North American Business Activity Statistics

Transcription

1 Second Quarter 2014 XTeam Partner: Strategic Retail Advisors (Boston, MA) Room & Board: Newbury Street Flagship Store (39,000 SF)

2 WE ARE over 400 professionals in 35 offices throughout North America. We are a powerful network of partner offices that exclusively focus on first class, best in class, world class retail real estate. X Team International s unique platform assembles the strongest and most experienced retail-only specialists in the most important metropolitan markets in North America. There are no substitutes for resume or reputation, and each X Team partner office is a recognized leader in its regional trade area. Our team has an enormous track record in the representation of Fortune 500 and emerging retailers alike. We represent North America s premier Power Center and Specialty Center developers as well as regional and local clientele who own the high street retail and neighborhood centers where North America shops. In 2013 X Team consummated retail lease and sale transactions in North America that totaled over $3.31 Billion in value and over 18.5 Million square feet of the best space in every retail market. Together with our International Partner DTZ, we provide brokerage and consulting services to firms that make the global economy hum in North America, Europe, Asia and the Middle East. Extensive Experience. Exclusively Retail. X Team. XTeam Partner Sitings Realty LTD. High street leasing, Vancouver, Canada Q Summary The second quarter of 2014 saw positive increases versus the prior three month period in retail leasing and sales across North America based on data reported by X-Team International s 34 United States and Canadian offices. Sales of retail commercial properties totaled over 24 million square feet an increase of more than 20% over the first quarter. After seeing samequarter comparison down 35% between the first quarter of 2013 and 2014, the transaction value of those sales rebounded and is up 8.4% between the first and second quarters of The Western region registered the most square footage sold as well as the highest cumulative sales transaction volume. Retail leasing activity was up considerably in the second quarter of the 2014 against the first quarter. Based on X-Team s data, the network leased almost 4.6 million square feet of retail space in the quarter compared to 3.9 million square feet during the first three months of the year; representing an increase of nearly 16%. Just as importantly, X-Team saw the total transaction value of those leases increase from $496 million to $549.5 million an increase just under 10% in total transaction value. This nets out an uptick in average rental rates consistent with observations among industry experts. What we re seeing is that demand for retail space is still in high demand, especially for highly productive centers and markets. Demand in primary trade areas exceeds supply. As the net absorption rate increases, rental rates continue to increase as there is still only limited new development. Key Findings from the Retail Sector: X-Team consummated $788 million in transaction volume in the second quarter of 2014, which is up 9.5% against the 1st quarter. Year-to-date, X-Team transactions exceed $1.5 billion, which is consistent with the same measuring period in Leasing transactions are actually down roughly 20% over the same period from last year and transaction values are down 10% against Q Contrary to the leasing data, rents continue to increase in most major markets across the United States as demand continues to out-pace supply in most those areas. The secondary and tertiary markets are dragging the overall comps downward as landlords find alternative uses for formally traditional retail space.

3 Sale & Lease Transaction Totals Q Leasing The majority of new retail real estate transactions consummated each quarter are leases. In 2Q 2014, leasing has represented 70% of the total value of all transactions (lease + sale). Because more consideration changes hands and more space is moved via leases, trends in leasing activity are an extremely reliable barometer of the strength of the retail sector, and by extension, the overall commercial real estate market and economy at large. Leased ($ Volume) Leased SF (Millions of SF) $600 M 9. M $500 M $400 M $300 M $200 M $100 M $454 M $463 M $483 M $508 M $473 M $567 M $496 M $550 M 8. M 7. M 6. M 5. M 4. M 3. M 2. M 1. M 6.02 M 8.07 M 3.35 M 5.75 M 4.99 M 4.39 M 3.9 M 4.6 M $0 M 0. M Sales Activity The data described below captures all sales consummated by our Partners in a given quarter. This includes a broad mix of transactions including investment sales to investors, existing asset sales to users, redevelopment sales to developers and raw land sales to both users and developers. The breadth of transaction types captured by this data provides a more general commentary on retail real estate activity and trends from one quarter to the next. Sales ($ Volume) Sales (Millions of SF) $700 M 10. M $600 M $500 M $636 M 9. M 8. M 7. M 8.7 M $400 M 6. M 5. M $300 M $200 M $100 M $0 M $112 M $334 M $94 M $216 M $203 M $219 M $239 M 4. M 3. M 2. M 1. M 0. M 1.85 M 3.67 M 1.49 M 3.76 M 2.25 M 2.71 M 3.23 M

4 Network Locations & Rental Survey Q Partner Offices XTeam United States Regions Western Region Central North Region Northeast Region Central South Region Southeast Region Vancouver, BC Seattle Portland Montreal, QC Minneapolis Detroit Boston DTZ Global Footprint Salt Lake City San Francisco Las Vegas Los Angeles Denver Kansas City New Jersey / New York Chicago Cleveland Philadelphia Indianapolis Washington, DC Cincinnati St. Louis Norfolk Nashville Charlotte Newport Beach Phoenix Dallas / Fort Worth Birmingham Atlanta Houston New Orleans Jacksonville Tampa Ft. Lauderdale / Miami Rental Rates in Top 10 Markets The survey below tracks rental rates in ten key national markets, both in the Power Center and premium High Street retail segments. The Power Center survey captures rental rates for junior boxes in the 20,000 SF range for best in class Power Centers. The adjacent survey of High Street retail captures rates for the top premium retail locations in the 2,500 SF range (excluding enclosed malls). While the New York market is the pace setter in both surveys, the disparity with other national markets is far narrower in the Power Center segment than in premium retail. On the High Streets, New York s 5th Avenue achieved rents of $2,500 per SF in 1Q 2014, roughly five times that of Los Angeles Rodeo Drive (which stands at $540 / SF). This significant premium above all other markets validates New York City as an international target for retail. However in the Power Center arena, while isolated examples of $75 / SF rents have been attained in Manhattan, New York s $40 / SF rate for outer Boroughs narrowly outpaces Los Angeles and Seattle s mid $30 rent levels. In addition to New York, Los Angeles, Boston, San Francisco, Philadelphia and Chicago are the strongest landlord markets in the current survey, commanding rents 25% to 50% higher than Dallas, Denver, Atlanta and Seattle. Power Center Retail Rental Rates in Top 10 Markets ($ / SF / YR) New York, NY San Francisco Boston Sea>le Chicago Los Angeles Atlanta Denver Dallas $0 $10 $20 $30 $40 $50 $60 $70 $80 Premium Retail Rental Rates in Top 10 Markets ($ / SF / YR) New York, NY Los Angeles Chicago San Francisco Boston Philadelphia Dallas Sea0le Denver $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

5 Partner Profile Jonathan Lapat Principal Strategic Retail Advisors Framingham, Massachusetts Q Business Who He is: Jonathan is a retail broker with 20 years experience. Jono shows tremendous passion towards his work and is full of energy. His primary area of focus is New England and Upstate New York, but also represents certain retailers through the Mid-Atlantic states. Business History: Jono has been with Strategic Retail Advisors since its inception in September He is a founding partner of the firm. Prior to SRA, Jono spent seven years at Trammell Crow Company. Jonathan focuses entirely on retail tenant representation and has a diverse client base. He got his start in commercial real estate handling the real estate requirements for Mobil Oil throughout New England, including building new service stations and selling older units. Jonathan s first conventional retail clients were Payless ShoeSource and Gap, Inc. Jono developed a niche of being more specialty retail-oriented prior to evolving with a more diverse client base. He continues to handle the rollout for Charming Charlie throughout the Northeast. Top Recent Transactions: Along with Jeremy Ezra and Greg Covey, both from RKF, Jono was intricately involved in getting Charming Charlie s first Manhattan lease executed earlier in this year. The store is scheduled to open on the corner of 5th Avenue & 39th Street in April Client Highlights: Charming Charlie, F21 Red, Ulta, Gap, Chico s, Carter s, White House Black Market, Old Navy, Payless, OshKosh, Banana Republic, Jos. A. Bank, Victoria s Secret and Yankee Candle. Personal Some Personal Details: Having grown up primarily in New Jersey, Jono has lived in the Boston area for more than 20 years. He graduated from the University of Wisconsin-Madison with a BA in History. Jono remains an avid Badger fan! Jono has been happily married for more than ten years and has two awesome girls! Favorite Pastimes: : Jono loves playing tennis, skiing, listening to music (especially Bruce Springsteen), running and spending time with his family. Favorite Place: Maine Favorite Movie Star: Probably Blazing Saddles Something you Probably Wouldn t Know: He played the Wizard in the Maplewood Middle School rendition of The Wizard of Oz when he was in the 8th grade. It was the biggest non-singing part in the play. He s a left-handed and loves to cook.

6 Partner Profile Q xteam.net