10,000 Sir Francis Drake Boulevard, Olema O N C O R I N T E R N A T I O N A L

Transcription

1 Company, Inc. ONCOR International MARIN COUNTY SUBMARKETS QUARTERLY NEWSLETTER 2 nd Quarter 2012 INSIDE THIS ISSUE: Market Highlights Notable Transactions Vacancy Trends Area Maps Southern Marin Central Marin Downtown San Rafael Northern San Rafael Novato OFFICE LOCATIONS: Santa Rosa 1355 North Dutton Avenue Santa Rosa, CA (707) Petaluma 1201 N. McDowell Blvd. Petaluma, CA (707) Lucky Drive, Corte Madera Larkspur 101 Larkspur Landing Circle Larkspur, CA (415) Napa 477 Devlin Road #104 Napa, CA (707) ,000 Sir Francis Drake Boulevard, Olema Check out our Website: Du Bois Street, Suite F, San Rafael O N C O R I N T E R N A T I O N A L The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein.

2 200 Caledonia, Sausalito April 2012: 22 El Portal Street, Sausalito - 1,376 square feet leased to the Scented Seagull. June 2012: 200 Caledonia, Sausalito - 5,000 square feet leased to Peter Geffner and Adam C. Driver for the purpose of opening an organic grocery store. Southern Marin Sausalito, Tiburon, Belvedere & Mill The Southern Marin submarket is primarily represented by Sausalito and Mill Valley, with Belvedere and Tiburon playing contributing roles. A report by the Marin Economic Forum (MEF) revealed the degree to which Sausalito s economy has been increasingly driven by nonretail factors. Although tourism, retail and restaurant-oriented businesses contribute to the revenue, the strongest growing industry in Sausalito is found in the tech sector. Assistance for the marine industry may be reinvigorated by the upcoming 2013 America s Cup which promises to bring a great deal of investment throughout the Bay Area within the next year, but especially to nearby Sausalito. This will be valuable in light of the MEF s report which noted that investment in the harbor region has been waning over recent years. The report concluded that cooperative relationships should be sought between commercial real estate agencies and the City Valley of Sausalito in order to shape the growth of the City and to provide for maximum economic growth in upcoming years. The goal is to create an environment that will nurture the growing tech industry, support the declining Marinship waterfront area and acknowledge the contributions made by the nonretail sector. Another significant development in the submarket was Westcore Properties, LLC s decision to market its Mariners Landing property for sale, now that it has been stabilized, according to a quote in the North Bay Business Journal s article on the subject dated June played a large part in the stabilization process. Office vacancies rose slightly from the previous quarter, but still remained more than two percent below the office vacancy rate of a year ago. Retail vacancy rates in Sausalito and Mill Valley rose to 5.1% in the Third Quarter of 2012, but they have remained essentially stable since then. SOUTHERN MARIN - OFFICE SOUTHERN MARIN - RETAIL

3 240 Tamal Vista, Corte Madera April 2012: 30 Sir Francis Drake Boulevard, Ross - 1,366 sf leased to Girls Club Entertainment, LLC. May 2012: 206 Bon Air Center, Greenbrae - 2,390 sf leased to The Pad Studios. June 2012: 240 Tamal Vista, Suite 255, Corte Madera sf leased to G2 Planet, Inc. Central Marin Corte Madera, Greenbrae, Kentfield, Central Marin includes many of the smaller, affluent neighborhoods in Marin County. The region has benefits from its location and proximity to San Francisco and the East Bay. Although many of its residents commute to work, there are a variety of quality office and retail locations in this submarket that offer beautiful, central locations. The seven year lease signed by The Pad Studios is an excellent example of the increasing confidence in the market. Building on their San Francisco Cow Hollow location by extending their reach to Marin. The location offers a combination of yoga, pilates and prenatal classes. It s an optimal location as Bon Air Shopping Center s central location provides quality services to a community that is strongly health and fitness oriented. Continued progress in the construction of the SMART system which will offer commuters an alternative to Highway 101 by providing train service stretching from Cloverdale to the Larkspur Ferry Terminal, right into the heart of Central Marin. Although the Larkspur leg of the track will not be completed in Phase One of the project, it CENTRAL MARIN - OFFICE Ross & San Anselmo still promises to ease congestion for those who currently rely on the freeway to travel to and from work. The first phase of the project isn t anticipated to reach completion until 2015, but in the meantime, the project is expected to contribute 1,000 jobs to the North Bay economy this year alone. Ms. Carolyn Glendening, a representative for SMART, revealed that the portion of the project that will link Larkspur to the rest of the system is eligible for federal funding and that they are working through MTC (Metropolitan Transportation Commission) to establish that funding. This region saw a great deal of s leasing activity this quarter with leases signed in Ross, Greenbrae, Corte Madera and Larkspur. The office vacancy rate for the area held fairly steady from the previous quarter with total vacancy 0.8% below the vacancy rate a year ago. The retail vacancy rate has dropped over one percent from a high of 6.7% the previous quarter, but remains elevated over the 4.5% vacancy rate seen a year ago. CENTRAL MARIN - RETAIL

4 San Rafael 1101 Fifth Avenue April 2012: 647 Irwin Street, Suite D, San Rafael - 4,365 sf leased to Sports Performance-Fitness. April 2012: 1101 Fifth Avenue, Suite 230, San Rafael - 4,000 sf leased to Cornish & Carey. April 2012: 26 Duffy Place, San Rafael - 3,500 sf leased. June 2012: 1660 Second Street, Stes. A&B leased to Marin Veterinary Group, LLC Downtown San Rafael is currently benefitting from the decisions of a few local Marin businesses to cement their relationships with the County. Most notably among these are the expansion of Autodesk after a few years of contraction, the purchase of additional space by the County of Marin itself and BioMarin s expansion into a new San Rafael campus. EO Products, a local company committed to producing personal care products that are socially and environmentally sustainable and responsible, has expanded their operation by leasing 40,000 sf of space previously occupied by Industrial Light and Magic (ILM) at 90 Windward Way in San Rafael, thereby allowing them to consolidate their operations. As the company expanded, they outsourced part of their operations to Southern California and they are eager to move those jobs to Marin since their larger space will allow them to bring all of their operations under one roof. Yet the most notorious headline for Marin County SAN RAFAEL - OFFICE came when Lucas decided that they would not be pursuing the Grady Ranch project because of NIMBY (not-inmy-backyard) sentiments. This made the national news circuit and brought attention to the restrictive growth attitude in Marin County and its ramifications. In the end, it was not the attitude of local government or the permitting process that caused Lucas to seek friendlier territory, but the complaints of neighbors overrode the efforts of local officials and agencies that sought Lucas to perseverence. Overall, recent activity has had a dramatic effect on office vacancy rates in San Rafael, which comprises over 40% of the office space in Marin County, showed a tremendous drop. Although the total office vacancy rate was 18.9%, this was nearly a full percent below the previous quarter and 15.6% below the 34.5% seen in the same quarter a year ago. This steady trend of improvement demonstrates a market that is showing marked improvement. SAN RAFAEL - RETAIL

5 Novato 505A San Marin Drive May 2012: 5394 Nave Drive, Sausalito - 30,880 sf sold to Homeward Bound for $790,000. April 2012: 505A San Marin Drive, Novato - 1,678 sf leased to SLR Finacial. May 2012: 19 Digital Drive, Suite S, Novato sf leased. June 2012: 505A San Marin Drive, Suite 180, Novato sf leased. With the assistance of contributions from the County of Marin, Marin Community Foundation and the Dominican Sisters of San Rafael, Homeward Bound was able to purchase the premises vacated by Ohloff Recovery Programs when they decided to to consolidate their operations in San Francisco. Now that their New Key Center development is complete, providing transitonal housing with 29 studio units, they will begin fundraising for the project, Oma Village, at 5394 Nave Drive. These units will be focused on providing longer-term housing for families that will hopefully allow working families transitioning out of homelessness to build financial and economic stability in a county where it might otherwise be difficult for such candidates to save and overcome the income to expense ratio that plagues many Marin County families. Also revealed in June are Birkenstock s plans to relocate to its signature building at 8171 Redwood Boulevard in Northern Novato. As the lease on its facility in Hamilton Landing is set to expire this year, it is expected that the company will relocate to the Redwood Boulevard campus that it vacated in Distribution was out-sourced to UPS and the company downsized in order to fit into the space in Hamilton, but the company has been in a growth phase in recent years, justifying the move back into the 135,000 square foot campus. Another retail supplier whose operations are expanding, Navitas Naturals, purchased 23,000 square feet of warehouse space which they have leased for the past six years at 9 and 15 Pamoran Way in Novato. The company which supplies Whole Foods, Paradise Foods, Mollie Stone s and numerous other health-oriented grocery stores nationwide with natural energy snack foods, has been expanding as the appetite for their treats are whetted by an increasingly health-conscious public. All of these transactions have led to a busy quarter for Novato that signals an improving economy and reason for optimism. NOVATO - OFFICE NOVATO - RETAIL