MALONE Commercial & Investment Real Estate 2011 Office Market - - PowerPoint PPT Presentation

▶

Nov 07, 2022 272 likes •406 views

Greater Portland Office Market Survey Presented by James D. Harnden MALONE Commercial & Investment Real Estate 2011 Office Market Highlights Overall vacancy rate up only .27% - worst is over 90,000 sq. ft. of positive net absorption

SLIDE 1

MALONE

Commercial & Investment Real Estate

Presented by James D. Harnden

Greater Portland Office Market Survey

SLIDE 2

MALONE

Commercial & Investment Real Estate

2011 Office Market Highlights

♦ Overall vacancy rate up only .27% - worst is over ♦ 90,000 sq. ft. of positive net absorption - 1st time

positive since 2008

♦ Highest lease transaction volume since 2006 ♦ Remains tenant/buyer market given vacancy rates at

higher levels than 5-yr (10.3%) and 10-yr (8.5%) avg.

♦ Cautiously optimistic

GREATER PORTLAND OFFI CE MARKET SURVEY

SLIDE 3

MALONE

Commercial & Investment Real Estate

Historic Overall Vacancy/Net Absorption

235,129 23,675 232,775 216,680 106,589 (1,878) 32,194 (51,959) (257,867) 89,076 6.05% 6.97% 7.44% 7.21% 5.15% 7.15% 8.59% 10.39% 12.65% 12.92% 0% 2% 4% 6% 8% 10% 12% 14%

300,000
200,000
100,000

100,000 200,000 300,000

Net Absorption (S.F.) Overall Vacancy Does not include information regarding Greater Portland's medical space

GREATER PORTLAND OFFI CE MARKET SURVEY

SLIDE 4

MALONE

Commercial & Investment Real Estate

Vacancy Rate Overall - Downtown

Does not include information regarding Greater Portland's medical space

6.38 3.53 6.41 6.41 7.50 4.90 4.87 7.88 11.36 15.20 7.35 12.08 11.24 7.79 6.48 9.94 11.55 9.39 17.60 17.32 6.98 8.88 9.40 7.27 6.86 8.09 8.99 8.82 15.27 16.54 1 3 5 7 9 11 13 15 17 19

1 2 3 4 5 6 7 8 9 10

Downtown A Downtown B TOTAL

2002 2007 2006 2005 2004 2003 2008 2009 2010 2011 P E R C E N T

GREATER PORTLAND OFFI CE MARKET SURVEY

SLIDE 5

MALONE

Commercial & Investment Real Estate

Significant Lease Transactions & Vacancies | Downtown

♦

254-258 Commercial Street

New construction
Pierce Atwood leased 72,000 SF
Vacancy of 23,000 SF

♦

One Monument Square

75,600 SF vacant

♦

443 Congress Street

Portland Regional Chamber leased 5,280 SF
Local Thunder leased 5,364 SF
Planned Parenthood leased 10,600 SF

♦

511 Congress Street

AMEC/MACTEC renewed and expanded

44,124 SF

Troubh Heisler renewed 11,523 SF
I-Many renewed 10,700 SF
20,911 SF vacant

GREATER PORTLAND OFFI CE MARKET SURVEY

♦

2 Canal Plaza

Savings Bank of Maine leased 16,355 SF
17,710 SF vacant

♦

Two Portland Square

Stone Coast leased 22,000 SF
37,416 SF vacant

♦

Two Monument Square

2 floors vacated by Health Dialog
½ floor vacated by Dead River
Vacancy of 50,000 SF

♦

222 St. John Street

25,287 SF vacant

♦

390 Congress Street

81,906 SF vacant

♦

477 Congress Street

39,296 SF vacant

SLIDE 6

MALONE

Commercial & Investment Real Estate

Vacancy Rate Overall - Suburban

Does not include information regarding Greater Portland's medical space

3.98 3.14 6.16 10.33 2.36 6.63 7.78 12.85 9.66 9.94 6.40 7.19 5.30 4.14 4.98 6.08 8.68 10.76 11.00 9.56 5.23 5.27 5.72 7.16 3.69 6.35 8.25 11.74 10.37 9.74

1 3 5 7 9 11 13 15 17 1 2 3 4 5 6 7 8 9 10

GREATER PORTLAND OFFI CE MARKET SURVEY

P E R C E N T 2002 2007 2006 2005 2004 2003 2008 2009 2010 2011

Suburban A Suburban B Total

▲

SLIDE 7

MALONE

Commercial & Investment Real Estate

GREATER PORTLAND OFFI CE MARKET SURVEY

♦

82 Running Hill Road

Dead River owner/occupied 26,546 SF

♦

71 U.S. Route 1

Crossroads for Women leased 5,636 SF
Fitness center leased 5,000 SF
Pediatric cardiologist leased 5,000 SF

♦

500 Southborough Drive

Sironahealth leased 17,832 SF

♦

75 John Roberts Road

19,970 SF vacant

Significant Lease Transactions & Vacancies | Suburban

♦

300 Southborough Drive

95,000 SF vacant

♦

707 Sable Oaks

Possible shadow space of 24,246 SF

♦

6 Ashley Drive

Cole Haan leased 38,390 SF

♦

600 Sable Oaks

34,913 SF vacant

♦

One Riverfront Plaza

23,770 SF vacant

SLIDE 8

MALONE

Commercial & Investment Real Estate

8,620,268 8,815,201 9,051,689 9,136,854 9,287,786 9,492,995 9,684,467 9,769,153 9,876,142 10,003,276 $14.51 $15.02 $15.32 $15.90 $16.39 $17.63 $16.78 $17.24 $16.67 $16.95 $14 $15 $16 $17 $18 8,500,000 9,000,000 9,500,000 10,000,000 10,500,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Growth Trends: Rentable SF/Asking Rent

Does not include information regarding Greater Portland's medical space

GREATER PORTLAND OFFI CE MARKET SURVEY

Rentable Square Feet Average Annual Growth of 1.67% Asking Rental Rates Average Annual Growth of 1.74%

▲

SLIDE 9

MALONE

Commercial & Investment Real Estate

Regional Office Market Overall Vacancy Comparison

SOURCE: Cushman & Wakefield regional information Malone Commercial Brokers local information

GREATER PORTLAND OFFI CE MARKET SURVEY

NOTE: So. New Hampshire & Hartford 2011 Vacancy is through the 3rd quarter of 2011.

10,003,276 SF 12,512,690 SF 183,147,560 SF 25,654,861 SF

SLIDE 10

MALONE

Commercial & Investment Real Estate

Notable 2011 Sales

♦ 443 Congress Street, Portland

~ 38,562 SF Class B office building ~ $1,600,000 ~ Investor sale

♦ 6-8 City Center, Portland

~ 23,000 SF Class B office building ~ $1,500,000 ~ Investor sale

♦ 100 Waterman, South Portland

~ 8,000 SF - 1st floor sold to S.P. Housing

Authority - $935,000 ~ 16,000 SF – 3rd & 4th floors sold to First Atlantic Mortgage - $1,650,000

♦ 700 Technology Way, Scarborough

~ 8,000 SF Class B office building

~ $1,400,000 ~ Investor sale

GREATER PORTLAND OFFI CE MARKET SURVEY

SLIDE 11

MALONE

Commercial & Investment Real Estate

Notable 2011 Sales

♦ 236 Gannett Drive, South Portland

~ 8,000 SF Class B office building ~ $835,000 ~ Investor sale

♦ 155 Gannett Drive, South Portland

~ 22,405 SF Class B office building ~ $3,650,000 ~ Investor sale

♦ 70 Gray Road, Falmouth

~ 140,000 SF Class A office building ~ Partnership sale

♦ 90 Bridge Street, Westbrook

~ 240,000 SF Class B office building ~ $2,500,000 (note purchased)

~ Investor sale

GREATER PORTLAND OFFI CE MARKET SURVEY

SLIDE 12

MALONE

Commercial & Investment Real Estate

. . . . . . Looking ahead toward 2012

♦Future Projects?

~ Thompson’s Point Project ~ J.B. Brown Sites (W. Commercial, York St., Maple St.) ~ Sprague Site – Fore Street ~ Federated Companies – Somerset Street ~ Opechee Site – Fore/India Streets

♦2012 Predictions

~ Vacancy remains flat or decreases slightly ~ Net absorption continues to be positive ~ Sales remain flat ~ Still a tenants/buyers market ~ Mood is more and more optimistic

GREATER PORTLAND OFFI CE MARKET SURVEY