Kootenai County Retail Marker Forum Slides

Kootenai Countyy Retail Dani Bielec-Kramer, CCIM

[email protected] www.commercial1031group.com

Local Unemployment Statistics Kootenai County vs. State of Idaho Unemployment Rate 8.0

Unem mploymeent Ratee

7.0 6.0 5.0 Kootenai County  Unemployment

4.0 3.0

State of Idaho  p y Unemployment

2.0 1.0 0.0

Year

Source: Idaho Commerce & Labor

Local Retail Trade Employment

14,000

Emplloymennt

12,000 10,000 8,000 6 000 6,000 4,000 2,000 , 2000 2001 2002

Idaho Panhandle* 2003

Year *Idaho Panhandle

2004

2005

Kootenai County 2006

2007

2008

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

$118,070,569 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000

2009

2008

2007

2006

2005

2004

2003

2002

2001

$0 2000

Perm mit Dollar Amoount

$212 724 424 $212,724,424

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 $15 per SF NNN

Sportsman Plaza I & II $23 - $25 per SF NNN

Current Retail Market – New Retail CdA NEC of Best & 4th Street •$18 $ - $$24 p 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 2.5 acres sold to a national medical user Discount Tire

Planned

2008 Vacancy Report – Kootenai Retail 5.83% 2,500,000

12.48%

Vacancy Rates

Net U Usable SF F

2,000,000

1,500,000 , , Vacant SF Net Usable SF

6.03%

1,000,000

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

Sysco

Future Beck Rd. Interchange 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 Post FallsCrossing Highland

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 Retail Centers • 7% to 9% Free-standing Pad Retail • 6.5% to 7.5%

Capitalization Rate - A ratio used to estimate the value of an incomeproducing property Th ways to get there… Three h 1. Cap = NOI/Property Value 2. NOI = C Cap x Property Value l 3. Property Value = NOI/Cap

=

Looking Forward to 2009 - Retail Market

Thank You! Dani Bielec-Kramer, CCIM

[email protected] 509-994-3675 www.commercial1031group.com

www.commercial1031group.com

Dani Bielec-Kramer, Bielec Kramer CCIM [email protected] 509-994-3675