BANGOR AREA MARKET OVERVIEW. Bev Uhlenhake, CCIM Epstein Commercial Real Estate January 22, 2015

Transcription

1 BANGOR AREA MARKET OVERVIEW Bev Uhlenhake, CCIM Epstein Commercial Real Estate January 22, 2015

2 WHAT DO THE FOLLOWING HAVE IN COMMON?

3 Brad Paisley

4 Cirque de Soleil* *twice.

5 16 performing groups, 100,000 people, and $15M in 3 days (aka The American Folk Festival)

6 Arcade Fire

7 Brantley Gilbert

8 A giant beach ball, covered in lights, surrounded by 5,000 people

9 Bob Seger

10 James Taylor

11 Tim McGraw

12 Nationally-televised UFC Fight Night

13 Lady Antebellum

14 Jason Aldean

15 Dave Matthews Band

16 Country Music Awards Nomination Category: Event Venue - Large

17 #BANGORMOJO *hat tip to Alex Gray, Waterfront Concerts

18 Bangor Area Market Overview Market Data Industrial Office Retail Trends & Forecasting

19 THE NUMBERS Market Data

20 Inventory last five yrs (in sf) 600, , , , ,000 Retail - Mall Office - Medical Retail - Non-mall Industrial Office - Non-medical 495, ,000 - (100,000) (200,000)

21 Industrial Inventory Hermon 1,288,905 Total Inventory: 7,324,273 sf Hampden 773,530 Brewer 1,067,926 Bangor 4,193,912

22 Industrial Vacancy Total Market 12% 10% 10.3% 8% 8.7% 9.5% 10.0% 6% 6.4% 4% 2% 0%

23 Total Office Inventory (Class A to C) Medical (BGR&BWR) 876,824 Total Inventory: 3,307,043 sf Suburban Total 1,075,967 Brewer 273,137 Suburban (BGR) 802,830 Downtown (BGR) 1,354,251

24 Office Vacancy (Class A to B+) 12% 10.8% 10% 8% 6% 4% Downtown Suburban Medical 3.1% 9.2% 4.6% 9.5% 4.5% 6.7% 3.4% 8.6% 3.9% 2% 1.7% 1.6% 1.7% 1.4% 1.4% 0%

25 Retail Inventory Bangor Downtown 432,250 Non Mall Total 2,531,472 Brewer 1,318,954 Total Inventory: 6,368,807 sf Bangor Other 1,212,518 Bangor Mall Area 3,165,098

26 Retail Vacancy 16% 14% Downtown 14.5% 12% 10% 8% 6% Mall Non Mall 5.9% 11.0% 6.7% 9.4% 8.7% 5.9% 7.0% 6.4% 12.3% 7.0% 6.3% 4% 2% 2.6% 0%

27 THE TRENDS

28 Mill Job Losses Dec 13 Lincoln Paper & Tissue 200 Feb 14 Great Northern Paper, E. Mill. 212 May 14 UTC Fire & Security, Pittsfield 300 Aug 14 Great Northern Paper, E. Mill. 55 Aug 14 Old Town Fuel and Fiber 180 Sept '14 Great Northern Paper, Mill. Chapt. 7 Oct 14 Verso Paper, Bucksport 570 Dec 14 Old Town F&F purchased +180 Total Jobs Lost: 1,337

29 Mill Workers Total workers: 1,517 (180 rehired) 75% Male 63% Over 50 years old 67% High school diploma only Average $80,000/yr annual income package per employee 136 communities affected

30 Bangor: An Entertainment Destination 2002: National Folk Festival comes to Bangor (100,000 people = $15M annual economic impact )

31 Bangor: An Entertainment Destination 2005: Hollywood Racino opens

32 Bangor: An Entertainment Destination 2008: Hollywood Casino and Raceway $132M complex; $55.4M revenue in 2014

33 Bangor: An Entertainment Destination 2010: Waterfront Concerts begin 100,000 average annual attendance

34 Bangor: An Entertainment Destination 2013: $68.7M Cross Insurance Center opens

35 Bangor: An Entertainment Destination Since 2006: 700+ hotel rooms

36 Downtown Apartments: Up to 50 market-rate or better coming to downtown Structural Improvements Cosmetic Improvements Bangor Daily moves downtown 1Q15

37 THE FORECASTING

38 Known Eastern Maine Medical Center: 361,000 sf tower for $294,000,000

39 Known BDN: 13,000+ sf office into downtown

40 Known BJ s Wholesale Club: 94,000 sf

41 Bangor: 2015 & 2016 Mill closures fallout: To be determined Retail: Mall area dominance Office and industrial sectors: Slow and steady Downtown Continue stabilization Increased quality of tenants Steady, upgraded level of interest Arts & Entertainment: Critical mass grows Stable and increasing impact

42 On Our Radars next 10 yrs Entertainment Healthcare National park development Waterfront development on both sides of the river Housing Pipelines and the costs of energy

43 Special thanks to: Monty Rand Photography The Thing of the Moment/Jeff Kirlin Jodi DeVost Justin Russell Photography The Bangor Daily News photography staff 6 State Street P.O. Box 2444 Bangor, ME PH (207) FAX (207)