Nashville Retaill_3Q11
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2Q 2011 3Q 2011 VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE MARKET REPORT NASHVILLE www.colliers.com/Nashville Retail Market Continues to Stabilize After a weak first half of the year, the third quarter shows signs of returning economic strength. Absorption posted positive numbers with 163,943 square feet. This brings the year-to-date absorption over 200,000 square feet. The Rutherford County submarket had the highest absorption, primarily due to two new leases. Linens & More for Less signed a lease for 28,170 square feet and Essex Bargain Hut inked a deal for a 31,700 square-foot space in Rutherford County. Essex Bargain Hut also leased a space for 38,046 square feet in the Windlands Shopping Center in the Southeast submarket. We are still seeing a lingering effect of the flood of May of 2010. This historic natural disaster closed the iconic retail spot Opry Mills Mall, which held some of Nashville’s largest retailers. Retail’s future is looking bright though. The Opry Mills Mall is scheduled to reopen in spring of 2012 and will bring new tenants such as Calvin Klein, Coach Factory MARKET INDICATORS 3Q 2011 | RETAIL Quarterly Comparisons and Totals QUARTER BUILDINGS TOTAL INVENTORY SF DIRECT VACANT DIRECT VACANCY RATE SUBLEASE VACANCY RATE NET ABSORPTION CURRENT QTR AVG ASKING RATE Q3.11 698 48,676,951 3,165,932 6.5% 0.3% 163,943 $16.12 Q2.11 698 48,716,038 3,434,756 7.1% 0.2% (60,266) $16.58 Q1.11 698 48,687,848 3,332,504 6.8% 0.3% (14,809) $16.74 Q4.10 699 48,719,737 3,370,385 6.9% 0.3% 140,620 $16.93 Q3.10 694 48,489,601 3,633,061 7.49% N/A (25,620) $17.33 By Property Type BUILDING TYPE BUILDINGS TOTAL INVENTORY SF DIRECT VACANT DIRECT VACANCY RATE SUBLEASE VACANCY RATE NET ABSORPTION CURRENT QTR NET ABSORPTION YTD SF Conv/Strip Ctr 286 5,098,676 574,116 11.3% 0.5% 31,858 84,108 Community Ctr 39 8,900,171 674,914 7.6% 0.1% 72,826 78,,553 Regional Ctr 9 6,391,467 117,251 1.8% 0.0% 0 65,993 Neighborhood Ctr 244 16,147,075 1,488,624 9.2% 0.1% 22,568 (17,111) Power Ctr 120 12,139,562 311,027 2.6% 0.6% 16,948 (9,977) - - 2011
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3Q 2011 | RETAIL Vacancy rates www.colliers.com/Nashville MARKET INDICATORS NET ABSORPTION CURRENT QTR AVG ASKING RATE NET ABSORPTION YTD SF 2Q 2011 3Q 2011 Quarterly Comparisons and Totals By Property Type CONSTRUCTION NET ABSORPTION VACANCY SUBLEASE VACANCY RATE SUBLEASE VACANCY RATE RENTAL RATE NET ABSORPTION CURRENT QTR Updated 7-2011
Transcript of Nashville Retaill_3Q11
2Q
2011
3Q
2011
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
MARKET REPORTNASHVILLE
www.colliers.com/Nashville
Retail Market Continues to Stabilize After a weak first half of the year, the third quarter shows signs of returning economic strength. Absorption posted positive numbers with 163,943 square feet. This brings the year-to-date absorption over 200,000 square feet. The Rutherford County submarket had the highest absorption, primarily due to two new leases. Linens & More for Less signed a lease for 28,170 square feet and Essex Bargain Hut inked a deal for a 31,700 square-foot space in Rutherford County. Essex Bargain Hut also leased a space for 38,046 square feet in the Windlands Shopping Center in the Southeast submarket.
We are still seeing a lingering effect of the flood of May of 2010. This historic natural disaster closed the iconic retail spot Opry Mills Mall, which held some of Nashville’s largest retailers. Retail’s future is looking bright though. The Opry Mills Mall is scheduled to reopen in spring of 2012 and will bring new tenants such as Calvin Klein, Coach Factory
MARKET INDICATORS
3Q 2011 | RETAIL
Quarterly Comparisons and Totals
QUARTER BUILDINGSTOTAL INVENTORY
SFDIRECT VACANT
DIRECT VACANCY RATE
SUBLEASE VACANCY RATE
NET ABSORPTION CURRENT QTR
AVG ASKING RATE
Q3.11 698 48,676,951 3,165,932 6.5% 0.3% 163,943 $16.12
Q2.11 698 48,716,038 3,434,756 7.1% 0.2% (60,266) $16.58
Q1.11 698 48,687,848 3,332,504 6.8% 0.3% (14,809) $16.74
Q4.10 699 48,719,737 3,370,385 6.9% 0.3% 140,620 $16.93
Q3.10 694 48,489,601 3,633,061 7.49% N/A (25,620) $17.33
By Property Type
BUILDING TYPE BUILDINGSTOTAL INVENTORY
SFDIRECT VACANT
DIRECT VACANCY RATE
SUBLEASE VACANCY RATE
NET ABSORPTION CURRENT QTR
NET ABSORPTION YTD SF
Conv/Strip Ctr 286 5,098,676 574,116 11.3% 0.5% 31,858 84,108
Community Ctr 39 8,900,171 674,914 7.6% 0.1% 72,826 78,,553
Regional Ctr 9 6,391,467 117,251 1.8% 0.0% 0 65,993
Neighborhood Ctr 244 16,147,075 1,488,624 9.2% 0.1% 22,568 (17,111)
Power Ctr 120 12,139,562 311,027 2.6% 0.6% 16,948 (9,977)
- -
Updated 7-2011
Store, Under Amour Factory Store, White House Black Market and others. This will pave the way for more retailers to look to Nashville for future locations.
The Mall at Green Hills also welcomed the much anticipated Nordstrom this fall, which occupies a three-story 149,000 square foot facility. In addition to Nordstrom, the Container Store opened its doors this November in the former
Davis-Kidd location, a 30,000 square-foot space.
With stores such as these opening and new space becoming available, Nashville’s retail market has a positive outlook for future quarters.
Power Ctr
Neighborhood Ctr
Super Reg Ctr
Regional Ctr
Community Ctr
Big Box
Conv/Strip Ctr
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2Q 2011 | Vacancy Space By Type 2Q 2011 | Net Absorption By Submarket
RECENT SALES TRANSACTIONSSALES ACTIVITY
PROPERTY SELLER/BUYER SALE PRICE SIZE SF SUBMARKET
Shoppes at South Plaza Not DiscSouth Plaza Center $22,000,000 301,629 Southeast
Dickson Plaza Shopping Center Not Disclosed $2,875,000 109,990 Bellvue
Williamsburg III Not Disclosed/I&M LLC $1,200,000 14,912 Southeast
Adams Lane Plaza Precision Motor Sports LLC/Not Disclose $1,600,000 9,678 Mt. Juliet/Lebanon
421 Broadway TN Professional Properties LLC/ Libbi & Robert E. Lee IV $1,053,292 8,232 Downtown
6326 Charlotte Pike Ollie Ozden/BTS Charlotte Pike LLC $1,450,000 4,800 Southwest
RECENT LEASING TRANSACTIONS
LEASING ACTIVITY
PROPERTY ADDRESS TENANT SIZE SF TYPE SUBMARKET
Windlands Center Essex Bargain Hut 38,046 New Southeast
Mercury Plaza Essex Bargain Hut 31,700 New Rutherford County
The Avenue Murfreesboro Linens & More for Less 28,170 New Rutherford County
Thouroughbred Village Sun & Ski 16,124 New Cool Springs/Franklin
DEFINITIONS
Absorption - The net change in occupied space between the current quarter and the previous quarter, calculated by summing all the positive changes in occupancy and subtracting all the negative changes in occupancy.
Available SF - Space currently being marketed for lease or sublease.
Inventory - The total square footage of all single and multi tenant retail properties above 10,000 SF.
Total Building SF - All single & multi tenant office buildings above 20,000 SF excluding medical, government and owner occupied.
Vacancy Rate - Percentage rate of the total amount of physically vacant space divided by the total amount of existing inventory.
*Bold text denotes Colliers International transactions.
P. 2 | COLLIERS INTERNATIONAL
MARKET REPORT | Q3 2011 | RETAIL | NASHVILLE
UPDATE Market Comparisons
RETAIL MARKET
SUBMARKET BLDGSTOTAL
INVENTORY SF
DIRECT VACANT
SF
DIRECT VACANCY
RATE
DIRECT VACANCY
RATE PRIOR QTR
SUBLEASE VACANCY
RATE
NETABSORPTION
CURRENT QTR ST
NET ABSORPTION
YTD SF
AVG ASKING RATE
BELLVUE/WEST NASHVILLE 36 2,987,939 73,332 2.5% 2.2% 0.0% (5,374) 926 $15.34
BRENTWOOD 32 1,601,523 58,683 3.7% 3.4% 0.2% 4,075 7,633 $19.31
COOL SPRINGS/FRANKLIN 96 7,575,802 306,995 4.1% 4.5% 0.0% 46,188 65,045 $20.90
DONELSON/HERMITAGE 35 2,866,529 139,416 4.9% 5.1% 0.3% 6,715 8,410 $11.39
DOWNTOWN/WEST END 42 1,293,477 124,976 9.7% 10.3% 1.7% 8,818 11,207 $22.22
GREEN HILLS/BELLE MEADE 43 2,717,742 77,945 2.9% 4.1% 0.5% 20,320 52,334 $22.57
HENDERSONVILLE/GALLATIN 58 4,274,117 265,480 6.2% 8.0% 0.0% (3,130) (21,061) $13.03
MT. JULIET/LEBANON 42 4,213,932 328,195 7.8% 8.1% 0.0% 11,490 488 $12.65
NORTH 76 6,276,023 384,266 6.1% 6.8% 0.1% 10,986 51,356 $12.32
RUTHERFORD COUNTY 126 7,937,802 711,622 9.0% 9.8% 0.0% 73,235 39,193 $16.53
SOUTHEAST CORRIDOR 112 6,932,065 695,022 10.0% 9.9% 1.1% (9,380) (13,965) $12.63
GRAND TOTAL 698 48,676,951 3,165,932 6.5% 7.1& 0.3% 163,943 201,566 $16.12
COLLIERS INTERNATIONAL | P. 3
MARKET REPORT | Q3 2011 | RETAIL | NASHVILLE
DOWNTOWN
Gallatin Rd.
Leba
non P
l.
West E
nd A
ve.
Harding Pl.
O ld Hickory Blvd.
Fran
klin
Moores Ln.
Murfreesboro Rd.
Nolensville Rd.
Briley
Pkwy.
Bell Rd
.
Woodmont Blvd.
MURFREESBORO
BELLVUE
COOL SPRINGS/FRANKLIN
BRENTWOOD
GREEN HILLS/BELLE MEADE
CHARLOTTE PIKE/CLARKSVILLE HWY.
MADISON/GOODLETTSVILLE
HENDERSONVILLE/GALLATIN
MT. JULIET/LEBANON
LAVERGNE/SMYRNA
NOLENSVILLE PIKE
RIVER
GATE
WEST END AIRPORT/MURFREESBORO RD.
DONELSON/HERMITAGE
ANTIOCH/HICKORY HOLLOW
NASHVILLE:
Nate GreeneManaging Partner300 BroadwayNashville, TN, 37201TEL +1 615 850 2729FAX +1 615 850 3229
MARKETING DIRECTOR:
NashvilleAllison Schepman300 BroadwayNashville, TN, 37201TEL +1 615 850 2748FAX +1 615 244 2957
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Figure 1: Nashville Retail Submarkets include Bellevue/West Nashville, Brentwood, Cool Springs/Franklin, Donelson/Hermitage, Downtown/West End, Green Hills/Belle Meade, Hendersonville/Gallatin, Mt. Juliet/Lebanon, North Nashville, Rutherford County, Southeast Corridor and Southwest.
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MARKET REPORT | Q3 2011 | RETAIL | NASHVILLE
