Q1 2020 RALEIGH-DURHAM - Lee & Associates ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Q1 2020
RALEIGH-DURHAM
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
Q1 2020
RALEIGH, NC
RETAIL MARKET OVERVIEW
HUNTER STEWART, MBA, Broker
Q1 2020 started off strongly for the Raleigh-Durham retail market with
many new developments planning to break ground during 2020. Many
spaces were leased for record setting rates without ever being advertised
as available due to strong tenant demand. Sales were solid until the
COVID-19 began impacting markets. Q1 2020’s numbers don’t reflect the
impact of COVID-19 as malls have shut down or have seen reduced service.
Developments are being put on hold as retailers adapt and developers
determine the unknown future. While the full impact of the outbreak is
unknown, retail occupancies, rent growth, and transaction activity will likely
feel the effects of the pandemic in the months ahead.
MARKET INDICATORS Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
▼ Net Absorption 755,128 SF 905,836 SF 617,002 SF 83,966 SF 384,826 SF
▲ Vacancy Rate 2.70% 2.60% 2.90% 3.40% 3.00%
▲ Avg NNN Asking Rate $20.55/SF $20.14/SF $19.96/SF $19.58/SF $19.34/SF
▼ Under Construction 664,779 SF 703,118 SF 746,717 SF 876,391 SF 970,214 SF
▼ Inventory 74,145,213 SF 74,195,128 SF 74,022,058 SF 73,849,787 SF 73,610,316 SF
NET ABSORPTION, NET DELIVERIES, & VACANCY UNDER CONSTRUCTION
TOP SALE TRANSACTIONS BY SF SIZE SALE PRICE BUYER / SELLER BUILDING CLASS
1051 E Broad St $13,618,500 Agree Realty Corp
149,975 SF Power Center
Fuquay-Varina, NC $90.81/SF Trico International Corp
3540-3490 Kildaire Farm Rd $17,450,000 Alidade Capital, LLC
84,165 SF 3-Star Strip Center
Cary, NC $207.33/SF The Simpson Organization
1600-1660 Piney Plains Rd $13,000,000 Wake County Public Schools 2-Star Auto
80,631 SF
Cary, NC $161.23/SF Crossroads Holdings Dealership
TOP LEASE TRANSACTIONS BY SF SIZE LANDLORD TENANT TENANT INDUSTRY
7930 Skyland Ridge Pkwy
30,000 SF Undisclosed Planet Fitness Personal Services
Raleigh, NC
6140-6240 Capital Blvd
30,000 SF Z A Sneeden Ashley HomeStore Retailers/Wholesalers
Raleigh, NC
1002 N Harrison Ave
13,824 SF Geo H Jordan III Dev Co Undisclosed -
Cary, NC
LEE
LEE &
& ASSOCIATES
ASSOCIATES RESEARCH
RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
Q1 2020
DURHAM, NC
RETAIL MARKET OVERVIEW
HUNTER STEWART, MBA, Broker
Q1 2020 started off strongly for the Raleigh-Durham retail market with
many new developments planning to break ground during 2020. Many
spaces were leased for record setting rates without ever being advertised
as available due to strong tenant demand. Sales were solid until the
COVID-19 began impacting markets. Q1 2020’s numbers don’t reflect the
impact of COVID-19 as malls have shut down or have seen reduced service.
Developments are being put on hold as retailers adapt and developers
determine the unknown future. While the full impact of the outbreak is
unknown, retail occupancies, rent growth, and transaction activity will likely
feel the effects of the pandemic in the months ahead.
MARKET INDICATORS Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
▼ Net Absorption -239,523 SF 36,347 SF 25,291 SF 150,689 SF 311,257 SF
▲ Vacancy Rate 3.70% 3.00% 2.90% 2.40% 2.40%
▲ Avg NNN Asking Rate $19.65/SF $19.63/SF $19.66/SF $19.49/SF $19.43/SF
▲ Under Construction 478,137 SF 400,176 SF 241,176 SF 231,276 SF 242,918 SF
▲ Inventory 26,590,645 SF 26,552,645 SF 26,551,657 SF 26,513,557 SF 26,457,406 SF
NET ABSORPTION, NET DELIVERIES, & VACANCY UNDER CONSTRUCTION
TOP SALE TRANSACTIONS BY SF SIZE SALE PRICE BUYER / SELLER BUILDING CLASS
1700 E Franklin St $10,850,000 Westward Capital Group
38,500 SF 3-Star Freestanding
Chapel Hill, NC $281.82/SF C. Crowell Little, Jr.
401 Foster St $3,255,930 Arcos Properties
9,200 SF 2-Star Storefront
Durham, NC $353.91/SF Weavery & Woodberry R.E.
2919 Fayetteville St Morphouse Farm, Inc.
4,645 SF Undisclosed 3-Star Freestsanding
Durham, NC Amac Properties, Inc.
TOP LEASE TRANSACTIONS BY SF SIZE LANDLORD TENANT TENANT INDUSTRY
7001 Fayetteville Rd InvenTrust Properties
30,000 SF Ashley Furniture Retailers/Wholesalers
Durham, NC Corp
1000 N Miami Blvd Rivercrest Realty
29,794 SF Undisclosed -
Durham, NC Investors
4001 Durham Chapel Hill Blvd Armada Hoffler
27,600 SF Office Depot Retailers/Wholesalers
Durham, NC Properties
LEE
LEE &
& ASSOCIATES
ASSOCIATES RESEARCH
RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
RALEIGH-DURHAM
SUBMARKETS
18
16
12
17
15 6 5
14
7
13 4
3 2
8
19
10
9
11
1
01 Downtown Raleigh 06 Six Forks/Falls of Neuse 11 Johnston Co. 16 Downtown Durham
02 East Raleigh 07 Glenwood/Creedmoor 12 Franklin Co. 17 Orange Co.
03 West Raleigh 08 Cary 13 RTP/RDU 18 Person Co.
04 Northeast Wake Co. 09 Southwest Wake Co. 14 Research Triangle 19 Chatham Co.
05 US 1 10 Southeast Wake Co. 15 South Durham
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
SERVICES & SPECIALTIES
Engaging the services of a qualified real estate professional is critical to the completion of a successful transaction, whether the transaction
involves the acquisition, disposition, management, appraisal or leasing of commercial property. You can count on your local Lee & Associates
professional to have the experience, knowledge and resources needed to meet the unique challenges of your transaction, and ensure that you
make the most informed decision possible.
OFFICE An unprecedented demographic shift in the workforce has RETAIL The proliferation of online retailing has triggered a
business owners rethinking workspace design to attract those that will help transformation in the retail sector that we see as an opportunity.
their businesses grow and thrive. The office has become a home away from Retailers have adapted their brick-and-mortar platforms to include
home, and a place to create and collaborate. Lee office specialists have the omnichannel retailing and “click and bricks” integration along
experience and knowledge to help you navigate this changing world. with revised site requirements. Our retail specialists are at the
leading edge of this transformation and understand your unique
challenges. Our specialists will help you find a tenant/buyer, or the
INDUSTRIAL Industrial users are faced with new challenges every day,
right location that optimizes market positioning, revenue growth,
including changing regulations, international competition, new technologies, stability, and profitability.
and a shortage of efficient, cost-effective space. Our experienced industrial
professionals are specialists in their local marketplaces who can help you
secure a property that optimizes the operation of your business. DATA CENTERS Information Technology has become a
mission-critical hub for every aspect of our clients’ revenue
generating business. The data center requires 100% uptime, and
LAND Lee & Associates’ team of professionals includes some of North needs to be efficient, scalable, and secure. Lee & Associates’ Data
America's top Land brokers. Their expertise in land entitlement and Center Advisory is dedicated to achieving these goals, while saving
disposition provides our clients with an extensive knowledge of local market our clients time and money on their data center deployments.
conditions, as well as development trends, and regulatory issues.
CORPORATE SOLUTIONS At Lee & Associates we recognize
INVESTMENT The successful underwriting of any investment property the special needs of companies located in multiple markets, and
is directly related to the depth of knowledge regarding occupier market we have specialists dedicated to meeting the unique challenges.
dynamics, a core strength of every Lee office. Our brokers are local specialists We become your outsourced real estate department, and provide
who utilize their hands-on experience and comprehensive suite of analytical specialized services critical to the successful management of
tools to help you acquire or dispose of commercial real estate assets when a portfolio of operating locations. Whether it’s finding a new
the time is right. location, renewing a lease, or keeping track of all your current
leases, we can help.
SUPPLY CHAIN & LOGISTICS The enormous growth of big-box and
online retailing has been the catalyst for rapid logistics industry growth. SELF STORAGE The storage industry, like other niche property
Advances in materials handling technology and the construction of state- types, has undergone a period of rapid change. While many
of-the-art facilities near intermodal hubs, has changed the way goods reach facilities are still family owned, institutional players have increased
the consumer. Our dedicated logistics/supply chain specialists across the their stakes in the industry, presenting new challenges to local
country speak your language and work together to get what you need when investors. At Lee & Associates we have dedicated specialists to
you need it. help you evaluate acquisition opportunities, or position your
property for sale at terms that maximize your investment yield.
MULTIFAMILY The multifamily investment market has experienced
explosive growth in recent years. Demographic shifts and the re-urbanization VALUATION & CONSULTING Our appraisers provide
and gentrification of neighborhoods across the country have put multifamily comprehensive, accurate appraisals across all commercial
investment front and center. Safe, stable, more resilient to real estate cycles, property types throughout the United States and Canada. They
and with their diversified tenant base, these factors make them a favorite have unrestricted access to commercial property specialists in
among both institutional and private investors of all sizes. Lee & Associates our offices nationwide. Lee brokers on the front line track every
transaction in the marketplace and are the perfect source for
has seasoned multifamily team, experts in their respective markets, who
the latest market intelligence that is vital to accurate property
have the experience and track record to help you sort through their unique valuation. Our appraisers use the latest technology and analytical
complexities. tools to complete each assignment, so that you can be confident in
the result.
SENIOR HOUSING & HEALTHCARE With the aging of the Baby
Boomer generation, the largest in human history, comes a complex set of PROPERTY MANAGEMENT Our full-service property
challenges for the senior housing and healthcare industry. That also means management services and daily oversight of commercial space are
tremendous opportunity for investors and operators in the sector. Our Senior focused on reducing the efforts of our clients and tenants. We
Housing/Healthcare specialists are trained and experienced in the sale and realize the importance of always being available in order to keep
lease of specialized health-related facilities, including assisted living, skilled your property maintained at the highest level of service.
nursing and medical office properties.
LEE & ASSOCIATES | RALEIGH-DURHAM
Moss Withers, SIOR, MBA Karah Jennings
President & Principal Principal
Brian Farmer Scott Hadley Aldene “Dee” Creech Jake Plotkin, CCIM Marlene Spritzer, J.D., CCIM
Senior Director Senior Director Osborne, SIOR Senior Director Senior Director
Senior Director
James Bailey, J.D. Will Judy Ryan Lawler Hunter Stewart, MBA Russell Stewart, J.D.
Broker Broker Broker Broker Broker
H.E. “Tony” Withers, III Jeremy Laughton Hayden Parker Beth Aubrey
VP of Business Development Senior Vice President Director of Controller
Property Managment Property Management Property Management Property Mangement
Kate Duffy Susan Fulton Jane Jones Michelle Rhino
Marketing Associate Director of Marketing Marketing Coordinator Director of Operations
& Finance
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
OFFICE TEAM INDUSTRIAL/FLEX TEAM
JAMES BAILEY WILL JUDY SCOTT HADLEY RYAN LAWLER
BROKER BROKER SENIOR DIRECTOR BROKER
(336) 602-3022 (919) 606-1956 (919) 906-0524 (949) 291-3896
JBAILEY@LEE-ASSOCIATES.COM WJUDY@LEE-ASSOCIATES.COM SHADLEY@LEE-ASSOCIATES.COM RLAWLER@LEE-ASSOCIATES.COM
BRIAN FARMER RYAN LAWLER DEE CREECH OSBORNE, SIOR JAKE PLOTKIN, CCIM
SENIOR DIRECTOR BROKER BROKER SENIOR DIRECTOR
(919) 730-6584 (949) 291-3896 (919) 622-7272 (919) 616-0066
BFARMER@LEE-ASSOCIATES.COM RLAWLER@LEE-ASSOCIATES.COM DCREECH@LEE-ASSOCIATES.COM JPLOTKIN@LEE-ASSOCIATES.COM
SCOTT HADLEY KARAH JENNINGS MCCONNELL WILL JUDY RUSSELL STEWART, JD
SENIOR DIRECTOR PRINCIPAL BROKER BROKER
(919) 906-0524 (919) 817-0705 (919) 606-1956 (919) 909-9779
SHADLEY@LEE-ASSOCIATES.COM KJENNINGS@LEE-ASSOCIATES.COM WJUDY@LEE-ASSOCIATES.COM RSTEWART@LEE-ASSOCIATES.COM
MARLENE SPRITZER, JD, CCIM MARLENE SPRITZER, JD, CCIM
SENIOR DIRECTOR SENIOR DIRECTOR
(919) 812-9528 (919) 812-9528
MSPRITZER@LEE-ASSOCIATES.COM MSPRITZER@LEE-ASSOCIATES.COM
RETAIL TEAM TENANT REP TEAM
WILL JUDY HUNTER STEWART, MBA JAMES BAILEY MARLENE SPRITZER, JD, CCIM
BROKER BROKER BROKER SENIOR DIRECTOR
(919) 606-1956 (919) 548-3172 (336) 602-3022 (919) 812-9528
WJUDY@LEE-ASSOCIATES.COM HSTEWART@LEE-ASSOCIATES.COM JBAILEY@LEE-ASSOCIATES.COM MSPRITZER@LEE-ASSOCIATES.COM
INVESTMENT TEAM HEALTHCARE TEAM
BRIAN FARMER JAKE PLOTKIN, CCIM BRIAN FARMER KARAH JENNINGS MCCONNELL
SENIOR DIRECTOR SENIOR DIRECTOR SENIOR DIRECTOR PRINCIPAL
(919) 730-6584 (919) 616-0066 (919) 730-6584 (919) 817-0705
BFARMER@LEE-ASSOCIATES.COM JPLOTKIN@LEE-ASSOCIATES.COM BFARMER@LEE-ASSOCIATES.COM KJENNINGS@LEE-ASSOCIATES.COM
MOSS WITHERS, SIOR, MBA MARLENE SPRITZER, JD, CCIM
PRESIDENT & PRINCIPAL SENIOR DIRECTOR
(919) 810-2492 (919) 812-9528
MWITHERS@LEE-ASSOCIATES.COM MSPRITZER@LEE-ASSOCIATES.COM
LAND TEAM
SCOTT HADLEY RUSSELL STEWART, JD
SENIOR DIRECTOR BROKER
(919) 906-0524 (919) 909-9779
SHADLEY@LEE-ASSOCIATES.COM RSTEWART@LEE-ASSOCIATES.COM
KARAH JENNINGS MCCONNELL MOSS WITHERS, SIOR, MBA
PRINCIPAL PRESIDENT & PRINCIPAL
(919) 817-0705 (919) 810-2492
KJENNINGS@LEE-ASSOCIATES.COM MWITHERS@LEE-ASSOCIATES.COM
The information and details contained herein have been obtained from third-party sources believed to be reliable,
however, Lee & Associates has not independently verified its accuracy. Lee & Associates makes no representations,
guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information
and details provided herein, including but not limited to, the implied warranty of suitability and fitness for a particular
purpose. Interested parties should perform their own due diligence regarding the accuracy of the information. The
information provided herein, including any sale or lease terms, is being provided subject to errors, omissions, changes
of price or conditions, prior sale or lease, and withdrawal without notice. Third-party data sources: CoStar Group, Inc.
You can also read
