AN ANDI DI AN ANDE DERSON, RSON, SI SIOR Mitchell HS Desert Storm Veteran Joined Bender in 2000 3 Children Fun Fact: 3D Archery Champ
SIO IOUX UX FAL ALLS LS 13,618,750 sq. ft. 16,000,000 14,000,000 12,000,000 Square Feet 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - 2007 2008 2009 2010 2011 2012 2013 2014 Tenant Occupied Owner-Occupied
CBD IN INVEN ENTOR ORY 2,326,937 sq. ft. ↑ 0.7% 2,500,000 2,000,000 Square Feet 1,500,000 1,000,000 500,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CBD IN INVEN ENTOR ORY
CBD VACAN ANCY CY RA RATE TE 11.9% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CBD OF OFFI FICE CE MA MARK RKET ET
CBD NET ET ABS ABSOR ORPT PTION ION - 59,925 sq. ft. ↓ 160 % 175,000 150,000 125,000 100,000 Square Feet 75,000 50,000 25,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (25,000) (50,000) (75,000)
CBD OF OFFI FICE CE PRE REDIC ICTIONS TIONS Inventory ↔ Absorption ↑ Vacancy ↓ Rental Rates ↑
SUB UBUR URBAN BAN IN INVENT ENTOR ORY 4,626,037 sq. ft. ↑ 2.3% 5,000,000 4,500,000 4,000,000 3,500,000 Square Feet 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SUB UBUR URBAN BAN NET ET ABS ABSORPT ORPTION ION 122,590 square feet in 2014 700,000 600,000 500,000 Square Feet 400,000 300,000 200,000 100,000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (100,000)
SU SUBUR URBA BAN N VACA CANCY CY RA RATE TE 7.5% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SUB UBUR URBAN BAN OF OFFI FICE CE PR PRED EDICTIONS CTIONS Inventory ↑ Absorption ↑ Vacancy ↔ Rental Rates ↑
HI HISTORIC ORIC VACANC ANCY (C (City tywide ide) 20.0% 18.0% 16.0% 14.0% 12.0% 9% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sioux Falls
HI HISTORIC ORIC VACANC ANCY (C (City tywide ide) 20.0% 17% 18.0% 16.0% 14.0% 12.0% 9% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sioux Falls National
AS ASKI KING RE RENTAL AL RA RATE TES (B (By Cla lass ss - NNN) NNN) Low High Class A Space $13.50 $17.00 Class B/C Space $8.00 $11.00
NET ET ABS ABSORPT ORPTION ION (C (City tywide ide) 800,000 700,000 600,000 Square Feet 500,000 400,000 300,000 200,000 100,000 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
OFFI FFICE CE MA MARKET RKET PR PREDICTIONS EDICTIONS Continued Positive Net Absorption ↓ Vacancy ↑ Rental Rates Limited Spec Building
OFF FFICE ICE MA MARKET RKET REA EAL L ES ESTATE TE CYCLE CLE 2013 2014
NICK CK GU GUSTAFSON AFSON, , CC CCIM Missouri Native Augustana College Joined Bender in 2009 2 Children Fun Fact: Cigar Aficionado
INV NVES ESTMENT TMENT & COMMER MMERCIAL CIAL SALES ES MA MARKET RKET OVE VERVIEW VIEW Asset Class Performance ○ Multi-Family Market ○ Office Market ○ Retail Market 2014 Trends & Conclusions 2015 Predictions
MUL MULTI TI-FAMIL AMILY Y BUI UILDING LDING PE PERMITS RMITS (Supply) (S pply) 1,600 1,400 1,200 1,000 # of Units 800 600 400 200 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Multi-Family Source: City of Sioux Falls, Planning and Building Services
MUL MULTI TI-FAMIL AMILY Y BUI UILDING LDING PE PERMITS RMITS (S (Supply) pply) 1,600 1,400 1,200 1,000 # of Units 800 600 400 200 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Multi-Family Town House Source: City of Sioux Falls, Planning and Building Services
MU MULTI TI-FAMIL AMILY Y VACANCY CANCY RA RATE TE Sioux ux Fal alls ls MS MSA (D (Demand) emand) 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Sioux Falls U.S.
MU MULTI TI-FAMIL AMILY Y MA MARK RKET ET 10-Year Multi-Family Sales Volume $60.00 $50.00 $40.00 $ Millions $30.00 $20.00 42 37 16 38 25 24 25 $10.00 25 13 72 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10-Year Average
NOTAB ABLE LE 2014 MU MULTI TI-FAMIL AMILY Y SAL ALE 6206 South Avalon Avenue $4,291,000 ($79,462/unit) 54 units Built 2008 Sold April 2014 7.6% Cap Rate
NOTAB ABLE LE 2014 MU MULTI TI-FAMIL AMILY Y SAL ALE 3501, 3505, 3601 & 3609 South West Avenue $1,208,000 ($43,143/unit) 28 units Built 1974 Sold July 2014 8.4% Cap Rate
NOTAB ABLE LE 2014 MU MULTI TI-FAMIL AMILY Y SAL ALE 1201 East 57 th Street & 4901 South MacArthur Lane $1,200,000 ($42,857/unit) 24 units Built 1984 Sold February 2014 6.0% Cap Rate
OF OFFIC FICE E PROP OPER ERTY Y SAL ALES ES 10-Year Office Sales Volume $80.00 $70.00 $60.00 $ Millions $50.00 $40.00 $30.00 $20.00 $10.00 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10-Year Average
NOTAB ABLE LE 2014 OF OFFIC FICE E SAL ALE 4701 West Research Drive $1,900,000 ($125.98/sq. ft.) 15,082 sq. ft. Built in 2007
NOTAB ABLE LE 2014 OF OFFIC FICE E SAL ALE 4601 West Homefield Drive $1,340,000 ($105.40/sq. ft.) 12,714 sq. ft. Built in 1998
NOTAB ABLE LE 2014 OF OFFIC FICE E SAL ALE 4610 South Technopolis Drive $1,070,000 ($96.66/sq. ft.) 11,070 sq. ft. Built in 2000 8.7% Cap Rate
RE RETAI AIL L PROPE OPERTY Y SAL ALES ES 10-Year Retail Sales Volume $60.00 $50.00 $40.00 $ Millions $30.00 $20.00 $10.00 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10-Year Average
NOTAB ABLE LE 2014 RE RETAI AIL L SAL ALE 2804 South Louise Avenue $4,550,000 ($94.80/sq. ft.) 47,995 sq. ft. Built in 2005 7.39% Cap Rate
NOTAB ABLE LE 2014 RE RETAI AIL L SAL ALE 2812 South Louise Avenue $7,700,000 ($197.61/sq. ft.) 38,966 sq. ft. Built in 2006 7.38% Cap Rate
NOTAB ABLE LE 2014 RE RETAI AIL L SAL ALE 2600 South Louise Avenue $4,800,000 ($171.53/sq. ft.) 27,984 sq. ft. Built in 2001 7.6% Cap Rate
SAL ALES ES VOL OLUME UME RE REPOR ORT T CAR ARD Multi- Office Retail Family 2014 ↓ ↓ ↑
SAL ALES ES VOL OLUME UME RE REPOR ORT T CAR ARD Multi- Office Retail Family 2014 ↓ ↓ ↑ 2015 ↑ ↑ ↓
SAL ALES ES VOL OLUME UME RE REPOR ORT T CAR ARD Multi- Office Retail Family 2014 ↓ ↓ ↑ 2015 ↑ ↑ ↓ 7.0% – 8.0% 7.0% - 8.5% 7.0% - 8.0% Cap Rates
INVES VESTMENT TMENT & C & COMMER MMERCIAL CIAL SALE ALES S REA EAL L ES ESTATE TE CY CYCLE CLE Retail Multi-Family Office
DO DOUG UG BROCKHOUSE, CKHOUSE, SI SIOR Sioux Falls Native SD School of Mines Joined Bender in 1997 Fun Fact: Emergency Dive Team - Dove 1300’
IN INDUS USTRIA TRIAL L MA MARK RKET ET Basis of our Data We define the industrial market as those properties used for: Manufacturing Warehousing Distribution Transportation Contractor Shop Space
IN INDUS USTRIA TRIAL L MA MARK RKET ET Sioux Falls 771 Buildings = 15.6 M Tea 313 Buildings = 2.4 M (2.45% vacancy)
IN INDUS USTRIA TRIAL L MA MARK RKET ET Sioux Falls Tea 22.1% 30.5% 69.5% 77.9% Owner-Occupied Owner-Occupied Non-Owner Occupied Non-Owner Occupied
VACANT ANT JAN ANUAR ARY Y 1, 20 , 2014 Sioux Falls 536,104 sq. ft. (3.51%) Absorbing 2,964 sq. ft./Day 182 Days
INDU IN DUSTRIAL TRIAL CON ONSTR TRUCT UCTION ION New Construction – Completed during calendar year 2014 500,000 450,000 400,000 350,000 6 New Buildings 300,000 and 6 Additions 250,000 Completed in 2014 200,000 (149,633 sq. ft.) 150,000 100,000 50,000 -
IN INDUS USTRIA TRIAL L CON ONSTR TRUCT UCTION ION
EX EXIS ISTIN TING G SPACE E TU TURN RNOVER VER 800,000 700,000 600,000 500,000 The amount of existing 400,000 space that came on the market in 2014 was up 300,000 only 0.4% from 2013 200,000 100,000 -
AVAI AILABLE LABLE SPACE E IN IN 20 2014 1 – Vacant as of January 1, 2014 536,104 sq. ft. 2 – New Construction in 2014 149,633 sq. ft. 3 – Existing Space Turnover 695,145 sq. ft. Total Available Space 1,380,882 sq. ft.
IN INDUS USTRIA TRIAL L VACANCY ANCY 5.00% 4.50% 4.00% 3.50% 276,645 sq. ft. 3.00% 4.63% 2.50% 4.18% 4.02% 3.81% 3.76% 3.51% 2.00% 3.24% Tea = 2.45% (59,310 sq. ft.) 1.50% 1.77% 7.4% in 2013 1.00% 0.50% 0.00%
NET ET ABS ABSORPT ORPTION ION Total Available Space 1,380,882 sq. ft. Vacant as of January 1, 2014 ( 276,645 sq. ft.) Net Absorption 1,104,237 sq. ft.
NET ET ABS ABSORPT ORPTION ION 1,200,000 1,000,000 800,000 In 2014, the Industrial market absorbed 2.8% 600,000 more than in 2013 400,000 200,000 -
SUP UPPL PLY Absorbing 3,025 sq. ft./day 276,645 sq. ft. Vacant 91 Days
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