Retail Lease Rate Update Q3 2015
Metro Southeastern North Carolina a trade area made up of Brunswick, New Hanover, Onslow and Pender Counties had a uplifting third quarter. There were 22 transactions for the quarter with a total of 56,270 square feet leased. The average lease rate was $14.45 per square foot.
The largest lease was 7,400 square feet and it was completed in July for a fitness user, at a regional power center. The lease rate of $10.00 per square foot is a solid indicator for larger spaces and an increase as larger spaces were previously recorded in the upper single digits.
When looking at Quarter 2 where the average rental was $13.59 the market increased in $ psf by $0.86 in rental which is due to a larger lease rate in new construction. Quarter 1 Lease rates were $13.39 rose by $1.06 in comparison.
New Construction Lease Rates are holding in the mid to upper 20’s on small shop space, for larger boxes the average rental appears to be constant as well in the mid to upper teens. Existing space over all based on property type, Anchored v. Unanchored space saw a difference in rental averages as well with Anchored Space commanding higher rental of upper teens through the upper twenties per foot. Unanchored space was constant with rents staying in the mid to low teens.
Properties leased had a market wide average of 270 days on the market in the 3rd quarter were as previous quarters saw some spaces on the market for 255 days (Q1) and 310 days (Q2) before being leased. Eastern Carolinas Commercial saw the following on its portfolio Q1 – 97 days Q2 – 202 days Q3 – 247 days. The importance of this statistic shows that with the market improving the space that has been active on the market is now being filled with properties that have been vacant for years now moving. This is one of the great indicators for space demand, as the properties formally deemed as not right are now the only option in a specific trade area for a retailer to locate.
Previous Years Statistics – Leased Square Footage Chart
Previous Years Statistics – Rental Rate Average Chart
Quarter 1 – 3 Rental Rate Averages
The following chart is a culmination of data from the regional commercial MLS. All data is believed to be accurate and is taken for face value as collected and not independently verified. For Quarters 1-3 of 2015. ECCRE is the only company shown we have removed other companies names as there may be deals completed out side the MLS and not recorded.
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