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  • Kootenai County Retail Marker Forum Slides

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    Mike King
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    The document provides an overview of retail real estate market conditions in Kootenai County, Idaho. It shows that unemployment rates have been lower in Kootenai County than the state average. Retail employment and permit values peaked in 2007-2008 but have since declined. Currently, vacancy rates are highest in Coeur d'Alene at over 10% while Hayden and Post Falls have lower rates. Several new retail developments are planned or underway, especially in Post Falls near interstate exits. Capitalization rates for retail properties range from 6.5-9% depending on the property type. The presenter thanks the audience and provides contact information.

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    Kootenai County Retail Market Forum Slides

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    The document provides an overview of retail real estate market conditions in Kootenai County, Idaho. It shows that unemployment rates have been lower in Kootenai County than the state average. Retail employment and permit values peaked in 2007-2008 but have since declined. Currently, vacancy rates are highest in Coeur d'Alene at over 10% while Hayden and Post Falls have lower rates. Several new retail developments are planned or underway, especially in Post Falls near interstate exits. Capitalization rates for retail properties range from 6.5-9% depending on the property type. The presenter thanks the audience and provides contact information.

    Copyright:

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    Download as pdf
    40 views23 pages

    Kootenai County Retail Marker Forum Slides

    Uploaded by

    Mike King
    The document provides an overview of retail real estate market conditions in Kootenai County, Idaho. It shows that unemployment rates have been lower in Kootenai County than the state average. Retail employment and permit values peaked in 2007-2008 but have since declined. Currently, vacancy rates are highest in Coeur d'Alene at over 10% while Hayden and Post Falls have lower rates. Several new retail developments are planned or underway, especially in Post Falls near interstate exits. Capitalization rates for retail properties range from 6.5-9% depending on the property type. The presenter thanks the audience and provides contact information.

    Copyright:

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    Download as PDF or read online from Scribd
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    of 23

    Kootenai Countyy

    Retail
    Dani Bielec-Kramer, CCIM

    dani@ccim.net
    www.commercial1031group.com
    Local Unemployment Statistics
    Kootenai County vs. State of Idaho Unemployment Rate
    8.0
    7.0
    6.0
    mploymeent Ratee

    5.0
    4.0 Kootenai County 
    Unemployment
    3.0
    State of Idaho 
    2.0 p y
    Unemployment
    Unem

    1.0
    0.0

    Year Source: Idaho Commerce & Labor


    Local Retail Trade Employment

    14,000

    12,000
    Emplloymennt

    10,000

    8,000

    6 000
    6,000

    4,000
    2,000
    ,
    -
    2000 2001 Idaho Panhandle*
    2002 2003 Kootenai County
    2004 2005 2006 2007 2008
    Year

    *Idaho Panhandle Source: Idaho Commerce & Labor


    Pre-2008 Market Conditions

    Class A Buildings Class B Buildings Class C Buildings


    •Prime locations •Slightly older buildings •Functionally obsolescent
    •Newer buildings •Good locations •Older neighborhoods
    •$16 - $24 per SF NNN •$11 - $15 per SF NNN •$6 - $10 per SF NNN

    •All rates quoted annually


    •NNN = Tenant’s ppro-rata share of common area maintenance,,
    property taxes, insurance, and other operating expenses
    Local Retail – Landlord’s Struggle

    Landlords start with


    asking rental rates

    Solid Tenant =
    Negotiation on terms
    and rent with Tenant
    Annual Commercial Permit Dollar Amount

    $212 724 424


    $212,724,424
    $118,070,569
    mit Dollar Amoount

    $250,000,000

    $200,000,000

    $150,000,000

    $100,000,000

    $50,000,000

    $0
    Perm

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009
    Year

    Source: Construction Monitor, Inc.


    Current Retail Market – Riverstone Master Plan

    Retail
    eta Leasing
    eas g Rates
    ates
    $22 - $24 per SF NNN
    Current Retail Market – Riverstone Aerial

    Pl
    Planned
    d Site
    Sit for
    f Peak
    P k
    Current Retail Market - Vacancies
    Neider & 95
    $15 per SF NNN

    Ironwood Square
    $12.00 per SF NNN
    Sportsman Plaza I & II
    $15 per SF NNN $23 - $25 per SF NNN
    Current Retail Market – New Retail CdA
    NEC of Best & 4th Street
    $ - $$24 p
    •$18 per SF NNN

    Hwy 95 & Bosanko


    •$16 per SF NNN

    Mountain
    M t i View
    Vi Plaza
    Pl
    •NWC of Hwy 95 & Neider
    $9 - $15 per SF NNN
    •$9
    Current Retail Market – New Retail Hayden
    Rustlers Roost
    NWC of Hwy 95 &
    •NWC
    Hayden Ave Planned

    2.5 acres sold to a


    national medical user

    Discount Tire
    2008 Vacancy Report – Kootenai Retail
    Vacancy
    5.83%
    Rates
    12.48%
    2,500,000

    2,000,000

    1,500,000
    , ,
    Usable SF
    F

    Vacant SF
    Net Usable SF

    1,000,000 6.03%
    Net U

    10.66%
    500,000

    0
    Post Falls Retail Hayden Retail Rathdrum Retail Coeur d'Alene Retail

    Source: Fall 2008 - Auble, Jolicoeur & Gentry/CBC


    2008 Vacancy Report – Kootenai Retail

    Parkwood Business Properties


    •Retail Owned – 244,000 SF
    •2008 Retail Vacancyy – 1.3%
    2008 Vacancy Report – Kootenai Retail
    General Growth Properties Inc. (GGP)
    Current Retail Market – Post Falls
    Current Retail Market – Post Falls
    Coeur d’Alene, ID
    I-90 Pleasantview Rd. Interchange
    (46,000+ CPD 2006)
    EXPO Retail/Commercial/Industrial/Multi-Family
    R t il/C i l/I d t i l/M lti F il

    Future Beck Rd. Interchange


    Sysco 2010 Estimated Completion

    Planned Wal-Mart Superstore

    Pl
    Planned
    d Lowe’s
    L ’

    Idaho-Washington Border

    Stateline I-90 Interchange


    Current Retail Market – Post Falls

    I-90 Pleasantview Rd. Interchange


    (46 000+ CPD 2006)
    (46,000+

    Prime Outlets at
    Highland
    Post FallsCrossing

    Highway 41

    River City Center

    •Asking $5 - $10 per SF NNN


    Current Retail Market – Post Falls

    Mullan Avenue

    Highway 41
    Highland Crossing

    Planned

    River City Center


    Retail Market – Cap Rates

    Kootenai County Capitalization Rate - A


    ratio used to estimate the
    Retail Centers value of an income-
    • 7% to 9% producing property

    Free-standing Pad Retail


    • 6.5% to 7.5% Th ways to get there…
    Three h
    1. Cap = NOI/Property Value
    2. NOI = CCap x Property Value
    l
    3. Property Value = NOI/Cap

    =
    Looking Forward to 2009 - Retail Market
    Thank You!

    Dani Bielec-Kramer, CCIM

    dani@ccim.net
    509-994-3675
    www.commercial1031group.com
    www.commercial1031group.com

    Dani Bielec-Kramer,
    Bielec Kramer CCIM
    dani@ccim.net
    509-994-3675

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