Nashville Retaill_2Q11
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Transcript of Nashville Retaill_2Q11
1Q
2011
2Q
2011
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
MARKET REPORTNASHVILLE
www.colliers.com/Nashville
Retail Market Stable, Welcomes New Retailers The first half of 2011 has been relatively stagnant with little growth. The retail market has 60,266 of negative absorption for the second quarter with about 3.4 million square feet of vacant space. The vacancy rate was 7.1%, a slight increase from the first quarter at 6.8%. Rental rates continue to decline to $16.58 per square foot, a decrease of $0.69 since the second quarter of 2010. The highest rental rates continue to be in the Green Hills and Belle Meade submarket.
The retail market in Nashville still suffers from the impact of the his-toric flood in May of 2010 which closed the Opry Mills Mall. The Mall has been rescheduled to open its doors again in Spring of 2012 with new tenants Calvin Klein, Coach Factory Store, The LEGO Store, Under Armour Factory Store, White House Black Market and others. In addi-tion to these stores, the Green Hills area welcomes two new retailers:
MARKET INDICATORS
2Q 2011 | RETAIL
Quarterly Comparisons and Totals
QUARTER BUILDINGSTOTAL INVENTORY
SFDIRECT VACANT
DIRECT VACANCY RATE
SUBLEASE VACANCY RATE
NET ABSORPTION CURRENT QTR
AVG ASKING RATE
Q2.11 698 48,716,038 3,434,756 7.1% 0.2% (60,266) $16.58
Q1.11 698 48,687,848 3,332,504 6.8% 0.3% (14,809) $16.74
Q4.10 699 48,719,737 3,370,385 6.9% 0.3% 140,620 $16.93
Q3.10 694 48,489,601 3,633,061 7.49% N/A (25,620) $17.33
Q2.10 640 38,260,704 2,425,307 6.34% 0.2% (61,721) $17.27
By Property Type
BUILDING TYPE BUILDINGSTOTAL INVENTORY
SFDIRECT VACANT
DIRECT VACANCY RATE
SUBLEASE VACANCY RATE
NET ABSORPTION CURRENT QTR
NET ABSORPTION YTD SF
Conv/Strip Ctr 285 5,077,622 619,327 12.2% 0.5% (10,805) 33,081
Big Box 111 9,011,248 266,123 3.0% 0.7% 0 0
Community Ctr 39 8,900,171 757,439 8.5% 0 5,000 5,727
Regional Ctr 1 563,479 51,147 9.1% 0 0 0
Super Reg Ctr 8 5,827,247 116,589 2.0% 0 30,000 30,000
Neighborhood Ctr 245 16,205,712 1,562,279 9.7% 0.1% (58,736) (69,842)
Power Ctr 9 3,130,559 61,852 2.0% 0 (25,725) (26,925)
- -
Updated 7-2011
Nordstrom’s and the Container Store. Nordstrom’s, opening in September, will be a three-story, 149,000 square foot facility an-choring the south side of the Mall at Green Hills. This mall will also be replacing the recently closed Davis Kidd Booksellers with the Container Store, a space estimated to be 30,000 square feet.
While many popular national retail-ers are beginning to make ap-pearances in Nashville, other big names are closing. Companies like
Blockbuster, Borders and Game-stop have started to close several locations across the Nashville MSA.
With low consumer confidence, high unemployment rates and general discomfort with the cur-rent economy, the Nashville retail market continues to rely on the whims of the local and national economies. Though this quar-ter showed little growth, experts remain positive for the second half of the year.
Power Ctr
Neighborhood Ctr
Super Reg Ctr
Regional Ctr
Community Ctr
Big Box
Conv/Strip Ctr
-30000
-25000
-20000
-15000
-10000
-5000
0
5000
10000
15000
20000
25000
30000
Nort
h
Gree
n H
ills/
Belle
Mea
de
Belle
vue
Bren
twoo
d
Cool
Spr
ings
/Fra
nklin
Done
lson
/Her
mita
ge
Dow
ntow
n/W
est E
nd
Hen
ders
onvi
lle/G
alla
tin
Mt.
Julie
t/Le
bano
n
Nort
h
Ruth
erfo
rd C
ount
y
Sout
heas
t Cor
ridor
Sout
hwes
t
2Q 2011 | Vacancy Space By Type 2Q 2011 | Net Absorption By Submarket
RECENT SALES TRANSACTIONSSALES ACTIVITY
PROPERTY SELLER/BUYER SALE PRICE SIZE SF SUBMARKET
5318 Hickory Hollow Pkwy Bank of America/Freeland Realty $2,950,000 111,409 Southeast Corridor
McKay’s Village Barclay Group/Tate Development Corp $11,900,000 83,652 Cool Springs/Franklin
Shoppes of Edge-O-Lake Bank of Nashville/Summit Equities, LLC $3,500,000 36,550 Southeast Corridor
4075 Mallory Lane Drivers Way of Franklin, Inc./CarMax $7,300,000 29,548 Cool Springs/Franklin
1415 Liberty Pike Tate Development Corp/Evan’s Properties $4,400,000 14,820 Cool Springs/Franklin
Senachie Pinnacle Bank/HTDG, LLC $2,000,000 13,003 Downtown
RECENT LEASING TRANSACTIONSLEASING ACTIVITY
PROPERTY ADDRESS TENANT SIZE SF TYPE SUBMARKET
135 River Rock Blvd Price Point Furniture 50,325 New Murfreesboro
Western Plaza Tractor Supply Co 36,854 New Mt. Juliet/Lebanon
2125 Abbott Martin Rd Container Store 30,000 New Green Hills/Belle Meade
Former Rhodes Furniture Renal Care Group, Inc 27,809 New Bellvue
2525 West End Barnes & Noble/Vanderbilt Bookstore 27,065 New West End
118 16th Ave South Off Broadway Shoes 21,734 Renewal West End
DEFINITIONS
Absorption - The net change in occupied space between the current quarter and the previous quarter, calculated by summing all the positive changes in occupancy and subtracting all the negative changes in occupancy.
Available SF - Space currently being marketed for lease or sublease.
Inventory - The total square footage of all single and multi tenant retail properties above 10,000 SF.
Total Building SF - All single & multi tenant office buildings above 20,000 SF excluding medical, government and owner occupied.
Vacancy Rate - Percentage rate of the total amount of physically vacant space divided by the total amount of existing inventory.
P. 2 | COLLIERS INTERNATIONAL
MARKET REPORT | Q2 2011 | RETAIL | NASHVILLE
UPDATE Market Comparisons
RETAIL MARKET
SUBMARKET BLDGSTOTAL
INVENTORY SF
DIRECT VACANT
SF
DIRECT VACANCY
RATE
DIRECT VACANCY
RATE PRIOR QTR
SUBLEASE VACANCY
RATE
NETABSORPTION
CURRENT QTR ST
NET ABSORPTION
YTD SF
AVG ASKING RATE
BELLVUE/WEST NASHVILLE 36 2,987,939 65,298 2.2% 2.1% 0.0% (1,900) (2,900) $16.07
BRENTWOOD 32 1,601,523 54,093 3.4% 3.7% 0.2% 3,558 3,558 $16.09
COOL SPRINGS/FRANKLIN 96 7,575,802 342,130 4.5% 4.6% 0.0% (29,155) 13,658 $20.62
DONELSON/HERMITAGE 35 2,866,529 146,131 5.1% 4.5% 0.3% (1,025) 1,695 $13.33
DOWNTOWN/WEST END 42 1,293,477 133,794 10.3% 10.2% 1.4% (1,400) 2,389 $20.70
GREEN HILLS/BELLE MEADE 43 2,717,742 111,187 4.1% 4.2% 0.5% 29,511 29,975 $23.91
HENDERSONVILLE/GALLATIN 58 4,274,117 341,155 8.0% 7.7% 0.0% (17,600) (17,931) $14.09
MT. JULIET/LEBANON 42 4,213,932 340,883 8.1% 8.4% 0.0% (2,700) (12,200) $12.27
NORTH 75 6,270,164 428,579 6.8% 6.7% 0.0% 1,390 (1,148) $13.52
RUTHERFORD COUNTY 126 7,937,748 780,536 9.8% 9.0% 0.0% (24,791) (43,542) $17.12
SOUTHEAST CORRIDOR 112 6,932,065 685,970 9.9% 9.7% 0.9% (13,154) (4,513) $12.94
SOUTHWEST 1 45,000 5,000 11.1% N/A 0.0% (3,000) 3,000 $12.00
GRAND TOTAL 698 48,715,038 3,434,756 7.1% 6.8& 0.2% (60,266) (27,959) $16.58
COLLIERS INTERNATIONAL | P. 3
MARKET REPORT | Q2 2011 | RETAIL | NASHVILLE
DOWNTOWN
Gallatin Rd.
Leba
non P
l.
West E
nd A
ve.
Harding Pl.
O ld Hickory Blvd.
Fran
klin
Moores Ln.
Murfreesboro Rd.
Nolensville Rd.
Briley
Pkwy.
Bell Rd
.
Woodmont Blvd.
MURFREESBORO
BELLVUE
COOL SPRINGS/FRANKLIN
BRENTWOOD
GREEN HILLS/BELLE MEADE
CHARLOTTE PIKE/CLARKSVILLE HWY.
MADISON/GOODLETTSVILLE
HENDERSONVILLE/GALLATIN
MT. JULIET/LEBANON
LAVERGNE/SMYRNA
NOLENSVILLE PIKE
RIVER
GATE
WEST END AIRPORT/MURFREESBORO RD.
DONELSON/HERMITAGE
ANTIOCH/HICKORY HOLLOW
NASHVILLE:
Nate GreeneManaging Partner300 BroadwayNashville, TN, 37201TEL +1 615 850 2729FAX +1 615 850 3229
MARKETING DIRECTOR:
NashvilleAllison Schepman300 BroadwayNashville, TN, 37201TEL +1 615 850 2748FAX +1 615 244 2957
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Figure 1: Nashville Retail Submarkets include Bellevue/West Nashville, Brentwood, Cool Springs/Franklin, Donelson/Hermitage, Downtown/West End, Green Hills/Belle Meade, Hendersonville/Gallatin, Mt. Juliet/Lebanon, North Nashville, Rutherford County, Southeast Corridor and Southwest.
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MARKET REPORT | Q2 2011 | RETAIL | NASHVILLE