N A S A Clear Lake Office Market Presentation Jan 2010
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Transcript of N A S A Clear Lake Office Market Presentation Jan 2010
NASA / Clear Lake Office Market Overview
January 2010January 2010
Prepared by:
Coy DavidsonSenior Vice President
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COLLIERS INTERNATIONAL
NASA / Clear Lake Office Market Overview
2009 Hi hli ht
Market withstood recessionary period without decline. Leasing activity was flat
2009 Highlights
but positive net absorption of 79,248 square feet year in 2009.
Stable overall occupancy rate of 88.7%.
Minimal sublease space on the market.
No significant movement in rental rates in 2009.
Minimal large blocks of contiguous space particularly in Class A & B buildings.
Minimal sales activity due to economy and debt market conditions (5 sales in )2009).
Proposed office developments failed to get out of the ground.
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NASA / Clear Lake Office Market
Market Area MapMarket Area Map
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Summary Statisticsy
Summary Overview
Class TotalInventorySq Feet
DirectVacantSq Feet
PercentLeased
SubleaseAvailableSq Feet
TotalVacantSq Feet
TotalVacancyRate
2009Net Absorption
Weighted Avg.QuotedRental Rate
Summary Overview
Sq. Feet Sq. Feet Sq. Feet Sq. Feet Rate Absorption Rental Rate
A 1,500,938 127,134 91.53% 40,257 167,391 11.15% 19,880 $22.88
B 3,042,181 229,175 92.47% 26,309 255,484 8.40% 57,762 $18.09
C 911,728 127,134 80.65% 13,047 189,843 20.78% 1,606 $14.98
Total 5,454,847 532,745 90.23% 79,613 612,358 11.23% 79,248 $18.49
• Excludes Medical Office Buildings• Excludes buildings less than 10,000 square feet
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g , q f
Average Rental Ratesg
$22.88
$18 09 $18.49$20 00
$25.00
Weighted Average Quoted Rent
$18.09 $14.98
$18.49
$10 00
$15.00
$20.00
Class A
Class B
$‐
$5.00
$10.00 Class C
Total
$
Class A Class B Class C Total
• Gross full service rental rate
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Gross full service rental rate
Vacancy Ratesy
Vacancy Rate by Class
20.78%20.00%
25.00%
Vacancy Rate by Class
11.15%8 40%
11.23%10 00%
15.00% Class A
Class B8.40%
0 00%
5.00%
10.00%Class C
Total
0.00%
Class A Class B Class C Total
• Vacancy rates for direct space and sublease space
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• Vacancy rates for direct space and sublease space
Net Absorptionp
79 24890,000
Net Absorption 2009 (Square Feet)
57,762
79,248
60,000 70,000 80,000
Class A
19,880 20 00030,000 40,000 50,000
Class B
Class C
Total
1,606 ‐
10,000 20,000
Class A Class B Class C Total
Total
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Class A Class B Class C Total
Vacant Square Feet by Classq y
612,358 6,000,000 Vacant Square Feet by Class
255,484 3 000 000
4,000,000
5,000,000
Vacant
167,391 189,843
1 000 000
2,000,000
3,000,000 Occupied
‐
1,000,000
Class A Class B Class C Total
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2009 Office Building Salesg
Building Address Class Size Price Price / SF Sale DateBuilding Address Class Size Price Price / SF Sale Date
One Harbour Square 3027 Marina Bay Drive B 58,204 Not Disclosed N/A 10/15/09
University Park Business Center 15200 Middlebrook Dr. B 14,320 Not Disclosed N/A 7/31/09
700 Gemini 700 Gemini B 18,500 $1,800,000 $97.30 5/29/09
Atrium @ Nassau Bay 2100 Space Park Drive B 115,878 $8,000,000 $69.04 4/30/09
Saturn Executive Office Park 17300 Saturn Lane C 24 330 $1 200 000 $49 32 3/31/09Saturn Executive Office Park 17300 Saturn Lane C 24,330 $1,200,000 $49.32 3/31/09
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Largest Available Contiguous Spaceg g p
B ildi N Add Cl R t bl ATotal
A il blContiguous A il blBuilding Name Address Class Rentable Area Available Available
Galaxy II 455 E. Medical Center Blvd. A 110,000 60,000 60,000
1275 Space Park Drive 1275 Space Park Drive C 43,222 43,222 43,222
555 Gemini 555 Gemini Street B 124 908 40 000 40 000555 Gemini 555 Gemini Street B 124,908 40,000 40,000
1300 Bay Area Boulevard 1300 Bay Area Blvd. C 35,690 35,690 35,690
16055 Space Center Blvd. 16055 Space Center Blvd. A 147,000 32,841 22,400
Atrium@ Nassau Bay 2100 Space Park Drive B 115 878 24 436 17 953Atrium @ Nassau Bay 2100 Space Park Drive B 115,878 24,436 17,953
Corporate Center Texas 16969 Texas Avenue B 50,100 17,906 17,906
Webster Professional Building I 500 N. Kobayashi B 15,545 15,545 15,545
1322 Space Park Drive 1322 Space Park Drive C 102,715 11,933 13,407p p , , ,
16441 Space Center Blvd. 16441 Space Center Blvd. C 64,000 12,400 12,400
Space Park Office Building 2200 Space Park Drive B 76,282 11,933 11,933
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Market Outlook
Tremendous uncertainty regarding NASA, job losses and what a new direction for the space program will have on jobs with NASA and related contractors.
Effects of projected layoffs at USA Space Alliance as Space Shuttle program isEffects of projected layoffs at USA Space Alliance as Space Shuttle program is schedule to end after last flight in 2011. What NASA contractors / tenants, if any might absorb the 800,000 plus square feet of USA Space Alliance leases that roll in 2010 and 2011.
Leasing activity and rental rates to remain flat for 2010 as economy emerges from recession.
Minimal sales activity if any due to uncertainty in marketplace regarding NASA, k l b l f b fperceived risk and availability of debt for acquisitions.
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The NASA Factor
45% of the currently occupied space and 41% of the total market is made of NASA related companies
Over 2 million square feet of buildings with 100% or single tenant occupancy by NASA related tenants. This excludes NASA related
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tenants in multi-tenant buildings.
The NASA Factor
U it d S Alli i t t f th S Sh ttlUnited Space Alliance prime contractor for the Space Shuttle contract which ends in 2011 has 800,000 square feet of office leases scheduled for expiration in 2010 and 2011
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The NASA Factor
Boeing and Lockheed Martin cumulatively own or lease overBoeing and Lockheed Martin cumulatively own or lease over 800,000 Square Feet in the Clear Lake Office Market
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The NASA Factor
There are several other significant office projects with 100%There are several other significant office projects with 100% occupancy from NASA related tenants
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Coy Davidsony
Coy DavidsonCoy DavidsonSenior Vice PresidentOffice Services GroupCoy Davidson has over twenty years experience in commercial real estate specializing in corporate real y y y p p g pestate services, tenant representation, office leasing and investment sales. Mr. Davidson joined Colliers International in June 2000 as Vice President in the Office Services Group. Prior to joining Colliers, Mr. Davidson served eleven years with two local commercial real estate brokerage firms.
Mr. Davidson has completed over three (3) million square feet of lease and sales transactions and the brokerage of over 700 acres of land development sites throughout the Greater Houston area. Mr.brokerage of over 700 acres of land development sites throughout the Greater Houston area. Mr. Davidson is widely recognized as an authority on the NASA/Clear Lake Market area of Houston where he has completed over one (1.5) million square feet of office lease and sales transactions, and is an active member in the Bay Area Houston Economic Partnership. Mr. Davidson has vast experience assisting corporate, medical and institutional office space users with their facilities requirements throughout the Greater Houston area. Mr. Davidson is an active member of the Houston Office Leasing Broker’s Association (HOLBA) and Colliers International’s National Healthcare Practice GroupBroker s Association (HOLBA) and Colliers International s National Healthcare Practice Group.
Direct: 713.830.2128Email: [email protected]
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www.collierstexas.comwww.coydavidson.com
COLLIERS INTERNATIONALCommercial Real Estate Services
1300 Post Oak Boulevard, Suite 200Houston, Texas 77056www.collierstexas.com
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