AMARILLO, TEXAS RETAIL MARKET SURVEY JANUARY, 2009 Introduction by JasonDetriou

VIEWS: 4 PAGES: 3

									                                 ________________________________________________
                                                            COLDWELL BANKER COMMERCIAL
                                                                  FIRST EQUITY, REALTORS
                                                                                   2101 S. COULTER
                                                                                AMARILLO, TX 79106
                                                                                  BUS. (806) 354-3500
                                                                                  FAX (806) 356-4077
                                                                                 www.cbcamarillo.com




                                    AMARILLO, TEXAS

                               RETAIL MARKET SURVEY

                                       JANUARY, 2009



Introduction:
This is the twenty-third annual survey of multiple-tenant retail properties 10,000 square feet or
larger conducted by Coldwell Banker Commercial First Equity, Realtors. This survey is for use by
real estate professionals including brokers, appraisers, lenders, property managers, property
owners, and investors in their evaluation of the Amarillo retail market. It is not intended for
consumer use and, therefore, contains no consumer-related disclosures and/or disclaimers.
Careful attention has been paid to methods of collection and verification of the data contained in
this survey and the comments and conclusions drawn thereon. However, Justin Kite, and
Coldwell Banker Commercial First Equity, Realtors makes no representations and/or warranties
with respect to the data, comments, or projections contained in the survey. All of the data
collected for this survey is subject to change without notice.

Scope:
The survey was conducted during December 2008 and January 2009. Justin Kite, retail specialist,
with Coldwell Banker Commercial First Equity, Realtors contacted owners, leasing agents, and
property management companies directly, in person or by telephone. All of the properties were
personally inspected in order to verify occupancy. Due to changes in use (retail to office or vice-
versa) and re-measuring of properties, the total amount of available retail square footage
changes from year to year, though usually in amounts deemed insignificant. During 2008, the
new developments of The Western Crossings Shopping Center added 172,448 square feet and
The Markets at Hillside added 25,942 square feet. Therefore, the total inventory of multiple-
tenant retail space in Amarillo increased to 4,986,377 square feet.

Findings: Occupancy
The overall retail occupancy rate in Amarillo was up one percent from a year ago to an overall
occupancy rate of 94%. This is the first time the retail occupancy rate has changed (outside of
rounding adjustments) since 2006. The total vacant square footage decreased by 55,459 square
feet, and total occupied space increased by 263,127 square feet during 2008. The Southwest
Quadrant open air centers experienced a 198,390 square foot increase in occupancy, the
Southeast Quadrant centers experienced a net gain of 198,390 square feet, the Northwest
Quadrant centers absorbed 2,207 square feet (the fifth straight year to register an increase in
occupied space), and the Northeast Quadrant absorbed 2,558 square feet of space.
Findings: Rental Rates
Because of the diversity of condition, age, location, and management of the retail property
inventory; it is difficult to quantify a precise percentage of change in retail rental rates. However,
the data gathered indicated that the Class A shopping centers were able to increase rates slightly
and the Class B & C centers were stable at best and in some cases experienced rental rate
decreases.

2009 Outlook:
Currently, there is little activity by either national or regional retail tenants which eliminates a
significant segment of retail space users. Additionally, this survey was completed prior to the
closing of Circuit City which starts the 2009 market off 40,000+ square feet behind 2008. Local
tenant activity is confined to space swapping; i.e. movement within a center (both downsizing and
upgrading) and movement from one retail center to another. There are few new local tenants
entering the market. The one segment that continues to be active are the fast food and fast
casual restaurant concepts. However, we are aware of one possible retail center start that could
occur in mid to late 2009.

Thus, it appears the market will hold steady at 94% occupancy to possibly contracting a small
amount barring any Circuit City-like surprises by national or regional tenants.



                                            Summary

                                 Total        Occupied          Percent         Vacant
                                Square                                          Square
       Market Area               Feet        Square Feet       Occupied          Feet

 Southwest                    3,945,222         3,729,853        95%             215,369

    Open Air Centers          3,058,683         2,861,045        94%             197,638
    Mall Properties             886,539           868,808        98%              17,731

 Southeast                      229,019           221,519        97%                7,500

 Northwest                      587,570           558,288        95%              29,282

    Open Air Centers            122,570           111,888        91%              10,682
    Mall Properties             465,000           446,400        96%              18,600

 Northeast                      224,566           199,324        89%              25,242


      TOTAL                   4,986,377         4,708,984        94%             277,393

      Open Air Centers        3,634,838         3,393,776        93%             241,062
      Mall Properties         1,351,539         1,315,208        97%              36,331

								
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