5552 Vangard 2b - LoopNet · 2018-10-31 · Orlan-do metro average and tend to rank in the top...

5551 VANGUARD ST.ORLANDO, FL

Wolf Co.REAL ESTATE

BARRETT WOLFBroker

o 786.574.3040c [email protected]

ANABELL SCHUYLERLeasing Associate

O (786) 574-3040C (305) [email protected]

5551 Vanguard Street is strategically located just off the prominent intersection of International Drive/Kirkman Road. Offering includes adjacent ancillary surface parking lot, prime for development.


3363 NE 163rd Street, Suite 610, North Miami Beach, Fl. 33160 USA 305.574.3040

www.WOLFCOREALTY.com

PROPERTY HIGHLIGHTS- Gross Area: 46,071 sf- Construction: Reinforced Concrete- Fully renovated with all new HVAC and lobbies- Custom-designed spaces- Executive lounge- Gym and meditation room- Lockers with showers for men and women- Abundant Parking - 8.41/1000 sf- Ease of access to Interstate 4, Florida Turnpike,

Beachline, and Sand Lake Road- Potential Users: Higher Education Institutions,

Back Office Administration, Entertainment,Computer Testing Services

ANCILLARY PARKING LOT HIGHLIGHTS

- 1.93 acres - Folio:30-23-29-2784-06-001 - Zoning 1-AC3, Orlando - The Max density for non residential is 0.07 (70%) /Maximum height in I-P 75 ft.




FIRST FLOOR 21,782± sf

Universal Conference Room Contact Center Lobby

SECOND FLOOR 21,132± sf




Ancillary Parking192 Spaces

Building Parking177 Spaces

7008 Municipal Drive Orlando, FL 32819




Tourist Corridor, one of the metro’s premier office submarkets, is home to the business operations of a majority of the metro’s leisure and hospitality employ-ers. The submarket has the second-largest office inventory in Orlando and in terms of sheer square footage, has had the most construction in the metro since 2004. As a result, about 40% of the Tourist Corridor is made up of 4 & 5 Star office space, compared to about 25% at the metro level. Although construction had picked up considerably over recent years, it has been slowing of late with only one project underway.

Despite being relatively active as compared to the metro with new office construction, higher-quality inventory remains more prevalent in competing key office submarkets, including Downtown and Maitland Center. The largest buildings (50,000 SF and larger) are clustered in the northern half of the submarket on both sides of I-4 where major employers reside.

Much of the strong demand here is driven by robust job growth, particularly in the leisure and hospitality and manufacturing sectors. For example, Tavistock Development Company signed Orange Lake Resorts to one of the metro's largest recent office deals. The lease was 240,000 SF and will house Orange Lake Resorts' corporate campus of over 2,000 employees in two buildings. Lockheed Martin also broke ground in early 2018 on their new 255,000 SF R&D facility. The building is set to complete in 2019 and will add 500 high-income jobs to the metro.

Even with the somewhat more modest recent construction, year-over-year rent growth has cooled since 2015 and has perhaps felt downward supply-side pressure. However, the limited speculative supply pipeline could further encourage the down-ward-trending vacancies and allow the rent growth to maintain its currently healthy levels. Tourist Corridor is not a particularly liquid corridor, with only moderate investment activity.

12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

OVERVIEW

239 K 129 K 6.1 % 1.8%

KEY INDICATORS

CURRENT QUARTER RBA VacancyRate

Gross AskingRate

AvailabilityRate

Net AbsorptionSF

DeliveriesSF

UnderConstruction

4 & 5 Star3 Star1 & 2 Star

3,689,3914,331,837970,078

5.3% $28.01 12.4% 2,586 0 125,0006.6% $25.19 5.8% -15,793 0 06.4% $20.19 11.6% 6,548 0 0

SUBMARKET 8,991,306 6.1% $25.84 9.2% -6,659 0 125,000

ANNUAL TRENDS 12Month

HistoricalAverage

ForecastAverage

Peak When Through When

Vacancy Change (YOY)Net Absorption SFDeliveries SF

1.1%129K239K

9.1% 6.9% 17.2% 2009 Q4 2.9%226,603 154,795 822,920 2009 Q1 -243,332240,090 216,291 1,255,979 2009 Q1 0

Rent GrowthSales Volume

1.8%$121 M

1.2% 2.0% 8.2% 2015 Q2 -10.8%$48.1 M N/A $350.7 M 2015 Q2 $1.4 M

2006 Q42010 Q12016 Q32010 Q12017 Q2




LEASING

VACANCY RATE

VACANCY RATE




Though they have not returned to prerecession peaks, Tourist Corridor asking rents remain above the Orlan-do metro average and tend to rank in the top five among all submarkets. The relatively high average asking rents are largely due to the submarket's high proportion of 4 & 5 Star buildings (approximately 40%).

The Tourist Corridor had a cyclic peak of annual rent gains in 2016, though supply-side pressure has cooled growth since. However, rent growth has remained elevated and is still among the upper half of Orlando submarkets. With a very low vacancy rate, expected continued strong demand, and a dwindling construc-tion pipeline, further significant compression is unlikely. Rent gains appear poised to maintain their healthy trend.

RENT

MARKET RENT GROWTH (YOY)




RENT

MARKET RENT PER SQUARE FOOT




All-Time Annual Avg. SF Delivered SF Past 4 Qtrs Delivered SF Next 4 Qtrs Proposed SF Next 4 Qtrs

CONSTRUCTION

15,896 239,000 125,000 470,900

PAST & FUTURE DELIVERIES IN SQUARE FEET

PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION & PROPOSED




While high-end office assets are abundant throughout the Tourist Corridor, sales have been historically stagnant and tend to almost exclusively involve buildings rated 3 Stars and below. For example, Orlando Health purchased the 2 Star medical office building located at 7472 Docs Grove Circle for $6.54 million in April 2018. The 15,400 SF building was fully-occupied by a medical practice and expands Orlando Health's footprint in the Tourist Corridor.

The submarket witnessed a boom period in 2014 and 2015 with a spike in sales volume of more than ten times the prior decade's annual average sales volume.

These numbers were heavily skewed by three large transactions: Darden Headquarters sold its 1.5 million SF property as part of a sale-leaseback for $133 million; the Wyndham Vacation/Visit Orlando Head-quarters building trading for nearly $65 million; and AEW Capital's acquisition of the 13 office building, $261 million South Park Center portfolio.

Sales levels have since returned back to the Tourist Corridor's historical norms. The relative lack of invest-ment activity in an overall fundamentally sound submarket could indicate elevated exposure to liquidity risk.

SALES

SALES VOLUME & MARKET SALE PRICE PER SF




Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALES PAST 12 MONTHS

49 6.2% $189 3.1%

SALES ATTRIBUTES Low Average Median High

Sale PricePrice Per SFCap Rate

$159,900$9.056.0%

$9,190,608 $7,125,000 $29,500,000$189 $219 $8596.2% 6.0% 9.5%

PROPERTY ATTRIBUTES

Building SFStoriesTypical Floor SFVacancy Rate at SaleYear Built

SALES VOLUME & MARKET SALE PRICE PER SF

Time Since Sale in Months 0.1 4.1 5.5 11.9%

Low Average Median High

Star Rating

4,6481

4,418

43,289 20,162 118,6892 1 5

0% 3.1% 0% 19.6%23,509 10,270 98,777

1984 1998 1997 2013









Wolf Co.REAL ESTATE

BARRETT WOLFBroker

o 786.574.3040c 305.542.3507

[email protected]

ANABELL SCHUYLERLeasing Associate

O (786) 574-3040C (305) 906-1727

[email protected]

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5552 Vangard 2b - LoopNet · 2018-10-31 · Orlan-do metro average and tend to rank in the top...

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