Q1|2018 NORTHWEST FLORIDA MARKET REPORT RETAIL + OFFICE
1st quarter recap
This market report focuses on retail and office space in Northwest Florida. Our experts dive deep into Pensacola and Tallahassee in this issue to give an in-depth update on the submarkets with specific statisitcs and knowledge. Get confirmed inventory, vacancy, asking rents, top deals and future outlooks of these areas. Submarkets include: Downtown, Cordova and University in Pensacola Downtown, Northeast and Southwood in Tallahassee Our team collects this information from providers such as CoStar & Gulf Coast CMLS, along with data obtained through our database on active market leasing and sales. We also give opinions on leasing based on the current activity in the market. This report reflects recent trends in these markets that our team is actively engaged in.
CONTRIBUTORS SHAWN MAXEY
JUSTIN BECK, ccim, cpm
SALES ASSOCIATE
CEO, PRESIDENT OF REAL ESTATE
CHRIS COBB
MAGGIE WHITTEMORE ASSOCIATE
MARKETING MANAGER
Alex Rothbard & Chris Passeggiata COMMERCIAL REAL ESTATE INTERNS
FEARLESS
AGILE
SMART TRANSPARENT
PENSACOLA OVERVIEW RETAIL Inventory
30,672,000 SF
Vacancy
1,012,000 SF
Vacancy %
3.3%
Asking Rent
$13.60
OFFICE Inventory
14,697,000 SF
Vacancy
708,525 SF
Vacancy %
4.8%
Asking Rent
$14.20
RETAIL | DOWNTOWN Inventory
1,019,000 SF (OUT OF TOTAL RETAIL SF IN PENSACOLA)
Inventory %
3%
Vacancy
11,000 SF
Vacancy %
1.1%
Asking Rent
$16.20
BECK RANGE $12 - $24
The $/SF range we are seeing compared to other real estate platforms.
As Southtowne comes online and the Garden Gateway Building nears completion, we will know more about the supply vs. demand of retail and office in the Downtown Area. Individual and collaborative space is also a curious subdivision of office at Quayside Quarters and the Cowork Annex.
DOWNTOWN PENSACOLA OFFICE | DOWNTOWN Inventory
3,500,000 SF (OUT OF TOTAL OFFICE SF IN PENSACOLA)
Inventory %
24%
Vacancy
143,000 SF
Vacancy %
4.1%
Asking Rent
$15.90
BECK RANGE $10 - $18
The $/SF range we are seeing compared to other real estate platforms.
RETAIL | CORDOVA Inventory
7,250,000 SF (OUT OF TOTAL RETAIL SF IN PENSACOLA)
Inventory %
24%
Vacancy
274,000 SF
Vacancy %
3.8%
Asking Rent
$18.75
BECK RANGE $13 - $26
The $/SF range we are seeing compared to other real estate platforms.
There are several out-parcels on the market and being developed currently such as the ABCWines and Spirits on Bayou Blvd. The supply on in-line retail is very tight, especially in the major shopping centers. Office space has a sporadic vacancy in Madison Park, Jefferson Park, Cordova Square, and Corporate Woods to name a few.
cordova PENSACOLA OFFICE | CORDOVA Inventory
3,275,000 SF (OUT OF TOTAL OFFICE SF IN PENSACOLA)
Inventory %
22%
Vacancy
228,500 SF
Vacancy %
7%
Asking Rent
$12.50
BECK RANGE $8 - $18
The $/SF range we are seeing compared to other real estate platforms.
a A
RETAIL | UNIVERSITY Inventory
3,189,000 SF (OUT OF TOTAL RETAIL SF IN PENSACOLA)
Inventory %
10%
Vacancy
53,551 SF
Vacancy %
1.7%
Asking Rent
$10.80
BECK RANGE $8 - $16
The $/SF range we are seeing compared to other real estate platforms.
Stand-alone retail spaces are the most active along Davis Highway. With Toy’s R Us struggling, some questions are being raised about their location at University Town Plaza. Office space inventory has increased, especially with the advent of University Office Park and Interstate Office Plaza.
UNIVERSITY PENSACOLA OFFICE | UNIVERSITY Inventory
810,000 SF (OUT OF TOTAL OFFICE SF IN PENSACOLA)
Inventory %
6%
Vacancy
44,761 SF
Vacancy %
5.5%
Asking Rent
$11.90
BECK RANGE $8 - $16
The $/SF range we are seeing compared to other real estate platforms.
top deals | pensacola DOWNTOWN NY Life at One Pensacola Plaza Clark Partington at Southtowne General Dynamics at 310 N Tarragona
CORDOVA Gander Outdoors at 1220 Airport Blvd
UNIVERSITY University Office Park Plato’s Closet at University Town Plaza Dickey’s BBQ at University Town Plaza
TALLAHASSEE OVERVIEW RETAIL Inventory
30,672,000 SF
Vacancy
1,012,000 SF
Vacancy %
3.3%
Asking Rent
$13.60
OFFICE Inventory
14,697,000 SF
Vacancy
708,525 SF
Vacancy %
4.8%
Asking Rent
$14.20
RETAIL | DOWNTOWN Inventory
1,317,000 SF
(OUT OF TOTAL RETAIL SF IN TALLAHASSEE)
Inventory %
5%
Vacancy
37,391 SF
Vacancy %
2.8%
Asking Rent
$14.41
BECK RANGE $14 - $16
DOWNTOWN TALLAHASSEE
The $/SF range we are seeing compared to other real estate platforms.
One of last year’s largest projects, 201 E Park Ave, is seeking the highest rents in the metro. This 60,000 SF spec mixed-use project offers retail and covered parking. There is more development to come to the downtown market of Tallahassee.
OFFICE | DOWNTOWN Inventory
3,898,000 SF (OUT OF TOTAL OFFICE SF IN TALLAHASSEE)
Inventory %
17%
Vacancy
146,000 SF
Vacancy %
3.7%
Asking Rent
$18.10
BECK RANGE $17 - $27
The $/SF range we are seeing compared to other real estate platforms.
N E
RETAIL | NORTHEAST Inventory
1,352,000 SF
(OUT OF TOTAL RETAIL SF IN TALLAHASSEE)
Inventory %
5%
Vacancy
71,208 SF
Vacancy %
5.3%
Asking Rent
$19.02
BECK RANGE $15 - $20
northeast TALLAHASSEE
The $/SF range we are seeing compared to other real estate platforms.
After facing many difficult cycles, the Tallahassee retail market is on the rise. Asking rents are the highest they’ve been in the NE Tallahassee market, at roughly $19/SF. This improving retail market in Tallahassee has resulted in strong rent growth in the past two calendar years going into 2018.
OFFICE | NORTHEAST Inventory
3,563,000 SF (OUT OF TOTAL OFFICE SF IN TALLAHASSEE)
Inventory %
16%
Vacancy
130,000 SF
Vacancy %
3.6%
Asking Rent
$12.20
BECK RANGE $17 - $23
The $/SF range we are seeing compared to other real estate platforms.
RETAIL | SOUTHWOOD Inventory
2,136,000 SF
(OUT OF TOTAL RETAIL SF IN TALLAHASSEE)
Inventory %
9%
Vacancy
28,559 SF
Vacancy %
1.3%
Asking Rent
$13.67
BECK RANGE $12 - $17
southwood TALLAHASSEE
The $/SF range we are seeing compared to other real estate platforms.
Southwood has seen a good run with the development of the past. With a large state and government presence and other large tenants moving into the area, the Southwood neighborhood continues to build. New retail will not be too far behind. This area is prime for a new strip center development and with lots of great vacant land to pick from, something should be in the works in a matter of no time.
OFFICE | SOUTHWOOD Inventory
1,528,000 SF (OUT OF TOTAL OFFICE SF IN TALLAHASSEE)
Inventory %
7%
Vacancy
34,275 SF
Vacancy %
2.2%
Asking Rent
$13.40
BECK RANGE $14 - $18
The $/SF range we are seeing compared to other real estate platforms.
d E
top deals | TALLAHASSEE DOWNTOWN 201 E Park Ave - Mixed-Use Project
NORTHEAST Sale of the 95,000 SF Killearn Center Shopping Center anchored by Hobby Lobby & CVS for $11.32 Million Blackwater Resource: the Centre of Tallahassee Mall will convert its’ available retail space to office space aimed at government entities
SOUTHWOOD Sale of 62,000 SF Southwood Village Shopping Center for $13.25 Million Capital Commerce Center at 2601 Blairstone Rd: $31.7M sale on a 274,000 SF, 98%-leased government property ($116/SF, all-cash deal, after the sellers picked up the vacant property for less than $10/SF in 2013)
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