2010 Global Market Report - NAI Commercial Real Estate

Texarkana (Bowie County, Texas/Miller County, Arkansas), TexasSalt Lake City, UtahContactNAI American Realty Co.+1 903 793 2666Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income134,117133,36561,861$57,074Forbes Magazine predicted Texarkana to be ranked numbertwo in the US for the fastest growing SMSA in the under500,000 category, with a 28.57% increase in gross metropolitanproduct over the next five years. Transportation,medical, industrial and residential growth continues with anincreased vacancy rate in the retail sector.The medical office sector has experienced moderate growthas Texarkana continues to be the regional center for thesurrounding 60-mile area. The purchase of Wadley RegionalHospital by Brim Heathcare insures robust competition andgrowth in the industry.The industrial base for the market is diverse, with two papermills, Cooper Tire and Red River Army Depot the leadingemployers. The Depot is expected to transfer several thousandacres with buildings and infrastructure to Red RiverRedevelopment Authority in the near future. Constructionis under way for a new clean burning coal power plant,resulting in 1,000 construction jobs, and a new cementplant is in progress. Alumax Aluminum mill closed, butCooper Tire expanded in Texarkana after closing its Anniston,Alabama, plant.Texarkana continued to experience reduced growth in theretail sector in 2009. However, Lafferty’s Appliance, OsakaJapanese Restaurant, and Minton’s Sportsplex all opened,providing a bright spot for this market. Central Mall hasadded several small shops and maintains a high occupancyrate. Recent hotel openings include Holiday Inn Express,Best Western, Fairfield and Candlewood Suites with aHoliday Inn, Country Host, Crown Plaza and Sleep Inn,scheduled to open soon. A new convention center, hotel andrestaurant are planned on the Arkansas side of TexarkanaWe anticipate additional retail, hospitality and restaurantgrowth in this area. Texas A&M University has completedconstruction of a new science and technology building andconstruction has begun on a new 183,000 SF library buildingthat is a part of the 375-acre 1.4 million SF University.ContactNAI Utah CommercialReal Estate (Salt Lake)+1 801 578 5555Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,163,8451,324,171650,512$72,391Salt Lake City is a vibrant, pro-business community with ahighly educated populace and an entrepreneurial spirit thatis consistently rated among the best cities for business.Healthcare, technology and education remain the primarydrivers of the local economy. Unemployment is a relativelylow 6.1% compared to the national average. Salt Lake Citycontinues to outperform the nation as a whole and remainsone of the soundest economies in the US.The commercial real estate industry in the Salt Lake Citymetropolitan market trended downward in 2009 in responseto the changing economic conditions. The total office marketinventory is 31.5 million SF, one-third of which lies in thedowntown submarket. Direct vacancy in the overall marketincreased to 13.6%; vacancy downtown is 5.8% and 17.8%in the suburban submarkets. Class A full service rental rateshave dipped to an average of $25/SF for product downtownand an average of $22/SF for office space in the suburbansubmarkets. While leasing activity is down compared to2008, it has improved steadily through the year.Salt Lake City is a key distribution hub with over 109 millionSF of industrial space. Total availability in the industrialmarket reached 9% this year after bottoming at 4% in late2007. Lease rates have declined 7% since late 2008 andaverage at $.40/SF NNN per month. While leasing activityhas leveled off this year, a 470,000 SF distributionwarehouse was sold midyear. The retail market has justunder 37 million SF of leasable space. Vacancy in the overallmarket stands at 6%. Rates have dipped to $15/SF NNN inthe CBD.Salt Lake City’s largest project is the City Creek Centermixed-use redevelopment in the CBD. The 20-acre developmentincludes 1.5 million SF of office space, 800,000 SF ofretail space, 700 residential units and large swaths of openspaces. The development is scheduled for completion in2012.MedianHousehold Income$41,098MedianHousehold Income$62,526Total PopulationMedian Age38Total PopulationMedian Age31Texarkana At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$$N/A10.505.5012.0013.008.002.002.5013.004.007.007.006.00$$$$$$$$$$$N/A12.509.5018.0017.0011.003.504.5016.0011.0016.0018.00N/A$$$$$$$$$$$$N/A11.507.5014.0015.009.502.252.7514.507.5011.5012.5018.50N/A20.0%85.0%5.0%5.0%7.0%15.0%20.0%0.0%15.0%10.0%10.0%8.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$25,000.00185,000.0010,000.0010,000.00200,000.0014,000.00$$$$$$175,000.00250,000.0030,000.0025,000.00650,000.0070,000.00Salt Lake City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$33.0022.0812.5018.7517.5017.50$$$$$$33.0028.0022.0024.0028.0022.00$ 33.00$ 24.51$ 17.73$ 21.38$ 22.20$ 18.5867.0%5.8%17.8%73.6%14.9%17.6%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.883.002.88$$$6.0012.9616.08$$$4.205.406.72N/AN/AN/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$6.7510.8215.7728.50$$$$23.4029.1230.5337.20$ 15.23$ 16.88$ 23.77$ 32.85N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$N/A239,017.0085,665.00N/A$$N/A239,017.00565,789.00N/ARetail/Commercial LandResidential$ 379,310.00N/A$ 1,176,120.00N/A2010 Global Market Report ■ www.naiglobal.com 131