City of Lake Worth 1000 Lake Avenue Market Study
Prepared for: Lake Worth Community Redevelopment Agency (CRA)
Prepared By: Carras Community Investment Inc.
2015 1
1000 Lake Avenue Market Study
Executive Summary Carras Community Investment Inc. was engaged by the Lake Worth Community Redevelopment Agency (CRA) to prepare a market analysis for the 1000 Lake Avenue edifice (site), with primary focus to: 1. Identify the current 1000 Lake Avenue edifice downtown area economic base; 2. Identify the market potential for future redevelopment within the 1000 Lake Avenue edifice; 3. Assist in conceptualizing a market-based redevelopment strategy that would serve the 1000 Lake Avenue edifice to achieve short and long term goals/vision; 4. Make recommendations and outline next steps based on the baseline data collected. This report includes our assessment of market conditions and trends impacting redevelopment and investment to the 1000 Lake Avenue edifice and surrounding CRA market area (including: Downtown, Western Neighborhoods and Dixie Highway District) within 0.5mile radius, as well as provided estimates of market trends. The summary herein provides an overview of the major resolutions and findings in the body of the report, and details our recommendations as to how the City and CRA in conjunction with the resident and business community can promote revitalization to the 1000 Lake Avenue edifice and throughout the broader CRA area. There are three principal conclusions or findings within our analysis and research that guided our recommendations: Existing market demand and growth for the foreseeable future is adequate to support an improve climate for gallery/retail/restaurant businesses to locate within the 1000 Lake Avenue edifice, the potential development of new office space and, the development of additional affordable for-sale and rental units; The City of Lake Worth and the CRA continues to make investment in utility services, streetscape, and transportation infrastructure improvements that serve as the foundation for the support of market growth within the 1000 Lake Avenue edifice and the CRA surrounding districts; Despite recent investment and community involvement in improving the corridor to date, there continues to be some impediments to investment in the area; some based on perceptions of the Downtown area, some financial in nature, and others principally requiring a refocus of existing resources. The CRA can play a role in mitigating a number of these impediments 2
1000 Lake Avenue Market Study
The remainder of this summary provides an overview of conclusions associated with the underlying market conditions and support for strategic redevelopment, as well as recommendations based on these findings and conclusions. Primary Market Conclusions Population Trends: Following annual population drop of 22.3 residents annually from 2000 to 2010, the City of Lake Worth showed a considerable growth of 363.3 residents annually from 2010 to 2013. Meanwhile the County of Palm Beach had showed consistency in its population growth following a trend of since 1970 (353,500) to 2013 (1.372 million).
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1000 Lake Avenue Market Study
Table of Contents 1.0 Introduction ........................................................................................................................................... 5 2.0 1000 Lake Avenue Legal Description ..................................................................................................... 7 3.0 Palm Beach County Overview ................................................................................................................ 9 3.1 Palm Beach County Assets ................................................................................................................ 10 4.0 City of Lake Worth ................................................................................................................................ 12 6.0 Market Area .......................................................................................................................................... 17 6.1 Population ......................................................................................................................................... 19 6.2 Age and Sex ....................................................................................................................................... 20 6.3 Median Household Income ............................................................................................................... 21 6.4 Racial Composition............................................................................................................................ 22 6.5 Area Employees ................................................................................................................................ 23 6.6 Housing Snapshot ............................................................................................................................. 24 6.7 Visitor Market ................................................................................................................................... 25 6.8 Economic Base .................................................................................................................................. 26 7.0 Retail Market ........................................................................................................................................ 27 7.1 Detail of Retail Trade Industry Distribution (2012) .......................................................................... 29 8.0 Office Market ........................................................................................................................................ 33 9.0 Residential Market ................................................................................................................................ 34
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1000 Lake Avenue Market Study
1.0 Introduction This section gives an introductory overview on the topic of this study and addresses the context in which the market area is situated. Historic downtown at Lake Worth reflects the traditional South Florida downtown that is rich in history, character, culture, and progress. It is known as the "artistic soul of Lake Worth", in reference to its centralized geographical location and its current initiatives to promote development via art. Downtown Lake Worth has the characteristics of a dynamic urban development due to its strategic location on the urban context. It sits just West of the Atlantic Ocean beach coast, which promotes density and diversity to its community. Downtown has immediate access to public spaces, retail, restaurants, coffee shops, art galleries, stores, community facilities, banks, FEC rail way, future transit hubs and many more amenities. The area has easy access for pedestrian, vehicular, and transit systems. The site borders West Palm Beach to the north, and Lantana to the south. Approximately 33 miles north of Downtown Fort Lauderdale and 60 miles of Downtown Miami (major financial hubs in the South Florida's Region). According to the United States Census Bureau, the city had a total area of 6.46 square miles with 5.64 square miles of land and 0.86 square miles of water. The city developed along the Lake Worth Lagoon which opens to the Atlantic Ocean at the Port of Palm Beach via the Lake Worth Inlet. The city grew with the slogan of "Where the Tropics Begin" in reference to the many tropical plants that grow in the city. According to the City of Lake Worth Redevelopment Plan in February 2001, the city and its downtown has set a course of action that has transformed the City's downtown using tools provided to local governments through Chapter 163, Part III of the Florida Statutes, "The Community Redevelopment Act". The Act outlines a comprehensive program that provides the legal framework and financing mechanisms with which local governments can undertake the unique and complex task of overcoming the conditions that contribute to the causes of slum and blight in certain areas of the City. Since the incorporation of the Lake Worth Community Redevelopment Agency , the city has undertaken a course of action to promote economic and social development in accordance with the approved Lake Worth Redevelopment Plan via the Tax Increment Financing (TIF) approach. The CRA has develop several programs and plans, such as the Weatherization Assistance Program (WAP), Lake Worth CRA Residential Beautification Grant, Lake Worth CRA Home Repair Grant, Lake Worth CRA Take Pride in Lake Worth Program, Neighborhood Enhancement Plan, Bicycle Network Plan, Arts and Cultural Renaissance Program, LULA Lake Worth Arts, and other development and redevelopment efforts. 5
1000 Lake Avenue Market Study
1000 Lake Avenue edifice sits in the heart of Lake Worth downtown CRA redevelopment jurisdiction. It is a paramount component of the strength of the LULA Lake Worth Arts Program. The building was built in 1927, therefore it symbolizes a historic relic for its community. Within the LULA program the building has been retrofitted to enhance cultural presence to resist and reverse blight deterioration. The basis for rehabilitating the building is to improve the physical and socioeconomic environment as well as to improve the quality of life of its inhabitants. 1000 lake avenue edifice will facilitate stronger connections to and from downtown by fundraising programs linking arts with economic development and community revitalization. The map below illustrates the strategic location of 1000 Lake Avenue in reference to major financial hubs in the region.
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1000 Lake Avenue Market Study
2.0 1000 Lake Avenue Legal Description This section for the most part focuses on the analytical data pertinent to the 1000 lake Avenue building. A detail explanation of the building's legal description, location, square footage, zoning, TOD-E intend description, land value, and market value trajectory. Legal Description:
The building is at Town of Lake Worth LT 9 & 10 & E 15 FT of LT 11 BLK G.
Location Address:
1000 Lake Avenue
Municipality:
Lake Worth
State:
Florida
Parcel Control #:
38-43-44-21-15-506-0090
Subdivision:
Lake Worth Town
Owner:
1000 Lake Avenue LLC
Total Square Feet:
14,381
Acres:
0.1952
Use Code:
1800 - Office Multistory
Zoning:
TOD - E - Transit Oriented Development East ( 38 - Lake Worth)
Intent:
The TOD-E Transit Oriented Development East District is designed for the areas around the FEC railroad tracks and desired future locations for intra-city, light rail transit, specially Lake Avenue, Lucerne Avenue, 1st Avenue South, 10th Avenue North and 9th Avenue South. The TOD-E district is intended to promote compact, mixed-use development, including multiple-family residential, office and retail, near proposed or existing transportation infrastructure. The TOD-E district is also intended to encourage arts, entertainment and cultural activities in the city. 7
1000 Lake Avenue Market Study
Improvement Value:
$ 318,970 - 2014
Land Value:
$ 118,744 - 2014
Total Market Value: $ 437, 714 - 2014
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1000 Lake Avenue Market Study
3.0 Palm Beach County Overview This section analysis Palm Beach County demographics, business patterns and market. To better understand where 1000 Lake Avenue building is located it is imperative to have a perspective of its region. The overall Palm Beach County is optimistic as figures continue to improve at a slow and steady pace. The Palm Beach County had a population of 1,131,184 in the year 2000, 1,320,134 in the year 2010, 1,356,545 in 2012, and a projected growth of 1,372,171 in 2013 according to the US Census Bureau. The County's population is currently growing at 15,626 residents per year which indicates that in the year 2015 it will grow to 1,403,423. Its ethnic/race composition is compromise of White non-Hispanic 60.1%, Hispanic or Latino 19.0%, Black nonHispanic 16.8%, Asian 2.3%, and other 1.3%. Market Statistics Q2 2013 Submarket
Building SF
Direct Vacancy (%)
Occupancy (%)
YTD Net Adsorption
Boca Raton Delray Beach Boynton Beach Lake Worth Wellington WPB Palm Beach N Palm Beach Jupiter
6,973,532 3,993,941
4.3 7.3
95.7 92.7
72,555 239,071
Under Avg Dir Construction Asking Lse Rate (NNN) 0 $25.64 0 $21.95
6,335,182
7.9
91.9
26,169
0
$15.77
4,893,928 5,131,085 7,113,100 756,079 6,312,773
11.8 8.9 7.6 4.7 9.3
88.2 90.7 92.4 95.7 90.1
35,686 -67,347 -5,609 3,238 14,780
0 61,500 0 0 0
$12.34 $17.18 $16.22 $25.33 $17.26
2,883,248
5.9
92
-69,489
0
$17.39
Total Market Total Before Freestanding Shopping Centers Mixed-Use Freestanding
44,392,868
8
91.9
249,054
61,500
$17.48
38,442,112
9.2
90.7
249,054
61,500
$17.49
34,936,057
9.5
90.3
59,201
0
$16.62
3,506,055 5,950,756
5.8 0.1
94.2 99.9
186,853 0
61,500 0
$32.72 $12.00
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1000 Lake Avenue Market Study
3.1 Palm Beach County Assets In the Palm Beaches 12 shopping districts are part of the South Florida's shopping meccas. While shopping among the many designer boutiques and trusted brand names, locals and visitors will discover cafes, charming restaurants, a colorful nightlife and so much more. Jupiter:
Harbourside Place
Palm Beach Gardens: The Gardens Mall Downtown at the Gardens (Macy's) Legacy Place PGA Commons Midtown West Palm Beach:
Clematis Street City Place Northwood Village Antique Row
Wellington:
Polo and Equestrian Competition (international) Mall at Wellington Green
Lake Worth:
Lake Worth Green Market Downtown Lake Worth
Boynton Beach:
Renaissance Commons Boynton Beach Mall
Delray Beach:
Downtown Atlantic Avenue
Boca Raton:
Downtown Boca Mizner Park Royal Palm Place Glades Road (Macy's, Nordstrom, Bloomingdale's, Saks 5th ave) 10
1000 Lake Avenue Market Study
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1000 Lake Avenue Market Study
4.0
City of Lake Worth
As of the census of 2000, there were 35,133 people, 13,828 households, and 7,688 families residing in the city. The population density was 6,225.5 per square mile (2,405.1/km²). There were 15,861 housing units at an average density of 2,810.6 per square mile (1,085.8/km²). The racial makeup of the city was 65.12% White, 18.86% African American, 0.78% Native American, 0.75% Asian, 0.11% Pacific Islander, 9.57% from other races, and 4.82% from two or more races. Hispanic or Latino of any race were 29.71% of the population. 12.3% were of West Indian, 7.5% German, 7.0% Irish and 5.6% American ancestry according to Census 2000. There were 13,828 households out of which 26.0% had children under the age of 18 living with them, 36.9% were married couples living together, 11.5% had a female householder with no husband present, and 44.4% were non-families. 33.6% of all households were made up of individuals and 11.4% had someone living alone who was 65 years of age or older. The average household size was 2.49 and the average family size was 3.19. In the city the population was spread out with 22.9% under the age of 18, 10.6% from 18 to 24, 32.6% from 25 to 44, 19.6% from 45 to 64, and 14.3% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 108.9 males. For every 100 females age 18 and over, there were 110.2 males. The median income for a household in the city was $30,034, and the median income for a family was $35,374. Males had a median income of $24,862 versus $22,971 for females. The per capita income for the city was $15,517. About 15.8% of families and 20.0% of the population were below the poverty line, including 24.1% of those under age 18 and 12.7% of those age 65 or over. As of 2000, the three most spoken first languages in Lake Worth were English at 56.61%, Spanish at 26.57%, and French Creole which was spoken by 9.17% of the population.[24] Lake Worth has a large Finnish expatriate population, and Finnish is spoken by 2.57% of the city's residents as their native language. Other languages spoken by residents of the city include French at 1.96%, Mayan languages were spoken by 1.11% (primarily spoken by Guatemalans of Mayan descent), and German as a mother tongue was spoken by 0.52% of the population.[24] As of 2000, Lake Worth had the twentieth highest percentage of Guatemalan residents in the US, with 4.87% of the populace.[25] It had the twenty-first highest percentage of Haitian residents in the US, at 8.10% of the city's population,[26] and the eighty-third highest percentage of Cuban residents in the US, at 3.47% of its population.[27] It also had the twentythird most Hondurans in the US, at 1.59% of all residents.[28]According to Census 2000, people of Finnish ancestry were 3.4% of the population 12
1000 Lake Avenue Market Study
Population:
34,910
Area:
6.46 square miles
City millage:
5.4945 FY 2014
Communication Service Tax: 5.22% Electric Service Tax:
10%
Water Service Tax:
8%
Median Age:
35 years
Median Income:
$ 20,165
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1000 Lake Avenue Market Study
The City of Lake Worth strategic location in Palm Beach County is transverse by Interstate 95 and Dixie Highway, two major South Florida's arterial roads. Its proximity to the Atlantic Beach Coast adhere a major play ground, entertainment, and vocational destination for residents and visitors. The map below illustrates the City of Lake Worth strategic geographical location.
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1000 Lake Avenue Market Study
As the basis for evaluating the market trends and conditions for 1000 Lake Avenue building, this report examined demographic, economic, business pattern, and real estate within a 0.5-mile radius of the 1000 Lake Avenue Building. The radius extent was selected to capture a sample the most significant retail, office, and real estate conditions within the market area. The map below illustrates an aerial image of the City of Lake Worth, the 1000 Lake Avenue building location, and the selected 0.5-mile radius.
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1000 Lake Avenue Market Study
Market trends and forecast for several geographic areas, including: Lake Avenue and Lucerne Avenue corridor, Dixie Highway, Downtown, and Western neighborhoods are assessed in the study. The map below illustrates an aerial image of the 1000 lake Avenue market area within a 0.5-mile radius.
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1000 Lake Avenue Market Study
6.0 Market Area 1000 Lake Avenue Downtown Lake Worth primary target customer markets for retail and services include: local resident shoppers, area employees and visitors. This section characterizes the size and features of each market including: 1. Retail 2. Office 3. Residential The socioeconomic characteristics of 1000 Lake Avenue 0.5 mile radius are provided in this section. The map on the following page illustrate the boundary of the local market area. The market area is the geographic area from which the majority of local and non-local customers will originate. They are based upon drive-time estimates, job opportunities, anchor magnets, and the location of existing retail competition. The market area is delineated by a 1.25-mile radius, 2.5-mile radius or 5-mile radius drive from the 1000 Lake avenue study site which will look for convenience of related goods and services, dining, entertainment and some specialty shopping. When thinking about what your vision is for the 1000 Lake Avenue building and downtown it is imperative to remember that your local resident shoppers are the Lake Worth's and Palm Beach County's demographic profile.
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1000 Lake Avenue Market Study
1000 Lake Avenue market area is delineated by a series of radius's that encompasses local demand capture and spending population.
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1000 Lake Avenue Market Study
6.1 Population Population within the 1000 Lake Avenue market area, at a median age of XX years, is estimated at 4,294 in 2012. Since 2000, the average annual rate of population and household growth within the Market Area has shown an index of +1.9% growth. Geographic Area
2000
2010
Change +-
2012
Change since 2000 %+-
1000 Lake Avenue Market Area Population
4,215
4,189
-0.7%
4,294
+1.9%
Households
1,666
1,554
-6.8%
Avg. Household Size
0.29
0.31
+0.02
Population
35,133
34,910
-0.7%
35,786
+1.9%
Households
13,828
12,958
-6.3%
Avg. Household Size
2.49
2.65
+0.16
Population
1,131,184
1,320,134
+14.4%
1,356,545
+16.7%
Households
474,175
544,227
+12.9%
Avg. Household Size
2.34
2.39
+0.05
Population
15,982,378
18,801,310
+15%
19,347,303
+17.4%
Household
6,337,929
7,420,802
+14.6%
Avg. Household Size
2.46
2.48
+0.02
City of Lake Worth
Palm Beach County
Florida
* Market Area delineated by 0.5mile radius from 1000 Lake Avenue.
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1000 Lake Avenue Market Study
6.2 Age and Sex The median age of the market area residents is 31.0 years, which is younger than the State and County population average of 41.0 and 43.7 years respectively. Age and Sex
City of lake Worth
Palm Beach County
Florida
Under 5
1000 Lake Avenue Market Area 0.88%
7.4%
5.3%
5.6%
5-9
0.75%
6.3%
5.5%
5.7%
10-14
0.64%
5.4%
5.5%
5.7%
15-19
0.69%
5.8%
6.0%
6.3%
20-24
0.94%
7.9%
5.7%
6.7%
25-34
2.0%
17.2%
11.2%
12.3%
35-44
1.5%
12.8%
12.2%
12.7%
45-54
1.8%
15.2%
14.1%
14.4%
55-64
1.1%
9.5%
12.3%
12.6%
65-74
0.78%
6.5%
10.2%
9.5%
75-84
0.87%
7.3%
7.8%
5.9%
85 and Older
0.21%
1.8%
4.0%
2.4%
Total
5,814
35,401
1,339,221
19,091,156
Median Age
31.0
35.0
43.7
41.0
Total Male
3,238
19,737
648,352
9,332,589
Total Female
2,576
15,664
690,869
9,758,567
* Market Area delineated by 0.5mile radius from 1000 Lake Avenue.
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1000 Lake Avenue Market Study
6.3 Median Household Income The distribution of the household income for the 1000 Lake Avenue market area is shown below with a median income of $28,988. Despite the fact that the median household income in the market area falls below the City, County and State index, it is positive that the population in the market area has 10.6% of residents with an income of $100,000 or more compare with 1.2% of the City. Income
City of Lake Worth
Palm Beach County
Florida
Less than $9,999
1000 Lake Avenue Market Area 10.3%
1.2%
6.4%
7.8%
$10,000 to 24,999
27.3%
3.2%
16.4%
17.0%
$25,000 to $34,999
11.9%
2.2%
10.6%
11.8%
$35,000 to $49,999
15.7%
1.8%
14.4%
15.2%
$50,000 to $74,999
15.3%
1.8%
17.7%
18.2%
$75,000 to $99,999
8.9%
1.0%
11.2%
11.1%
$100,000 or more
10.6%
1.2%
23.2%
17.9%
Total
1,409
11,742
526,007
7,158,980
Median Household Income
$28.988
$35,428
$52,432
$46,956
* Market Area delineated by 0.5mile radius from 1000 Lake Avenue.
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1000 Lake Avenue Market Study
6.4 Racial Composition The 1000 Lake Avenue market area population is predominantly White. Hispanic or Latino residents comprise the second largest racial group with 5.0% of the market area population. Black or African Americans comprise the third largest racial group with 2.3% of the market area population. The market area diversity index showed that the probability that two people from the same area will be from same (one) race/ethnic group with 97.6%, and the probability that two people from the same area will be from two or more races is of 2.4%. Race
1000 Lake Avenue Market Area 8.8%
City of Lake Worth
Palm Beach County
Florida
73.4%
75.8%
76.3%
Black or African American Alone
2.3%
19.9%
17.5%
16.0%
American Indian Alone
0.07%
0.6%
0.2%
0.3%
Asian/Pacific Islander Alone
0.09%
0.8%
2.4%
2.6%
Some Other Race
0.33%
2.8%
2.1%
2.6%
Two or More Races
0.28%
2.4%
2.0%
2.3%
Hispanic or Latino Origin
5.0%
42.2%
19.5%
22.9%
Total
5,814
35,401
1,339,221
19,091,156
White Alone
* Market Area delineated by 0.5mile radius from 1000 Lake Avenue.
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1000 Lake Avenue Market Study
6.5 Area Employees The number of employees working within 0.5, 1.25 and 2.5-mile radius of 1000 Lake Avenue is displayed below, accordingly to the 2012 ZIP Code Business Patterns (NAICS). Approximately a total of 8,444 workers are employed within a 2.5-mile radius (according to the 33460 ZIP Code area), approximately 4,222 workers are employed within a 1.25-mile radius, and approximately 2,111 workers are employed within a 0.5-mile radius. Retail Trade jobs account for the largest employment sector within the entire 2.5-mile radius, comprising 1,375 or 16.2% of all jobs. Administrative and Support Services are the second largest employment sector, with 1,153 or 13.6% in the 2.5-mile area. Health Care and Social Assistance are the third largest employment sector, with 1,015 employees or 12.0% on the total. Industry
Total Establishments (%)
Employment-size per Industry (%)
Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services
87 (12.3%) 27 (3.8%) 21 (3.8%) 116 (16.4%) 14 (1.9%)
899 (10.6%) 213 (2.5%) 124 (1.4%) 1,375 (16.2%) 71 (0.8%)
9 (1.2%) 30 (4.2%) 26 (3.6%)
141 (1.66%) 261 (3.0%) 149 (1.7%)
90 (12.7%)
450 (5.3%)
2 (0.28%)
204 (2.4%)
54 (7.6%)
1,153 (13.6%)
9 (1.2%) 58 (8.2%)
478 (5.6%) 1,015 (12.0%)
14 (1.9%)
201 (2.3%)
66 (9.3%)
1,174 (13.9%)
84 (11.8%)
536 (6.3%)
Total
707 (100%)
8,444 (100%) 23
1000 Lake Avenue Market Study
6.6 Housing Snapshot The following tables summarize the major housing indicators within the 1000 Lake Avenue market area, City of Lake Worth, Palm Beach County, and Florida State. Housing Indicator
City of Lake Worth
Palm Beach County
Florida
15,391
665,665
9,003,933
Owner-Occupied 886
48.0%
71.2%
67.1%
Renter-Occupied 959
52.0%
28.8%
32.9%
Vacant
23.7%
21.0%
20.5%
129,200
199,700
160,200
Housing Units
1000 Lake Avenue Market Area 1,846
437
Owner-Occupied 59,000 Unit Value Median Units in Structure Single-Detached
891
48.3%
46.3%
54.2%
Single-Attached
57.2
3.1%
10.3%
6.3%
2-4 Units 3-4 Units 5-9 Units 10-19 Units 20 + Units Mobile Homes Other
186.4 179 171.6 129.2 156 73.8 1.8
10.1% 9.7% 9.3% 7.0% 8.5% 4.0% 0.1%
2.7% 6.8% 6.1% 6.5% 18.5% 2.7% 0.0%
2.2% 3.8% 5.0% 5.9% 13.3% 9.3% 0.1%
Median Yr Structure Built
1970
1970
1983
1980
* Market Area delineated by 0.5mile radius from 1000 Lake Avenue.
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1000 Lake Avenue Market Study
6.7
Visitor Market
Downtown 1000 Lake Avenue market area colorful, artistic, and vibrant cultural amenities make the area a significant visitor destination. Downtown Lake Worth is consider a unique shopping destination within the Palm Beach County with a mix of shops, restaurants, art galleries, music venues and unique specialty shops. South Florida's Miami beaches, malls, Fort Lauderdale Beaches, world class sports centers, ports, and many more amenities are among some of the critical attractions for tourist and international visitors.
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1000 Lake Avenue Market Study
6.8
Economic Base
The City of Lake Worth job base is 14,400 jobs, which is 2.6 percent of Palm Beach County's total 552,000 jobs. The 1000 Lake Avenue market area is made up of 2,111 jobs, which is 14.6% of the City's total jobs. The 2.6 percent is lower than the city's fair share of employment, given the city's population is roughly 3.4% of Palm Beach County's total. This indicates that the City of Lake Worth does not have as many jobs as it should as a functional share of population. However, within the context of jobs concentration in the City of Lake Worth it is significant to exalt that 1000 Lake Avenue building is located at the core of 384-596 jobs per square mile. This indicates that the market area is within the major economic force in the area, as illustrate in the map below.
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1000 Lake Avenue Market Study
7.0
Retail Market
There is roughly 1.6 million square feet of retail in the City of Lake Worth within the 33460 ZIP code. The city has a well-established main street known throughout the region, including Lake Avenue, Lucerne Avenue, and Dixie Highway corridor. Retail tenants are primarily local businesses with a few regional and national franchises. The city's consumers come mostly from central Palm Beach County, the city, and the barrier island. Retail within the city is in a desirable position due to the fact of higher discretionary incomes from residents on the beach coast, in addition to the implementation of various CRA and city wide development programs. In the downtown, there is a strong retail demand with a significant amount of vacant inventory, indicating a demand for retail without an adequate supply. Requested rents for retailers are higher that rents asked for at City Place, West Palm Beach, which is a high-end regional destination. City Place has a common and well organized marketing, maintenance, and infrastructure program to help its retail tenants. High rent requests and the lack of a common and organized program to help retail appears to be a key cause for high retail vacancies within the City of Lake Worth. Potential retailers go outside of the city to open business. Residents cannot buy their needed items in the city, which produces a deficiency in customers supply. This situation creates "retail leakage" in the city, where retail outside the city is consumed by the City of Lake Worth residents. Data estimates city-wide retail demand to be 200,000 to 300,000 square feet through 2013 and 325,000 to 450,000 square feet projected for 2020. The additional square footage is for services necessary for residents. Retail in close proximity to residents is essential for the well being of vibrant, sustainable communities. Downtown Lake Worth is a restaurant district and not a shopping district. City residents are underserved for core goods and services such as groceries and clothing. Residents drive, walk, bike, and ride the bus out of the city to buy essential retail items. Some of the indemand items include groceries, food and beverage, hardware, and apparel. Existing retail does not adequately serve the city's population, for it only captures 5 to 10 percent of its residents' spending. A sustainable community conserves resources by offering a variety of ways to satisfy its residents' needs, by providing close proximity to where its residents live and work, and by attracting visitors at desire destinations.
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1000 Lake Avenue Market Study
The City of Lake Worth Downtown and 1000 Lake Avenue market area has a great network of interconnected streets that create the density needed for retail, provide great walkable streets for shoppers, and make it easy for shoppers to get to their stores. Hole in the Doughnut Retail assets of 1000 Lake Avenue market area 1. In the sunbelt 2. Historic downtown that is very walkable 3. Transit with multiple stops 4. Interstate I-95 as a major arterial 5. Public Beach 6. Established local businesses 7. Affordable housing 8. Surrounded by higher income communities
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1000 Lake Avenue Market Study
7.1 Detail of Retail Trade Industry Distribution Industry Total # of 1-4 Establish Establishments ments by Employmentsize class Used Car 3 3 Dealers Boat Dealers 1 1 Automotive 1 0 Parts and Accessories Store Tire Dealers 3 3 Furniture 2 1 Stores Floor 2 2 Covering Stores All Other 1 1 Home Furnishing Stores Household 1 0 Appliance Stores Electronics 1 1 Stores Paint and 1 0 Wallpaper Stores Hardware 1 1 Stores Other 2 2 Building Material Dealers Nursery, 2 2 Garden Center, and Farm Supply Stores
(2012) 5-9
1019
2049
5099
100429
0
0
0
0
0
0 0
0 1
0 0
0 0
0 0
0 0
0 1
0 0
0 0
0 0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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1000 Lake Avenue Market Study
Supermarkets and Other Grocery Stores Convenience Stores Baked Goods Stores Pharmacies and Drug Stores Cosmetics, Beauty Supplies, and Perfume Stores Food Supplement Stores All Other Health and Personal Care Stores Gasoline Stations with Convenience Stores Other Gasoline Stations Women's Clothing Stores Family Clothing Stores Other Clothing Stores Shoe Stores Jewelry Stores
20
12
1
2
2
2
1
17
16
1
0
0
0
0
1
1
0
0
0
0
0
5
0
2
1
2
0
0
1
1
0
0
0
0
0
1
1
0
0
0
0
0
2
2
0
0
0
0
0
9
6
3
0
0
0
0
1
0
0
1
0
0
0
1
1
0
0
0
0
0
3
2
1
0
0
0
0
1
1
0
0
0
0
0
1 1
1 1
0 0
0 0
0 0
0 0
0 0
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1000 Lake Avenue Market Study
Sporting Goods Store Musical Instrument and Supplies Stores All Other General Merchandise Gift, Novelty, and Souvenir Store Used Merchandise Stores Pet and Pet Supplies Art Dealers Tobacco Dealers All Other Misc. Stores Electronic Shopping Mail-Order Shopping Other Direct Selling Establishment
4
3
1
0
0
0
0
1
0
1
0
0
0
0
2
2
0
0
0
0
0
2
2
0
0
0
0
0
4
3
0
0
0
1
0
2
1
1
0
0
0
0
4 2
3 2
1 0
0 0
0 0
0 0
0 0
3
3
0
0
0
0
0
1
1
0
0
0
0
0
2
0
1
0
1
0
0
1
1
0
0
0
0
0
Total
113
83
15
6
5
3
1
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1000 Lake Avenue Market Study
No. of Spaces
Rental Rate $15.00 - $19.00 $12.00 $25.00 $8.00 - $12.00 $10.00 $19.20 $23.68 $35.00 $35.00 $9.99 $16.00 - $21.00 $17.00 $15.00 - $17.00 $15.56 - $15.63 $18.00 - $22.00 $13.75 $20.00 $31.90 $18.00 $14.00
Space Available in Square Feet 410 - 1,110 SF 4,000 SF 897 - 1,353 SF 1,040 - 4,950 SF 8,106 SF 500 SF 15,203 SF 908 SF 2,200 SF 25,000 - 59,777 SF 1,300 - 10,000 SF 3,000 SF 1,300 - 19,532 SF 1,080 - 1,536 SF 922 - 9,990 SF 3,171 - 5,671 SF 3,557 SF 3,690 SF 1,650 SF 1,000 SF
4 1 2 3 1 2 1 1 1 1 3 1 2 2 6 1 1 1 1 1
Bldg Size 55,000 SF 66,770 SF 115,000 SF 38,530 SF 8,106 SF 11,750 SF 15,203 SF 196,500 SF 2,200 SF 59,777 SF 53,000 SF 31,888 SF 20,000 SF 20,000 SF 95,330 SF 2,511 SF 27,936 SF 3,690 SF 8,125 SF 12,000 SF
Total
$284.52
156,196 SF
843,316 SF
Average
$20.32
3,983 SF
42,166 SF
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1000 Lake Avenue Market Study
8.0
Office Market
The City of Lake Worth has a small office submarket with approximately 4 percent of Palm Beach County's total office space, representing approximately 500,000 square feet of office space in the study area. This statistic illustrates that the city holds slightly less than the city's fair share of the county's office space inventory. Looking forward, it appears that office demand within the City of Lake Worth will be an additional 40,000 square feet through 2013, with demand for an additional 40,000 square feet through 2013, with demand for an additional 145,000 square feet through 2020. These figures are in addition to the current office space. However, the city's existing office space inventory is older and ill-suited for modern users. Outdated office space is expensive to retrofit. The unsuitability of current office space in the city creates stagnant leasing activity, and the city has a vacancy rate of about 14 percent. As the city’s population continues to grow, it will create more demand for office space, which represents a potential economic opportunity. It is important to note that office market success will require strategic public investment such as infrastructure, land regulatory assistance, and marketing.
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1000 Lake Avenue Market Study
9.0
Residential Market
Lake Worth contains 16,600 housing units with 46 percent of the units as rental units. In comparison, 23 percent of Palm Beach County's units are rented. As this statistic shows, the city contains a disproportionate amount of rental units at about twice the county's percentage. In other words, approximately one quarter of the county’s' units are rentals while almost half of the city's units are rentals. Closer analysis indicates some neighborhoods in the western areas of the city - west of Dixie Hwy. but east of I-95 - have a higher percentage of rental units indicating these are neighborhoods in transition. The city issues an average of 39 residential permits (both multi-family and single-family) annually, which is less than 1 percent of permits issued in Palm Beach County. Forecasts suggest 600 to 700 new housing units in the study area through 2013. The timing of the recovery of the current market decline will determine demand for new housing. The median sales price for homes in the City of Lake Worth for October 2014 to January 2015 was of $147,000. This represents a decline of 10.9%, or $18,000, compared to the prior quarter and an increase of 1.4% compared to the prior year. Sales prices have appreciated 13.1% over the last 5 years in Lake Worth. The average listing price for Lake Worth homes for sale on Trulia ( an online residential real estate site for home buyers, sellers, renters and real estate professionals in the United States) was $278,921 for the week ending January 28, which represents an increase of 2%, or $5,453, compared to the prior week and an increase of 3.1%, or $8,364, compared to the week ending January 07. Average price per square foot for Lake Worth Florida was $106, an increase of 8.2% compared to the same period last year.
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1000 Lake Avenue Market Study
35
1000 Lake Avenue Market Study Current Lake Worth market trends data indicates an increase of +1.8% in the median asking price per unit for Multifamily properties compared to the prior 3 months, with an increase of +11.0% compared to last year's prices. County-wide, asking prices for Multifamily properties are 7.9% higher at $81,946 per unit compared to the current median price of $68,815 per unit for Multifamily properties in Lake Worth, Florida, accordingly to LoopNet commercial real estate marketplace agency.
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1000 Lake Avenue Market Study
References
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1000 Lake Avenue Market Study
Supporting Data (attachments)
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