City of Naples

PowerPoint PresentationCity of Naples
D - D o w n t o w n Z o n i n g D i s t r i c t - E c o n o m i c & M a r k e t A n a l y s i s
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• Lambert prepared the economic and market analysis in the effort to guide the land use and zoning review for the CRA and D-Downtown
• This area has been studied extensively including complete report in 2013
• To large extent, there has been no notable change, other than continued growth following recession • However new and expanded opportunities have emerged
• Zoning regulations will play a key role in CRA/D-Downtown redevelopment
Introduction
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Though regional population growth has moderated, i t remains general ly robust
• Lee Count y capt ur i ng s ome of t he move out of Col l i er gi ven hous i ng af f or dabi l i t y
C o l l i e r C o u n t y , L e e C o u n t y . A n d C h a r l o t t e C o u n t y
VOLUSIA
ORANGE
1.9%
1.5%
3.1%
4.6%
3.4%
3.7%
2.4%
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C i t y o f N a p l e s , C R A , T r a d e A r e a ( 1 0 m i n u t e D r i v e - t i m e ) , & D - D o w n t o w n A r e a
Primary Trade Area of CRA/D- Downtown defined by 10-minute drive time • Demand models naturally take into
account inflow/outflow
= C it y of N a p les
= 1 0 min d r ive –t ime
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• Primary Trade Area (PTA) represents younger population than City overall, but still above County
Demographic Snapshot S e c t i o n 2
Collier County City of Naples Trade Area (10 min)
2010-14 ACS Population 334,474 20,214 42,405
2010-14 ACS Total Households 126,331 10,068 19,775
2010-14 ACS Median Age 48.0 64.6 53.8
White 216765 (64.8%) 18,060 (89.3%) 85.3% (including Hispanic)*
Black 22566 (6.7%) 904 (4.5%) 7.0% All Others 7,049 (2.2%) 214 (1.1%) 7.7%
Hispanic of Any Race 88,094 (26.34%) 1,036 (5.1%) 19.8%
Source: ACS 2010-2014 Census, *Trade Area is based on ESRI 2016
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• Household Income in PTA falls well below the City and County • Homeownership significantly lower as well
Demographic Snapshot S e c t i o n 2
Collier County City of Naples Trade Area (10 min)
2010-14 ACS Median Household Income
$56,250 $80,571 $51,615
2010-14 ACS Owner Occupied Households %
72.9% 80.4% 41.4%
27.1% 19.6% 59.6%
Source: ACS 2010-2014 Census, *Trade Area is based on ESRI 2016
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• Collier County population projected to remain strong through 2025, with Trade Area forecast to capture a measurable part of growth
• City of Naples lost population from 2000 to 2010; forecast to continue loss – albeit at more modest pace
Population Projections S e c t i o n 2
2.40%
-1.00%
0.60%
1.60%
-0.30%
1.30%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Pop Growth 2000-2010
Pop Growth 2010-2025
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• The mid to long term opportunity for population/housing growth in the CRA/D-Downtown is supported by growth in the surrounding Trade Area.
• PTA population forecast to increase nearly 10,000 by 2030; or, roughly 4,848 households (2.1 persons/HH)
• Projections from U.S. Census and Florida Data Clearinghouse
Population Projections S e c t i o n 2
2015 (Estimate)
2030 Projections
Avg. Annual Growth %
City of Naples 19,455 18,252 -1,203 -80 -0.3%
Trade Area 42,998 52,969 9,970 664 1.4%
Source: US Census; Florida Data Clearinghouse; ESRI
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• Seasonal population plays a large role for the City of Naples • While City’s population declined from 2000 to 2010, the total number of dwelling units inched up
• Difference between households and actual dwelling units is dramatically higher than comparable size cities with little second homeownership.
• Seasonal household growth estimated to add more than 30% over base households • Seasonal factor plays major role in area expenditures and taken into account in retail models
Population Projections - Seasonal S e c t i o n 2
# of Housing Units
City of Doral, FL 17,785 14,507 3,278 18.4%
City of Plantation, FL 37,587 33,521 4,066 10.8%
Sun City Center, FL 14,042 11,790 2,252 16.0%
Plant City, FL 13,732 12,329 1,403 10.2%
Source: US Census; Florida Data Clearinghouse; ESRI
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S E T I O N 2
• 5 largest sectors expecting solid expecting solid growth
• Professional/ Business Services & Health Care typically higher wage jobs
Source: FDEO
2015 2023 Change CAGR Trade & Transportation 26,502 29,979 3,477 1.6% Leisure & Hospitality 25,841 29,865 4,024 1.8% Education & Health 19,142 23,380 4,238 2.5% Prof. & Business Services 15,370 18,803 3,433 2.6% Construction 13,495 19,489 5,994 4.7% Government Services 13,106 14,849 1,743 1.6% Financial Activities 7,649 8,539 890 1.4% Other Services (Except Gov. 6,999 7,871 872 1.5% Agricultural & Mining 4,279 4,104 -175 n/a Manufacturing 3,391 3,758 367 1.3% Information 1,526 1,547 21 0.2% Total (w/ Government) 137,300 162,184 24,884 2.1% Total (Private only) 124,194 147,335 23,141 2.2%
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City of Naples Employment Profi le S E T I O N 2
• Tot a l J ob s in C ity of N a p les = 2 3 , 7 93
• H ea lth ca r e is by f a r t he la r gest s ect or in N a p les, f ol low ed by hos p ital i ty
• Collier County School Board, NCH Healthcare System and Collier County offices comprise nearly 11,000 jobs in Naples
(or just under 50% of total jobs)
• Indicates majority of employment lives outside of City boundaries
Source: OnTheMap
0 1000 2000 3000 4000 5000 6000 7000
Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction
Utilities Construction
Information Finance and Insurance
Real Estate and Rental and Leasing Professional, Scientific, and Technical Services
Management of Companies and Enterprises Administration & Support, Waste Management and Remediation
Educational Services Health Care and Social Assistance
Arts, Entertainment, and Recreation Accommodation and Food Services
Other Services (excluding Public Administration) Public Administration
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S E T I O N 2
• H eav iest emp loyment
concent ration in v ic inity of
C RA /D-Downtown
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Naples CRA Employment Profi le S E T I O N 2
Source: OnTheMap
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Agriculture, Forestry, Fishing and Hunting
Mining, Quarrying, and Oil and Gas Extraction
Utilities
Construction
Manufacturing
Professional, Scientific, and Technical Services
Management of Companies and Enterprises
Administration & Support, Waste Management and Remediation
Educational Services
Arts, Entertainment, and Recreation
Accommodation and Food Services
Public Administration
S E T I O N 2
Heaviest concentration around Hospital
Less than 5% of Employees in CRA, live in CRA
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Source: STR: Lambert Advisory
• The housing market in Collier County/Naples has steadily improved since the end of the recession in 2010
• City has seen stable (albeit modest) growth in single family development, but limited development in multifamily sector
Residential Permit Activity S E C T I O N 3
Collier County Naples
2005 4,052 192 651 12 1,919 224 6,622 428 2006 2,829 96 936 12 1,023 36 4,788 144 2007 1,069 82 197 10 829 42 2,095 134 2008 652 85 114 14 185 8 951 107 2009 630 39 112 4 202 0 944 43 2010 766 63 78 0 415 0 1,259 63 2011 920 81 80 0 320 29 1,320 110 2012 1,296 111 102 0 214 0 1,612 111 2013 1,760 146 144 8 774 0 2,678 154 2014 2,477 185 172 2 961 169 3,610 356 2015 3,078 162 259 2 723 93 4,060 257
2Q 2016 1,430 - 182 - 384 - 1,996 -
Year
Building Permits
Delivery of Office Space
2007-2015
Collier County New Office Space Delivered Annually, 2007-2015 Delievery SF of Office
2007
486,000
2008
456,000
2009
255,000
1,197,000
2010
74,000
2011
29,000
2012
20,000
2013
0
2014
0
2015
28,000
Collier County New Office Space Delivered Annually, 2007-2Q 2016
Collier County New Office Space Delivered Annually, 2007-2015 Delievery SF of Office 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016 486000 456000 255000 74000 29000 20000 0 0 28000 6000
Office Occp & Rent Trends
Office Occupancy & Rent Trends
2006
94.6%
$23.12
2007
92.0%
$1,289.00
2008
87.4%
$1,307.00
2009
85.5%
$1,311.00
2010
85.6%
$1,320.00
2011
84.8%
$1,325.00
2012
86.4%
2013
89.2%
2014
89.4%
2015
91.4%
Oct 11
Apr 12
Oct 12
Apr 13
Oct 13
Apr 14
Oct 14
Apr 15
Oct 15
Apr 16
Number of Sales
Naples Housing Market Trends S e c t i o n 2
• Since early 2013, single family home sales has been on modest decline, with notable drop in early 2016
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Oct 11
Apr 12
Oct 12
Apr 13
Oct 13
Apr 14
Oct 14
Apr 15
Oct 15
Apr 16
Median Sales Price
• Naples housing sales values has been on long and sustained growth trend
S e c t i o n 2
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Source: Lambert Advisory
• N a p l e s S q u a r e i s a 2 9 2 - c o n d o m i n i u m d e v e l o p m e n t u n d e r c o n s t r u c t i o n o n t h e w e s t s i d e o f G o o d l e t t e - Fra n k
R o a d b e t w e e n t h e 3 r d a n d 5 t h Av e n u e S o u t h b l o c k o f G o o d l e t t e - Fra n k R o a d .
• T h e p r o j e c t i s b e i n g b u i l t i n f o u r p h a s e s o f 7 3 u n i t s p e r p h a s e . P h a s e 1 i s s o l d o u t a n d P h a s e 2 i s 8 0 % S o l d .
• U n i t s i z e s ra n g e f r o m 1 , 2 9 5 t o 3 , 3 2 8 s q u a r e f e e t a n d p r i c e s f r o m t h e $ 6 0 0 ’ s t o $ 1 . 4 m i l l i o n .
• T h e p r o j e c t w i l l a l s o h a v e 7 1 , 7 0 0 s q u a r e f e e t o f c o m m e r c i a l r e t a i l
• R e s i d e n c e s a t 5 t h a n d 5 t h i s a t h r e e - s t o r y, 1 1 - u n i t c o n d o m i n i u m d e v e l o p m e n t p l a n n e d f o r t h e N W C o f 5 t h
Av e n u e a n d 5 t h S t r e e t S o u t h . T h e p r o j e c t w i l l f e a t u r e t w o f l o o r s o f r e s i d e n t i a l o v e r 1 1 , 0 0 0 s q u a r e f e e t o f
r e t a i l a t s t r e e t l e v e l .
• U n i t s s i z e w i l l ra n g e f r o m 2 , 2 0 0 t o 3 , 3 0 0 . T h e p r o j e c t i s t a k i n g r e s e r v a t i o n s w i t h p r e l i m i n a r y u n i t p r i c i n g
ra n g i n g f r o $ 2 . 2 t o $ 3 . 3 m i l l i o n .
• M a n g r o v e B a y i s a 5 3 - u n i t s i n g l e f a m i l y h o m e d e v e l o p m e n t l o c a t e d o n t h e e a s t s i d e o f G o o d l e t t e - Fra n k R o a d
b e t w e e n R i v e r s i d e D r i v e a n d 1 s t Av e n u e S . T h e p r o j e c t b e g a n s e l l i n g i n 2 0 1 4 , w i t h 7 h o m e s o l d t o d a t e , H o m e
ra n g e f r o m 2 , 5 8 6 t o 4 , 2 4 6 s q u a r e f e e t . P r i c e s h a v e b e e n r e d u c e d i n p a s t y e a r a n d a r e n o w p r i c e d f r o m $ 1 . 9 5
t o $ 2 . 9 0 m i l l i o n .
Notable New Projects in the CRA S E C T I O N 3
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Occupancy and Rental Rate Trends • S ince 2 0 1 0 , occup a ncy Ra t es I n C ol l ier C ount y have ra ng ed b et ween 9 5 a nd 9 8 p er cent a nd
b et ween 9 4 . 8 a nd 9 8 . 9 p er cent in N a p les
• T he average b a s e r ent al ra t e in C ol l ier C ount y g r ew f r om $ 1 , 2 25 in 2 0 1 0 t o $ 1 , 3 39 in t he 2 Q 2 0 1 6 , eq ua l t o a n a nnua l average ra t e of 1 . 2 %. T he average b a se r ent in N a p les a ls o g r ew by 1 . 2 % on average, f r om $ 1 , 3 57 in 2 0 1 0 t o $ 1 , 4 50 in 2 Q 2 0 1 6 .
Multi- family Rental Apartment Market
S E C T I O N 3
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
Occupancy Collier County
Avg. Base Rent Collier County
Avg. Base Rent Naples
S E C T I O N 3
Naples CRA/D-Downtown Trade Area Multifamily Housing Demand Projections (Market Rate Housing) 2015 through 2026
2015 2020 2025 2030 Change Population 42,998 45,223 47,562 50,023 7,025
Total Households 20,475 21,535 22,649 23,821 3,345 Persons per HH 2.1 2.1 2.1 2.1
% Study Area HH w/Income > $50K (Future Demand) 52.0% 52.0% 52.0% 52.0% No. HH with Income > $50,000 10,647 11,198 11,777 12,387 1,740
% MF Dwelling 51.8% 51.8% 51.8% 51.8% Total Demand for New MF Dwelling Units 5,515 5,801 6,101 6,416 901
• Roughly 1,000+ units of market rate multi-family housing demanded within CRA’s PTA through 2030 (and potentially higher as proportion of MF housing increases) • CRA/D-Downtown should potentially capture significant amount of this demand
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Source: CoStar
There is currently an estimated 9.19 million square feet of office space in Collier County. Of this total, 1.28 million square feet (+14% ) is in the City of Naples submarket. • A s of t he 2 Q 2 0 1 6 , b ot h t he occup a ncy level a nd average q uot ed r ent a l ra t e f or of f ice s p ace in
N a p les is hig her t ha n t ha t comp a red t o C ol l ier C ounty.
Office Market Snapshot S E C T I O N 3
Market Area Inventory Sq. Ft. Number of Buildings
Avg. Size Building
Vacant Sq. Ft.
Collier County 9,192,000 740 12,422 792,000 8.6% 91.4% $21.89
City of Naples Submarket 1,278,000 98 13,041 83,000 6.5% 93.5% $22.43
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According t o CoSt ar , f rom 2007 t o t he 2Q 2016, t here was approximat ely 1.35 mi l l ion square feet of of f i ce space del i vered t o t he Col l ier Count y of f i ce market .
• A p pr oximately 8 8 % of t he new of f ice s p ace, (eq ual t o 1 . 2 mi l l ion s q uar e f eet ) w a s d el ivered f r om 2 0 0 7 t o 2 0 1 0. O nly 1 5 0 , 000 s q ua re f eet ha s b een d el ivered s ince 2 0 1 0.
Office Development Trends S E C T I O N 3
0
100,000
200,000
300,000
400,000
500,000
600,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Collier County New Office Space Delivered Annually, 2007-2Q 2016
Source: CoStart
Source: CoStar
The Col l i er Count y of f i ce market , which was signi f i cant l y impact ed by t he recession, has exper ienced sl ow but st eady improvement , but i s st i l l below pre- recession l evel s.
.T he of f ice occup a ncy ra t e, w hich p ea ked a t 9 4 . 6% in 2 0 0 6 , d ecl ined yea r over yea r t o 8 4 . 8% in 2 0 1 1 , b ef or e incr ea sing yea r over yea r t o 9 1 . 4% a s of t he 2 Q 2 0 1 6 .
• A s king r ent a l ra t es ( f ul l s er vice) f or of f ice p ea ked a t $ 2 4 .2 3 p er s q ua re f oot in 2 0 0 7 , b ef or e t r ending d ow n t o $ 2 0 . 11 p er s q uare f oot in 2 0 1 3 . A s king r ent al ra t es have s ince imp r oved mod estly t o $ 2 1 . 89 p er s q ua re f oot a s of t he 2 Q 2 0 1 6
Office Market Trends S E C T I O N 3
78.0%
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Occupancy Avg. Asking Rent Full Service
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SourceCoStar
• 2 5 6 , 000 s q ua re f eet net a b s orption of of f ice s p a ce in 2 0 0 7 , f ol low ed by a t ot a l of 9 9 , 00 0 s q uar e f eet net a b sorption f r om 2 0 0 8 t o 2 0 1 1, includ ing neg ative net 4 2 , 0 00 s q uare f eet in 2 0 1 1 .
• A nnua l A b sorption of of f ice s p a ce ha s f luct uated s ince 2 0 1 1 , w it h a hig h of 2 5 5 , 000 s q ua re f eet a b s orbed in 2 0 1 3, t o a low of 2 1 , 0 00 s q ua re f eet a b s orbed in 2 0 1 5 , a nd only 8 , 0 00 s q uare f eet a b s orbed t hr ough t he 2 Q 2 0 1 6
Office Market Absorption S E C T I O N 3
(100,000)
(50,000)
0
50,000
100,000
150,000
200,000
250,000
300,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Collier County Annual Absorption Square Feet of Office
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• C oll ier C ounty ’s es t imated of f ice j ob emp loyment f or eca st t o incr ea se by a t ot a l 1 , 6 00 t o 2 , 0 0 0
j ob s b et ween 2 0 1 5 a nd 2 0 2 3 ; 2 . 2 % average a nnua l g r owth
• I nd icates r oug hly 4 0 0 , 000 t o 5 0 0 , 00 0 s q .f t . of of f ice d ema nd C ounty-wide over nex t 8 yea rs
• Pr ov ides s ol id b ut l imited s up porting us e f or C RA /D-Downtown mixed us e d evelopment
Collier County & Study Area Office Demand Projections
S E C T I O N 3
Net New Office Demand 2015-2023
Low High
Estimated County Office Job Growth (2015 to 2023) 1,600 2,000
Sq.Ft. Office Net Demand @ 233+ sf per employee 400,000 500,000
% Estimated CRA/D-Downtown Submarket Capture 10% 20%
CRA/D-Downtown Total Potential - Office Demand (Sq.Ft.) 40,000 100,000
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Source: CoStar
There is currently an estimated 21.99 million square feet of office space in Collier County. Of this total, 2.92 million square feet (+13% ) is in the City of Naples submarket. • A s of t he 2 Q 2 0 1 6 , b ot h t he occup a ncy level a nd average q uot ed r ent a l ra t e f or r et a i l s p ace in
N a p les is hig her t ha n t ha t f or C ol l ier C ounty.
Retail Market Snapshot S E C T I O N 3
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From 2007 t o t he 2Q 2016, t here was approximately 3.95 mi l l ion square feet of retai l space del ivered t o t he Col l ier County retai l market .
• T he la r gest s ha r e, eq ua l t o 3 . 0 6 mil l ion s q ua re f eet ( 7 7 .5%), w a s d el ivered f r om 2 0 0 7 t o 2 0 1 6 .
Retail Development Trends S E C T I O N 3
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Collier County New Retail Space Delivered Annually, 2007-2Q 2016
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Source: CoStar
The Collier County retail market has experienced slow but steady improvement since 2010, but is still below pre-recession levels.
.T he r et a i l occup a ncy ra t e, w hich p ea ked a t 9 7 . 7% in 2 0 0 6 , d ecl ined yea r over yea r t o 9 0 . 6% in 2 0 0 9 , b ef or e incr ea sing yea r over yea r t o 9 4 . 0% a s of t he 2 Q 2 0 1 6 .
• A s king r ent a l ra t es ( f ul l s er vice) f or r et a i l p ea ked a t $ 2 3 . 94 p er s q uare f oot N N N in 2 0 0 7 , b ef or e t r ending d ow n t o $ 1 6 . 42 p er s q uar e f oot N N N in 2 0 1 1 . A s king r ent a l ra t es have s ince imp r oved mod estly t o $ 1 9 . 55 p er s q uare f oot a s of t he 2 Q 2 0 1 6
Retail Market Trends S E C T I O N 3
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Occupancy Avg. Asking Rent Full Service
34
SourceCoStar
• A p pr oximately 1 . 8 2 mil l ion s q uare f eet of r et ai l s p a ce in , 2 0 0 7 a nd 2 0 0 8 comb ined, f ol low ed by neg a tive net 3 4 3 ,0 00 s q ua re f eet in 2 0 0 9 .
• A nnua l A b sorption of r et a i l s p a ce ha s f luct uated s ince 2 0 1 0 , w it h a hig h of 3 0 7 , 000 s q uare f eet t hr ough t he 2 Q 2 0 1 6, t o a low of 1 0 8 , 000 s q uare f eet a b s orbed in 2 0 1 2 .
Retail Market Absorption S E C T I O N 3
(600,000)
(400,000)
(200,000)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q 2016
Collier County Annual Absorption Square Feet of Retail
35
S E C T I O N 3
• 7,000+ person increase in population (3,300+ new households) in PTA generates roughly 300,000 square feet of estimated retail demand • Importantly, a portion of this demand likely absorbed by vacant and/or underutilized existing retail
inventory • CRA/D-Downtown should aim to capture 20 to 30%
Estimated Sq.ft. Demanded /Person
Convenience Goods 12.0 92,400
Other Non-retail 4.0 30,800
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Collier County Visitor Highlights S E C T I O N 3
• 1.8 million visitors in 2015
• $21 million in tourist tax revenue, $121 million in sales and gas tax revenue
• 36,000 jobs within hospitality sector
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S E C T I O N 3
$110
$115
$120
$125
$130
$135
$140
$145
$150
0%
10%
20%
30%
40%
50%
60%
70%
80%
ADR Occupancy
• Occupancy and average daily rate (ADR) within region has seen strong sustained growth during past five years • Though market occupancy considered to be below “stabilized” levels (or mid 70% range)
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P r e 1 9 9 0
1 9 9 0 - 1 9 9 9
2 0 0 0 - P r e s e n t
54% 29%
Source: STR
• M o r e t h a n 5 0 % o f N a p l e s h o t e l s b u i l t
b e f o r e 1 9 9 0 . D e v e l o p m e n t ra m p e d
u p d u r i n g t h e 1 9 9 0 ’ s , s l o w i n g d o w n
d u r i n g t h e p a s t 1 5 y e a r s .
Property Class Sample Properties Total Rooms % Total
Economy Red Roof, Super 8 691 11%
Mid/Upper Mid-Scale La Quinta, Holiday Inn Express,
Hampton Inn, Fairfield Inn 1,965 32%
UpScale Bay Inn on 5th, Courtyard
Residence Inn 1,004 16%
Luxury Ritz Carlton, La Playa Resort,
Naples Bay Resort 1,142 18%
Total 6,,233
Opportunity for Hotel S E C T I O N 3
• New Hyatt House proving market strength
• Select Service is recommended product for CRA/D-Downtown • But unique brand such as Aloft or Indigo
• Potential for 2 development (125+ rooms) during next 15 years
41
42
• City of Naples forecasts limited population growth; however, surrounding PTA shows measurable growth
• Multi-family housing is the key driver to the CRA/D-Downtown growth • Represents combination of for-sale and rental
• Market rate rental housing should be met with near term demand; financial viability needs to be tested
• Considerable “pent-up” demand for Workforce housing
• Opportunity for select service hotel within 3 to 5 years • Market supports quality brand
• Moderate level of demand for retail near term, but can be expanded over time as housing increases and broader revitalization efforts take hold
• Encourage local/regional businesses
• Limited demand for office • Medical office in connection with hospital
HEADLINE & CONCLUSIONS C O N C L U S I O N S
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• Support redevelopment of critical mass requires relaxation of regulatory constraints • Increase height to encourage housing
• Mixed use should not be required district wide • Mixed use (including retail) oriented to main thoroughfares
• Parking is a critical element to redevelopment planning, particularly as it relates to revitalizing smaller parcels.
• Identifying optimal location of centralized parking is crucial to maximize utilization and impact within D- Downtown
• Centralized parking garage can be a joint public/private effort; but, will require at least some level public subsidy
HEADLINE & CONCLUSIONS C O N C L U S I O N S
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Development Feasibil ity
45
Avg. Annual Occupancy/Operating Expense Ratio 95% / 40+%
Stabilized Estimated Annual Net Operating Income $3,500,000
Capitalized Valuation (at 6.0%) $57,000,000
Development Cost Evaluation
Estimated Total Cost per Unit (w/out Garage Parking) $160,000 per unit
plus: Estimated Land Cost (per unit) $35,000 per unit Total Cost of Development (without Garage Parking) $49,000,000
plus: Minimum 350 spaces required at $20K/space $7,000,000 Total Cost of Development (with Garage Parking) $56,000,000
ROI = 15+%
Marginal ROI
I l lustrative Feasibil ity Evaluation of a 250 unit Luxury Apartment Complex (and Impact of Garage Parking)
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City of Naples