BANGOR AREA MARKET OVERVIEW Bev Uhlenhake, CCIM Epstein Commercial - PowerPoint PPT Presentation

BANGOR AREA MARKET OVERVIEW Bev Uhlenhake, CCIM Epstein Commercial Real Estate January 22, 2015

Bangor Area Market Overview, Bev Uhlenhake, CCIM MEREDA, January 22, 2015 WHAT DO THE FOLLOWING HAVE IN COMMON?

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Brad Paisley

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Cirque de Soleil* *twice.

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM 16 performing groups, 100,000 people, and $15M in 3 days (aka The American Folk Festival)

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Arcade Fire

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Brantley Gilbert

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM A giant beach ball, covered in lights, surrounded by 5,000 people

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bob Seger

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM James Taylor

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Tim McGraw

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Nationally-televised UFC Fight Night

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Lady Antebellum

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Jason Aldean

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Dave Matthews Band

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Country Music Awards Nomination Category: Event Venue - Large

Bangor Area Market Overview, Bev Uhlenhake, CCIM MEREDA, January 22, 2015 # B ANGOR M OJO *hat tip to Alex Gray, Waterfront Concerts

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor Area Market Overview • Market Data • Industrial • Office • Retail • Trends & Forecasting

Bangor Area Market Overview, Bev Uhlenhake, CCIM MEREDA, January 22, 2015 THE NUMBERS Market Data

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Inventory ∆ last five yrs (in sf) 600,000 495,609 Retail - Mall 500,000 Office - Medical 400,000 Retail - Non-mall 300,000 Industrial Office - Non-medical 200,000 100,000 - 2009 2010 2011 2012 2013 2014 (100,000) (200,000)

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Industrial Inventory Total Inventory: Hermon 7,324,273 sf 1,288,905 Hampden 773,530 Bangor 4,193,912 Brewer 1,067,926

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Industrial Vacancy – Total Market 12% 10.3% 10% 10.0% 9.5% 8.7% 8% 6.4% 6% 4% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Total Office Inventory (Class A to C) Total Inventory: Medical 3,307,043 sf (BGR&BWR) 876,824 Downtown (BGR) Brewer 1,354,251 273,137 Suburban (BGR) Suburban Total 802,830 1,075,967

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Office Vacancy (Class A to B+) 12% 10.8% 10% 9.5% 9.2% Downtown 8.6% 8% Suburban 6.7% 6% Medical 4.6% 4.5% 4% 3.9% 3.4% 3.1% 2% 1.6% 1.7% 1.4% 1.4% 1.7% 0% 2007 2008 2009 2010 2011 2012 2013 2014

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Retail Inventory Bangor ‐ Downtown 432,250 Non ‐ Mall Total Total Inventory: Brewer 2,531,472 1,318,954 6,368,807 sf Bangor ‐ Other 1,212,518 Bangor Mall Area 3,165,098

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Retail Vacancy 16% 14.5% 14% Downtown 12.3% 12% Mall 11.0% Non ‐ Mall 10% 9.4% 8.7% 8% 7.0% 7.0% 6.7% 5.9% 6.4% 6.3% 6% 5.9% 4% 2.6% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014

Bangor Area Market Overview, Bev Uhlenhake, CCIM MEREDA, January 22, 2015 THE TRENDS

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Mill Job Losses Dec ‘13 Lincoln Paper & Tissue 200 Feb ‘14 Great Northern Paper, E. Mill. 212 May ‘14 UTC Fire & Security, Pittsfield 300 Aug ‘14 Great Northern Paper, E. Mill. 55 Aug ‘14 Old Town Fuel and Fiber 180 Sept '14 Great Northern Paper, Mill. ‐ Chapt. 7 Oct ‘14 Verso Paper, Bucksport 570 Dec ‘14 Old Town F&F purchased +180 Total Jobs Lost: 1,337

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Mill Workers • Total workers: 1,517 (180 rehired) • 75% Male • 63% Over 50 years old • 67% High school diploma only • Average $80,000/yr annual income package per employee • 136 communities affected

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination 2002 : National Folk Festival comes to Bangor (100,000 people = $15M annual economic impact - 2011)

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination 2005 : Hollywood Racino opens

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination 2008 : Hollywood Casino and Raceway $132M complex; $55.4M revenue in 2014

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination 2010 : Waterfront Concerts begin 100,000 average annual attendance

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination 2013 : $68.7M Cross Insurance Center opens

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: An Entertainment Destination Since 2006 : 700+ hotel rooms

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Downtown • Apartments: Up to 50 market-rate or better coming to downtown • Structural Improvements • Cosmetic Improvements • Bangor Daily moves downtown 1Q15

Bangor Area Market Overview, Bev Uhlenhake, CCIM MEREDA, January 22, 2015 THE FORECASTING

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Known Eastern Maine Medical Center : 361,000 sf tower for $294,000,000

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Known BDN : 13,000+ sf office into downtown

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Known BJ’s Wholesale Club : 94,000 sf

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM Bangor: 2015 & 2016 • Mill closures fallout: • To be determined… • Retail: • Mall area dominance • Office and industrial sectors: • Slow and steady • Downtown • Continue stabilization • Increased quality of tenants • Steady, upgraded level of interest • Arts & Entertainment: • Critical mass grows • Stable and increasing impact

MEREDA, January 22, 2015 Bangor Area Market Overview, Bev Uhlenhake, CCIM On Our Radars – next 10 yrs • Entertainment • Healthcare • National park development • Waterfront development on both sides of the river • Housing • Pipelines and the costs of energy

Special thanks to: Monty Rand Photography The Thing of the Moment/Jeff Kirlin Jodi DeVost Justin Russell Photography The Bangor Daily News photography staff 6 State Street P.O. Box 2444 Bangor, ME 04402-2444 PH (207) 945-6222 FAX (207) 945-5824 www.epsteincommercial.com