Merrick Bank

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Merrick Bank

• Prepared for
• Brian D. Lee

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Jordan Gateway Comps
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Market Availables Report Photo Fact Sheets
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Jordan GatewayMarketing Flyer
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Jordan Gateway Stacking Plans
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Market A B Comps
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Market Summary 2nd Quarter Graphs
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•              
• 2nd 2009 Quarter Market Overview
• Direct vacancy increased to 13.6 percent at
  mid-year 2009, a 2.5 percent jump from the
  comparable period 12 months ago. The increase
  reflects a marked decline in demand and an
  overall weakening in market activity, both of
  which can be traced to job loss and the national
  economic downturn.
• The year began with negative absorption (-62,374
  sq. ft. Q1 2009) but several large office
  transactions completed during the second quarter
  pushed the mid-year absorption to 144,769 sq. ft.
• Lease rates have continued to hold steady all
  market sectors.
• Effective lease rates are lowering due to added
  concessions in the market.  Landlords are
  providing at least one month of free rent per
  year of the lease term.   We have seen some
  moving allowances and higher Tenant Improvement
  allowances as well.
• Landlords are providing aggressive terms to
  accommodate and renew existing tenants.
• Sublease vacancies continue to increase. Over
  500,000 sq. ft. of sublease space is currently on
  the market representing 1.62 of the total
  market. Discounted rents and turnkey operations
  are available providing competition to direct
  landlords.
• Construction levels will continue to taper off
  into 2010 with speculative projects requiring
  significant preleasing.
• 2009 Forecasting
• Overall direct vacancy is expected to increase to
  over 15. Including sublease overall vacancy is
  expected to top 17.
• Absorption levels are expected to remain lower
  than average.
• Raising vacancy will put a downward pressure on
  lease rates.
• Lowering of effective lease rates/added
  concessions will continue with current trend.
• New construction levels will be below normal
  levels with 610,000 sq ft scheduled to be
  delivered in 2009 (of that amount 14 is leased)
• No new projects are expected to begin
  construction in 2009 with the possible exception
  of Gateway VI downtown and View 72 in Midvale and
  even these projects will require significant
  preleasing.
• Expect more companies looking to sublease this
  year with potentially large blocks of space with
  reduced lease rates and extras such as furniture
  included in the deal.
•  

 
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