N Fed Highway Mkt Study with tables

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North Federal Highway
Market Study: Key Findings
WTL+a
Real Estate &
Economic
Advisors
Washington, DC
In association with:
RDS
Retail &
Development
Strategies
Arlington, VA
Prepared for:
Delray Beach
CRA
Delray Beach, FL
August 12, 2014
Objectives of the Market Study

Update 1999 market study of
revitalization & redevelopment
potentials

Analyze demographic & economic
characteristics

Evaluate real estate market trends &
conditions

Measure real estate market potentials,
estimate absorption/phasing for key
uses:
 Residential
 Speculative/multi-tenant office
 Lodging/hotel
 Retail & food service

Guide public decisions about zoning,
additional infrastructure & other public
improvements along the corridor
Study Area Context
Study Area
Study Area Land Uses

206 acres

46+/- acres & 375,000 SF of “workplace”
uses:
 153,300 SF retail (41%)
 126,000 SF auto-related (34%)
 38,400 SF warehouse (10%)
 30,100 SF demolished (8%)
 18,200 SF restaurants/food service (5%)
 8,800 SF office (2%)

5.6 vacant acres in demolished uses
(excludes Swap Shop site)

515 housing units
 47% owner-occupied
 34% renter-occupied
 19% “unoccupied”

Traffic volumes in 2013 averaged 26,600
vehicles per day
Proposed Development Projects

Beachway Motel: 13 rooms

St. George site:
 38 townhouses
 Mid-2015 delivery

Southgate Motel: 29 rooms

Goodwill of Delray: 1,518 SF addition

Delray Preserve:
 188 proposed MF units (22 units/acre)

Borton Volvo: 17,226 SF auto-related

2645 North Federal:
 11,311 SF professional & medical office
space

Gulfstream Villas: 15 townhouse units
Key Market Findings
Demographics (2000-2013)

Very strong population growth in Palm Beach County:
1.3 million residents
 Population increased by 214,500 in 72,700 new HHs

Delray Beach: 61,800 residents
 Added 1,780 residents = 820 HHs
 Limited growth next 5 years: 855 residents in <300
HHs

Since 2000, Boca, Boynton & West Palm growing
significantly faster than Delray (9,700 to 21,000 new
residents)

Study area’s population stable; new housing will add
new residents

Compared to City, the study area:
 More affluent (annual HH incomes of $79,600 vs.
$66,600)
 Spend more on retail ($20,700 vs. $17,500)
 Spend more on Food & Beverage ($6,700 vs. $5,700)
 Has fewer unoccupied & vacant housing units
Key Market Findings
Economic Profile

619,000 jobs in Palm Beach
County
 Economy in recovery from 2007—
2009 recession (49,500 jobs lost)
 20,200 new jobs created past 3
years
 Strongest job growth in Professional
Services, Health Care; mirrors
national trends

Delray Beach contains 34,700
jobs: 6% of County
 Jobs-to-population ratio: 0.58
 45% of jobs in Services; 27% in
Retail
 19% of all jobs in Retail sector are in
restaurants
Key Market Findings
Economic Profile

Job growth is a critical barometer
of demand for ‘workplace’ real
estate: commercial office, retail,
industrial parks, etc.
 State forecasts: 83,700 new jobs
in Palm Beach County (2013 –
2021)
 5,000 new jobs in Delray if City
maintains its current share
 Citywide HH retail spending
(demand) vs. retailer sales
(supply):
 $489 million vs. $523 million
 Reflects in-flow of visitors to
Delray, strength of downtown
 Can HH sales (“opportunity gap”)
in specific categories be
recaptured?
Key Market Findings
Housing Market Performance

Delray Beach housing inventory:
 34,100 units (38% single-family; 52% multi-family)
 8,200+ unoccupied units reflects heavy seasonal
occupancy
 “True Vacancy” (i.e., empty & available) is low: 6.5%,
suggesting stabilized occupancies
 Median value: $141,000 (study area: $224,200)
 Annual housing starts (2005-2013):
 Palm Beach County: 4,800 units per year (62% singlefamily)
 Delray Beach: 255 units per year (61% multi-family)
 Confirms market-response to moderate-density product
such as stacked-flats
 Multi-family rental trends:
 Higher rents achieved in Delray than Boynton ($1.57
PSF vs. $1.07 PSF)
 Higher vacancy rates in Delray than Boynton (9.8% vs.
3.9%)
 All comparables defined by industry as “Class A” quality
Key Market Findings
Office & Retail Market Performance

Delray Beach office inventory (2006-2013):
 2.9 million SF in 301 buildings; comprises mix of “garden” buildings & industrystandard suburban office parks
 Accounts for 12% of County’s 24 million SF inventory
 Overall vacancies have jumped since 2006: from 8% to 26.5%
 Significant challenges of negative absorption (leasing): (677,000) SF vacated
since 2006
 Office Depot HQs relocation to Boca responsible for weakened market statistics
 Job growth in office-using sectors is critical

Delray Beach retail inventory (2013):
 3.9 million SF in multiple property types
 Accounts for 9% of County’s 44.4 million SF inventory
 239,000 SF of net absorption in 2013
 Strengthening regional role as retail destination
 $35 million in recaptured Grocery spending: Trader Joe’s (10,000 SF) & Fresh
Market (20,000 SF)
Key Market Findings
Office & Retail Market Performance
Key Market Findings
Office & Retail Market Performance
Key Market Findings
Hotel Market Performance

Delray Beach hotel supply:
 887 rooms in 7 properties (as defined
by STR): comprises 6.5% share of
County’s 13,600+ rooms
 Inventory includes 95-room Fairfield
Inn under construction
 Since 2010, annual occupancies have
fluctuated between 58% & 70%
 4-year average occupancies:
64.9%, suggests roomnight demand
is at threshold for financing new
construction (65% to 72%)
 Colony Hotel & Crane’s Beach Hotel
do not report performance to STR
 Solid annual growth in average daily
rates (ADRs): $127 (2010) to $145
(2014)
What We Heard
Stakeholder Interviews
 Study area lacks identity/brand; does not benefit from economic
engine & strong identity of downtown
 Land uses characteristic of aging, low-density suburban commercial
corridors in south Florida
 In transition:
 Land values increasing due to proximity to downtown
 Private investment in high-quality residential
 Difficult to attract commercial re-investment at current low rents
 Values driven by perceived future uses
 ‘Hot button’ issues: increasing residential densities; introduction of
rental housing (turnover)
 Largest contiguous parcels are all auto-oriented uses
 How to capture spending from high-income HHs (e.g., Gulf Stream)
What We Heard
Stakeholder Interviews
 Desire for independent, “boutique” retail in walkable district
 Narrow lot depths, fragmented ownership/parcel assemblage, adjacent
rail line complicate development
 Challenges of current densities/zoning:
 Will not support significant retail
 Precludes ‘Pineapple Grove-type’ development (i.e., surface parking
required)
 Costs of structured parking too high w/o additional revenues
 Is there opportunity to ‘cluster’ new retail (e.g., at George Bush Blvd.)?
 How can public improvements & other public policies be used to:
 Enhance marketability
 Generate private commercial investment
 Create pedestrian-friendly areas?
Key Market Findings
Market Directions
Retail & Food Service
 Success of Atlantic Avenue has created strong regional destination & identity
 Challenges of maintaining specialty retail in a strong food & beverage market,
higher rents
 Study area retail potentials:
 Affected by distance & quality of pedestrian space
 Width of North Federal Highway limits easy creation of walkable retail environment
 Limited residential densities cannot support walkable retail cluster on its own
 Significant competitive environment & higher densities in Boynton Beach
 Transitional uses characteristic of South Florida commercial strips
 Several buildings worthy of preservation & re-use; “character-giving”
Key Market Findings
Market Directions
Market-rate Housing

Forecasts suggest limited near-term population & HH growth

Near-term demand likely captured by planned projects (e.g., ZOM)

Transitional land uses in study area suggest opportunities for moderatedensity infill residential development & selected mixed-use

Parcel size, ownership priorities & consolidation potential affect opportunities
for multi-family housing

Increased residential densities will be critical to support new retail in study
area:
 Each new resident = 4 to 7 SF
 Each new office worker = 2 to 5 SF
 Each visitor = 0.5 to 1.5 SF
Key Market Findings
Market Directions
Professional Office/Business Services
 State (DEO) employment forecasts suggest near-term growth:
 Retail/Food Service
 Professional Services & Finance/Insurance & Real Estate
 Job growth in office-using sectors critical to generating near-term demand
 If 2,000 of 5,000 new jobs are office-using = 400,000 SF
 Current office vacancies = 793,000 SF
 Current zoning in most of Delray Beach (& study area) restricts higher-density
office development
 Suggests small-scale “garden” product & tenant mix
 Limited market potentials in the near-term (3 to 5 years)
Key Market Findings
Market Directions
Hotel/Lodging
 Sustained annual occupancies meet
threshold required by capital markets for
financing new construction (65% to 72%)
 Fairfield Inn may delay near-term
feasibility of new hotel in study area
 Key planning question:
 Where is best location for future hotel
product in Delray Beach?
 Locational characteristics that enhance
marketability (e.g., Hyatt Place, Fairfield)
 Future feasibility studies will be required
to warrant conventional financing &
determine product type (i.e., business vs.
leisure)
Next Steps
 Solicit public feedback tonight & continue stakeholder outreach
 Estimate potential market demand by use & range (e.g., low/high)
 Suggest potential phasing & development strategies
 Consider linkages to downtown (e.g., branding/marketing, land uses)
 Consider both natural market growth & “induced” markets
 Prepare draft Market Study report by 9/15 for CRA review
 Submit final Market Study report by 9/30
Q&A
Demographic/Economic Profile
Selected Municipalities in Palm Beach County
As % of
2000
County
Population Trends (Permanent Residents Only) (1)
Palm Beach County
1,131,191
2013
As % of
County
1,345,652
Forecast
2020
As % of
County
1,465,300
Change: 2000-2013
Growth Rate Gain/(Loss)
1.3%
214,461
Delray Beach
60,020
5.3%
61,801
4.6%
66,640
4.5%
0.2%
1,781
Boca Raton
Boynton Beach
Gulf Stream
Briny Breezes
Highland Beach
Ocean Ridge
West Palm Beach
74,764
60,389
716
411
3,775
1,636
82,103
6.6%
5.3%
0.1%
0.0%
0.3%
0.1%
7.3%
86,041
70,131
974
420
3,572
1,798
103,038
6.4%
5.2%
0.1%
0.0%
0.3%
0.1%
7.7%
91,679
76,144
963
885
3,917
1,927
113,131
6.3%
5.2%
0.1%
0.1%
0.3%
0.1%
7.7%
1.1%
1.2%
2.4%
0.2%
-0.4%
0.7%
1.8%
11,277
9,742
258
9
(203)
162
20,935
2020
Population Forecasts (1)
Delray Beach
Palm Beach County
66,640
1,465,300
Change: 2013-2020
Growth Rate Gain/(Loss)
0.6%
0.7%
4,839
119,648
(1) Population estimates by the Palm Beach County Department of Planning, Zoning, and Building. Population reflects permanent residents
only, and does not include temporary residents. Thus, figures do not precisely match Census figures or ESRI estimates in other tables.
www.pbcgov.com/pzb/planning/population/countyprofile.pdf
Source: Palm Beach County Department of Planning, Zoning & Building; WTL+a, July 2014.
Demographic & Economic Profile
City of Delray Beach
2010
Demographic Profile
Population
Households
Avg. HH Size
Median Age
Race
White
Black
American Indian
Asian, Pacific Islander
Other
Two or More Races
Hispanic (1)
Age Distribution
0-14
15-24
25-34
35-44
45-54
55-64
65-74
75+
Average HH Income
Median HH Income
2012
% Dist.
2017
60,522
27,193
2.18
46.0
60,243
27,247
2.17
46.9
39,768
16,961
122
1,142
1,490
1,039
5,769
39,374
16,848
124
1,220
1,569
1,108
6,107
65%
28%
0%
2%
3%
2%
10%
39,007
17,353
138
1,485
1,820
1,296
7,305
8,017
6,578
7,522
7,308
8,727
8,079
6,143
8,148
7,875
6,352
7,438
6,972
8,343
8,399
6,516
8,346
66,636
45,855
13%
11%
12%
12%
14%
14%
11%
14%
7,780
5,883
7,424
6,739
7,633
8,754
7,928
8,954
76,119
53,803
$
$
% Dist.
61,098
27,538
2.18
48.8
$
$
Change: 2012-2017
No.
CAGR %
855
291
0.28%
0.21%
64%
28%
0%
2%
3%
2%
12%
(367)
505
14
265
251
188
1,198
-0.2%
0.6%
2.2%
4.0%
3.0%
3.2%
3.6%
13%
10%
12%
11%
12%
14%
13%
15%
(95)
(469)
(14)
(233)
(710)
355
1,412
608
-0.2%
-1.5%
0.0%
-0.7%
-1.8%
0.8%
4.0%
1.4%
2.7%
3.2%
Demographic & Economic Profile
City of Delray Beach
2010
2012
% Dist.
2017
% Dist.
Change: 2012-2017
No.
CAGR %
Housing Profile
Owner-occupied
% of Total
18,189
53%
17,764
52%
18,190
52.1%
426
0.5%
Renter-occupied
% of Total
9,004
26%
9,483
28%
9,348
26.8%
(135)
-0.3%
6,963
20%
34,156
7,079
21%
34,326
7,377
21.1%
34,915
298
0.8%
589
0.3%
Unoccupied
% of Total
Total Units:
Median Value
Average Value
$
$
140,692
209,916
$
$
165,644
223,971
(1) Persons of Hispanic origin are a subset of other race categories; therefore, totals do not add.
Source: ESRI Business Analyst; WTL +a, July 2014.
3.3%
1.3%
Demographic & Economic Profile
Study Area
2010
Demographic Profile
Population
Households
Avg. HH Size
Median Age
Race
White
Black
American Indian
Asian, Pacific Islander
Other
Two or More Races
Hispanic (1)
Age Distribution
0-14
15-24
25-34
35-44
45-54
55-64
65-74
75+
Average HH Income
Median HH Income
2012
% Dist.
2017
746
401
1.86
45.8
759
410
1.85
46.4
693
23
3
8
5
15
54
701
24
3
8
6
17
60
92%
3%
0%
1%
1%
2%
8%
725
29
4
11
7
23
80
83
47
89
144
139
135
71
39
83
48
90
141
136
143
79
41
79,643
51,889
11%
6%
12%
19%
18%
19%
10%
5%
85
45
94
141
129
155
102
47
95,634
61,418
$
$
% Dist.
798
427
1.87
47.7
$
$
Change: 2012-2017
No.
CAGR %
39
17
1.01%
0.82%
91%
4%
1%
1%
1%
3%
10%
24
5
1
3
1
6
20
0.7%
3.9%
5.9%
6.6%
3.1%
6.2%
5.9%
11%
6%
12%
18%
16%
19%
13%
6%
2
(3)
4
(7)
12
23
6
0.5%
-1.3%
0.9%
0.0%
-1.1%
1.6%
5.2%
2.8%
3.7%
3.4%
Demographic & Economic Profile
Study Area
2010
2012
% Dist.
2017
% Dist.
Change: 2012-2017
No.
CAGR %
Housing Profile
Owner-occupied
% of Total
245
49%
238
47%
253
48.2%
15
1.2%
Renter-occupied
% of Total
156
31%
172
34%
174
33.1%
2
0.2%
Unoccupied
% of Total
Total Units:
95
19%
496
95
19%
505
98
18.7%
525
3
0.6%
20
0.8%
Median Value
Average Value
$
$
224,201
327,452
$
$
265,776
356,115
(1) Persons of Hispanic origin are a subset of other race categories; therefore, totals do not add.
Source: ESRI Business Analyst; WTL +a, July 2014.
3.5%
1.7%
Demographic & Economic Profile
Annual Household Spending, 2012
City of
Delray Beach
Total Households (2012)
Study
Area
27,247
City of
Delray Beach
410
Other Entertainment
Pets
Apparel & Accessories
Men's Wear
$
252
$
310
157
238
Sports/Recreation/Exercise Equipment
139
175
Children's Wear
241
305
Reading
Footwear
192
234
Watches & Jewelry
145
179
145
Catered Affairs
Subtotal:
1,732
Computers
191
$
232
Software & Accessories
Subtotal:
$
234
$
285
41
23
$
1,553
$
4,721
$
5,517
2,995
Alcoholic & Non-alcoholic Beverages
Subtotal:
3,629
954
1,147
$
8,671
$
10,293
$
100
$
119
Household Furnishings & Equipment
Furniture
159
31
1,304
Food & Alcohol
Household Textiles
$
172
51
Entertainment & Recreation
Membership Fees for Clubs
90
150
$
Food Away from Home
$
71
175
$
Food at Home
Computers & Hardware
690
196
Photo Equipment & Supplies
1,413
$
Recreational Vehicles & Fees
529
$
599
126
437
Apparel Products & Services
$
Toys & Games
Women's Wear
Subtotal:
Study
Area
$
194
Floor Coverings
449
556
23
28
260
299
Fees for Participant Sports
114
139
Major Appliances
Admission to Movie/Theatre/Opera/Ballet
Housewares
61
73
Small Appliances
43
49
8
10
147
184
Admission to Sporting Events
58
75
Fees for Recreational Lessons
105
138
0
1
Dating Services
Subtotal:
$
584
$
730
TV/Video/Audio
Cable & Satellite TV Services
Telephones & Accessories
45
57
Lawn & Garden
410
444
Housekeeping Supplies
673
774
Maintenance & Remodeling Materials
246
Subtotal:
$
Televisions
Satellite Dishes
VCRs, Video Cameras & DVD Players
Miscellaneous Video Equipment
837
$
184
1
2
12
15
8
10
33
41
Video Game Hardware/Accessories
24
31
Video Game Software
27
35
Streaming/Downloaded Video
Rental of Video Cassettes & DVDs
Installation of Televisions
Audio
Rental & Repair of TV/Radio/Audio
$
3
5
25
32
1
1
104
132
4
5
1,232
$
288
$
2,318
$
2,697
$
605
$
637
952
151
Video Cassettes & DVDs
Subtotal:
Luggage
1,444
Health & Personal Care
Non- & Prescription Drugs
Optical
79
92
Personal Care Products
425
501
School Supplies
172
213
Smoking Products
456
Subtotal:
519
$
1,737
$
1,962
Total Annual Spending
$
476,571,555
$
8,485,631
Per Household
$
17,491
$
20,697
TOTAL:
As % of Average HH Income
22.0%
26.0%
Demographic & Economic Profile
County Employment Trends, 1995-2014
Industry Sector
In 000s
Mining & Logging
Construction
Manufacturing
Transp/Comm/Trade/Utilities
Trade
Wholesale
Retail
Information
Financial Activities
Services
Professional & Business
Education/Health Services
Leisure & Hospitality
Other Services
Government
Total (In 000s):
Change During Period:
1995
2000
2005
Change: 1995-2005
Amount CAGR %
26.7
26.7
78.0
34.9
28.8
94.4
45.2
19.9
103.6
18.5
(58.1)
89.5
14.1
56.6
9.3
28.1
17.5
68.6
12.4
36.7
22.3
72.0
11.1
40.0
38.7
55.7
50.8
22.1
51.2
77.4
64.4
58.0
25.0
57.0
458.0
2007
2009
2011
2012
2013
Change: 2007-2013
Amount CAGR %
5.4%
-2.9%
2.9%
45.5
19.2
106.8
27.6
16.3
97.3
23.3
14.9
97.7
24.3
15.4
99.9
0.2
25.7
15.7
101.4
0.2
(19.8)
(3.5)
(5.4)
-9.1%
-3.3%
-0.9%
8.2
15.4
1.8
11.9
4.7%
2.4%
1.8%
3.6%
23.9
73.3
11.0
40.7
21.8
66.6
9.5
35.2
21.0
67.9
9.1
36.1
21.4
69.5
9.2
36.9
21.6
70.6
9.2
37.5
(2.3)
(2.7)
(1.8)
(3.2)
-1.6%
-0.6%
-2.9%
-1.4%
95.9
75.6
69.6
28.2
64.9
40.2
24.8
47.5
6.1
13.7
9.5%
3.1%
3.2%
2.5%
2.4%
97.3
78.8
73.2
28.2
66.5
83.3
80.1
68.3
27.0
65.8
87.0
82.9
70.0
27.6
62.5
91.2
83.2
73.3
28.4
62.0
93.3
83.1
75.5
24.0
61.3
(4.0)
4.3
2.3
(4.2)
(5.2)
-0.7%
0.9%
0.5%
-2.6%
-1.4%
575.1
648.3
190.3
3.5%
664.4
598.8
600.0
614.7
619.0
(45.4)
-1.3%
117.1
73.2
16.1
(65.6)
1.2
14.7
4.3
Demographic & Economic Profile
County Employment Forecasts, 2010-2020
Employment Category
2013
Agriculture/Mining/Construction
Agriculture
Mining
Construction
Subtotal:
6,580
200
25,670
32,450
Manufacturing
Durable Goods Manufacturing
Non-Durable Goods Manufacturing
Subtotal:
11,113
4,599
15,712
Transportation/Communications/Public Utilities
Public Utilities
Transportation & Warehousing
Subtotal:
Wholesale & Retail Trade
Wholesale Trade
Retail Trade
Subtotal:
1,443
7,637
9,080
21,643
70,628
92,271
% Dist.
2021
5.5%
5,971
239
34,439
40,649
2.7%
12,268
4,322
16,590
1.5%
1,546
8,134
9,680
15.7%
24,463
77,779
102,242
Change: 2013-2021
% Dist.
Total
CAGR
6.1%
(609)
39
8,769
8,808
-1.2%
0.0%
3.7%
2.9%
2.5%
1,155
(277)
878
1.2%
-0.8%
0.7%
1.4%
103
497
600
0.9%
0.8%
0.8%
15.3%
2,820
7,151
9,971
1.5%
1.2%
1.3%
Demographic & Economic Profile
County Employment Forecasts, 2010-2020
Employment Category
Information
2013
2021
1.6%
9,579
6.4%
24,182
16,861
41,043
40,948
8,758
43,546
8,655
74,403
15,984
59,540
24,035
275,869
Government
Self-Employed & Unpaid Family Workers
Finance/Insurance/Real Estate
Finance & Insurance
Real Estate, Rental & Leasing
Subtotal:
Services
Professional, Scientific & Technical Services
Management of Companies & Enterprises
Administrative & Waste Management
Educational Services
Health Care & Social Assistance
Arts, Entertainment & Recreation
Accommodation & Food Services
Other Services (Except Government)
Subtotal:
TOTAL:
Annual Increase (Rounded):
9,227
% Dist.
Change: 2013-2021
% Dist.
Total
CAGR
1.4%
352
0.5%
6.1%
1,227
2,344
3,571
0.7%
1.9%
1.1%
47.0%
50,362
9,739
51,040
11,025
90,272
18,734
66,892
26,039
324,103
48.4%
9,414
981
7,494
2,370
15,869
2,750
7,352
2,004
48,234
2.6%
1.3%
2.0%
3.1%
2.4%
2.0%
1.5%
1.0%
2.0%
61,265
10.4%
68,809
10.3%
7,544
1.5%
53,046
9.0%
57,421
8.6%
4,375
1.0%
83,724
10,500
1.7%
22,955
14,517
37,472
586,392
Source: Florida Agency for Workforce Innovation; WTL +a, July 2014.
670,116
Demographic & Economic Profile
City of Delray Beach Businesses & Employment, 2012
NAICS Category
Mining & Natural Resources
Construction
Manufacturing
Transportation & Warehousing
Communications
Utilities
Wholesale & Retail Trade
Wholesale
Retail
- Home Improvement
- General Merchandise
- Food Stores
- Auto Dealers/Gas Stations
- Apparel & Accessory Stores
- Furniture/Home Furnishings
- Eating & Drinking Places
- Miscellaneous & Non-store Retail
Finance/Insurance/Real Estate
Services
- Hotel/Lodging
- Automotive Services
- Motion Pictures & Amusements
- Health Services
- Legal Services
- Educational Institutions
- Other Services
Government
TOTAL:
City of Delray Beach:
2012 Total Employment:
As % of County Employment
2012 Population:
Jobs/Population Ratio:
Businesses
No.
% of Total
143
399
193
142
56
17
1,294
333
961
40
11
86
90
91
107
244
292
703
3,990
33
136
179
564
122
62
2,894
38
6,975
2.1%
5.7%
2.8%
2.0%
0.8%
0.2%
18.6%
10.1%
57.2%
0.5%
100.0%
Employees
No.
% of Total
439
2,302
1,140
600
207
64
9,369
1,300
8,069
332
419
877
1,435
284
418
1,556
2,748
2,895
15,822
581
433
786
2,981
396
1,696
8,949
1,903
34,741
34,741
5.9%
60,243
0.58
1.3%
6.6%
3.3%
1.7%
0.6%
0.2%
27.0%
8.3%
45.5%
5.5%
100.0%
Demographic & Economic Profile
City of Delray Beach Businesses & Employment, 2012
NAICS Category
Mining & Natural Resources
Construction
Manufacturing
Transportation & Warehousing
Communications
Utilities
Wholesale & Retail Trade
Wholesale
Retail
- Home Improvement
- General Merchandise
- Food Stores
- Auto Dealers/Gas Stations
- Apparel & Accessory Stores
- Furniture/Home Furnishings
- Eating & Drinking Places
- Misc & Non-store Retail
Finance/Insurance/Real Estate
Services
- Hotel/Lodging
- Automotive Services
- Motion Pictures & Amusemts
- Health Services
- Legal Services
- Educational Institutions
- Other Services
Government
TOTAL:
No.
Businesses
% of Total
% Share of
Study Area
City
Businesses
by Type
4
13
5
4
1
1
41
8
33
1
2.0%
6.4%
2.5%
2.0%
0.5%
0.5%
20.2%
2.8%
3.3%
2.6%
2.8%
1.8%
5.9%
3.2%
9.4%
56.7%
2.7%
2.9%
0.0%
100.0%
0.0%
2.9%
1
3
3
6
7
12
19
115
1
4
6
15
4
2
83
203
No.
6
54
9
11
1
1
242
17
225
6
48
66
6
15
33
52
64
408
8
16
17
63
7
82
216
7
803
Employees
% of Total
% Share of
Study Area
City
Employees
by Type
0.7%
6.7%
1.1%
1.4%
0.1%
0.1%
30.1%
1.4%
2.3%
0.8%
1.8%
0.5%
1.6%
2.6%
8.0%
50.8%
2.2%
2.6%
0.9%
100.0%
0.4%
2.3%
North Federal Highway Study Area Analysis:
2012 Total Employment:
As % of City-Wide Employment
803
2.3%
2012 Population:
759
Jobs/Population Ratio:
1.06
Demographic & Economic Profile
City of Delray Beach: Retail “Recapture” Opportunities
Retail Category
Demand
Supply
"Recapture"
(HH Spending)
(Store Sales)
Opportunity
General Merchandise Stores
Department Stores Excl Leased Depts.
$
39,949,545
$
$
Other General Merchandise Stores
Subtotal:
$
54,628,645
108,219,379
$
62,702,505
$
45,516,874
33,696,863
$
20,814,383
$
12,882,480
68,269,834
$
8,073,860
(14,679,100)
60,195,974
Clothing & Accessories Stores
Clothing Stores
Shoe Stores
5,600,293
5,927,795
Jewelry, Luggage, Leather Stores
5,480,136
3,061,927
Subtotal:
(327,502)
2,418,209
$
44,777,292
$
29,804,105
$
14,973,187
$
8,575,969
$
10,691,276
$
(2,115,307)
$
16,419,791
$
36,901,988
$
(20,482,197)
$
18,526,082
$
8,063,787
$
10,462,295
$
18,526,082
$
8,063,787
$
10,462,295
$
10,104,651
$
11,313,438
$
(1,208,787)
$
14,804,388
$
14,874,512
$
(70,124)
$
34,151,987
$
48,733,318
$
(14,581,331)
Furniture & Home Furnishings Stores
Furniture Stores
Home Furnishing Stores
Subtotal:
7,843,822
26,210,712
(18,366,890)
Electronics & Appliance Stores
Appliances, TVs, Electronics Stores
Subtotal:
Leisure & Entertainment
Sporting Goods Stores
Books, Periodicals & Music
Subtotal:
4,699,737
3,561,074
1,138,663
Food Services & Drinking Places
Full-Service Restaurants
Limited-Service Eating Places
Special Food Services
Drinking Places -Alcoholic Beverages
Subtotal:
29,837,361
20,591,965
2,748,200
2,764,146
4,902,345
$
71,639,893
9,245,396
(15,946)
12,792,607
$
84,882,036
(7,890,262)
$
(13,242,143)
Demographic & Economic Profile
City of Delray Beach: Retail “Recapture” Opportunities
Retail Category
Demand
Supply
"Recapture"
(HH Spending)
(Store Sales)
Opportunity
Food & Beverage Stores
Grocery Stores
$
107,825,925 $
72,730,801 $
35,095,124
Specialty Food Stores
2,971,821
5,000,766
(2,028,945)
Beer, Wine & Liquor Stores
4,748,198
3,620,203
1,127,995
Subtotal:
$
115,545,944 $
81,351,770 $
34,194,174
$
57,233,703 $
123,854,661 $
(66,620,958)
$
57,233,703 $
123,854,661 $
(66,620,958)
$
19,889,370 $
23,841,250 $
(3,951,880)
Health & Personal Care Stores
Health & Personal Care Stores
Subtotal:
Building Material, Garden Equipment Stores
Building Materials & Supplies
Lawn & Garden Equipment & Supplies
Subtotal:
3,257,464
1,416,666
1,840,798
$
23,146,834 $
25,257,916 $
(2,111,082)
$
836,985 $
1,682,071 $
(845,086)
Miscellaneous Store Retailers
Florists
Office Supplies, Stationery, Gift Stores
5,959,525
31,360,233
(25,400,708)
Used Merchandise Stores
1,438,314
2,714,888
(1,276,574)
10,320,047
19,046,483
(8,726,436)
$
18,554,871 $
54,803,675 $
(36,248,804)
$
488,868,177 $
522,496,955 $
(33,628,778)
Other Miscellaneous Retail Stores
Subtotal:
TOTAL:
HH Demand vs. Retail Sales
(2)
Real Estate Market Conditions
Housing Profile
City of Delray Beach
Amount
%
Unoccupied Housing Units By Status
Unoccupied for Other Reasons
Rented (Not Occupied)
For Sale Only
Sold (Not Occupied)
Seasonal/Recreational
For Migrant Workers
Subtotal:
True Vacancies
Other Vacant
Vacant, For Rent
Subtotal:
Total Unoccupied Units:
Study Area
Amount
%
1,201
721
96
3,898
1
5,917
20%
12%
2%
66%
0%
72%
19
23
3
48
93
20%
25%
3%
52%
0%
78%
1,096
1,201
2,297
48%
52%
28%
8
19
27
30%
70%
23%
8,214
120
2,297
27
TRUE VACANCY:
Vacant Units
True Vacancy Rate
6.5%
5.3%
Real Estate Market Conditions
Housing Profile
City of Delray Beach
Amount
%
Housing Units By Structure
Detached
Attached
2 Units
3 or 4 Units
5 to 9 Units
10 to 19 Units
20 to 49 Units
50+ Units
Mobile Home/Other
Total Units:
Group Quarters Population
College Housing
Military Quarters
Correctional
Juvenile
Nursing Home
Other Facilities
Non-group Quarters
Total Units:
% of Population in Group Quarters:
Study Area
Amount
%
13,325
3,307
1,243
4,615
2,875
3,155
3,019
3,281
267
35,087
38%
9%
4%
13%
8%
9%
9%
9%
1%
100%
195
102
46
26
71
27
46
513
38%
20%
9%
5%
14%
5%
9%
0%
0%
100%
-
0%
0%
0%
0%
2%
2%
97%
100%
-
0%
0%
0%
0%
0%
0%
100%
100%
5
575
563
33,944
35,087
3.3%
1
512
513
0.2%
Source: Nielsen Claritas 2014 Estimates; American Community Survey; WTL+a, July 2014.
Real Estate Market Conditions
Housing Starts, 2004-2013
Municipality
Delray Beach
Single-family Units
Multi-family Units
2-Unit MF Structures
3- & 4-Unit MF Structures
5+ Unit MF Structures
Subtotal:
TOTAL-Delray Beach:
As % of Palm Beach County
2005
2006
2007
2008
319
116
113
4
40
44
8
4
252
264
-
363
3%
380
5%
206
7%
3
90
93
2009
2010
2011
2012
38
28
21
144
144
-
55
55
217
217
93
4%
245
17%
165
11%
-
54
Change: 2005-2013
All Starts
Ann'l Avg.
2013
44
153
886
98
4
62
66
517
517
2
4
6
14
15
1,377
1,406
1.6
1.7
153
156
120
5%
561
12%
159
3%
2,292
5%
255
-
Real Estate Market Conditions
Market Performance of Selected MF Complexes
Project/Location
Year Built
Class &
Height
Current
Vacancy
Unit
Type
No. of
Units
Size
(In SF)
Monthly
Rent
Rent
Per SF
1. The Franklin
320 Franklin Club Drive
Delray Beach
2013
Class A
3 floors
7.8%
1 BR
2 BR
3 BR
48
92
40
180
866 $
1,469
1,616
1,341 $
1,733 $
1,970
2,377
1,997 $
2.00
1.34
1.47
1.49
2. Worthing Place
32 SE 2nd Avenue
Delray Beach
2010
Class A
6 floors
5.1%
1 BR
2 BR
3 BR
81
128
8
217
1,002 $
1,214
1,390
1,141 $
1,908 $
2,779
3,088
2,465 $
1.90
2.29
2.22
2.16
3. Water's Edge @ Delray
500 North Congress Avenue
Delray Beach
1998
Class A
3 floors
0.0%
1 BR
2 BR
3 BR
56
84
8
148
905 $
1,083
1,227
1,023 $
1,144 $
1,257
1,400
1,222 $
1.26
1.16
1.14
1.19
Real Estate Market Conditions
Market Performance of Selected MF Complexes
Project/Location
Year Built
Class &
Height
Current
Vacancy
Unit
Type
No. of
Units
Size
(In SF)
Monthly
Rent
Rent
Per SF
4. Blu Atlantic
5550 Nepsa Way
Delray Beach
2014
Class A
3 floors
6.4%
1 BR
2 BR
3 BR
46
88
37
171
768 $
1,080
1,303
1,044 $
1,219 $
1,459
1,699
1,446 $
1.59
1.35
1.30
1.38
5. Alta Congress
250 Congress Park Drive
Delray Beach
2013
Class A
4 floors
19.0%
Studio
1 BR
2 BR
3 BR
1
98
189
81
369
537 $
760
1,200
1,446
1,135 $
1,195 $
1,355
1,858
2,435
1,849 $
2.23
1.78
1.55
1.68
1.63
Studio
1 BR
2 BR
3 BR
1
329
581
174
537 $
860
1,209
1,396
1,195 $
1,472
1,865
2,200
2.23
1.71
1.54
1.58
1,137
1,796 $
1.58
Selected MF Rentals - Delray Beach
Total/Weighted Average:
1,085
Real Estate Market Conditions
All Workplace Uses, 2014
Inventory
No. of Bldgs. Inventory (In SF)
Vacancy
In SF
% Vacant
Total Net
Absorption (In SF)
2006-1Q/2014
Current
Average
Lease Rate
Retail
439
5,167,230
218,993
4.2%
(24,162)
$
27.05
Office
301
2,994,576
793,379
26.5%
(677,345)
$
21.76
$
6.81
Without Office Depot Closing
(227,345)
Industrial
166
2,573,437
233,217
9.1%
(177,881)
Citywide Total:
906
10,735,243
1,245,589
11.6%
(879,388)
Source: CoStar, Inc.; WTL+a, July 2014.
Real Estate Market Conditions
Office Market Performance, 2006-2014
2006
2007
2008
2009
2010
2011
2012
2013
1Q/2014
City of Delray Beach
Inventory
3,130,115 3,128,015 3,128,015 3,062,773 3,094,923 3,094,923 3,073,278 2,994,576 2,994,576
No. of Buildings
315
314
314
304
304
304
302
301
301
Vacant Stock (1)
261,402
384,545
555,343 1,076,355 1,003,790
951,752
898,095
786,852
793,379
Vacancy Rate
8.4%
12.3%
17.8%
35.1%
32.4%
30.8%
29.2%
26.3%
26.5%
Total Net Absorption (1)
(9,829) (125,243) (170,798) (586,254)
104,715
52,038
32,012
32,541
(6,527)
Without Closing of Office Depot
Years of Positive Net Absorption Only
Construction Deliveries
Average Rental Rate (2)
$
23.46 $
23.25 $
22.57 $
23.23 $
22.70 $
21.24 $
21.04 $
21.10 $
21.76
Change: 2006-1Q/2014
Total
Ann'l Avg.
%
(135,539)
(14)
531,977
15.5%
(677,345)
-1.1%
Years to Stabilized (95%) Occupancy:
Years of Positive Net Absorption Only
(82,102)
(25,261)
55,327
13.6
Real Estate Market Conditions
Retail Market Performance, 2006-2014
2006
2007
2008
2009
2010
2011
2012
2013
1Q/2014
Inventory
5,167,452
5,258,917
5,375,650
5,228,517
5,250,488
5,254,452
5,180,664
5,178,256
5,167,230
No. of Buildings
466
467
473
451
447
448
444
441
439
Total Available Space (1)
263,881
208,270
434,607
470,910
486,449
442,185
363,447
337,024
339,454
Vacancy Rate
5.1%
4.0%
8.1%
9.0%
9.3%
8.4%
7.0%
6.5%
6.6%
Total Net Absorption (1)
(58,076)
149,155
(115,230)
(138,801)
55,630
13,250
46,169
34,039
(10,298)
Years of Positive Net Absorption Only
Construction Deliveries
Average Rental Rate (2)
$
24.04 $
24.46 $
24.63 $
24.15 $
21.07 $
15.63 $
17.50 $
23.37 $
27.05
Change: 2006-1Q/2014
Total
Ann'l Avg.
(222)
(27)
75,573
3.7%
(24,162)
(2,929)
59,649
1.7%
Years to Stabilized (95%) Occupancy:
Based on Average Annual Absorption (Years with Positive Absorption, Only)
%
5.4
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