Restaurant and bar sales reach an historic mark

Transcription

1 Greater Philadelphia Retail, Q3 215 Restaurant and bar sales reach an historic mark Availability Rate 7.3% Average In-line Space Asking Lease Rate $19.76 PSF Trade Areas Net Absorption 575,586 SF Retail Completions 513,6 SF Figure 1: Retail Sales at Grocery Stores versus Food Services and Drinking Places (Nominal, SA) *Arrows indicate change from previous quarter. ($, Billions) Grocery Stores Restaurants and Bars Source: U.S. Census Bureau, Q3 215 Center City: Urban retail activity remained robust during Q3 215, particularly along Chestnut Street. Five Below opened a 13, sq. ft., two-story store at 1529 Chestnut Street in September. Target Express signed two leases at 19 Chestnut Street and Chestnut Street with plans to open in 216. Region: Available space in the region continues to shrink. The Greater Philadelphia region availability rate dropped to 7.3% in Q3 215, a sharp decline from 8.7% in Q At the King of Prussia Town Center, Honeygrow and Fogo De Chao signed as new tenants. Wegmans will be opening soon at Brandywine Mills, while Savers is opening two locations in East Norristown and Willow Grove. Capital Markets: Sales of retail properties moderated through the first half of 215, but investor sentiment remains strong. Pricing remains aggressive. Preliminary sales figures for Q3 215 indicate an uptick in activity with greater activity to follow over the next several quarters. Q3 215 CBRE Research 215, CBRE, Inc. 1

2 Figure 2: Trade Area Statistics (Shopping Centers above 25, sq. ft. (excluding enclosed malls)) Trade Area Inventory (sq. ft.) Availability (sq. ft.) Availability Rate (%) In-Line Space Asking Lease Rate (NNN, $/SF/Yr) Anchor Space Asking Lease Rate (NNN, $/SF/Yr) 215 Estimated Population 215 Estimated Average Household Income Allentown 1,931,153 11, ,984 5,14 East Norriton/Plymouth Meeting 3,165, , ,244 97,955 Easton 1,813, , ,11 7,37 Exton/Downingtown 3,153, , , ,742 Harrisburg 3,267, , ,181 6,683 Jenkintown/Willow Grove 2,37,42 2, ,55 1,44 King of Prussia 2,265, , , ,575 Lancaster 2,216,943 4, ,233 62,744 Main Line 2,12,396 96, ,597 9,542 Montgomeryville 2,719, , ,836 13,98 Oxford Valley 2,536,776 36, ,729 92,64 Reading 1,876,326 89, ,643 62,718 Springfield/Marple 2,69, , ,1 97,167 Scranton 1,655,246 94, ,27 53,339 Trexlertown 1,965, , ,351 11,153 Wilkes-Barre 3,641, , ,756 52,815 York 1,689, , ,166 55,63 Pennsylvania Trade Area Totals 4,827,75 2,547, ,417,517 77,893 Cherry Hill 4,161, , ,413 83,991 Deptford 2,414, , ,265 74,894 Maple Shade/Mt Laurel 2,42, , ,82 112,59 Marlton 2,117, , , ,321 Princeton/South Brunswick 1,312,326 78, , ,432 New Jersey Trade Area Totals 12,47,95 1,352, ,129 98,692 Christiana 3,794, , ,97 69,387 Concord Pike 2,527,827 27, , ,419 Delaware Trade Area Totals 6,322,82 423, ,661 89,188 Total 59,557,17 4,324, ,896,37 265,772 Source: CBRE Research, Q (See Last Page for Trade Areas Map) Q3 215 CBRE Research 215, CBRE, Inc. 2

3 REGIONAL HIGHLIGHTS NEWTOWN SQUARE, PA NEW LIFE FOR AN OLD TOWN WILMINGTON, DE A BETTER PLACE TO SHOP, WORK AND LIVE CHERRY HILL, NJ IT S MORE THAN A SHOPPING DESTINATION Q3 215 CBRE Research 215, CBRE, Inc. 3

4 RENTS Figure 3: Average Asking Lease Rates (NNN, $/Sq. ft./year) ($) Source: CBRE Research, Q Q2 215 Q3 215 Q3 215 CBRE Research 215, CBRE, Inc. 4

5 ($, Billions) Sq. ft. (s) SUPPLY Figure 4: Retail Completions 1,8 1,6 1,4 1,2 1, New Development Redevelopment Source: CBRE Research, Q RETAIL SALES Figure 5: Philadelphia MSA Retail Sales Forecast Source: Moody s Analytics, Q Q3 215 CBRE Research 215, CBRE, Inc. 5

6 ($, Millions) Figure 6: Philadelphia MSA Retail Property Sales Volumes and Cap Rates (%) Sales Volume (L Scale) Cap Rate (R Scale) Source: Real Capital Analytics, Q3 215 (4-qtr. averages). CAPITAL MARKETS Figure 7: Philadelphia MSA Significant Retail Property Sales Transactions (Sorted by Size) Date Property Name County SQ FT Estimated $/SQ FT Buyer 7/31/15 Peninsula Crossing Sussex 34, DRA Advisors LLC; RCG Ventures, LLC 7/2/15 Penrose Plaza Philadelphia 255, Onyx Equities LLC; Abrams Realty & Dev; Siguler Guff 8/24/15 Clover Square Mercer 178, Highglen Lawndale Associates LP 6/3/15 Larchmont Centre Burlington 13, Brixmor 7/2/15 Big Kmart Bensalem Bucks 1, 36 SK Realty Source: Real Capital Analytics/CBRE Research, Q Q3 215 CBRE Research 215, CBRE, Inc. 6

7 *Primary Trade Areas in Greater Philadelphia Market (three-mile radius) CONTACTS LOCAL OFFICES Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.