Q4 2017 Retail Brief - Lee & Associates · Q4The Lee Retail Brief 2017. 1 professionals and growing...

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1

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LEE OVERVIEW

NATIONAL OVERVIEW

SIGNIFICANT TRANSACTIONS

5 LEE NETWORK

3 KEY MARKET SNAPSHOTS

The Lee Retail Brief

Q42017

1

professionalsand growingnationwide

900transaction volume

2016

$11.6 billionincreasein transaction

volume over 5 years

62%

1

WEST MIDWEST

SOUTH

SOUTHWEST

EAST

CANADA

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lee-associates.com 31 LEE OVERVIEW KEY MARKET SNAPSHOTS 5 LEE NETWORKNATIONAL OVERVIEW2 4 SIGNIFICANT TRANSACTIONS


Net absorption for shopping center space and single-tenant buildings declined 39% and 49% respectively. The year opened with Sears’ announcement it would shutter 150 Sears and Kmart stores and ended with the closing of 63 Sam’s Clubs by Walmart in Q4. Meanwhile, activist investors are pressuring chains to sell assets.

Absorption across all retail categories totaled 75.8 million SF and was off 33.6%, the least since 2012. The continuing turmoil followed a year of record absorption in 2016 with 114.2 million SF, making the reversal appear more severe. One bright spot was that demand for power centers and mall space was up sharply year over year, but they combine for less than 20% of total inventory.

National Economic Overview2

TRENDING IN Q4

The transformative effects of e-commerce’s annual double-digit growth on the nation’s most venerable merchants was on full display again in 2017 and surprised almost no one.

Retail’s continuing evolution in 2017 included predicted record store closings as traditional retailers scrambled to ramp up their online merchandizing to blunt Amazon’s commanding advantage and resources.

But Amazon had another agenda. Not only dominating in online sales, the retail giant began taking up storefront positions in 2017 with its stunning $13.7-billion acquisition of Whole Foods. Amazon Go – small, cashier-less grocery stores rolled out in 2017 – is revolutionary.

ECONOMICDRIVERS

2%

4%

6%

8%

10%

12%

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2010Q3

2011Q3

2012Q3

2013Q1

2014Q1

2014Q3

2016Q1

2017Q3

2011Q1

2016Q3

2009Q3

2010Q1

2012Q1

2013Q3

2015Q1

2015Q3

2017Q1

3%

5%

7%

9%

11%

Power CenterPo Specialty CenterS General RetailG Shopping CenterS MallM otal RetailTo

2017Q4

VACANCY RATES BY BUILDING TYPE 2006-2017

NET ABSORPTION

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2017 Q42017 Q32017 Q22017 Q12016 Q42016 Q32016 Q2

*For Top 42 Markets

EMPLOYMENT

GROWTH

MONETARY POLICY

GLOBAL ECONOMY

A LOOK AHEAD

GDP

BCCANADA

WEST MIDWEST

SOUTH

SOUTHWEST

EAST

Many traditional retailers are succeeding in online sales – Walmart, Target, Macy’s and even Kroger are pushing back – but they are caught in a squeeze. With the low profi t margins generated by internet purchases, merchants have no choice but to improve brick-and-mortar performance.

Retail Right-Sizes as Amazon Ups the AnteUS RETAIL MARKET



The decline was anticipated. Deliveries and new construction are down as the broader retail property market is managing the painful retreat in a more-or-less orderly way given the unique threat posed by online sales to traditional commerce.

But merchants are not relying on water parks and Legoland alone to draw customers. They’re embracing technology to spark in-store experiential connections with shoppers – facial recognition, how-to videos, digital device integration and fi ne tuning inventory to align with traffi c patterns. At the same time, they’re right-sizing their retail footprints. There were more than a few victims among slow-footed CEOs. As he stepped down in 2017 as chief of J. Crew Group, retail legend Mickey Drexler told reporters that he failed to see how technology would upend the industry.

New supply is down as investors and developers are maintaining uncustomary discipline with cutbacks in new deliveries and space under construction. Consequently, vacancy rates in shopping centers fell 60 basis points year over year and settled at 7.4%, the lowest in more than a decade.

HISTORICAL DELIVERIES 1982 - 2017

121.60 129.00

166.70

232.20 233.20 222.20 219.90

209.10 217.30

146.60 137.60 138.00

157.10

194.10 196.50 190.20

202.40

224.30 219.40 221.90 207.70 211.30

231.80

254.30

236.70 235.60 241.50

126.00

69.00 62.00 64.00

72.80 86.30

96.40 94.40 94.30

-

50.00

100.00

150.00

200.00

250.00

300.00

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Mill

ions

SF

Deliveries Trend Delivered SF

Rents gained 3.3%. For single-tenant general retail buildings, which account for about 65% of the market, the vacancy rate was unchanged at 2.9% and asking rents jumped 9.6% year over year.

Mall landlords have been scrambling for most of the decade to come up with novel ways to re-ignite foot traffi c and backfi ll empty anchor space. The efforts may be working as net absorption in malls rebounded 79% in 2017 to 9.2 million SF. Mall space accounts for about 10% of the total inventory.

There were other bright spots. A strong job market and high consumer confi dence peaked with holiday retail sales at their highest in six years. At the property level, T.J. Maxx and Marshalls have opted against online sales and reported same-store gains.

And investors looked more favorably at traditional retailers angling for greater online shares but with high expectations. Walmart shares tumbled 10% when the company announced Q4 online sales grew only 23% compared to at least 50% in each of the previous three quarters.

The largest leases of 2017 included the 118,000-SF deal signed by Irondale Pickers and Market Place at Garden Ridge in Birmingham, Al; the 113,275-SF Athletic Republic lease in the Capital Sports Complex in Washington, D.C., and BJ’s Warehouse Club leases of 109,360 SF in Boston and 102,600 SF in Roanoke, VA.


QUARTER-TO-QUARTER GROWTH IN REAL GDP

2

GDP GROWTH TRENDING IN Q4

Stronger-than-expected economic activity will produce a 3.98% fourth-quarter rise in GDP and Q1 2018 projection of 3.15%, according to estimates by the New York Fed. Other early estimates peg 2017’s GDP growth at a 2.3% annual rate.

The tax overhaul passed late in the year certainly shakes up the landscape. The consensus is it will provide a fresh tailwind to what many see is a late-stage economy. Research popular with the overhaul’s proponents broadly suggests the tax cut will slice the trade defi cit in half and deliver a

1% shot or more to the GDP. Research also shows it will result in more of an accounting effect than improvement in worker income.

Exhuberance about the economy is not exactly an emotion shared by Americans lately, and it’s looking less likely they’ll be able to help fuel more growth by shopping.

U.S. consumer sentiment slid for the third straight month in January after hitting a 13-year high in October. Consumer debt as a share of disposible income is already at its highest level since the fi rst quarter of 2009. The personal savings rate has fallen to its lowest rate since 2007, meaning consomers have no more to give.

If it’s the soaring stock market that is making people feel wealthy, there’s reason for concern. The savings rate was 5.7% in 1996 when a previous Fed chairman mused about “irrational exhuberance” during the dot-com bubble. A decade later, consumers were able to tap into frothy home equity to keep the economy humming. It all adds up to be an added burden on business to increase wages and give cover for elected leaders to increase domestic spending.


TRENDING IN Q4

The unemployment rate closed the year at 4.1%, unchanged in December for the third straight month and down 0.6% year-over-year. The number of jobless was 6.6 million, the U.S. Labor Department reported. Unemployment rates were lower year-over-year in 304 of the 388 metropolitan areas surveyed midway through the fourth quarter.

Year-over-year employment was essentially unchanged. In 2017, the unemployment rate and the number of unemployed persons were down by 0.6 percentage point and 926,000, respectively.

The fastest job growth has occurred in health care, personal care, and social assistance and construction.

Struggling job categories include workers at dozens of aging coal plants that are closing in 16 states as competitive pressures mount from natural gas, wind and solar farms. Fourteen plants closed in 2017. Eleven of 32 planned closures are slated this year. Eight aging coal-fi red plants, each with 200 to 450 workers, are being shut down in north and west Texas. Operators of one shuttered coal plant acquired a 600-acre solar farm in the region that can produce 180 megawatts of power with two employees.

It fi gures that the outlook for their supply-chain brethren in the mines is equally grim. But a surge in U.S. coal exports, particularly to Asia and Japan, last year stopped the slide in mining jobs.


NATIONAL UNEMPLOYMENT

EMPLOYMENT

61.5%

62.0%

62.5%

63.0%

63.5%

64.0%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2012 2013 2014 2015 2016 2017

Lab

or Force Particip

ation

Unem

plo

ymen

t &

U6

Unem

plo

ymen

t

UNEMPLOYMENT UNEMPLOYMENT U6 LABOR FORCE PARTICIPATION


TRENDING IN Q4

Weakness in 2017’s infl ation readings turned out to be transitory, as expected by Federal Reserve offi cials. Consumer prices excluding food and energy rose 0.3% from the previous month and core prices were up 1.8% year over year, the Labor Department reported in December. This is more affi rmation for Fed policymakers to stick to their plan for three interest-rate increases in 2018.

Forced to act in the recession, the Fed slashed interest rates and pledged to keep the short-term federal-funds rate close to zero through the recovery. It reached 0.15% in early 2009 where it stayed until 2015. The Fed’s balance sheet also swelled from about $900 billion in 2008 to today’s $4.4 trillion with its acquisitions of long-term bonds and mortgage-backed securities.

The Fed’s unconventional monetary policy was crafted to encourage investors to shift from bonds to equities and real estate. This asset-substitution strategy produced the hoped-for rise in household wealth and consumer spending. Equities owned by households jumped 47% from 2011 to 2013, a year that household net worth jumped $10 trillion. From 2009 to late 2016 the S&P gained more than 200%.


MONETARY POLICY

US TREASURY RATES


National Economic Overview

GLOBAL ECONOMYAt the 10th anniversary of the fi nancial crisis and during a year in which the world enjoyed its strongest broad-based growth in a decade, the International Monetary Fund used its World Outlook Forum to warn that governments should guard against complacency brought on by booming markets and asset prices.

The caution comes as growth is accelerating in Europe, Japan, China and the United States – growth that will be untroubled by higher interest rates in the United States and phasing out of stimulus by the

European Central Bank, the IMF says.

After assessing data showing a stronger fi rst-half, the IMF estimates global growth at 3.6% in 2017 and 3.7% for 2018.

Oil prices moved higher on more disciplined production by OPEC and Russia, a relief to commodity-dependent emerging markets and a boon to the U.S. shale oil sector.

Speculation has been unchecked on all assets from real estate to bitcoin. But the yield curve is fl attening, usually a signal preceding slowing growth and recessions.

EURO AREA REAL GDP2

(QUARTER-ON-QUARTER PERCENTAGE CHANGES)

2

BCCANADA


Key Market Snapshots3

WESTSeattleDenver

SOUTHWESTDallas/Fort Worth

MIDWESTChicago

SOUTHAtlanta

CharlestonGreenville/Spartanburg

EASTManhattan

BC, CANADAVancouver

FEATURED MARKETS THIS QUARTER

WESTMIDWEST

SOUTHWEST

EAST

SOUTH


Featured Market Snapshots

TRENDING IN Q4

Steady tightening in the Seattle metro retail market continued in 2017 with about 710,000 SF of net absorption across all categories and in most of the metro’s submarkets.

The vacancy rate settled at 3.5%, equaling the post-recession low set in Q2. The vacancy rate is 1.9% for general retail space, which makes up 54% of the metro’s 176.6-million-SF retail inventory. Vacancy rates at the end of 2017 were 6.9% for shopping centers, 2.6% for power centers and 1.2% for mall space.

Demand nearly equaled the 983,840 SF of gross leasable area delivered to the market in 2017 – the most space added since 2009. Year-over-year rent growth averaged 3.6%.

Most of the expansion was in the Southend’s Renton/Tukwila submarket with ribbon-cuttings for Ikea’s 406,000 SF and 55,535-SF leased by Dick’s Sporting Goods on Southcenter Parkway. A 225,804-SF Costco opened on 188th Avenue in Redmond in the Eastside retail market, which is set to add 400,000-SF to the newly redeveloped Village at Totem Lake in Kirkland.

Nearly a half million square feet of space has been added to the inventory in the 47-million-SF Northend submarkets in the last three years. The new deliveries are running slightly ahead of demand and caused lease rates to slip 2.4% year over year and average asking rates

3.5%VACANCY

$19.65AVG. SF RENTAL RATES

281,152NET SF ABSORPTION

176,625,715RETAIL SF INVENTORY

868,909SF UNDER CONSTRUCTION

3

281,152

(183,157)

209,926

402,090 430,332

(300,000)

(200,000)

(100,000)

-

100,000

200,000

300,000

400,000

500,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

3.50

3.60

3.50

3.80

3.60

3.35

3.40

3.45

3.50

3.55

3.60

3.65

3.70

3.75

3.80

3.85

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

SEATTLE



WEST REGION - SEATTLE(continued)

3

to settle at 4.1%. Twelve of the 15 largest new projects delivered in 2017 were 100% pre-leased.

Asking rates jumped 10.8% in the Southend, 10.4% on the Eastside and 5.2% in the small Downtown market. Rents were up 1.5% in the Tacoma market in 2017 after gaining 7.6% the previous year.

Four quarters of healthy demand in the Tacoma market drove down the vacancy rate 40 basis points to 4.4% year over year.

Northend’s net absorption dipped into red numbers for fi ve of the last six quarters with about 102,000 SF going back on the market in 2017. Nearly 200,000 SF of new product has been delivered in Northend submarkets in the last two years. More than 46,000 SF were underway at the end of 2017. The 47.8-million-SF market’s vacancy rate ticked up to close the year at 4.1%.

Buoyed by big leases in the fi rst half of 2017 from Ikea and Dick Sporting Goods, net absorption in the Southend submarkets closed the year in positive territory with 241,275 SF. The vacancy rate for the nearly 32-million-SF market settled at 3.4%.

Transactions were off compared to 2016. Through the fi rst nine months of 2017 there were 54 deals totaling $426.5 million and averaging $146 per SF versus 52 trades in 2016 totaling $692.7 million and averaging $261 per SF.

19.65

19.5819.54

19.11

18.97

18.60

18.80

19.00

19.20

19.40

19.60

19.80

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

868,909

710,015

810,148

787,979

1,519,190

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

SF UNDER CONSTRUCTION

AVERAGE SF RENTAL RATES



TRENDING IN Q4

Fast-growing Denver is the nation’s 17th largest metro retail market but ranked 10th in net absorption in 2017. It was the third straight year in which demand has outrun new supply as the overall vacancy rate fell to 4.5%, a 10-year low.

Rents were up 10% year over year across the market, reaching a post-recession high in the second quarter.

Denver ranked sixth among U.S. metros in new deliveries after Chicago and with 1.9 million SF underway was 10th in new construction at the end of the year behind Washington, D.C.

Net absorption was up 8.2% from 2016. Thirteen of Denver’s 17 submarkets posted positive absorption in 2017 and were led by 584,535 SF of growth in the Northwest submarket, 511,105 SF in the Fort Collins and 412,442 SF in the small outlying Southeast submarket.

Delivery of nearly 2.2 million SF of new retail space, a 34% increase from 2016, were led by Scheels’ 260,000 SF in the Fort Collins submarket, the 136,400-SF Sam’s Club in the Promenade at Castle Rock and 135,000 SF for Walmart at 9442 58th Avenue. Denver’s 15 largest new projects delivered in 2017 totaled more than 1.2 million SF and were 100% pre-leased.

The largest projects under construction at the end of the were 330,000 SF in Northeast Denver’s Premium

4.5%VACANCY




1,911,667SF UNDER CONSTRUCTION

3

998,778

565,226

172,618

563,028

779,219

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

4.50

4.80

4.70

4.604.60

4.35

4.40

4.45

4.50

4.55

4.60

4.65

4.70

4.75

4.80

4.85

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

DENVER



WEST REGION - DENVER(continued)

3

Outlets, 235,000 SF in the Central submarket at 9th and Colorado, 198,000 SF in Fort Collins, 185,200SF in Vista Highlands and 127,000 SF for King Soopers in the Candelas Marketplace.

The total volume of vacant space fell 2.1% from 2016 to 8.9 million SF. About 52% of vacancy is in shopping centers, 22% is in general retail and about 20% is in power centers and malls.

Transaction volume, total sales and average prices declined year over year. In the fi rst nine months of 2017 there were 61 sales totaling $495.7 million and averaging $128 per SF compared to 72 trades at $619.6 million with an average of $202 per SF. Cap rates were higher in 2017 averaging 7% compared to 6.92% the previous year.

Sale of Aspen Grove, a 267,477-SF project in Littleton was acquired by Gerrity Group for $82 million at a 6.2% cap rate. Hutensky Capital purchased at 390,049-SF shopping center in Northglenn for $48 million or $123 per SF and Riverside Interests bought a 175,787 SF center at 91 W. Mineral Ave. in Littleton for $42.8 million or $244 per SF.

17.81

17.64

17.24

16.75

16.18

15.00

15.50

16.00

16.50

17.00

17.50

18.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

AVER

AGE

RR/S

F

1,911,667

2,054,830

2,222,055 2,247,157

2,274,653

1,700,000

1,800,000

1,900,000

2,000,000

2,100,000

2,200,000

2,300,000

2,400,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET





TRENDING IN Q4

Strong second-half growth vaulted the Dallas/Fort Worth metro retail market into the top position nationally for absorption along with the nation’s leading volume of new deliveries and space under construction in 2017. Rents increased nearly 8% year over year and are up 17% in the last three years. The vacancy rate settled at a 10-year low.

Although it’s the nation’s fourth largest retail market, Dallas/Fort Worth led in total growth with 4.3 million SF, fractionally more than in Chicago, a market nearly 25% larger.

Dallas/Fort Worth also led the nation with 6.5 million SF in the delivery of new product compared to 5.8 million SF in Houston. Dallas/Fort Worth also was tops in new construction with 3.9 million SF underway at the end of 2017, just ahead of Northern New Jersey. Much of the new construction is build to suits for major retailers that won’t negatively affect fundamentals and rent growth.

Most of the metro’s 2017 growth occurred after Q2’s negative 761,000 SF, the fi rst quarterly slump in three years.

Developers are shifting their attention away from malls and power centers and toward large residential corridors, building shopping centers and mixed-use projects. For example, CityLine in Richardson, Legacy West in Plano, Water Street and the Music Factory in Las Colinas – four projects that make

4.7%VACANCY


2,043,008NET SF ABSORPTION



3

2,043,008 1,919,959

(761,037)

1,095,611

748,138

(1,000,000)

(500,000)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

4.70

4.80

5.20

4.70

4.90

4.40

4.50

4.60

4.70

4.80

4.90

5.00

5.10

5.20

5.30

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

DALLAS / FORT WORTH


Featured Market SnapshotsSOUTHWEST REGION - DALLAS / FORT WORTH

(continued)

3

up the $5 Billion Mile in Frisco – have large retail components. Opportunities are seen in existing developments along highly traffi cked corridors. The Shops at Willow Bendon the Dallas North Tollway in West Plano opened in 2000 and is already getting a $100-millon makeover. Landlord Starwood Capital expects to boost the property’s performance as it occupies a prime location between the George Bush Turnpike and Sam Rayburn Tollway and near newer and future developments to the north.

Grocery-anchored centers are fi nding plenty of interest from HEB, Kroger, Trader Joe’s, and Whole Foods Market - national grocers whose interest is heightened by the booming demand.

The year’s largest deliveries were Tanger Outlets Champions Circle, a 350,000 SF project in the Fort Worth suburban market followed by the 335,219 SF fi rst phase of The Shops at Clearfork and the 297,000 SF Ikea store in West Dallas. Fourteen of the 15 largest projects delivered in 2017 were 100% leased at completion.

Leading the largest projects underway is the 555,000 SF Wade Park Retail in North Central Dallas and slated for Q2 completion followed by the Music Factory, a 465,000 SF project in the West Dallas market. Eleven of the top 15 projects underway are 100% pre-leased.

The metro’s affordability, location and quality of labor continue to draw major employers to the region as job growth has averaged more than 100,000 annually since 2012. Although supply is ramping up, absorption has kept pace with inventor growth, ensuring continued record-setting occupancy levels. Population growth in the northern suburbs of Plano, Frisco, Allen, and McKinney is projected to continue.

16.45

15.9115.90

15.59

15.27

14.60

14.80

15.00

15.20

15.40

15.60

15.80

16.00

16.20

16.40

16.60

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

3,904,604

5,162,204

6,820,409 7,151,778 7,207,346

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET


AVG SF RENTAL RATES ALL PRODUCT

On the transaction side, among the largest deals in 2017 involved Creekwalk Village, a 174,500 SF asset north of Collin Creek Mall. Sterling Organizaton of Palm Beach paid $140 per SF, acquiring the property for $24.5 million in cash. The Village at Allen sold for $170.5 million in December to DLC Management Corporation in New York.



TRENDING IN Q4

The Chicago metro closed the year with a strong fourth quarter, posting nearly 1.6 million SF in net absorption driving down the year-end vacancy rate to 6.5%, its lowest in a decade. Overall tenant demand eased in 2017. New deliveries were off and despite 1.9% year-over-year rent growth average lease rates remain below 2008 levels.

With 547 million SF, Chicago has the nation’s second largest retail inventory after Philadelphia but led in 2017 in total vacancy with 33.8 million SF. Absorption fell 19% from 2016 to 4,280,466 SF. The metro was third in new deliveries with 2.45 million SF in 2017, off 35% from a year earlier. Chicago ranked fi fth behind Houston in the volume of space under construction at the end of the year.

Sales activity fell in 2017, but prices jumped nearly 14%. In the fi rst nine months there were 150 transactions totaling $1.46 billion and averaging $175.71 per SF compared to 174 trades valued at $1.23 billion in 2016 totaling $154.42 per SF. Cap rates were lower in 2017, averaging 7.56% compared to 7.79% in 2016.

The largest lease signings in 2017 included the 98,500-SF deal by HOBO at 7600 Roosevelt Road, the 89,188-SF lease by Cermak Produce at 1250 N. Lake St. and the 73,485-SF lease by Jewel-Osco at 13460 S. Route 59.

Twelve of the largest 15 new projects delivered in 2017 were 100% pre-leased. Among the notable

6.5%VACANCY


1,574,470NET SF ABSORPTION



3

1,574,470

373,971

965,161

1,366,864

1,028,882

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

6.50

6.70

6.60

6.80

7.00

6.20

6.30

6.40

6.50

6.60

6.70

6.80

6.90

7.00

7.10

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

CHICAGO



MIDWEST REGION - CHICAGO(Continued)

3

deliveries in 2017 were Bond Companies’ Kildeer Village Square 200,000 SF delivered in Q2, 174,482-SF at The Plaza Evergreen Park by Lormax Stern Development and 123,746 SF at 4545 W. Divison St. by Leopardo Co.

Twenty-seven of the metro’s 32 markets posted positive growth in 2017. Most absortion was in the Western East/West Co. market with 463,507 SF of space coming off the market in 2017 followed by 410,762 SF of absorption in South Chicago, 390,375 SF in Joliet/Central Will, 384,293 SF in Central Northwest and 347,889 SF in Eastern East/West Co.

The top trades of the year were led by DDR Corporation’s $81-million acquisition of the 127,889-SF 3030 N. Broadway at $633 per SF at a 5.64% cap rate. First Washington Realty purchased Fox Run Square, a 148,335-SF center in Naperville, from Bradford Real Estate for $78 million at $526 per SF. Menard Inc. acquired the 101,502-SF Center of the Northshore in Northbrook for $68.5 million, a $675 per SF average, at a 5.8% cap rate.

Several tenants vacated large blocks of spaces in 2017. Sears moved out of 296,610 SF in Elmwood Park, one of more than 200 closures the company announced in 2017. Ultra Foods, part of the Strack & Van Til supermarket chain moved out of 92,424 SF at The Landings shopping center in Lansing, one of nine store closings in Illinois and Indiana. Meijer moved out of 90,000 SF at the Winston Plaza Shopping Center in Melrose Park.

15.93

15.68

15.76

15.6715.64

15.45

15.50

15.55

15.60

15.65

15.70

15.75

15.80

15.85

15.90

15.95

16.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

2,473,564

2,627,197 2,690,946

2,179,234

2,456,886

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET


AVG SF RENTAL RATES ALL PRODUCT TYPE



TRENDING IN Q4

Surging tenant demand for retail space catapulted Atlanta – the nation’s seventh largest retail metro – into a near tie with Chicago and Dallas as the nation’s hottest metros in 2017. Atlanta’s year-end vacancy rate fell to 5.3%, a 10-year low, and rents gained 6.9% year over year.

The volume of new retail space added to the inventory in 2017 totaled 2.4 million SF. But the 1.3 million SF of shopping area under construction at the end of the year represents a 64% drop from 2016.

Atlanta’s net absorption totaled nearly 4.2 million SF in 2017 – a 22% increase over 2016 and about 133,000 SF short of the top spot claimed by Chicago with nearly 13% greater inventory.

Job growth has been fueling demand for space, and in the last two years lease rates have begun to respond. Premium space in high-traffi cked retail centers is at virtually zero vacancy, forcing tenants to settle for B and C locations.

With a total retail base of about 365 million SF, Atlanta ranks behind Houston and ahead of Boston among largest U.S. markets. In 2016, Atlanta had 3.5 million SF under construction at the end of the year, the nation’s second highest total. But at the end of 2017, the volume of space underway dropped the metro to 19th.

Six of Atlanta’s 46 submarkets accounted for half the annual growth: Suwanee/Buford, Riverdale/

5.3%VACANCY





3

611,509

822,937

1,578,406

1,152,767 1,053,620

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

5.30

5.505.50

5.70

5.90

5.00

5.10

5.20

5.30

5.40

5.50

5.60

5.70

5.80

5.90

6.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

ATLANTA



SOUTH REGION - ATLANTA(continued)

3

Jonesboro, Central Business District, South Fulton/Union City, Sandy Spring, Bartow/Cartersville and Fayette/Peachtree.

Prime locations in urban locales are in short supply and command the highest rents. Buckhead is Atlanta’s priciest submarket. Its 4.1% vacancy rate is the lowest in eight quarters and asking lease rates were just shy of $30 per SF. Phipps Plaza Buckhead completed its Peachtree Street million-dollar facelift and is announcing new restaurants and prestigious merchants, including Tiffany’s, Gucci, Jeffrey Atlanta and others.

Despite the retreat of several national retailers, tenant demand in most major malls has been strong and the year-end vacancy rate settled at 3.6%. DeKalb County is an exception. Its 2.3 million SF of mall space is 15.1% vacant. Stonecrest Mall and North DeKalb Mall struggle to lease up space vacated by top merchants. A number of major big box retailers also have quit the DeKalb market. Stonecrest Mall’s loss of anchor tenants and a Starbucks speaks to the challenge facing landlords.

Among the year’s leading deliveries were The Meridian at Tucker, a 207,000-SF center in DeKalb by developer Ben F. Kushner Co. and the 350,000 SF over two buildings at Battery at Sun Trust Park in the South Cobb market.

Major developments underway at the end of the year were led by a 123,552-SF project on Steeplechase Boulevard in the Georgia 400 market, the 90,540-SF Buckner Crossing in South Cobb and The Beacon Atlanta, a 60,222-SF project in the South Atlanta market.

13.99

13.59

13.2513.18

13.09

12.60

12.80

13.00

13.20

13.40

13.60

13.80

14.00

14.20

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

1,260,470

1,203,769

1,616,017

2,558,470

2,763,076

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET





TRENDING IN Q4

Strong fourth-quarter demand closed an active year for retail space in the Charleston market as net absorption totaled 397,255 SF and the vacancy rate ended the year at 3.1%, up 30 basis points year over year.

There were 579,095 SF of space delivered to the Charleston market in 2017, the second highest total in 10 years. Twelve of the 15 largest new developments were 100% pre-leased.

Most new development was in the general retail category in East Islands/Mt. Pleasant. A 30,000-SF center at 349 Coleman Blvd. in the East Island/Mt. Pleasant market opened with 15% occupancy. The largest new project with 87,800 SF was BJ’s Wholesale Club on 1036 Jockey Court in Outlying Berkeley County.

Slightly more than half of Charleston’s 44.1 million SF of retail space is in the general retail category, which ended 2017 with a 2.1% vacancy rate, up 50 basis points year over year. The vacancy rate for 2.3 million SF of mall space was 0.4%, 3.7% for 2.6 million SF of power centers and 4.9% in shopping centers.

Small shop leasing still is healthy with normal turnover of a limited supply. Larger box development and backfi lling of existing space has slowed and plans for new power centers have been shelved.

3.1%VACANCY





3

378,463

(111,975)

162,078

(31,311)

167,307

(200,000)

(100,000)

-

100,000

200,000

300,000

400,000

500,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

3.10

3.60

3.20

3.10

2.80

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

CHARLESTON



SOUTH REGION - CHARLESTON(continued)

3

Grocery-anchored and power centers still outshine all other categories. Small shop vacancies are low and lease rates are high.

The two enclosed malls in the Charleston area still struggle with creating or capturing foot traffi c. The Citadel Mall recently backfi lled a big box vacancy with a regional medical tenant. It was a blow to other mall occupants hoping for a strong replacement tenant that would draw consumers.

Municipal aversion to new projects and tough bureaucratic scrutiny of permit applications are big hurdles to development. Approvals for upfi t permits are taking up to three months.

Overall activity should remain stable with vacancy rates in most submarkets.

Three of the year’s fi ve top leases were in North Charleston. At the Northwoods Mall, Burlington Coat Factory leased 81,605 SF and Restaurant Depot leased 63,000 SF. Gander Outdoors leased 40,325 SF at The Promenade at Northwoods. Harris Teeter leased 50,000 SF and Carpet To Go leased 23,780 SF on Northwoods Bouldvard in Greater Charleston.

The year ended with 16 buildings under construction totaling 338,065 SF and averaging about 87% pre-leased. The largest projects underway were led by a 124,320-SF development at Summerville Commons slated for Q4 delivery. A 45,000-SF Whole Foods market is set for completion in Q2 at 1125 Savannah Highway in the Greater Charleston market.

23.2722.26

21.51

19.6818.57

0.00

5.00

10.00

15.00

20.00

25.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

338,065

438,320

499,992

337,010

388,246

-

100,000

200,000

300,000

400,000

500,000

600,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET





TRENDING IN Q4

Vacancies in the Greenville-Spartanburg retail market fell to their lowest in more than a decade, rents increased at the fastest annual rate since the recession and tenant demand for space outpaced new supply for the fi fth straight year.

The year ended with nearly 392,000 SF of fourth-quarter net absorption, lifting the total for the year to 704,120 SF. Although absorption was off 28% from 2016, new deliveries in 2017 totaled 571,685 SF. At the end of the year there were 236,631 SF under construction, more than triple the 75,753 SF underway at the end of 2016. Average rents gained 9% in 2017 and were up 22% over the last four years.

The Greenville-Spartanburg market includes 14 million SF of space in Anderson County. Nearly 2 million SF of space in Pickens County and 1.7 million SF in Cherokee and Laurens counties total 15% of the total shopping area.

Although available shop space has been tightening steadily since the recession, signifi cant turnover of space has created opportunities for new and expanding merchants to secure quality locations.

The Greenville-Spartanburg market has been adding jobs for years with an economy boosted by multinationals BMW, Michelin and others. It has an international airport, affordable housing, universities,

4.4%VACANCY





3

391,886

(81,594)

142,379

251,449

196,725

(200,000)

(100,000)

-

100,000

200,000

300,000

400,000

500,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

4.40

4.70

4.504.50

4.70

4.20

4.30

4.40

4.50

4.60

4.70

4.80

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

GREENVILLE / SPARTANBURG



SOUTH REGION - GREENVILLE / SPARTANBURG(continued)

3

a pool of workers with 21st century skills and it is the largest market between Charlotte, N.C., and Atlanta.

A recent U.S. Census bureau ranking Greenville as the nation’s fourth fastest growing city is a return on years of reinvesting in infrastructure, encouraging downtown residential development and subsidizing historic renovations, commerce and jobs.

Sales of properties were down in 2017 from the previous year. Through the fi rst nine months of 2017 there were 12 transactions totaling $75.9 million for an average of $86 per SF. In 2016 there were 22 trades totaling $203.7 million, an average $157 per SF. Cap rates were higher in 2017, averaging 8.54% compared to 8.18% in 2016.

The top sale of the year was the $46-million purchase of 388,276-SF Dorman Centre by Slate Retail for $118 per SF followed by Realty Income Corp.’s $19.3-million acquisition of a 200,084-SF Greenville building leased by Walmart at an average $97 per SF. Publix Super Markets bought the 61,960-SF Five Forks Place in Simpsonville for $11.7-million, an average $188 per SF.

The largest lease of the year was for 40,000 SF by Big Air Trampoline Park on Park Woodruff Drive. American Freight Furniture leased 29,781 SF at Hidden Hill Center in Spartanburg, Staples renewed a lease for 22,695 SF at McBee Station in Greenville and Lee & Associates engineered the lease of 22,000 SF at 400 W. Blackstock Rd in Spartanburg to Badcock (cq) Furniture.

11.2211.26

10.70

10.51

10.29

9.80

10.00

10.20

10.40

10.60

10.80

11.00

11.20

11.40

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

AVER

AGE

RR/S

F

238,631

375,427 415,770

522,513

448,613

-

100,000

200,000

300,000

400,000

500,000

600,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET





TRENDING IN Q4

Lackluster demand in Manhattan’s largest shopping districts continued in the second half as merchants adjust to changing retail trends. The overall 2017 vacancy rate settled at 4.1, up 40 basis points year over year. Rents largely are unchanged in the large Midtown and Midtown South markets as well as in the small 4.6-million-SF Downtown district.

Manhattan’s largest new project in 2017 was delivered in Downtown. South Street Seaport aka Pier 17 by Howard Hughes Corporation, added 249,394 SF of rentable space in Downtown’s insurance district. Although Pier 17 was 56% pre-leased on its Q4 delivery, the added supply pushed up the district’s Q3 vacancy rate 230 basis points, closing the year at 8.9%. Downtown includes the World Trade Center, Tribeca, fi nancial district and city hall submarkets.

Weakness continued in Midtown South, the largest retail district with 17 million SF and includes Chelsea, Grammercy Park, Greenwich Village, Hudson Square and Soho. The shopping area reported 87,245 SF of negative absorption in 2017 and has been in red numbers for 12 of the last 16 quarters. But the district total inventory also has declined 103,000 SF in the last four years, holding the increase in the vacancy rate to 50 basis points and keeping rents largely in check.

Strong fi rst-half demand in the Midtown market was enough to overcome nearly 77,000 SF of negative

4.1%VACANCY



53,926,621 SF INVENTORY


3

20,900

(60,747)

186,056

17,517

(60,575)

(100,000)

(50,000)

-

50,000

100,000

150,000

200,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET

4.10

3.60

3.50

3.80

3.70

3.20

3.40

3.60

3.80

4.00

4.20

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

NET SF ABSORPTION

VACANCY RATE

MANHATTAN



EAST REGION - MANHATTAN(continued)

3

absorption in the last two quarters. Midtown’s 16.6-million-SF inventory -- across Columbus Circle, Grand Central, Murray Hill, Penn Plaza/Garment, Times Square, and U.N. Plaza submarkets – has seen a 217,000-SF reduction since 2013, while rents and vacancy have largely been unchanged.

Strong demand over the last 10 quarters in the Uptown market has matched the volume of new space delivered since 2013, keeping the level of vacant space in the low 3% range and causing lease rates to soar 39% in the last eight quarters. Net absorption totaled 145,812 SF in 2015. The vacancy rate settled at 3.2%, up 30 basis points since 2013 while 320,000 SF added since 2013.

Amazon made Manhattan headlines twice in 2017. First was the company’s lease for 392,000 SF of offi ce space followed by plans for a 7,000-SF bookstore in two levels on Spring Street between Crosby and Lafayette streets. Amazon already has stores in Time Warner Center and Herald Square.

Another major deal in 2017 was the announcement by Spanish amusement company Parques Reunidos to collaborate with Lionsgate Entertainment on a new movie-themed food and entertainment center at 11 Times Square. The project will require $30 million and two years two complete.

98.3998.86

91.1689.86

83.83

75.00

80.00

85.00

90.00

95.00

100.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF

2,518,686

2,748,280 2,758,690

2,672,350

2,575,494

2,350,000

2,400,000

2,450,000

2,500,000

2,550,000

2,600,000

2,650,000

2,700,000

2,750,000

2,800,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQU

ARE

FEET





TRENDING IN Q4Regional malls in Vancouver continue to perform well and landlords are making major capital improvements to accommodate healthy tenant demand, including from brands that are new to the market.

Unemployment is down to 4.9% and spending is up. With currency rates favoring the Canadian dollar, day trips to the U.S. were down 25% in 2017 as local shoppers stayed in Vancouver. The exchange rate also works to attract more tourist dollars. The Port of Vancouver is Canada’s largest seaport that supports ships from 15 cruise lines with 800,000 passengers.There have been major recent deliveries including an outdoor mall in 2017.

In the suburban community of Tsawwassen in southwest Delta, the 350,000-SF initial phase of Tsawwassen Commons opened with Walmart, Canadian Tire, Rona, HomeSense, Petsmart, Staples, Mark’s Dollarama and Nando’s. Planned for 550,000 SF off Highway 17. The development is on Tsawwassen First Nation’s Land and within greater Vancouver.

The new outdoor center is adjacent to Tsawwassen Mills, a 1.2-million-SF mall that attracted 284,000 shoppers over the fi rst six days of its late 2016 opening. Its anchor tenants include Bass Pro Shops, Marshalls, Saks Off 5th, Old Navy, H&M, Winners, Pro Hockey Life, Forever 21, Sport Chek, DSW Inc. and Roots Canada.

Vancouver’s three top regional malls, CF Pacifi c Center, Oakridge Centre and Park Royal Shopping

4.0%VACANCY


$639,064,294SALES VOLUME

GREATER VANCOUVER AREA

19,500,000 SF INVENTORY


3

1,900,000 1,900,000

2,000,000

1,800,000

1,100,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

SQUA

RE FE

ET

TSAWWASSEN COMMONS

22 550000 000000

UNDER CONSTRUCTION

4.004.004.004.00

3.50

3.40

3.50

3.60

3.70

3.80

3.90

4.00

4.10

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016

PERC

ENTA

GE

44 1100

VACANCY RATES

VANCOUVER, BC CANADA



BC CANADA - VANCOUVER(Continued)

3

Centre in West Vancouver, were reporting increased foot traffi c in 2017 and each has expansions and renovations planned or underway.

With about 150 tenants, Oakridge Centre at West 41st Avenue and Cambie Street is anchored by Safeway and Hudson’s Bay. Oakridge Centre, the shooting location for the 1980s TV series 21 Jump Street, was renovated in 2014 and is at the center of the high-density residential Oakridge Municipal Towncentre Project.

Park Royal Shopping Centre in West Vancouver with 1.4 million SF was Canada’s fi rst covered shopping mall. North Mall anchor tenants include H&M, Hudson’s Bay and London Drugs. South Mall anchors are Best Buy, Indigo Books, La Maison Simons, Osaka Supermarket and Staples.

The metro’s largest transaction in 2017 was Cadillac Fairview’s sale of half interest in its 4-million-SF portfolio downtown portfolio that includes the 1.6-million-SF Pacifi c Centre and 12 offi ce downtown offi ce properties. Cadillac Fairview is owned by the Ontario Teachers’ Pension Plan. No terms were disclosed in the sale to the Ontario Pension Board and Workplace Safety and Insurance Board. But the transaction among the public pension funds makes it likely the assets carried a healthy valuation, which supports market confi dence.

Also notable in the Vancouver market in 2017 was the western Canadian debut of two Japanese-owned brands. Both leased space at Metropolis at Metrotown in Burnaby. Uniqlo, a global casual apparel retailer with 1,800 stores, leased 20,630 SF. Muji, which sells furniture, appliances, stationery and apparel with 800 stores worldwide, leased 7,700 SF.

39.00

37.00

36.00

34.0034.00

31.00

32.00

33.00

34.00

35.00

36.00

37.00

38.00

39.00

40.00

Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016AV

ERAG

E RR

/SF


DOWNTOWN VANCOUVER


4Signifi cant Transactions

BUILDING MARKET SF TENANT NAME

Capital Sports Complex Washington 113,275 Athletic Republic

200 John E Devine Dr Boston 109,369 BJ’s Wholesale Club

5000 Hershberger Rd Roanoke 102,600 BJ’s Wholesale Club

28582 Dequindre Rd Detroit 101,773 G4 Complete Entertainment Michigan, LLC

Pacifi c Center Los Angeles 100,135 Curacao

1000 US Highway 1 Northern NJ 100,047 BJ’s Wholesale Club

1351 N. 17th St Orange County 88,688 Furniture City

Atlantic Shopping Center Atlanta 85,623 Floor and Decor

4480 Indian Ripple Rd Dayton 85,600 At-Home

SELECT TOP RETAIL LEASES Q4 2017

SELECT TOP RETAIL SALES Q4 2017

BUILDING MARKET SF PRICE PSF CAP RATE BUYER SELLER

Riverside Plaza Inland Empire 411,670 $402.63 5.5% AEW Capital Mgmt Vestar

1410 Jantzen Beach Ctr Portland 732,542 $179.85 5.4% Kimco Realty Corp EDENS, Inc.

Whittwood Town Center Los Angeles 772,239 $159.28 5.2% Kimco Realty Corp The Blackstone

Group, LP

San Carlos Marketplace San Francisco 165,851 $584.86 5.0% Equity One, Inc. Fulcrum Capital

Corp

Aspen Grove Denver 267,477 $306.57 6.2% Gerrity Group DDR Corp

3030 N. Broadway Chicago 127,889 $633.36 5.64% DDR Corp The Taxman Corp


5Nationwide Lee Offi ces

WESTMIDWEST

SOUTH

SOUTH-WEST

EAST

BCCANADA

ArizonaFred Darche602.956.7777Phoenix, AZ 85018

CaliforniaClarice Clarke805.898.4362Santa Barbara, CA 93101(Central Coast)

Brian Ward760.346.2521Palm Desert, CA 92260(Greater Palm Springs)

John Hall949.727.1200Irvine, CA 92618

Mike Tingus818.223.4380LA North/Ventura, CA 91302

Craig Phillips323.720.8484Commerce, CA 90040(LA Central)

Robert Leveen213.623.1305Los Angeles, CA 90071(LA ISG)

Greg Gill562.354.2500Long Beach, CA 90815(Los Angeles)

Aleks Trifunovic310.899.2700Santa Monica, CA 90404(LA West)

Chris Coyte949.724.1000Newport Beach, CA 92660

Craig Phillips562.699.7500City Of Industry, CA 91746

Craig Hagglund510.903.7611Oakland, CA 94607

Don Kazanjian909.989.7771Ontario, CA 91764

Bob Sattler714.564.7166Orange, CA 92865

Craig Phillips323.720.8484Pasadena, CA 91101

Mike Furay925.737.4140Pleasanton, CA 94588

Dave Illsley951.276.3626Riverside, CA 92507

Dave Howard760.929.9700Carlsbad, CA 92008(San Diego North)

Steve Malley858.642.2354San Diego, CA 92121(San Diego UTC)

Tom Davis209.983.1111Stockton, CA 95206

Dave Illsley951.276.3626Murrieta, CA 92562(Temecula Valley)

Don Brown760.241.5211Victorville, CA 92392

Mike Furay925.369-0309Walnut Creek, CA 94596

DenverJohn Bitzer303.296.8770Denver, CO 80202

FloridaJerry Messonnier239.210.7610Ft. Myers, FL 33966 (Naples)

Tom McFadden321.281.8501Orlando, FL 32839

GeorgiaDick Bryant404.442.2810Atlanta, GA 30326

Victor Segrest404.781.2140 Atlanta, GA 30328 (Appraisal)

IdahoMatt Mahoney208.343.2300Boise, ID 83703

IllinoisJames Planey773.355.3014Rosemont, IL 60018 (Chicago)

IndianaScot Courtney317.218.1038Indianapolis, IN 46240

MarylandJ. Allan Riorda443.741.4040Columbia, MD 21046

MichiganJon Savoy248.351.3500Southfi eld, MI 48034

MinnesotaChris Garcia952.955.4400Minneapolis, MN 55401

MissouriThomas Homco314.400.4003St. Louis, MO 63114

NevadaLyle Chamberlain775.851.5300Reno, NV 89501

New JerseyRick Marchiso973.475.7055Elmwood Park, NJ 07407

New YorkJim Wacht212.776.1202New York, NY 10022

OhioBrad Coven216.282.0101Pepper Pike, OH 44124(Cleveland)

Mike Spencer614.923.3300Dublin, OH 43017(Columbus)

PennsylvaniaJohn Van Buskirk 717.695.3840Camp Hill, PA 17011

South CarolinaBob Nuttall843.747.1200Charleston, SC 29492

Randall Bentley864.704.1040Greenville, SC 29601

TexasTrey Fricke972.934.4000Addison, TX 75001(Dallas/Fort Worth)

Chris Lewis713.660.1160Houston, TX 77027

WashingtonJim Bowles206.773.2673Seattle, WA 98101

WisconsinTodd Waller608.327.4000Madison, WI 53713

BC CanadaChris Anderson604.684.7117Vancouver, British Columbia

Gerald EveMark Trowell+44 (0) 20 7333 6323www.geraldeve.com

lee-associates.comThe information and details contained herein have been obtained from third-party sources believed to be reliable, however, Lee & Associates has not independently verifi ed 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 fi tness 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., The Economist, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Congressional Budget Offi ce, European Central Bank, GlobeSt.com, CoStar Property and Lee Proprietary Data. © Copyright 2016 Lee & Associates all rights reserved.

The Lee Retail Brief

Q42017

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