C O M M C I A L A L S T A T Lawrence Market Snapshot F O C A S T P O T 205
Lawrence etail Snapshot Total Inventory:,370,89 SF etail Vacancy ates Total Vacant Inventory: 28,3 SF Quoted etail ates Per Square Foot (NNN Lease ates) % 0% 9% 8% 7% % 5% USA Kansas City Lawrence West 23rd University South Iowa North Lawrence ast 23rd Downtown % Alvamar & West 3% 2% 2007 2008 2009 200 20 202 203 20 th & North $5.00 $0.00 $5.00 $20.00 $25.00 $30.00 $35.00 $0.00 Sources: Colliers esearch and CoStar etail Spaces Available By Property Type Sources: Colliers esearch etail Vacancy By Submarket (in Square Feet)* Freestanding 90,000 80,000 3.80% Downtown 70,000 Big Box New Unoccupied Construction estaurant Strip Center 0 2 8 0 2 8 20 0,000 50,000 0,000 30,000 20,000 0,000 0.53% th & North.22% Alvamar & West 2.7%.58% Downtown ast 23 rd 3.89% North Lawrence South Iowa.5% 5.5% University West 23rd *Percentages = Submarket Vacancy ates 20 etail Summary > > etail remained the strongest sector and vacancy continued to decline from.2% in 203 to 3.9% by the end of 20 > > South Iowa has seen a significant decrease in vacancy rates, with the openings of Dick s Sporting Goods and Buffalo Wild Wings > > Downtown vacancy increased slightly due the relocation of Buffalo Wild Wings, M & M Office Supply closing, and the Lawrence Public Library vacating their temporary space at the former Borders location > > The Northwest submarket continued to add new inventory with recent deliveries of Discount Tire and Starbucks. Additional tenants that absorbed previous vacancies include T. Loft, Sports Clips and Batteries Plus, while Famous Dave s closed their doors > > The ast 23rd Street submarket saw the greatest increase in vacancy largely as a result of Surepoint Medical vacating their two buildings to relocate to the growing South Iowa submarket 205 etail Forecast > > Downtown Lawrence will continue to grow in inventory with added projects on New Hampshire and the pending redevelopment of the Allen Press project > > edevelopment opportunities are being explored along the South Iowa corridor > > Bauer Farms continues to add new inventory with the announcement of Sprouts Farmers Market along with additional future tenants > > xpect continued interest from National retailers, but future opportunity is limited based on lack of quality options within the highly desired locations > > estaurant activity will remain strong with the evolving demands of consumers > > Menards will add approximately 90,000 SF to the inventory with their new store located near 3st and Iowa > > etail demand will remain strong throughout the new year, as new inventory is added to the market, expect to see an expansion of new goods within the city
Lawrence Industrial Snapshot Total Inventory: 9,7,5 SF Industrial Vacancy ates Total Vacant Inventory: 559,23 SF Quoted Industrial ates Per Square Foot 2.0% USA Kansas City Lawrence 0.0% 8.0% Office Warehouse.0%.0% 2.0% 0% < 5,000 5,00 to 0,000 0,00 to 25,000 200 2005 200 2007 2008 2009 200 20 202 203 20 Sources: Colliers esearch and CoStar Industrial Spaces Available By Property Size (in Square Feet) Warehouse and Distribution 00,000 350,000 300,000 250,000 200,000 $2.00 $3.00 $.00 $5.00 $.00 $7.00 $8.00 $9.00 Sources: Colliers esearch Industrial Vacancy By Submarket (in Square Feet)*.% 25,00 to 50,000 50,000 00,000 > 50,000 50,000 0 2 8 0 2 0 0% 3.87% th & Alvamar North & West 7.88% 7.58% 0% Downtown ast 23 rd North South Lawrence Iowa *Percentages = Submarket Vacancy ates 20 Industrial Summary > > The industrial vacancy rate declined more than a full percentage point from 7.% to.% during 20 > > The majority of positive absorption occurred along the 23rd Street Corridor dropping the submarket vacancy rate from 7.7% to.% > > Several long time vacant bank-owned properties along the 23rd Street Corridor sold in 20, and are now occupied > > Most of the increase in occupancy was a result of small locally owned businesses growing > > Progress on the South Lawrence Trafficway is well underway. The new Haskell K-0 interchange will improve access and increase visibility for the entire area > > One of the most prominent sites on the Haskell corridor will be the HiPer Tech property which will soon be home to the Peaslee Technical Training Center, as well as the USD #97 College and Career Center, both of which are scheduled to be open in 205 205 Industrial Forecast > > Biggest game changer for 205 could be the availability of new inventory of lots at Lawrence Venture Park. The park will have a variety of site sizes. Access from the new traffic signal at O Connell oad will also connect Venture Park with ast Hills via Greenway Circle > > There has not been any new spec activity or build to suit construction for several years, but 205 will see demand for new product, as low vacancy and an improving economy leave companies few options heading into the new year > > Landlord concessions will remain limited based on strong market fundamentals > > Industrial lease rates remained relatively steady in 20, but with lower vacancy and limited space options, we could see rates increase throughout the upcoming year
Lawrence Office Snapshot Total Inventory: 3,,3 SF 5.0%.0% 3.0% 2.0%.0% 0.0% 9.0% 8.0% 7.0%.0% 5.0% <,500,500 to 2,500 Office Vacancy ates 200 2005 200 2007 2008 2009 200 20 202 203 20 Sources: Colliers esearch and CoStar Total Vacant Inventory: 305,330 SF USA Kansas City Lawrence Office Spaces Available By Property Size (in Square Feet) Class A Class B Class C Medical 0,000 20,000 00,000 Quoted Office ates Per Square Foot (NNN Lease ates) $.00 $.00 $8.00 $0.00 $2.00 $.00 $.00 $8.00 $20.00 $22.00 Sources: Colliers esearch Office Vacancy by Submarket (in Square Feet)*.23% 2,50 to 5,000 5,00 to 0,000 80,000 0,000 0,000 8.70% 20,000 > 0,000 0 2 8 0 2 0 th & North.% 7.70% 2.80% 9.3% 9.0% 0% Downtown ast 23 rd University West 23 rd Alvamar & West North Lawrence South Iowa *Percentages = Submarket Vacancy ates 20 Office Summary > > The office market ended last year with a healthy vacancy rate of 9.%, but was the flattest commercial sector in Lawrence throughout 20. The vacancy rate increased slightly compared to 9.8% at year end of 203 > > Nearly every office submarket remained steady with very little change > > Despite a slight increase in vacancy rates, rental rates began to firm up in the area, causing Landlord and Tenant negotiations to be more balanced than in previous years > > The only new office construction added was a,72 SF building at th and Folks oad with two thirds pre-leased prior to construction 205 Office Forecast > > The office sector in 205 is expected to remain healthy, but unchanged throughout the new year > > The majority of new office construction growth will be a result of medical office users, while additional new office construction will remain stagnant > > Currently, most office users in Lawrence are seeking space requirements of less than,500 SF. The overall inventory of this size requirement will remain tight in the upcoming year > > Lease rates are expected to experience an upward trajectory, while the market remains tight > > Increased competition for limited tenants will cause landlords to continue to deliver updated and refurbished office space
Lawrence Spotlight Sales 5 North 550 oad South Lawrence Trafficway 70 7 3 2 SW Fairlawn oad Highway 0 & 800 oad 55 acres SW 29th Street 29th & Fairlawn, Topeka 3.8 Acres 555 Wakarusa Drive 3,7 SF 2920 Haskell Avenue 75,000 SF 390 Peterson oad 20.7 Acres 320 W th Street.72 Acres 52 SW 2st, Topeka 22,300 SF 70-20 SW Topeka Blvd, Topeka 3,930 SF 320 Mesa Way,223 SF Lawrence Spotlight Leases 20 Ponderosa Drive 3,000 SF 50 Wakarusa Dr., Suite L 5,800 SF 730 New Hampshire Unit CU-2S 2,82 SF 350 Clinton Pkwy, Suite 0,88 SF 7 Massachusetts 3,55 SF 008 Massachusetts 2,000 SF 520 W 23rd Street, Suite F,0 SF 8 W 3st Street 2,000 SF 2550 West Valley Pkwy, Ste 00, Olathe 2,38 SF
20 SIGNIFICANT LAWNC TANSACTIONS & MAJO DVLOPMNTS SALS ACTIVITY MAP KY POPTY POPTY TYP SIZ SF BUY SLL 2 Hwy 0 & 800 d Land 55 Acres Fairway, LC 29th & Fairlawn, Topeka Land 3.8 Acres 29 Fairlawn LLC Carl. and Catherine C. Williams & Marjorie C. and oy L. Schenck Lindemuth Inc., KDL Inc. & K. Douglas Inc. 3 555 Wakarusa Dr Office 3,7 SF nvista Credit Union Intrust Bank N.A. 2920 Haskell Ave Industrial 75,000 SF Lawrence Douglas County conomic Development Council HiPer eal state Holdings, LLC 5 390 Peterson d Land 20.7 Acres Marico Holdings, LLC Jeffrey. Smith Homes LC 320 W th Land.72 Acres Hawktown Properties, LLC McGrew eal state Office Building, LC 7 8 9 52 SW 2st, Topeka etail 22,300 SF Thomas J. Dobski Trust Lindemuth Inc. 70-720 SW Topeka Blvd, Topeka Office 3,930 SF Dillon eal state Co. Lindemuth Inc. 320 Mesa Way Office,223 SF Arlington33, LLC 320 Mesa Way LC LASING ACTIVITY MAP KY POPTY POPTY TYP LASD SF SUBMAKT TNANT TANSACTION TYP 2 3 5 7 8 20 Ponderosa Dr Industrial 3,000 SF ast 23rd Gavin lectronics LLC Direct Lease 50 Wakarusa Dr Ste L etail 5,800 SF Alvamar & West Matt Llewellyn and David Lawrence Direct Lease 730 New Hampshire Unit CU-2S Office 2,82 SF Downtown The Trust Company of Kansas Direct Lease 350 Clinton Parkway Suite 0 Office,88 SF Alvamar & West Total enal Care Direct Lease 7 Massachusetts St etail 3,55 SF Downtown Baan Thai estaurant Inc. Sublease 008 Massachusetts St etail 2,000 SF Downtown KC Smoke Burgers LLC Direct Lease 520 W 23rd St Suite F etail,0 SF West 23rd Carpe Diem, Inc. dba Great Clips Direct Lease 8 W 3st St Industrial 2,000 SF South Iowa Team Performance Direct Lease 9 2550 West Valley Pkwy Suite 00, Olathe Office 2,38 SF Outside Lawrence Blue Ocean Consulting Inc. Direct Lease
WILLIAMSTOWN N 9 Diag oad MIDLAND 2 7 8 TOPKA N 800 oad Lawrence Municipal Airport N 800 oad 000 oad MONTY 5 Peterson oad NOTH LAWNC GATWAY 9 W th Street SUNST HILLS Bob Billings Parkway 3 2 Clinton Parkway S Lawrence Trafficway Kasold Drive W th Street 5 3 W 9th Street Iowa Street LAWNC 9th Street 7 Massachusetts Street BOOK CK PAII PAK N 200 oad 8 9 OLATH 900 oad Haskell oad 300 oad 000 oad N 000 oad N 000 oad SIBLYVILL
205 COLLIS INTNATIONAL LAWNC 805 New Hampshire, Suite C Lawrence, Kansas 0 www.colliers.com MAIN + 785 85 500 FAX + 785 85 382