jacksonville retail market overviewfiles.ctctcdn.com/dc27de60301/e20e8fb8-8926-49be-9f7a-1b...2...

Second Quarter – 2014

Jacksonville Retail Market Overview

2

Jacksonville’s vacancy remains 7.7%Second Quarter Market Overview

The Jacksonville retail market did not experience much

change in market conditions in the second quarter

of 2014. The vacancy remained 7.7 percent in the

previous quarter. Net absorption was positive 86,058

square feet, and vacant sublease space decreased by

14,120 square feet. Quoted rental rates increased from

first quarter 2014 levels, ending at $12.47 per square

foot per year. A total of 8 retail buildings with 49,218

square feet of retail space were delivered to the market

in the quarter, with 251,498 square feet still under

construction.

Vacancy Rate The vacancy rate is a numerical value calculated as

the percentage of unoccupied space. Jacksonville’s

retail vacancy rate did not change in the second

quarter of 2014 ending the quarter at 7.7 percent.

Over the past four quarters, the market has seen an

overall decrease in the vacancy rate, with the rate

going from 8.1 percent in the third quarter of 2013,

to 7.5 percent at the end of the fourth quarter, 7.7

percent at the end of the first quarter of 2014, to 7.7

percent in the current quarter.

AboutNAI Hallmark PartnersAs a single source provider of fee development,

design build, construction, financing, marketing,

sales/leasing, and asset/property management

and appraisal services, we succeed in bringing to

us, to our partners and to our clients a wide range

of experience that completes a full spectrum of all

commercial real estate services.

NAI Hallmark Partners is a group of dynamic and

talented professionals who have worked on behalf of

many different primarily institutional owners, including

Chubb Insurance Company, CIGNA, Northwestern

Mutual, EastGroup Properties, AEGON, Wells Real

Estate Funds, Prudential Insurance Company and other

private partnerships. In fact, approximately half of the

company’s daily revenue is derived from providing

leasing and management services for other building

owners. NAI Hallmark Partners manages each property

from an Owner’s perspective to maximize value and to

enhance owner equity.

All of NAI Hallmark Partner’s projects and services

reflect insistence on quality and attention to detail.

Convinced that an attractive, well-designed work

environment translates into more productive associates

and a more profitable enterprise, NAI Hallmark

Partners is committed to providing a superior level

of service and expertise on each and every project.

Each phase of the process from conceptual design,

planning, financing, value engineering, construction,

marketing, sales/leasing and management are all

carefully tailored to meet the unique objectives of

each client. NAI Hallmark Partners’ experienced and

professional associates work as a team to provide

superior performance with an emphasis on quality—

NAI Hallmark Partners, Building Relationships—one

by one, project by project.

6675 Corporate Center Parkway Suite 100

Jacksonville, Florida USA 32216

+1 904 363 9002 • naihallmarkpartners.com20123q 4q

20131q

20141q2q 3q 4q

Absorption & Deliveries

.2

.37

.25

.16

.06

.56

(.13)

.07.09 .11 .09

.06.03 .04

(0.2)

(0.1)

0.0

0.1

0.2

0.3

0.4

0.5

0.6■ Net Absorption ■ Deliveries

Milli

ons

SF

Vacancy & Rent

Pric

e in

Dol

lars

per

Uni

t

■ Average Rental Rate ■ Vacancy Rate

Vacancy Rate P

ercentage

2012 3q

$12

$12

$12

$12

$13

$13

$13

$13

$13

$13

2013 1q

3q

2q

2q

4q

4q

2014 1q

6.8%7.0%7.2%7.4%7.6%7.8%8.0%8.2%8.4%8.6%8.8%

JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc.

3

Second Quarter — 2014


Net Absorption Absorption measures the net change in occupied space.

Retail net absorption was slightly positive in the second

quarter of 2014 with positive 86,058 square feet absorbed

in the quarter. In first quarter of 2014, net absorption was

negative (148,975) square feet, while in fourth quarter of

2013 absorption came in at positive 536,022 square feet.

In third quarter of 2013, positive 58,039 square feet was

absorbed in the market.

Rental Rates Average quoted asking rental rates in the Jacksonville retail

market are up over previous quarter levels and down from their

levels four quarters ago. Quoted rents ended the second quarter

of 2014 at $12.47 per square foot per year. That compares to

$12.45 per square foot in the first quarter and $12.61 per square

foot at the end of the third quarter of 2013. This represents a 0.2

percent increase in rental rates in the current quarter and a 1.12

percent decrease from four quarters ago.

Inventory & ConstructionDuring the second quarter of 2014, eight buildings totaling

49,218 square feet were completed in the Jacksonville

retail market. Over the past four quarters, a total of

203,472 square feet of retail space has been built in

Jacksonville. In addition to the current quarter, nine

buildings with 48,881 square feet were completed in first

quarter of 2014, six buildings totaling 42,330 square feet

completed in fourth quarter of 2013 and 63,043 square

feet in nine buildings completed in third quarter.

Sales ActivityTallying retail building sales of 15,000 square feet or

larger, Jacksonville retail sales figures rose during the first

quarter of 2014 in terms of dollar volume compared to the

fourth quarter of 2013.

In the first quarter, seven retail transactions closed with a

total volume of $35,565,000. The seven buildings totaled

1,772,570 square feet and the average price per square

foot equated to $20.06. That compares to 12 transactions

totaling $29,472,600 in the fourth quarter of 2013. The total

square footage in the fourth quarter was 445,655 square

feet for an average price per square foot of $66.13.

Total retail center sales activity in 2014 was up compared

to 2013. In the first three months of 2014, the market

saw seven retail sales transactions with a total volume of

$35,565,000. The price per square foot averaged $20.06.

In the same first three months of 2013, the market posted

two transactions with a total volume of $6,900,000. The

price per square foot averaged $185.82.

One of the largest transactions to occur within the last four

quarters was the sale of Asbury Commons. This 55,273

square foot retail building sold for $8,300,000.

■ Power Center ■ Specialty Center ■ General Retail ■ Shopping Center ■ Mall ■ Total Market

Vacancy Rates by Building Type

2006

1q

3q

3q

3q

3q

3q

3q

3q

3q

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2007

1q2008

1q2010

1q2009

1q2011

1q2012

1q2013

1q2014

1q

JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc.

MarketExisting Inventory Vacancy YTD Net

AbsorptionYTD

DeliveriesUnder

Const SFQuoted

Rates# Bldgs Total RBA Direct SF Total SF Vacancy

Arlington 414 7,262,477 619,863 619,863 8.5% (3,443) 2,500 27,775 $12.12

Baker County 134 1,089,597 53,076 56,076 5.1% 5,750 0 0 $9.28

Beaches 504 5,097,188 473,766 473,766 9.3% (47,084) 17,000 0 $16.88

Butler/Baymeadows 180 4,803,636 315,160 358,720 7.5% (27,703) 0 0 $12.09

Downtown Northbank 552 3,813,294 475,865 475,865 12.5% (12,728) 0 49,870 $7.59

Downtown Southbank 118 616,743 89,999 89,999 14.6% (13,659) 0 0 $16.91

Mandarin 235 4,572,000 241,200 242,200 5.3% 13,815 1,842 3,635 $11.99

Nassau County 623 5,713,162 393,056 422,056 7.4% (65,755) 6,794 0 $13.74

Northeast Jacksonville 256 3,300,453 234,455 274,400 8.3% (15,494) 0 0 $12.30

Northwest Jacksonville 628 4,123,904 382,221 382,221 9.3% 12,697 5,311 0 $8.91

Orange Park/Clay County 765 10,560,236 791,030 836,102 7.9% (33,409) 8,312 18,004 $11.88

Riverside 1,226 12,639,403 854,813 871,776 6.9% 28,202 12,494 11,922 $12.26

San Marco 294 2,630,173 267,169 267,169 10.2% 36,277 14,984 0 $11.98

Southside 903 13,783,058 1,064,039 1,113,425 8.1% 14,298 28,862 126,530 $13.34

St. Johns County 1,008 9,420,800 378,172 379,372 4.0% 45,319 0 13,762 $13.74

Totals 7,840 89,426,124 6,633,884 6,863,010 7.7% (62,917) 98,099 251,498 $12.47

Total Retail Market Statistics FOURTH QUARTER 2013


AbsorptionYTD

DeliveriesUnder

Const SFQuoted


Arlington 297 2,860,491 132,111 132,111 4.6% (19,898) 2,500 0 $15.45

Baker County 108 569,181 17,630 17,630 3.1% 5,750 0 0 $8.31Beaches 359 1,733,541 47,508 47,508 2.7% (7,474) 0 0 $16.11Butler/Baymeadows 117 1,533,736 36,335 36,335 2.4% 15,168 0 0 $10.95

Downtown Northbank 527 2,524,428 271,512 271,512 10.8% (605) 0 0 $7.60

Downtown Southbank 109 553,206 78,499 78,499 14.2% (17,559) 0 0 $14.39

Mandarin 134 1,048,187 11,176 12,176 1.2% (11,514) 1,842 3,635 $0.00

Nassau County 508 3,412,022 124,416 124,416 3.6% (12,849) 6,794 0 $11.14

Northeast Jacksonville 164 1,093,333 44,547 46,514 4.3% 3,695 0 0 $8.37

Northwest Jacksonville 561 2,537,250 68,904 68,904 2.7% 24,090 5,311 0 $8.27

Orange Park/Clay County 516 4,023,300 106,971 152,043 3.8% 2,453 8,312 18,004 $12.21

Riverside 964 5,935,213 206,235 212,989 3.6% 19,530 12,494 6,922 $11.22

San Marco 236 1,583,920 95,567 95,567 6.0% 34,394 14,984 0 $12.87

Southside 580 4,623,186 126,305 126,305 2.7% (7,675) 21,134 2,530 $13.67

St. Johns County 808 4,989,587 155,538 156,738 3.1% 9,411 0 0 $13.73

Totals 5,988 39,020,581 1,523,254 1,579,247 4.0% 36,917 73,371 31,091 $11.91

General Retail Market Statistics


AbsorptionYTD

DeliveriesUnder

Const SFQuoted


Arlington 1 1,529,725 137,967 137,967 9.0% (10,000) 0 0 $0.00

Baker County 0 0 0 0 0.0% 0 0 0 $0.00

Beaches 0 0 0 0 0.0% 0 0 0 $0.00

Butler/Baymeadows 1 1,119,045 43,000 43,000 3.8% 0 0 0 $0.00

Downtown Northbank 0 0 0 0 0.0% 0 0 0 $0.00

Downtown Southbank 0 0 0 0 0.0% 0 0 0 $0.00

Mandarin 0 0 0 0 0.0% 0 0 0 $0.00

Nassau County 0 0 0 0 0.0% 0 0 0 $0.00

Northeast Jacksonville 1 943,505 5,201 5,201 0.6% (1,601) 0 0 $28.12

Northwest Jacksonville 0 0 0 0 0.0% 0 0 0 $0.00

Orange Park/Clay County 1 959,331 7,827 7,827 0.8% 0 0 0 $17.89

Riverside 3 1,153,470 104,155 104,155 9.0% (9,174) 0 5,000 $13.55

San Marco 0 0 0 0 0.0% 0 0 0 $0.00

Southside 3 1,582,906 47,807 47,807 3.0% (6,193) 3,648 124,000 $29.64

St. Johns County 1 209,853 3,300 3,300 1.6% 0 0 0 $0.00

Totals 11 7,497,835 349,257 349,257 4.7% (26,968) 3,648 129,000 $23.76

Mall Market Statistics

54 JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc. JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc.


AbsorptionYTD

DeliveriesUnder

Const SFQuoted


Arlington 1 437,461 62,116 62,116 14.2% 1,700 0 0 $0.00

Baker County 0 0 0 0 0.0% 0 0 0 $0.00

Beaches 0 0 0 0 0.0% 0 0 0 $0.00

Butler/Baymeadows 2 736,026 36,400 79,960 10.9% 0 0 0 $16.00

Downtown Northbank 1 607,324 167,540 167,540 27.6% (10,973) 0 0 $8.00


Mandarin 0 0 0 0 0.0% 0 0 0 $0.00

Nassau County 0 0 0 0 0.0% 0 0 0 $0.00

Northeast Jacksonville 0 0 0 0 0.0% 0 0 0 $0.00

Northwest Jacksonville 1 302,402 47,280 47,280 15.6% 0 0 0 $11.30

Orange Park/Clay County 0 0 0 0 0.0% 0 0 0 $0.00

Riverside 1 325,823 5,000 5,000 1.5% (3,000) 0 0 $15.64

San Marco 0 0 0 0 0.0% 0 0 0 $0.00

Southside 0 0 0 0 0.0% 0 0 0 $0.00

St. Johns County 0 0 0 0 0.0% 0 0 0 $0.00

Totals 6 2,409,036 318,336 361,896 15.0% (12,273) 0 0 $11.03

Power Center Market Statistics


AbsorptionYTD

DeliveriesUnder

Const SFQuoted


Arlington 56 2,434,800 287,669 287,669 11.8% 24,755 0 27,775 $9.86

Baker County 14 520,416 35,446 38,446 7.4% 0 0 0 $9.50

Beaches 84 3,363,647 426,258 426,258 12.7% (39,610) 17,000 0 $16.99

Butler/Baymeadows 25 1,414,829 199,425 199,425 14.1% (42,871) 0 0 $12.41

Downtown Northbank 11 468,597 36,813 36,813 7.9% (1,150) 0 49,870 $6.00

Downtown Southbank 8 63,537 11,500 11,500 18.1% 3,900 0 0 $27.50

Mandarin 51 3,523,813 230,024 230,024 6.5% 25,329 0 0 $11.99

Nassau County 59 2,301,140 268,640 297,640 12.9% (52,906) 0 0 $14.93

Northeast Jacksonville 32 1,263,615 184,707 222,685 17.6% (17,588) 0 0 $13.70

Northwest Jacksonville 48 1,284,252 266,037 266,037 20.7% (11,393) 0 0 $8.49

Orange Park/Clay County 122 5,577,605 676,232 676,232 12.1% (35,862) 0 0 $11.77

Riverside 138 5,224,897 539,423 549,632 10.5% 20,846 0 0 $12.53

San Marco 34 1,046,253 171,602 171,602 16.4% 1,883 0 0 $11.63

Southside 134 7,576,966 889,927 939,313 12.4% 28,166 4,080 0 $12.14

St. Johns County 92 3,544,379 219,334 219,334 6.2% 35,908 0 13,762 $13.74

Totals 908 39,608,746 4,443,037 4,572,610 11.5% (60,593) 21,080 91,407 $12.42

Shopping Center Market Statistics


AbsorptionYTD

DeliveriesUnder

Const SFQuoted


Arlington 0 0 0 0 0.0% 0 0 0 $0.00

Baker County 0 0 0 0 0.0% 0 0 0 $0.00

Beaches 0 0 0 0 0.0% 0 0 0 $0.00

Butler/Baymeadows 0 0 0 0 0.0% 0 0 0 $0.00

Downtown Northbank 1 212,945 0 0 0.0% 0 0 0 $0.00


Mandarin 0 0 0 0 0.0% 0 0 0 $0.00

Nassau County 0 0 0 0 0.0% 0 0 0 $0.00

Northeast Jacksonville 0 0 0 0 0.0% 0 0 0 $0.00

Northwest Jacksonville 0 0 0 0 0.0% 0 0 0 $0.00

Orange Park/Clay County 0 0 0 0 0.0% 0 0 0 $0.00

Riverside 0 0 0 0 0.0% 0 0 0 $0.00

San Marco 0 0 0 0 0.0% 0 0 0 $0.00

Southside 0 0 0 0 0.0% 0 0 0 $0.00

St. Johns County 3 676,981 0 0 0.0% 0 0 0 $0.00

Totals 4 889,926 0 0 0.0% 0 0 0 $0.00

Specialty Center Market Statistics

54 JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc. JACKSONVILLE RETAIL MARKET OVERVIEW // SECOND QUARTER 2014 // Data compiled from CoStar Group, Inc.

Second Quarter — 2014


6675 Corporate Center Parkway Suite 100Jacksonville, Florida USA 32216+1 904 363 9002

naihallmarkpartners.com

Keith Goldfaden Senior Vice President

904 363 [email protected]

Christian Harden Vice President


Bryan J. Mickler Vice President


Daniel Burkhardt Associate


Megan Vershave Associate


www.facebook.com/NAIHallmarkPartners

twitter.com/nai_hallmark

www.linkedin.com/company/hallmark-partners

Eddie Salem Associate


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