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Area Market Activity Significant Changes in Southern Utah NAI in the News INDUSTRIAL - Washington County OFFICE - Washington County RETAIL - Washington County MULTI FAMILY - Washington County INDUSTRIAL, OFFICE & RETAIL - Iron County Area Road Construction Projects Rio Plaza 32,499 SF 94 S Mall Drive 15,121 SF Medical Office Building 14,104 SF Dixie Ambulance Facility 11,976 SF Residential Treatment Center 18,645 SF Chase Plaza 24,198 SF SOLD Q4 SOLD Q4 LEASED Q4 SOLD Q4 SOLD Q4 SOLD Q4 4th Quarter 2013 Market Report A Quarterly Newsletter & Report on Commercial Real Estate in Southern Utah 2 3 4 5 6 7 8 9 10 Inside... NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED. 2013 Q4 Market Report contributing writers: Jon Walter and Neil Walter 243 E St. George Blvd, Suite 200 St. George, Utah 84770 t 435 628 1609 naiutahsouth.com

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Page 1: Insideexcelcres.com/wp-content/uploads/docs/2013 Q4 Market Report_web.pdfSt George Pet Palace The St. George Pet Palace is Southwestern Utah’s newest pet boarding and grooming facility

Area Market Activity

Significant Changes in Southern Utah

NAI in the News

INDUSTRIAL - Washington County

OFFICE - Washington County

RETAIL - Washington County

MULTI FAMILY - Washington County

INDUSTRIAL, OFFICE & RETAIL - Iron County

Area Road Construction Projects

Rio Plaza32,499 SF

94 S Mall Drive15,121 SF

Medical Office Building14,104 SF

Dixie Ambulance Facility11,976 SF

Residential Treatment Center18,645 SF

Chase Plaza24,198 SF

SOLD Q4

SOLD Q4

LEASED Q4

SOLD Q4

SOLD Q4

SOLD Q4

4th Quarter 2013 Market ReportA Quarterly Newsletter & Report on Commercial Real Estate in Southern Utah

2345678910

Inside...

NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED.

2013 Q4 Market Report contributing writers: Jon Walter and Neil Walter

243 E St. George Blvd, Suite 200St. George, Utah 84770t 435 628 1609

naiutahsouth.com

Page 2: Insideexcelcres.com/wp-content/uploads/docs/2013 Q4 Market Report_web.pdfSt George Pet Palace The St. George Pet Palace is Southwestern Utah’s newest pet boarding and grooming facility

Area Market Activity

2 2013 Q4 Market Report | © 2013 NEWS UPDATES ON:

Country Flooring DepotUtilizing all 18,000 SF of the old Office Max space in Washington, Country Flooring De-pot will be opening this spring.

Dixie Drive Dairy QueenLocated across the street from Albertsons on Dixie Drive, Dairy Queen is building a new 1883 SF restaurant. Construction is expect-ed to be completed in 1st Quarter 2014.

River Road MaverikWith over 250 locations in 10 states, Maverik is under construction on the corner of 1450 E and River Road. This c-store and fueling station will serve the Little Valley, Stone Cliff, and Bloomington Hills areas.

Buffalo Wild WingsBuffalo Wild Wings, a sports grill and bar franchise with over 600 locations, opened a 7,480 SF restaurant in December, at Rim Rock Marketplace, next to Target.

Habit BurgerHabit Restaurants, a California-based com-pany, opened its third Habit Burger Grill in Utah at the Red Rock Commons. The Habit is known for its signature Charburger menu variety and value. The company has two res-taurants in the Salt Lake City area.

Mall Drive BridgePlanned in 2006, the long awaited Mall Dr bridge was finally opened for bidding in Oc-tober and is expected to be completed this Summer.Also out for bidding is the proposed Bluff Street / Red Hills Parkway interchange improvement project.

Southern ParkwayTwo additional segments of the Southern Parkway have received their finishing touch-es and will open soon. The new segments will connect the airport with Washington and Hurricane via the Washington Fields and Sand Hollow roads.

KPI ConceptsThe former 85,000 SF Mikohn Gaming & Sign building at Gateway Industrial Park in Hurricane was recently purchased by KPI Concepts, an Iowa-based design and manu-facturer of wood laminate store fixtures.

Exit 8 InterchangeThe newly reconfigured St. George Bou-levard I-15 interchange opened ahead of schedule, just in time for Thanksgiving traf-fic. Planners have described the diverging diamond configuration as a way to better facilitate traffic across the bridge.

Rocky Mountain FoodsLong time St. George business Rocky Mountain Foods closed down their opera-tions. The Hostess bankruptcy, as well as inability to secure replacement routes, were factors in the decision to close.

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All Rights Reserved - 2013 Q4 Market Report | NAI Utah Southern Region 3

Significant Changes in

There are a number of changes underway in Southern Utah as of this writing. St. George’s Mayor McArthur has been the face of St. George City for 20 years. Anyone who has spent time with him knows of his charisma, his love of poetry, and most of all, his love of Southern Utah. Mayor Elect Jon Pike has outlined his strategy of developing strategic plans and opening council meetings to public input. Cedar City’s Mayor Joe Burgess is finishing his four year term at the helm. Mayor elect Maile Wilson will be the first woman mayor in Cedar City’s history and pos-sibly the youngest mayor ever to serve in Utah, according to The Spectrum. Given the recent economic development successes in Iron County, the next four years will shape the future of Cedar City and Iron County. Both Southern Utah University and Dixie State University will have new presidents in 2014, and Iron and Washington County School Districts changed superintendents in 2013. Southern Utah University’s Michael Benson left to become President of Eastern Kentucky University after seven years and will be replaced by President Scott Wyatt, formerly President of Snow College in Ephraim, UT. Dixie’s President Nadauld has announced he will retire at the end of the 2013-2014 school year. A re-placement has not been named yet. Iron County School District named Dr. Shannon Dulaney to replace Jim Johnson who retired in 2013 after 10 years as superinten-dent. Washington County Superintendent Max Rose also retired in 2013 and Larry Bergeson will oversee school facility expansion associated with the recently passed $185 million bond, which is sure to alter the education landscape further. While residential construction has been booming, commercial has lagged. The next two years should alter that trend with commercial development around freeway in-terchanges, along major traffic corridors, and in the industrial parks. Most visible to residents will be the road projects. In Iron County, the South Interchange (Exit 57) will be redesigned in the spring of 2014. In St. George, Exit 8 has been recently reconfigured to the diverging diamond to improve traffic flow. In 2014, the Southern Corridor will open north of the airport, the intersection of Snow Canyon Parkway and north Bluff Street will be rebuilt, and the Mall Drive bridge will open. Collectively, these represent hundreds of millions of dollars in capital improvements in Southern Utah. By any measure, these changes are significant.

Mark WalterManaging Broker

Neil WalterManaging Director

4th Quarter 2013

Market ReportSouthern Utah

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4 2013 Q4 Market Report | © 2013 NEWS UPDATES ON:

in the News

Rio PlazaJason Griffith and Meeja McAllister sold Rio Plaza, located at 558 East Riverside Drive, to an investor. Rio Plaza is a 32,914 SF. retail/office center located on Riverside Drive. The 73% leased center sold for $2,600,000, which will yield a 8% CAP based on the current Net Operating Income. As occupancy increases and the property is further stabilized, the yield will increase further. Several additional leases were signed within the last two weeks.

St George Pet PalaceThe St. George Pet Palace is Southwestern Utah’s newest pet boarding and grooming facility with over 53,000 SF of play areas, boarding rooms, grooming, training area, pet supplies and more! The Pet Palace will take care of your furry loved ones 24/7 while you’re away at work during the day, or extended stays while you’re out of town, including holidays. It is located in the former Green Valley Cabinet facility. Curren Christensen represented the buyer and seller in the aquisition of the building.

North Carolina Retail CenterJason Griffith helped a client acquire a 27,623 SF unanchored Retail Center in Concord, North Carolina. The 68% leased center sold for $2,300,000, which will yield a 13% CAP based on the current Net Operating Income. As occupancy increases and the property is stabi-lized, the actual returns are expected to be even higher.

Pack Graff, PLLCLocal attorneys Bryan J. Pack and K. Jake Graff have joined law practices to form Pack Graff, PLLC, a full‐service law firm with expertise in many different areas of law, including: family law, adoption, divorce, business issues, entrepreneurship, real estate, construction, estate and legacy planning and protection, fiduciary and trust law, philanthropy, and civil litigation. Jon Walter & Abraham Thiombiano facilitated the transaction that brought the firm to the South Main Plaza.

Info SiftrInfoSiftr, a custom software development company recently opened its new office at the Red Cliff Professional Park with the help of Jason Griffith and Meeja McAllister. Their new office is located behind the Red Cliffs Mall at 321 North Mall Drive, Suite C 102, in St. George, UT. A recent graduate of the Seed Dixie Incubator, the company has expanded to this new location due to growth in clientele and has doubled its income and development staff from last year.

Red BullJon Vandermyde leased a 1,920 square feet warehouse to Red Bull, to be used as a distribution center for the St. George area. In busi-ness since 1987, Red Bull is the #1 name in the energy drink market. NAI is proud to bring such a quality tenant to the IPM complex in the St. George Industrial area.

Additional Notable TransactionsSUMMIT CHIROPRACTIC - Summit Chiropractic will be moving into the Red Cliffs Professional Park. Meeja McAllister & Jason Griffith assisted the Landlord and Tenant in leasing Suite H102. Dr. Troy Davis is excited be part of the St. George community.

TRADE STAR ENERGY - Trade Star Energy has opened up an office in the Red Cliffs Professional Park. Meeja McAllister & Jason Griffith represented the Landlord & Tenant in this transaction.

ANNIE JEAN APPAREL - Meeja McAllister represented Annie Jean Apparel in leasing an office space at the Red Cliffs Professional Park. Annie Jean Apparel is a women’s retail clothing site.

TRI STATE ELECTRIC - Tri-State Electric & Utility, provides such services as underground, highway construction, and commercial electric. Meeja McAllister & Jason Griffith represented the Landlord & Tenant in relocating to the Red Cliffs Professional Park.

Last Quarter NAI Assisted These Clients With Their Transactions

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All Rights Reserved - 2013 Q4 Market Report | NAI Utah Southern Region 5

Industrial2013 4th Quarter | Washington County

ReviewThe availability of space changed significantly for the industrial mar-ket in 2013. The industrial vacancy declined from 9.4% to 4.9% year over year. Like recent years, the majority of the absorption has come from large industrial occupants, however, this year there has been additional demand from small industrial users especially as new home construction has come back to life. With only 3.8% of the space over 20,000 SF available, it is becoming increasingly difficult for large users to enter our market without building a new facility. The declining availability for buildings has increased activity in the industrial land market where land sales were on the rise in 2013. Consistent with falling vacancy rates, asking industrial lease rates increased roughly $.05 per square foot year over year, reflect-ing a 10-12% increase in average lease rates.

This quarter, ServPro finished their 16,000 SF building along I-15 between exit 6 and 8 while Environmental Stone Works expanded to Ft Pierce leasing a 32,000 square foot manufacturing plant. Kristi Diesel is constructing a new 8,000 SF facility in the Ft Pierce In-dustrial Park. Also, KPI Concepts, a designer and manufacturer of custom wood laminate store fixtures, acquired the 85,000 SF building in the Gateway Industrial park that was formerly occupied by Mikohn. At full capacity, KPI is expected to employ 50 people at this location.

OutlookExpect vacancy rates for space under 20,000 SF to decline further in 2014 and lease rates to continue to increase. Lease rates are still a little low for many developers considering spec construction. However, demand for space, and the absorption that has come with it, have created a shortage of available space. This shortage will result in land acquisition and construction from owner occupants and build to suit tenants. It will also continue to drive lease, land, and building prices.

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   Asking Industrial Lease Rates By Quarter< 20,000 SF > 20,000 SF

Market Trend

Vacancy Rate Lease Rate Absorption Construction

Asking  Lease  Rates  (NNN) <  20K  SF >  20K  SFLow $0.35 $0.30High $0.60 $0.50Average $0.43 $0.40Vacancy 8.9% 3.8%

Total  Vacancy 4.9%2012  Year  End  Inventory 8,306,000

Built  Year  To  Date 860,000                              2013  Year  End  Inventory 9,166,000

Land  Value  per  SF $2-­‐4CAP  Rates 7-­‐9%

Under  Construction 8,000

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    Industrial Vacancy Rates By Quarter

4th Quarter 2013

Market Report

Industrial  -­‐  Lease SF Agent(s)E  Stone  Works 32000 Jason  &  MeejaRetail  w/  Warehouse  on  State  Street 2250 CurrenFairgrounds  Industrial  Park,  Lot  38 1755 Jason  &  MeejaOffice/Warehouse/Yard 3000 WesOffice/Warehouse 15000 Wes,  CurrenRiver  Park 2152 Jon  VRiver  Park 1840 Jason  &  Meeja,  Jon  VFairgrounds  Industrial  Park,  Lot  38 1787 Jason  &  MeejaWestridge  Warehouse 2400 RogerIndustrial  -­‐  Sale SF Agent(s)Bank  Owned  Industrial 19400 Jason  &  MeejaDixie  Ambulance  Facility 11976 Walter  Group

Transactions Q4

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6 NEWS UPDATES ON:

Office2013 4th Quarter | Washington County

ReviewThe total office vacancy declined to 10.8% from 13% a year ago. All segments of the office market declined with the exception of medi-cal office, which has showed increasing vacancies, although still far below market averages. Medical office has seen new construction over the past 3-4 years, all of which is not absorbed. Consistent with the vacancy trend, asking lease rates experienced some real improvement over the last 12 months increasing 5-10% depending on the segment. Although rates have noticeably improved, land-lords continue to express concern that office lease rates are still far below historical rates. Landlords still waiting for improving rates have been able to do so because of aggressive financing, little or no debt, or acquisitions at aggressive prices.

This quarter, the Rim Rock Medical Building was completed near the hospital and the VA Clinic was built south of the Red Cliffs Mall in the Ventana office park. Biolife Plasma acquired a site next to Albertsons, on Dixie Drive, and is working through the city to build a new donation center. Steps Recovery Center took the 14,000 SF medical building located at 1085 S Bluff Street.

Several office buildings sold this quarter including 15,000 SF at 94 S Mall Drive, 24,000 SF at Chase Plaza, and several buildings at Ventana.

OutlookAs the local economy continues to strengthen, demand for office space is expected to increase. In the next twelve months, we expect that demand will continue to outpace new construction, vacancy rates will further decline, and office lease rates will improve slightly.

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Q4'07  Q4'08  Q4'09  Q4'10  Q4'11  Q4'12  Q1'13  Q2'13  Q3'13  Q4'13  

   Asking Office Lease Rates By QuarterAverage Class A Class B Class C

Asking  Lease  Rates  (NNN) Class  A Class  B Class  CLow $0.80 $0.60 $0.45High $1.25 $1.05 $0.70Average $1.05 $0.76 $0.55Vacancy 8.0% 12.4% 10.4%

Total  Vacancy 10.8%2012  Year  End  Inventory 3,310,000

Built  Year  To  Date 32,000                                  2013  Year  End  Inventory 3,342,000

Land  Value  per  SF $7-­‐12CAP  Rates 7-­‐8.5%

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    Office Vacancy Rates By Quarter

Office  -­‐  Lease SF Agent(s)Sunland  Professional  Park,  Phase  1 1525 Jason  &  MeejaRed  Cliffs  Professional  Park 1000 Jason  &  MeejaNicely  Finished  Office 2500 WesCentral  Business  District 950 WesCentral  Business  District 250 WesCentral  Business  District 239 WesFurnished  Professional  Office 1850 WesTroon  Park  Professional  Office 3700 WesNelson  Building/Pioneer  Building 3000 Jason  &  MeejaOffice  in  Sunland  Commercial  Center 800 CurrenPrime  Office  Space 160 RogerCoral  Canyon  Town  Center  II 1227 Jason  &  Meeja,  Jon  VVentana  Office  Park 1155 Jason  &  MeejaRed  Cliffs  Professional  Park 2000 Jason  &  MeejaRetail  &  Office  Spaces 600 Walter  GroupBlackridge  Terrace  II 2615 CurrenMedical  Office  Building/Surgical  Center 14104 CurrenOffice - Sale SF Agent(s)Chase  Plaza 24198 WesVentana  Office  Park 4620 Jason  &  Meeja94  South  Mall  Drive  Office  Building 15121 Jason  &  Meeja

Transactions Q4

Market Trend

Vacancy Rate Lease Rate Absorption Construction

2013 Q4 Market Report | © 2013

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All Rights Reserved - 2013 Q4 Market Report | NAI Utah Southern Region 7

Retail2013 4thQuarter | Washington County

ReviewRetail vacancy rates flattened out in 2013 with total vacancy holding at 6-7%, anchored retail at 5-6% and unanchored centers at 10-11%. Asking lease rates increased roughly 15% over the past 12 months as the retail market continues to strengthen and landlords are raising ask-ing rates as new spaces become available.

Restaurant activity in the fourth quarter has been unusually strong. Culvers Restaurant broke ground just East of the freeway on Riverside Drive and the Rib & Chop House finished their restaurant on Convention Center Drive. Buffalo Wild Wings, Einstein Bagels, and the Habit Burg-er finished construction of new restaurants on River Road and Dairy Queen is under construction on Dixie Drive near Sunset Boulevard.

Maverik is under construction on South River Road in the Boulder Springs area and Jiffy Lube just closed on a land site directly adjacent. Summit Athletic Club is completing improvements for a second location in the Albertsons Shopping Center on Sunset Boulevard. The former Rococo’s next to the old Airport is under renovations to become the Cliff Side Restaurant and Inn on the Cliff. Country Flooring Depot leased the former Office Max space next to Kohls in Washington and the Red Rock Bike Shop acquired the building adjacent to their Bluff Street Store and is under construction on a significant expansion. There is a new Fam-ily Pawn in Hurricane and Red Rock Commons has a new 15,000 SF building under construction with Café Rio taking space on the west side. MotoZoo is making significant headway on their new building on Dixie Drive, Stephen Wade has a 15,000 SF expansion under construction, and Gen X Clothing moved to the former O’Reilly Auto in Bloomington.

OutlookVacancy rates, population growth, and the desire for retailers to enter the market warrant the development of new anchored retail centers. Expect to hear plans for centers surrounding freeway interchanges, and where there are heavily increasing traffic patterns such a South River Road and around the Mall Drive bridge. Expect the vacancy rate for unanchored retail to decline and for lease rates to continue to increase in 2014.

Transactions Q4

Retail  -­‐  Lease SF Agent(s)Rio  Plaza 5006 Jason  &  MeejaAmazing  Retail/Restaurant  Opportunity  on  Bluff  Street!1246 CurrenDixie  Sunset  Plaza 2160 Chappell  TeamRetail  Space  in  Anchored  Center 1150 CurrenDixie  Sunset  Plaza 2520 Chappell  Team,  MeejaWalmart  Anchored  Retail  Building 6700 Jason  &  MeejaRetail  -­‐  Sale SF Agent(s)Free  Standing  Restaurant 1410 Walter  GroupFlood  Street  Theater 21000 Walter  GroupNorth  Branch  Shopping  Center 27623 Jason  &  MeejaRio  Plaza 32499 Jason  &  MeejaInvestment  -­‐  Sale SF Agent(s)Residential  Treatment  Center/Ranch/Retreat 41500 WesResidential  Treatment  Center 18645 Walter  GroupFull  Service  Auto  Shop  Business Walter  Group,  Abraham

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   Asking Retail Lease Rates By QuarterAll Anchored Unanchored

Asking  Lease  Rates  (NNN) Anchor No  AnchorLow $1.00 $0.60High $2.75 $1.50Average $1.65 $1.00Vacancy 5.6% 11.8%

Total  Vacancy 6.7%2012  Year  End  Inventory 6,218,000

Built  Year  To  date 47,0002013  Year  End  Inventory 6,265,000

Land  Value  per  SF $10-­‐18CAP  Rates 6.5-­‐8%

Under  Construction 35,000

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    Retail Vacancy Rates By Quarter

4th Quarter 2013

Market Report

Market Trend

Vacancy Rate Lease Rate Absorption Construction

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8 2013 Q4 Market Report | © 2013 NEWS UPDATES ON:

Property Management

We Help Property Owners Increase Cash FlowChoosing to retain a professional third party property manager for your real estate assets can be a difficult decision. Many owners consider the cost of a third-party property manager without weighing the benefits. NAI works with property owners to maximize the value of real estate assets by focusing on leasing, lease administration, and cost control. We increase our clients’ occupancy rate by leveraging our brokerage leasing services. NAI closed over 170 leases in 2013. Our in-house leasing agents create market exposure and provide more tenant options for landlords. Our lease administra-tion services reduce tenant turnover and enhance lease compliance. Managing a large portfolio of commercial property allows us to negotiate the best rates from contracted service providers. We pass the cost savings on to our clients. Along with cutting the owners’ costs, NAI Property Management provides peace of mind. With our state-of-the-art prop-erty management software, dozens of reports (i.e. rent roll, income statement, expense distribution) are available either monthly, or upon request from the property owners. We pride ourselves on being a “hands on” property management department. The property manager is only a phone call away from the owners and tenants, and in most cases, issues get resolved the same day. Give us an opportunity to show you how we can increase your cash flow.

JonVandermyde

PM Director

435-627-5727

Multi-Family2013 4th Quarter | Washington County

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    Apartment Vacancy Rates By QuarterReviewThe current vacancy rate of 3.8% remains below the 2012 year end vacancy of 5.8%, but it is higher than the second quarter low of 2.1%. The year over year drop of 2% is a strong performance for the Washington County multi-family sector. Over this same period, rents increased by 4.4%. This represents the fourth consecutive year where rents have increase and vacancies have fallen. The only new construction in 2013 was the Heritage Court senior subsidized housing project on 400 E and 900 South in St. George that opened this fall.

OutlookWith rising rental rates, falling vacancies, and falling capitaliza-tion rates, multi family assets have recovered in dramatic fashion for property owners. Rents should continue to increase in 2014 due to low vacancy rates and rising home prices. Vacancies may rise a little as the shortage of housing in 2013, that resulted in very strong residential home appreciation, abates in 2014. Fur-ther, we expect 2014 cap rates to stop falling and potentially rise with the phasing out of the Federal Reserve’s multiple quantita-tive easing programs. We believe Washington County has too few multi-family units, and there are opportunities for developers who are willing to brave entitlement processes and impact fees in order to bring more units to market.

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All Rights Reserved - 2013 Q4 Market Report | NAI Utah Southern Region 9

4th Quarter 2013

Market ReportCedar City2013 4th Quarter | Iron County

Iron CountyCongratulations to Mayor elect Wilson and President Scott Wyatt, who will take over the helm in Cedar City and SUU respectively in 2014. The coming year will see a new LDS temple take shape, and the commer-cial and industrial landscape will change with new businesses and new construction.

IndustrialGAF is expected to open this summer, which will have a direct im-pact on local jobs. Metalcraft’s acquisition of Syberjet has the ability to generate up to 1,200 jobs over 15 years as operations relocate and ramp up in Cedar City in 2014. The industrial sector has improved significantly since the fourth quarter of 2012. Industrial vacancy rates sit at 5.5% with facilities over 20,000 SF showing a lower vacancy rate of 4.1% and facilities under 20,000 SF showing vacancies holding for most of 2013 at or near 15%. Lease rates are on the rise and in this small market, there are not a lot of leasing options for tenants or buyers seeking large facilities.

OfficeAs with Washington County, the office market has been the slowest sector to recover. Vacancy rates fell in the fourth quarter, regaining some ground lost in the third quarter. With a vacancy rate of 12.5%, office has been a laggard as other sectors have recovered. In spite of the high vacancy rates, lease rates are rising. There is still some very attractively priced of-fice space on the market, but there is also space that landlords are seek-ing rents over $1.00 per SF.

RetailThe biggest news in retail, literally, is the new Boulevard Home Fur-nishings building on South Main Street. The new facility is a boost for the Cedar City economy. Retail vacancy rates slowly fell during 2013 and currently sit at 6.2%. This sector has improved steadily since the recession, and the absorption is visible as the turnover of inline tenants has slowed, and vacant facilities have seen absorption. Average ask-ing lease rates are holding steady at just under $1.00, although higher traffic areas are seeing much stronger lease rates while older, less de-sirable properties have seen little if any improvement in lease rates.

Iron County • FOR SALE

Bed & Breakfast / Events Center 2.83 Acres on N Airport Road

Asking  Lease  Rates  (NNN) Industrial Office RetailLow $0.35 $0.55 $0.63High $0.52 $1.25 $1.42Average $0.43 $0.85 $0.98Vacancy 5.5% 12.5% 6.2%

2013 Transaction Data

In 2013 NAI Transacted

Nearly 1 Million SF of

Commercial Space!

TOTAL Transactions 2013

Transactions SF  /  AcresIndustrial 55 304,375  SFLease 48 247,787  SFSale 7 88,810  SF

Investment 22 199,269  SFLease 3 87,800  SFSale 19 111,469  SF

Land 43 217  ACSale 43 217  AC

Office 95 227,147  SFLease 84 169,646  SFSale 11 70,718  SF

Retail 44 163,511  SFLease 39 80,299  SFSale 5 104,212  SF

Grand  TOTAL 259 960,959  SF

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Area Road Construction Projects

Southern Parkway Segment Map

Mall Drive Bridge Alignment Map