie County announced that the Oregon Health & Science
University would be establishing a local presence with the Vaccine and Gene Therapy Insitute (VGTI).
Market Makers
Town Center at St. Lucie West
Benderson Development
Beall’s Anchored Opened Apr-2008
Century Town Center
Century Retail - Vero Beach
100,000 SF Marshalls, HomeGoods, & PetCo
Recently Opened
Coral Square Shoppes
Tulepan Management - Port St. Lucie
180,000 SF Grocery Anchored
Breaking Ground Feb-2009
Jensen Beach Retail
DeBartolo Development - Jensen Beach
50,000 SF Retail Planned
The Landing at Tradition
Tradition Development Corp. / Core Communities
Target, BB&B, Michaels, TJ Maxx, LA Fitness,
Sports Authority, Office Max, PetsMart, Old Navy,
Pier 1 & Ulta - Grand Opening Oct-2007
Old Palm City Shopping Center
Publix & Trion Group - Palm City
17,420 SF Planned Expansion
Stuart Publix
Publix Supermarkets - Stuart
56,500 SF Publix Anchored - Opening Q2 09
Port St. Lucie
Property
(Anchor)
Ocean Breeze Plaza
(Publix)
Port St. Lucie Town
City
SF
Jensen
108,209
Year Price
Built $Mil
CAP
Rate
1985
$14.7
N/A
Aug
1996
$18.0
8.0%
Mar.
Beach
Ft. Pierce
96%
2008
Vero Beach
329,361
1994
$38.3
N/A
Outlet Center
Pineapple Commons
N/A
Buyer
Seller
Century Retail
Oct
Port St. Lucie
Stuart
249,100
2005
$43.9
N/A
Jul.
2007
PSL Town Center LLC
Suburban LLC
N/A
Taubman Co.
2001
(Best Buy, Ross, PetsMart)
Glenmorris LLC
2008
152,150
Center (Bealls, Staples)
Tanger Vero Beach
Sale
Date Occ.
Urdang & Assoc
JV Stoltz Real Estate
100%
Weingarten JV PNC
Ram JV Debartolo
Bank
9
2009
Miami Market Highlights
• Miami remains a sought after market with the highest transaction
volume, price PSF, and lowest cap rate in Florida for 2008
Miami
• Despite falling .5% in the second half of 2008, Miami’s occupancy
remains the highest in the state, led by the South Dade
submarket at over 96%
Local Economy
This global metropolis in the southeastern part of
Miami / Dade MSA Employment Data
MY08
YE08 Change
Florida has been attracting residents to the area for
Workforce
Size
1,207,086
1,200,504
-0.55%
years. Miami is the seventh-largest metro area in the
Unemployment Rate
4.7%
5.5%
0.80%
country and is called a global city for its significance Source: Florida Research and Economic Database
in finance, commerce, media, entertainment and
international trade. Major employers in the area are the University of Miami, American Airlines,
United Parcel Service, & Carnival Cruise Lines. In 2008, Miami was ranked the 3rd-richest city in
the United States and the world’s 22nd-richest city in a UBS study. Due to Miami’s location, it serves
as the headquarters of Latin American
Miami Historical Rent & Occupancy
operations for more than 1400 multinational
97%
$22.50
corporations.
$22.00
Occupancy
Rental Rate
$21.50
96%
$21.00
$20.50
95%
$20.00
$19.50
94%
$19.00
$18.50
8
'0
'0
Y
M
YE
8
7
'0
YE
M
Y
'0
7
6
YE
M
Y
'0
'0
6
5
'0
YE
5
'0
Y
M
'0
YE
'0
Y
M
4
$18.00
4
93%
Miami’s entertainment industry has allowed
for lucrative marketing opportunities
recently. In the Dolphin Stadium alone, it
hosted 75th Fedex Orange Bowl and the BCS
National Championship game in January of
2009. There are three professional sports
teams that are home to Miami: baseball,
basketball and football.
Miami Retail Leasing Data
Submarket Name
Coral Gables / Kendall / Richmond
Miami / Miami Beach
Opa-Locka / Norland / Hialeah
South Dade
West Dade
Miami Market Total
Inventory
MY08
Rental Rate
YE08
Change
6,791,000
5,479,000
4,142,000
2,547,000
4,208,000
96.4%
93.4%
93.3%
95.8%
94.8%
95.7%
93.3%
93.1%
96.1%
93.5%
-0.7%
-0.1%
-0.2%
0.3%
-1.3%
$27.43
$24.61
$21.12
$18.27
$24.06
$22.80
$24.61
$17.01
$15.51
$19.78
-16.9%
0.0%
-19.5%
-15.1%
-17.8%
23,167,000
94.8%
94.3%
-0.5%
$22.06
$20.84
-5.5%
10
Occupancy Rate
MY08
YE08
Change
Market Makers
Miami Capital Markets Trends
The Westchester
Midwood Investment & Development - Westchester
200,000 SF Publix, TJ Maxx, & Home Depot - Underway
$1.40
Miami Airport Village
Courtelis Company & The Easton Group
500,000 SF Mixed-Use Project - Planned Opening 2011/12
$0.80
8.5%
(In Billions)
$1.25
8.0%
Average Cap Rate
$1.10
7.5%
$0.95
7.0%
$0.65
6.5%
$0.50
6.0%
$0.35
The Palms Town & Country
Flagler Development Group - Kendall
700,000 SF Publix, Kohl’s, Nordstrom Rack
Phase I Open, Phase II Under Construction
8
M
Y
'0
7
'0
YE
7
M
Y
'0
6
'0
YE
6
M
Y
'0
5
'0
YE
'0
Y
M
M
YE
Y
'0
'0
4
5
5.5%
4
$0.20
Flamingo Park Plaza
Saglo Development Corp. - Hialeah
149,000 SF Navarro Pharmacy - Completion Oct-2008
West Sunset Square
Woolbright Development - West Kendall
82,885 SF Retail Development - Opened Late 2008
Eureka Promenade
Brandon Partners - Miami
81,081 SF Publix Anchored - Opening Early 2010
Fifth and Alton
Berkowitz Development - Miami Beach
Publix, Best Buy, and Staples Anchored - Summer 2009
Promenade at Silver Palm
Brandon Company / Publix JV - Miami
72,931 SF Publix Anchored - Planned
127th Street Shopping Center
Monroe’s Prestige Group - North Miami Beach
165,248 SF Publix Anchored Redevelopment
Construction Beginning Fall 2008
Property
City
SF
Opa Locka
47,285
(Anchor)
Stadium Corners
Year Price
Built $Mil
2007
$8.3
CAP
Rate
6.3%
(Super Wal-Mart, Office Depot)
Town & Country
Plaza
Miami
94,816
1991
$22.5
6.9%
100%
Oct
Buyer
Seller
Stadium Corners
Echion Co
SC LLC
100%
MMG Equity Partners
Town & Country Inc
98%
CalPERS JV Equity One
Courtelis
100%
Wal-Mart Stores
2008
Miami
172,093
1971
$37.0
6.3%
(Publix)
Beacon Centre
Dec
2008
(Sedano's)
Airpark Plaza
Sale
Date Occ.
Feb.
2008
Opa Locka
(Circuit City & Office Max)
87,005
1993
$15.9
6.2%
Aug
2007
Principal Real
Estate Investors
11
2009
Orlando Market Highlights
• Winter Garden Village at Fowler Groves was the largest retail asset
sale in the Southeast in 2008 at $180.4 million
Local Economy
Orlando has a wealth of attractions for visitors and
Orlando MSA Employment Data
MY08
YE08 Change
residents alike and consistently ranks as a leading
Workforce
Size
1,115,410
1,130,901
1.37%
place to conduct business. This Central Florida City
Unemployment Rate
5.0%
7.3%
2.30%
has a number of significant new projects underway Source: Florida Research and Economic Database
such as the new medical city at Lake Nona featuring
the UCF College of Medicine and Burnham Institute for Medical Research. This 600-acre site will also
be home to the $656 million Orlando VA Medical Center, Nemours Childrens Hospital, MD Anderson’s
Orlando Research Institute, and a UF
Orlando Historical Rent & Occupancy
Research Center. The project is projected
$22.00
96%
to have an impact of billions of dollars to
95%
the local economy as well as generate
$21.00
94%
thousands of jobs.
Occupancy
Rental Rate
93%
$20.00
92%
$19.00
91%
90%
$18.00
89%
8
YE
'0
Y
M
Orlando is home to the University of
Central Florida, which is the second
largest university in Florida in regards to
student enrollment and has the 6th largest
enrollment count in the nation.
'0
8
7
'0
YE
'0
Y
M
YE
7
6
'0
6
'0
Y
YE
M
'0
5
'0
M
Y
'0
YE
'0
Y
M
5
$17.00
4
88%
4
Orlando
• SoDo opens with great fanfare near Downtown with SuperTarget,
TJ Maxx, and 24 Hour Fitness
Property
City
SF
Winter Garden Village
Winter
758,988
at Fowler Groves
Garden
Tuscawilla Bend
Oviedo
(Anchor)
Year Price
Built $Mil
2007
$180.4
CAP
Rate
7.4%
83,377
Apopka
1994
$11.9
6.3%
148,100
1985/
$34.0
N/A
$42.4
N/A
2001
Kissimmee
(Target, Jo-Ann Fabrics)
12
Buyer
Seller
95%
Cole Capital Partners
Sembler Co.
Mar.
94%
Juster Development
Case Pomeroy
90%
Macquarie
Developers
100%
Heitman Capital
Ramco-Gershenson
Management
Properties
2008
(Albertsons)
Kissimmee West
Sep
2008
(Publix)
Piedmont Plaza
Sale
Date Occ.
115,586
2004
Aug.
Properties
2007
Jul.
2007
Diversified
Market Makers
Orlando Capital Markets Trends
Rolling Oaks Commons
Southeast Centers - Kissimmee
330,000 SF Target Anchored - Opening March 2009
$1.60
Town Center at Cagan Crossings
Cagan Management Group - Clermont
56,000 SF - Opened 2008
$0.80
9.0%
(In Billions)
$1.40
8.5%
Average Cap Rate
$1.20
8.0%
$1.00
7.5%
$0.60
7.0%
$0.40
6.5%
$0.20
College Station Retail Center
Presco Real Estate Group - Clermont
100,000 SF w/ Office Depot, Petco & Matress Barn
Phase I Open / Phase II Opens mid-2009
Glenbrook Commons
Southeast Centers - Clermont
65,000 SF Sweetbay - Opening Feb-09
8
M
Y
'0
7
'0
YE
7
M
Y
'0
6
'0
YE
6
M
Y
'0
5
'0
YE
M
Y
'0
4
'0
YE
'0
Y
5
6.0%
4
$0.00
M
Millenia Crossing
MadisonMarquette - Millenia
100,000 SF Nordstrom Rack Anchor - Opening Late 09
LOOP West
The Wilder Companies - Kissimmee
400,000 SF JC Penney, Belk - Recently Opened
Rialto
The Wilder Companies - Sand Lake
350,000 SF Lifestyle Center - Recently Opened
Phillips Crossing
Weingarten Realty - Sand Lake
144,846 SF Whole Foods & Michaels - Recently Opened
Orlando Retail Leasing Data
Submarket Name
Airport
Altamonte / Longwood
Apopka
Casselberry / Winter Springs
Clermont
East Colonial Drive
Florida Mall Area
I - Drive
Kissimmee - Local
Kissimmee - Tourist
Lake Mary
Millenia
Orlando - Central Area
Oviedo - Tuscawilla
Rosemont - Pine Hills
Sanford
South Orange County
Southwest
St. Cloud
Tourist - Sand Lake
Winter Garden - Ocoee
Winter Park - Maitland
Orlando Market Total
Inventory
Occupancy Rate
MY08
YE08
Change
MY08
Rental Rate
YE08
Change
2,037,917
3,098,164
1,456,257
1,390,962
1,947,197
2,369,584
2,048,259
1,197,209
3,352,596
1,366,772
1,278,114
673,148
2,159,463
1,546,053
1,841,198
1,657,074
1,394,877
2,097,657
667,980
1,510,495
2,728,917
1,313,981
93.8%
91.3%
88.1%
91.2%
96.5%
95.5%
90.8%
90.7%
93.2%
88.4%
92.6%
95.4%
88.0%
95.6%
94.8%
89.1%
95.5%
93.6%
92.3%
94.8%
91.9%
94.8%
92.6%
91.5%
88.2%
84.8%
94.3%
92.7%
86.2%
87.1%
88.6%
88.1%
93.5%
89.8%
80.3%
86.1%
90.5%
86.9%
94.6%
87.4%
91.2%
89.0%
86.5%
89.5%
-1.2%
0.2%
0.1%
-6.5%
-2.2%
-2.8%
-4.6%
-3.6%
-4.6%
-0.4%
0.9%
-5.5%
-7.7%
-9.5%
-4.3%
-2.2%
-0.9%
-6.2%
-1.2%
-5.8%
-5.4%
-5.4%
$20.83
$20.82
$16.65
$16.39
$23.46
$20.15
$16.98
$26.14
$20.53
$21.29
$25.11
$29.33
$20.27
$19.25
$14.36
$17.23
$20.50
$22.85
$16.07
$27.67
$23.13
$20.94
$20.03
$20.15
$16.77
$15.86
$22.55
$20.31
$16.57
$23.36
$22.38
$21.29
$22.28
$24.63
$21.23
$18.96
$13.10
$16.45
$20.76
$21.33
$15.63
$29.50
$24.19
$21.60
-3.8%
-3.2%
0.7%
-3.2%
-3.9%
0.8%
-2.4%
-10.6%
9.0%
0.0%
-11.3%
-16.0%
4.7%
-1.5%
-8.8%
-4.5%
1.3%
-6.7%
-2.7%
6.6%
4.6%
3.2%
39,133,874
92.6%
89.0%
-3.6%
$20.74
$20.51
-1.1%
Neighborhood and Community Center Rental and Occupancy Rates Source: HFF, L.P. Proprietary Research
13
2009
Orlando
Casselberry Square
Southern Management & Dvlmt - Casselberry
97,326 SF w/ New Save-A-Lot Anchor Jun-08
Plaza Collina Shopping Center
Phoenicia Development - Clermont
950,000 SF - Phase I Opening Fall 2010
Village Shops at Bellalago
Southeast Centers - Poinciana
100,000 SF Publix- Anchored - Opened 2008
City Centre at Posner Park
Trammell Crow Company - Four Corners
450,000 SF - Site Work Underway
University Commons
Southern Management & Dvlmt - East Colonial
73,413 SF - Open Sep-2008
Eagle Creek Town Center
Emerson International - Lake Nona
200,000 SF Grocery-Anchored Opening 2010/2011
SoDo
Kimco Realty Corp. & North American Properties
450,000 SF Super Target & TJ Maxx - Now Open
Groveland Shoppes
Boyd Development Corporation - Groveland
11 Acre Development - Planned
Osceola Village
Monroe’s Prestige Group - Kissimmee
116,705 SF Publix & HH Gregg Opened Dec-2008
Nona Park
Grandstaff Development & Equinox Development
330,000 SF - Big Box Anchor
Construction is Underway
Clermont Landing
Weingarten Realty / Epic Theaters JV - Clermont
365,915 SF JC Penney, Epic Theater, TJ Maxx,
Ross & Michaels - Opens Mar-2009
Saxon Crossing
Michael Collard Properties - Orange City
69,590 SF LA Fitness Anchor - Recently Opened
Publix at Cross Creek
The Sembler Company - St. Cloud
66,360 SF Publix-Anchored Opened Oct-2008
Shops of Deland
Weingarten Realty - Deland
Epic Theater & Grocery Anchored
Break Ground Oct-2009
Shoppes at Balmy Beach
Boyd Development Corporation - Apopka
20 Acres w/ Grocery-Anchored
Ground Breaking 2Q09
14
The Village at Lake Lily
The Morgan Group - Maitland
Mixed-Use with 50,000 SF of Retail
Completion Scheduled Q4 09
Lakeland / Polk County
Central Florida
Lakeland Employment Data
MY08
YE08
Change
Lakeland is located between two major cities, Orlando Workforce Size
269,437
272,726
1.21%
and Tampa, with easy to access two international Unemployment Rate
5.6%
8.3%
2.70%
airports less than an hour away. Lakeland has been Source: Florida Research and Economic Database
ranked 4th by Business 2.0 in “Top 10 cities: Where to
Buy Now.” The headquarters of Florida’s largest private employer, Publix Supermarkets, is located there.
Polk County’s economy is based on citrus, cattle, and
phosphate mining. Another economy driver is the $72
million generated by the operation of the Spring Training
of the Detroit Tigers.
Daytona MSA Employment Data
Workforce Size
Unemployment Rate
MY08
YE08
Change
253,287
255,677
0.93%
5.9%
8.1%
2.20%
Volusia & Brevard
Volusia and Brevard Counties are homes to popular tourist destinations which host over 8 million visitors
per year. Daytona Beach has been a desirable area for retail and vacation seekers for decades. A
landmark of the east coast is Port Canaveral, the world’s largest cruise port. Port Canaveral has six major
cruise terminals, which handled 4 million tons of cargo in 2004. The port assists Brevard’s economy by
$500 million annually. Brevard County’s tourism brings in $1 billion annually to the area. The Brevard
economy is driven by trade, transportation, healthcare, manufacturing, hospitality, and construction. Due
to the coastal location, these areas will maintain development opportunities as transportation and trade
expand.
The Pavilion
arket
akers
The Benchmark Group & CBL - Port Orange
Southgate Shopping Center
JC Penney, Belk, Marshalls, Michaels, Barnes &
Crossman & Company - Lakeland
Noble, and Hollywood Theaters - Opening Fall 2009
140,000 SF Publix-Anchored Redevelopment
M
M
Gresham Village
Hammock Landing
Watkins Retail Group - Lakeland
The Benchmark Group & CBL - Melbourne
89,831 SF Publix Anchored Opening 2012
Target, Ross, Toys R Us, Kohl’s, Michaels, Marshalls,
& Petco - Opening Spring 2009
Shoppes of Newberry
Triarch Capital Group - Gainesville
Crossroads Shopping Center
David’s Bridal Anchor - Opening October 2009
SR7 Palm Bay - Melbourne
107,000 SF Renovation Complete Sep-2008
Property
(Anchor)
Winter Haven Citi
Centre
City
SF
Winter Haven
185,705
Year Price
Built $Mil
CAP
Rate
2001
$20.0
7.2%
May
1990
$11.0
8.4%
Mar.
1983
$9.4
N/A
(Belk, Staples)
Victoria Square
113,050
(Play It Again Sports)
113,689
Feb.
2008
Seller
Schmier & Feurring
Properties
Centre LLC
92%
Southern Realty
Victoria Square LLC
N/A
Orange City
Mortimer
Realty LLC
Zimmerman
2008
Orange City
Buyer
100%
2008
Deland
(Tuesday Morning)
Village Fields
Sale
Date Occ.
Winter Haven Citi
Group
15
2009
Ft. Lauderdale Market Highlights
• Broward County saw a net decrease in population in 2008
• The high volume of new deliveries in 2007 & 2008 which caused a surge
of over16% in rental rates from 2004-2007 has put a great deal of
pressure on vacancy, which is at 5 year highs
Local Economy
Broward County’s significant tourist industry
continually brings in a record of visitors to the area.
Fort Lauderdale hosted over 10.7 million visitors who
spent over $8.8 billion in 2008 at locations and events
including more than 326 sporting events.
Occupancy
95%
Workforce Size
Unemployment Rate
MY08
YE08
Change
1,001,280
1,001,139
-0.01%
4.8%
6.6%
1.80%
$17.50
Rental Rate
94%
$17.00
93%
$16.50
92%
$16.00
91%
Broward County is projected to acquire an
additional 10,000 new households per year
through 2012. This projection is anticipated
to secure future retail prospects.
$15.50
90%
8
'0
'0
Y
M
YE
8
7
YE
'0
7
'0
Y
M
'0
YE
6
'0
Y
M
'0
YE
5
'0
Y
M
'0
YE
'0
Y
6
$14.50
5
88%
4
$15.00
4
89%
Broward County Retail Leasing Data
Submarket Name
Inventory
Occupancy Rate
MY08
YE08
Change
MY08
Rental Rate
YE08
Change
Cooper City / Pembroke / Miramar
Coral Springs / Margate
Dania / Hollywood / Hallandale
Fort Lauderdale
Plantation / Sunrise / Tamarac
Pompano Beach / Deerfield Beach
8,170,000
6,299,000
3,745,000
7,732,000
8,083,000
5,396,000
94.1%
88.9%
93.0%
93.0%
91.2%
92.0%
92.5%
83.9%
87.1%
92.7%
90.0%
89.5%
-1.6%
-5.0%
-5.9%
-0.3%
-1.2%
-2.5%
$18.26
$15.64
$19.26
$16.74
$15.80
$14.92
$18.32
$15.65
$18.77
$16.69
$15.80
$14.84
0.3%
0.1%
-2.5%
-0.3%
0.0%
-0.5%
Ft Lauderdale Market Total
39,425,000
92.1%
89.7%
-2.3%
$16.68
$16.62
-0.3%
16
Broward County Employment Data
Broward County is home to many international cruise liners. Royal Caribbean Cruises transport
the world’s two largest cruise ships to the Greater Fort Lauderdale area. Experts predict that Port
Everglades is to become the world’s top cruise port by 2010. For the first time in 2008, Port Everglades
surpassed the Port of Miami to become the
Ft. Lauderdale Historical Rent & Occupancy
No. 1 containerized cargo port in Florida.
$18.00
96%
M
Broward County
Market Makers
Ft. Lauderdale Capital Markets Trends
$2.70
The Promenade at Coconut Creek
Stanbery Development - Coconut Creek
350,000 SF Lifestyle Retail - Phase I Opened 2008
9.0%
(In Billions)
$2.20
8.5%
Average Cap Rate
8.0%
$1.70
7.5%
Caligo Crossing
Regency Centers - Coconut Creek
108,927 SF Kohl’s Anchored - Open Aug-2008
$1.20
7.0%
$0.70
Commercial Boulevard Shoppes
The Sembler Company - Lauderhill
63,000 SF Shopping Center - Opened August 2008
6.5%
8
Y
M
'0
YE
Y
'0
7
7
'0
6
M
M
YE
'0
6
Y
'0
5
'0
YE
'0
Y
M
M
YE
Y
'0
'0
4
5
6.0%
4
$0.20
Miramar Town Center
Kimco Developers, Inc. - Miramar
150,722 SF w/ 24-Hour Fitness Anchored - Opened 2008
College Crossing
Stiles Corp. - Davie
+/-500,000 SF - Opening Late 2010
Parkland Commons
Monroe’s Prestige Group - Parkland
91,126 SF Publix Anchored - Opened Sep-2008
Sheridan Station
RAM Real Estate
300,000 SF of Retail in Mixed-Use Project
Opening 2011
Coral Landings III
Monroe’s Prestige Group - Coral Springs
265,248 SF BestBuy, HomeGoods, ULTA & Petco
London Square
Woolbright Development – Miramar
241,000 SF Kohl’s and Staples Anchored - Early 2009
Sheridan Plaza
Equity One - Hollywood
103,000 SF Addition Featuring Kohl’s, LA Fitness,
Office Depot, Ross & BB&B - Completed 2008
The Shoppes at Southern Palms
Panattoni Development - Palm Beach
215,000 SF Kohl’s & Dick’s Anchored - Opening 1Q09
Property
(Anchor)
Lakes Mall
City
SF
Ft Lauderdale
255,783
(Office Depot)
Plantation Marketplace Ft Lauderdale
Penn Dutch Plaza
Weston Shops
1970/
$9.4
CAP
Rate
N/A
1992
230,330 1963/
(Winn-Dixie)
(Penn Dutch Food)
Year Price
Built $Mil
155,628
1999
$22.0
N/A
Ft Lauderdale
99%
Aug.
92%
2008
$12.0
N/A
Beach
(Walgreens)
Nov
2007
Seller
UrbanAmerica
Equity One
REH Capital Partners
Aug.
JV DRA Advisors
73%
2007
30,420
Buyer
RMS Properties
2008
1998
Pompano
Sale
Date Occ.
$16.4
7.3%
Jul
Equity One
REH Capital Partners
JV DRA Advisors
100%
Weston Shops Ltd
2008
17
2009
• Palm Beach rental rates have dropped considerably as the market has
seen negative net absorbtion over the last
five consecutive quarters
• The Palm Beach market’s pipeline is the smallest seen in over 3 years,
which should help restore balance to the supply-demand
of the market
Local Economy
Palm Beach County is home to prestigious locations
Palm Beach County Employment Data
MY08
YE08 Change
such as Boca Raton, Palm Beach, Jupiter, and
Workforce
Size
647,215
648,552
0.21%
Manalapan. This are is the 3rd most populous county
Unemployment Rate
5.4%
7.6%
2.20%
in the state, and the 29th most populated county in Source: Florida Research and Economic Database
the United States. It is also home to five colleges and
universities. There is a metropolis of medical services, recreational opportunities, historic, nature and
cultural events that provide opportunities for vacationers and job-seekers alike.
This area is home to the second largest fresh water lake in the country. Along with its Atlantic shores,
Palm Beach County attracts affluent denizens whose patronage enables retaliers and local businesses
to thrive. Large employers that help drive
Palm Beach Historical Rent & Occupancy
the economy in the area include public
$21.00
96.0%
schools, health care, local government,
$20.50
and hospitality. Another economic driver
95.0%
$20.00
is the St. Louis Cardinals and the Florida
$19.50
94.0%
Marlins baseball teams which conduct
$19.00
93.0%
their spring training at the Roger Dean
$18.50
92.0%
Stadium in Jupiter.
$18.00
Occupancy
Rental Rate
91.0%
$17.50
8
'0
'0
Y
M
YE
8
7
'0
YE
M
Y
'0
7
6
'0
'0
Y
M
YE
6
5
'0
YE
5
'0
Y
M
'0
YE
'0
Y
4
$17.00
4
90.0%
M
Palm Beach
Palm Beach Market Highlights
Palm Beach Retail Leasing Data
Submarket Name
Boca Raton
Boynton Beach
North Palm Beach / Jupiter
West Palm Beach
Palm Beach Market Total
Inventory
MY08
Rental Rate
YE08
Change
6,741,000
9,941,000
7,208,000
4,451,000
95.8%
90.7%
90.8%
93.7%
95.2%
89.5%
88.8%
93.2%
0.6%
1.2%
2.0%
0.5%
$22.04
$17.07
$20.06
$16.94
$21.94
$16.81
$19.93
$16.88
-0.5%
-1.5%
-0.6%
-0.4%
28,341,000
92.4%
91.3%
1.2%
$18.99
$18.83
-0.8%
18
Occupancy Rate
MY08
YE08
Change
Market Makers
Palm Beach Capital Markets Trends
$1.00
9.0%
(In Billions)
$0.90
Midtown
RAM Real Estate
95,000 SF of Retail in Mixed-Use Development
Recently Opened
8.5%
Average Cap Rate
$0.80
8.0%
$0.70
$0.60
7.5%
$0.50
Quantum Village
Monroe’s Prestige Group - Boynton Beach
93,144 SF Publix Anchored - Shops Open Late 2008
7.0%
$0.40
6.5%
$0.30
8
M
Y
'0
7
'0
YE
7
M
Y
'0
6
'0
YE
6
M
Y
'0
5
'0
YE
'0
Y
M
M
YE
Y
'0
'0
4
5
6.0%
4
$0.20
Whitworth Farms
Monroe’s Prestige Group - Boynton Beach
112,375 SF Publix Anchored
Wellington Green Commons
Schmier & Feurring Properties - Wellington
124,000 SF Whole Foods Anchored - Opened 2008
Boynton Beach Town Center
The Sembler Company - Boynton Beach
410,000 SF Target & Best Buy Anchors - Opened 2008
Jupiter Reserve
Pebb Enterprises
Full Renovation of Woods Plaza Completed Early 2009
The Shoppes at Woolbright
Woolbright Development - Boynton Beach
100,000 SF Publix Anchored - Opened late 2008
Property
City
SF
Lake Worth
60,390
(Anchor)
Town Commons
Year Price
Built $Mil
2004
$6.8
CAP
Rate
N/A
(Publix)
Courtyard Shops
Sale
Date Occ.
Sep
N/A
Buyer
Seller
Kimco Realty
Albertson's
Federal Realty
AEW Capital
2008
West Palm
(Publix)
Beach
Plaza at Delray
Delray
(Publix, Regal, Staples)
Beach
Shoppes at Jupiter
Jupiter
(Cobb Theater, Staples, Bealls)
127,000 1990/
$37.9
N/A
1998
331,496
1974/
$64.8
N/A
$41.1
N/A
2001
197,097
1981
Sep
N/A
2008
Aug
Investment Trust
92%
Heitman Capital
Management
Properties
95%
Crimson Capital
Menin Development
2008
Aug
Ramco-Gershenson
2008
19
2009
• Whole Foods Opens in Mandarin Landing
• Markets at Town Center Opens Before Christmas with
Babies’R’Us and Best Buy
• HH Gregg Opens First Jacksonville Location in Avenue Walk
Local Economy
Jacksonville is the anchor city of North Florida.
Jacksonville MSA Employment Data
MY08
YE08 Change
Situated on the St. Johns River and the Atlantic
Workforce
Size
677,617
681,760
0.61%
Ocean, Jacksonville’s ideal location has been
Unemployment Rate
5.1%
7.0%
1.90%
valuable to the local industries and population Source: Florida Research and Economic Database
growth. Forbes has ranked Jacksonville 3rd in the
top ten United States cities to relocate to find a job. Jacksonville is consistently rated one of the
“Hottest Cities in America” for business expansions and relocations in an annual poll featured in
Expansion Management Magazine. In addition, Jacksonville was ranked 11th in Inc. magazine’s list
of “Best Cities for Doing Business” in 2006.
Jacksonville Historical Rent & Occupancy
Jacksonville is consistently ranked in top
$15.00
10 places to live by Money Magazine.
95.0%
$14.00
94.0%
Occupancy
Rental Rate
$13.00
93.0%
$12.00
92.0%
8
'0
'0
Y
YE
8
7
'0
Industries
that
make
significant
contributions to Jacksonville’s economy
include: distribution, financial services,
information services, and manufacturing.
An additional source of revenue is the
annual Gator Bowl which added an
estimated $32 million to the local economy
in 2008.
Jacksonville Retail Leasing Data
Submarket Name
Arlington / Baymeadows / Mandarin
Beaches
Northside
SW Duval / Northern Clay
Westside
Jacksonville Market Total
Inventory
Occupancy Rate
MY08
YE08
Change
MY08
Rental Rate
YE08
Change
8,793,000
3,298,000
3,036,000
4,091,000
2,912,000
92.5%
95.2%
90.6%
92.4%
96.4%
92.1%
92.9%
90.9%
92.0%
96.2%
-0.3%
-2.3%
0.3%
-0.4%
-0.2%
$13.52
$15.10
$10.25
$13.55
$11.85
$13.53
$15.19
$10.20
$13.56
$11.47
0.1%
0.6%
-0.5%
0.1%
-3.2%
22,130,000
93.1%
92.6%
-0.5%
$13.64
$13.06
-4.3%
20
M
M
YE
Y
'0
7
6
YE
M
Y
'0
'0
6
5
'0
YE
5
'0
Y
M
'0
YE
'0
Y
4
$11.00
4
91.0%
M
Jacksonville
Jacksonville Market Highlights
Market Makers
Jacksonville Capital Markets Trends
Parkway Shops
Ramco-Gershenson - Northside
360,000 SF Retail Center Planned Opening 2011
$0.60
9.0%
$0.40
8.0%
The Markets at Town Center
Pinehill Markets Operating, LLC - Southside
Toys & Babies R US, Best Buy, Golf Galaxy, ULTA
Phase I Open, Phase II Opening April 2009
$0.30
7.5%
$0.20
7.0%
$0.10
6.5%
$0.00
6.0%
(In Billions)
$0.50
8
M
Y
'0
7
YE
'0
7
Y
M
'0
YE
Y
M
'0
6
6
'0
5
'0
YE
5
M
Y
'0
M
YE
'0
4
4
'0
Y
Oakleaf Town Center
Sembler - Southwest Jacksonville
798,068 SF w/ SuperTarget, Home Depot & Kohl’s
All Phases Open
8.5%
Average Cap Rate
Shoppes at Murabella
Stiles Corp. / Hallmark Partners - World Golf Village
100,000 SF Publix Anchored - Opening Feb-2009
Palm Coast Landing at the Town Center
Weingarten Realty / Developers Realty Corp JV
Super Target, Books-A-Million, TJ Maxx, Ross
Palm Coast - Recently Opened
Avenues Walk
Kimco Developers, Inc. - Jacksonville Southside
600,000 SF Wal-Mart, Forever 21 and HH Gregg Anchored
Phase I Opening 1st Quarter 2009 / Phase II Late 2010
Oakleaf Commons
Regency Centers - Southwest Jacksonville
73,717 SF Publix Anchored - Opened Early 2008
Beach Village
North American Properties - Flagler County
80,000 SF Publix Anchored - Opening Jun 2009
Tapestry Park
Joyce Development Co. - Jacksonville Southside
70,000 SF Retail plus Office, Hotel & Townhomes
Completed July 2008
Nocatee Town Center
Regency Centers - Ponte Vedra
80,572 SF Publix Anchored - Opening Jan 2010
Epic Village at St. Augustine
Weingarten Realty / EPIC Theaters JV - St. Augustine
91,521 SF Epic Theater Anchored - Opening June 2009
Mandarin Landing
Equity One - Jacksonville
140,000 SF Whole Foods & Office Depot Anchored
Opened Late 2008
Jacksonville Beach Publix
Publix & WindCrest Development - Jacksonville
34,030 Publix-Anchored - Opened 2008
Property
(Anchor)
Cobblestone
Crossing
City
SF
Jacksonville
93,272
Year Price
Built $Mil
1986
$13.9
CAP
Rate
N/A
(Publix)
St. Johns Plaza
Sep
100%
2008
Jacksonville
71,370
2003
$12.8
N/A
(Winn-Dixie)
Lewis Point Plaza
Sale
Date Occ.
Dec.
N/A
2007
St. Augustine
(Food Lion)
83,217
2005
$9.5
8.1%
Dec.
N/A
Buyer
Seller
Halberstein
Woolbright
Investments
Development
Invesco Realty
Prudential Real Estate
Advisors
Investors
Ash Properties Inc.
New Craft Inc.
2007
21
2009
22
Southwest Florida Market Highlights
• Waterside Shops introduces a new level of upscale retail with opening
of Nordstroms, St. Johns, Van Cleef & Arpels, DeBeers Diamonds
• Mercato opens on Tamiami Trail and Vanderbilt Beach Blvd with Whole
Foods, Books-A-Million, McCormick & Schmicks, & Capital Grill
• The City of Ft. Myers intensifies efforts to redevelop its downtonw
“River District” by engaging a public-private partnership and
improving the downtown streetscape
Local Economy
Ft. Myers is a located in the Southwestern part of
Ft. Myers / Cape Coral MSA Employment Data
MY08
YE08 Change
Florida and is the present spring training home for
Workforce
Size
283,296
284,036
0.26%
the Boston Red Sox and the Minnesota Twins. As of
Unemployment Rate
7.1%
9.8%
2.70%
2008, the Lee County commission has approved an Source: Florida Research and Economic Database
agreement with the Boston Red Sox to build a new
spring-training facility for the team in south Lee County.
The areas of greatest softness in the market are in Bonita Springs where unanchored strips are
seeing rent concessions down to the teens
Ft. Myers Historical Rent & Occupancy
PSF and high vacancy, due to the general
$19.00
100%
economic softness and the amount of
98%
$18.00
space delivered around the Coconut Point
96%
and Gulf Coast Town Center. There are
$17.00
also unanchored strips in Cape Coral on
94%
Pine Island Rd. and on Lee Blvd in Lehigh
$16.00
92%
that are having similar leasing issues.
Occupancy
Rental Rate
$15.00
90%
8
'0
'0
Y
M
YE
8
7
'0
YE
M
Y
'0
7
6
'0
YE
M
Y
'0
6
5
'0
YE
'0
YE
'0
4
$14.00
3
88%
YE
Ft. Myers / Cape Coral
Ft. Myers / Cape Coral Retail Leasing Data
Submarket Name
Inventory
Occupancy
YE08
Rental Rate
YE08
Cape Coral
City of Ft. Myers
Estero
Lehigh
North Ft. Myers
South Ft. Myers / San Carlow
The Islands
4,712,000
2,601,000
1,306,000
659,000
1,584,000
7,829,000
452,000
92.4%
87.5%
80.4%
93.8%
90.9%
92.4%
99.6%
$19.31
$11.58
$20.81
$15.90
$12.64
$20.45
N/A
Ft. Myers Market Total
19,143,000
91.0%
$17.70
Shopping Center & Power Center Rental Rates and Occupancy Rates Source: CoStar Property
Market Makers
Southwest Florida Capital Markets Trends
Plaza Venezia
Michael Collard Properties - Venice
77,000 SF Grocery-Anchored Breaking Ground Nov-09
$0.80
8.5%
$0.60
7.5%
The Forum
North American Properties - Ft. Myers
480,000 SF Anchored by Target, Home Depot, Ross, Best
Buy, BB&B, Staples, Books-A-Million & Petco - Open
$0.50
7.0%
$0.40
6.5%
$0.30
6.0%
$0.20
5.5%
(In Billions)
$0.70
8
M
Y
'0
YE
M
'0
7
7
Y
'0
YE
Y
M
'0
6
6
'0
5
'0
YE
5
M
Y
'0
YE
'0
4
4
'0
M
Y
Northpoint Shopping Center
North American Properties - Cape Coral
110,000 SF Circuit City & PetsMart - Open
8.0%
Average Cap Rate
Alico Commons
Pelican Bay Development - Ft. Myers
97,663 SF Publix & Office Depot Anchor - Opening Feb-10
The Great LOOP Southwest
The Wilder Companies - Punta Gorda
1.2 Million SF Mixed-Use & Retail - Opening 2011
Alico Lakes Village
Strathmore Development - Estero
300,000 SF Ashley Furniture & City Furniture Anchored
Phase I Opened, Phase II Opening Early 2009
Plaza at Island Pass
Desco Group - San Carlos
232,620 SF Super Target Anchored Center
Opens Summer 2008
Estero Crossings
The Wilder Companies - Estero
310,000 SF Open-Air Retail Planned
Bell Tower Shops
Madison Marquette - Ft. Myers
350,000 SF Saks, Regal Cinema, Fresh Market,
Ulta, BB&B
Renovation Completed 2009
Brooks Town Center
Courtelis Company - Eserto
80,000 SF Sweetbay Anchored
Opened Summer 2008
First Street Village
Regency Centers - Ft. Myers
88,026 SF Publix Anchored - Planned
Property
(Anchor)
Gulf Coast Plaza
City
SF
Cape Coral
71,051
Year Price
Built $Mil
1965
$9.0
CAP
Rate
N/A
(Publix)
Jun.
100%
2008
Coral Walk
Cape Coral
300,000
2007
$127.0
N/A
(Super Target)
Sunshine Shopping
Plaza
Sale
Date Occ.
June
Buyer
Shops at Cape Coral
Parkway
N/A
North American
99%
DeBartolo Dev JV
Dalfen America Corp
2008
Lehigh Acres
(Winn-Dixie)
111,333
1966/
1997
$8.9
N/A
Jan.
2008
Seller
Southside Properties
Properties
Forge Realty Group
23
2009
Naples Employment Data
MY08
Naples is one of Florida’s best sandboxes. The lure Workforce Size
150,325
of the sun and fun activities have helped make the Unemployment Rate
5.7%
Naples economy largely based on tourism. Some of Source: Florida Research and Economic Database
the visitor favorites include Marco Island
and the Everglades. These attractions Naples Historical Rent & Occupancy
make the city a popular vacation area 99%
known as the Paradise Coast. CNN and 97%
Money Magazine have both recognized 95%
Collier County as one of the top five “Best
places for a long life in the United States.” 93%
There are more than 80 championship 91%
golf courses in the Naples area. Major 89%
employers for the area include health care
87%
services and national law firms.
YE08
Change
151,269
0.62%
8.0%
2.30%
$26.00
Occupancy
$24.00
$22.00
$20.00
$18.00
8
'0
YE
Y
'0
8
7
$16.00
M
M
YE
Y
'0
'0
7
6
'0
'0
Y
M
YE
6
5
YE
'0
4
'0
YE
'0
3
Rental Rate
YE
Naples
Naples Economy
Naples Retail Leasing Data
Submarket Name
Bonita Springs
East Naples
Golden Gate
Lely
Marco Island
Naples
North Naples
Outlying Collier County
Ft. Myers Market Total
Inventory
Occupancy
YE08
Rental Rate
YE08
2,311,000
1,964,000
527,000
430,000
775,000
535,000
6,982,000
657,000
86.8%
94.2%
99.1%
87.9%
96.0%
90.7%
92.4%
96.0%
$18.34
$17.00
$20.85
$19.64
$22.24
$17.65
$26.73
$13.04
14,181,000
92.1%
$22.36
Shopping Center & Power Center Rental Rates and Occupancy Rates Source: CoStar Property
Market Makers
The Mercato
Barron Collier Company - Lutgert
375,000 SF Mixed Use Anchored by Whole Foods
Books-A-Million, Sur La Table
Brooks Village
The Sembler Company - East Naples
101.535 SF Publix Anchored - Opening June-09
Publix at Ave Maria
Courtelis Company JV Barron Collier Company
36,000 SF Publix Anchored Expansion Opening Fall 2009
Bonita Exchange
Strathmore Development Company
175,000 SF Home Depot Shadow-Anchor
Delivering 2nd Half 2009
Property
City
SF
The Promenade of
Naples Centre
Naples
165,000
Naples Walk
(Publix)
Naples
(Anchor)
24
125,490
Year Price
Built $Mil
CAP
Rate
Sale
Date Occ.
Buyer
Seller
2007
$48.5
N/A
May
2008
98%
GLL Real Estate
Partners
Sembler Co.
1999
$33.1
5.7%
Jul.
2007
N/A
Regency Centers
North American
Properties
Sarasota Economy
Sarasota/Bradenton
Sarasota Employment Data
MY08
YE08
Change
Located south of the Bay Area, Sarasota/Bradenton is Workforce Size
329,131
330,786
0.50%
full of development and retail potential. The national Unemployment Rate
5.8%
8.0%
2.20%
media have ranked this area as one of the best places Source: Florida Research and Economic Database
in America to live and work due to its consistent job and
population growth. Tourism remains the biggest economic sector in the area. Situated along the Gulf of
Mexico, the area is surrounded by both fresh and saltwater.
The Eastern side of Bradenton is growing at a rapid rate. Initially starting as the popular subdivision
Lakewood Ranch, it is now becoming a heavily populated part of town. The region has earned many
accolades such as being named one of the “hottest major metro areas for jobs” by American Business
Journals.
Market Makers
Prime Outlets
Prime Retail - Ellenton
135,000 SF “Main Street” Expansion
Neiman Marcus Last Call Anchored - Opens 2010
Southwood Shops
Southern Management & Development
New 39,079 SF Sweetbay & Redevelopment
Completed Aug-2008
Park Place
Benderson Development - Bradenton
254,500 SF Kohl’s & Fresh Market - Opened 2008
Publix at Beeridge
North American Properties
58,000 SF Publix Anchored - Opening Summer 2009
Heron Creek Place
The Sembler Company - North Port
280,000 SF Retail Opening Fall 2009
Paley Place
The Sembler Company - Bradenton
59,800 SF Publix Anchored
Opening Spring 2010
River Club
CASTO - Bradenton
235,000 SF Big-Box Anchored
Opening 2009 / 2010
University Town Center Phase II
Benderson Development - Sarasota
1.8 Million SF - Nordstrom & Muvico
Mixed Use w/ Office, Hotel, & Convention
Property
(Anchor)
Town Plaza
City
SF
Longboat Key
79,480
Year Price
Built $Mil
1980
$14.0
CAP
Rate
N/A
(Publix)
Manatee Town Center
Sale
Date Occ.
Sep
N/A
Buyer
Avenue of Flowers
Dead River
Joseph Mogel
Manatee Town
2008
Bradenton
(Sweetbay)
80,013
1990
$10.3
6.6%
Jan
2008
Seller
Properties
100%
Center LLC
25
2009
The Panhandle
Market Makers
Panama City MSA Employment Data
Publix at South Walton
WindCrest Development Group - Walton County
57,300 SF Publix Anchored - Opening Late 2009
Workforce Size
Unemployment Rate
MY08
YE08
Change
86,719
87,071
0.40%
4.5%
7.4%
2.90%
Pensacola MSA Employment Data
Destin Commons
Turnberry - Destin
Recently Opened
Workforce Size
Unemployment Rate
MY08
YE08
Change
212,515
214,818
1.07%
4.9%
6.7%
1.80%
Santa Rosa Commons
Mpirical Development - Pace
Target, Publix, PetsMart & TJ Maxx Anchored
Opened Summer 2008
Okaloosa County Employment Data
Workforce Size
Unemployment Rate
MY08
YE08
Change
99,018
97,891
-1.15%
3.8%
5.4%
1.60%
Bellview Shopping Center
Kimco Realty Corp. - Pensacola
156,150 SF Publix Anchored - Opened 2008
Walton County Employment Data
Workforce Size
Unemployment Rate
University Mall
Simon Properties - Pensacola
Redevelopment into Lifestyle Center
Construction Underway
MY08
YE08
Change
35,606
33,941
-4.91%
3.3%
5.0%
1.70%
Property
(Anchor)
City
SF
Riley Place
Milton
65,650
Year Price
Built $Mil
CAP
Rate
1990
$6.7
N/A
1968
$5.8
7.9%
(Winn-Dixie, Best Buy)
Mariner Plaza
Oct
Buyer
Seller
96%
Flag Warf
River City Capital
100%
JW Mariner Corp
Tarragon Corp.
2008
Panama City
(Unanchored
26
Sale
Date Occ.
54,027
Sep
2008
Tallahassee Economy
MY08
YE08
Change
The Tallahassee economy has experienced a smaller Workforce Size
185,465
189,958
2.37%
scale of downturn compared to larger areas in Florida. Unemployment Rate
4.1%
5.5%
1.40%
The Tallahassee Board of Realtors has stated that, Source: Florida Research and Economic Database
“because the area did not see a huge climb in property
appreciation, the fall was not as hard, when comparing to other markets.” Florida’s capital city is home
to state and local government agencies which offer steady employment to local residents. Florida State
University, Florida Agricultural and Mechanical University, and Tallahassee Community College are also
major employers in the area. Inc. magazine has ranked Tallahassee among the “Best Small Metro Areas
to start and grow a business.” The fastest growing business sectors are telecommunications, computer
hardware vendors, software developers, and trade associations. Another reason to relocate to Tallahassee
and start a business is due to Newsweek Magazine’s ranking of the Top 1000 Schools for 2006, which lists
4 of Leon County’s 5 public high schools in the top 200 in the United States.
Tallahassee is also experiencing national attention due to university-related development. Tallahassee’s
Innovation Park is located on 208 acres near the capital and nestled between Florida State University and
Florida A&M University. The research park was established for the technology industry and government
scientists. The National High Magnetic Field Laboratory, which holds the largest and highest-powered
magnet laboratory in the world and located in Innovation Park, was featured in the December 2008 issue
of US Airways Magazine.
Tallahassee Retail Leasing Data
Submarket Name
Northeast
Southeast
Central
Northwest
Southwest
South
Tallahassee Market Total
Inventory
Occupancy Rate
2007
2008 Change
2007
Rental Rate
2008
Change
1,417,655
1,171,248
544,442
265,509
369,459
344,248
91.5%
89.0%
96.6%
79.5%
100.0%
90.6%
93.1%
86.8%
94.5%
78.7%
93.6%
94.5%
1.6%
-2.2%
-2.1%
-0.8%
-6.4%
3.9%
$19.27
$17.56
$12.00
$12.20
$16.38
$13.50
$18.04
$17.10
$12.25
$12.88
$17.75
$12.50
-6.4%
-2.6%
2.1%
5.6%
8.4%
-7.4%
4,112,561
91.4%
90.7%
-0.7%
$16.62
$16.18
-2.6%
Source: Southland Commercial Year End Retail Survey
Market Makers
Fallschase
AIG Baker Development
750,000 SF Featuring Wal-Mart & Costco
Tallahassee
Tallahassee Employment Data
The Pinnacle at Cross Creek
Colonial Properties
900,000 SF Lifestyle Center
Anchored by Department Store & Movie Theater
Southwood Marketplace
The Sembler Company
460,000 SF w/ Discount Dept Store & Lowe’s
Planned July 2011 Opening
27
2009
The Villages
The Villages Economy
28
The Villages is the largest single site residential development in the United States, spanning over
26,000 acres in adjoining Sumter, Lake, and Marion counties. Home to more than 75,000 residents, The
Villages has a projected build out of more than 107,000 residents by the year 2014.
The Villages exemplifies the “Live, Work, Play” environment in which all of life’s necessities and
amenities are available within the community. The Villages attracts affluent retirees and active adults
looking for a lifestyle, not just a home. Life in The Villages centers around an active schedule and
golf cart access. More than 80% of surveyed residents own a golf cart and use it daily while 60%
participate weekly in more than 1,600 clubs and recreational sports teams.
In a recent Forbes.com article, The Villages was named a ‘retail safe haven’ amidst the national home
building crisis, attributing the community’s success to the recession proof income of its residents. In
2008, The Census Bureau ranked The Villages as the fastest growing micropolitan area in the nation.
New home sales surged in 2007 while foreclosure activity remained at a mere 0.05%. Despite the
national economic downturn, The Villages experienced 13.5% residential growth from 2007 through
2008. Combined with the average household income exceeding $94,000, The Villages is one of the
hottest retail markets in the nation.
The Villages’ retail market includes 3.7 million SF of commercial buildings, including two town centers
with over 800,000 SF of retail space. A third town center, Brownwood, consisting of 350,000 SF, and
Bellaire power center, consisting of 850,000 SF, is currently under development. Villages’ residents are
dedicated to supporting business and community growth and have quickly helped the area become the
retail destination for the greater tri-county area.
Market Makers
Lake Sumter Landing
Crossman & Company - The Villages
510,555 SF w/ New Sweetbay Anchor
Colony Plaza
Sembler - The Villages
130,515 SF Publix Anchored Center
Spanish Springs
375,455 SF Town Center
Lady Lake Crossing
The Benchmark Group - Lady Lake
130,000 SF Kohl’s Anchored - Opened 2008
Buffalo Ridge
1.2 Million SF Anchored by Wal-Mart
Beall’s & Fresh Market Opening Late 2008
Brownwood
350,000 SF Planned Town Center
Village Crossroads
The Benchmark Group - Lady Lake
160,000 SF - Best Buy, JoAnn, PetsMart, BB&B
Recently Open
Bellaire
500,000 SF Planned Power Center
Ocala Economy
Ocala Employment Data
MY08
YE08
Change
Major employers in the area include Munroe Regional Medical Center, Wal-Mart, Publix Super Markets,
and Ocala Regional Medical Center & West Marion Community Hospital. Both of Ocala’s premier hospitals,
Munroe Regional Medical Center and Ocala Regional Medical Center, were nationally recognized by HCIASachs as recipients of the 100 Top Hospitals Award for 2003 and 2004.
Market Makers
Market Street at Heath Brook
United American Realty - Ocala
684,000 SF Dillard’s, Old Navy, ULTA, Dick’s, Barnes
Recently Opened
Canopy Oak Center
Regency Centers - Ocala
90,040 SF Publix Anchored - Opened Late ‘08
Berkshire Oaks
Berkshire Development - Ocala
255,000 SF Kohl’s, HH Gregg, PetCo Anchored
Breaking Ground Early 2009
Shops at Stoneybrook Hills
WindCrest Development - Mt Dora
67,000 SF Publix Anchor Opening Sep-09
Loch Leven Landing
Morse Properties - Mt Dora
160,000 SF Publix Anchor - Breaking Ground 2009
Ocala
Ocala’s local economy has grown over the years due Workforce Size
138,270
140,597
1.66%
to the access in resources in neighboring cities, like Unemployment Rate
6.7%
9.7%
3.00%
Orlando, Tampa, and Jacksonville. Residents have a Source: Florida Research and Economic Database
choice to be in town or in the country, either of which
are never far from health care, churches, shopping centers, or schools. This diverse county has supported
an economy that has total retail sales over $3.55 billion.
Shops at Foxwood
Michael Collard Properties - Ocala
120,000 SF Grocery-Anchored - Starting June 2009
Property
(Anchor)
City
SF
Quail Meadow
Ocala
50,788
Commons
CAP
Rate
1997
$5.9
6.8%
2002
$12.7
N/A
(Publix)
Heathbrook
Commons
Year Price
Built $Mil
Sale
Date Occ.
Jun
Buyer
Seller
100%
Victory Real Estate
MHP Retail Centers
100%
Invesco Realty
Strategic Realty
Advisors
Advisors
2008
Ocala
(Publix)
79,550
Dec.
2007
29
www.hfflp.com
www.crossmanco.com
For questions, comments or to request additional copies of the report please
contact Justin Greider at [email protected] or 407-514-2620
The information in this report, including all charts, graphs, photos and data is believed to be accurate and complete and is not
warranted by HFF, L.P., Crossman & Company, any of the contributors, or any of their affiliates.

Florida Retail Report - Strathmore Development Co.

Transcription

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