MARIN COUNTY SUBMARKETS QUARTERLY NEWSLETTER Keegan & Coppin Company, Inc. ONCOR International 1 st QUARTER 2013 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. O N C O R I N T E R N A T I O N A L 101 Larkspur Landing Circle, Larkspur 1401 Los Gamos Drive, San Rafael 1400 Grant Avenue, Novato INSIDE THIS ISSUE: Check out our Website: www.keegancoppin.com Market Highlights Notable Transactions Vacancy Trends Area Maps Southern Marin Central Marin San Rafael Novato OFFICE LOCATIONS: Santa Rosa 1355 North Dutton Avenue Santa Rosa, CA 95401 (707) 528-1400 Petaluma 1201 N. McDowell Blvd. Petaluma, CA 94954 (707) 664-1400 Larkspur 101 Larkspur Landing Circle Larkspur, CA 94939 (415) 461-1010 Napa 477 Devlin Road #104 Napa, CA 94558 (707) 252-1400
Transcript
MARIN COUNTY SUBMARKETSQUARTERLY NEWSLETTER
Keegan & Coppin Company, Inc.ONCOR International
1st Quarter
2013
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.
Santa Rosa - (707) 528-1400 Larkspur - (415) 461-1010 Petaluma - (707) 664-1400 Napa - (707) 252-1400
February 2013: 21 Locust Avenue, Mill Valley (Office Investment) - 2,882± sf sold for $800,000.
AREA MAP
SOUTHERN MARIN - INDUSTRIAL
21 Locust Avenue, Mill Valley
Harmonia Productions has reopened the historic Plant Recording Studios in Sausalito which operated from 1972 until 2008. The legendary studio recorded such artists as Fleetwood Mac, the Grateful Dead, Dave Matthews Band and Metallica. Harmonia has framed itself as a “cultural wellness center,” offering health, educational and cultural services and workshops and, building on the history of the building, they will be offering concerts as well. Lycée Français will be opening a new campus in Sausalito at 100 Ebbtide Avenue and the school anticipates that the campus will be ready for students in September 2013. The school, founded in 1967, has two campuses in San Francisco and one in Marin. They pride themselves in offering a curriculum which abides by French national standards of education offering graduates both an American high school diploma and the French Baccalaureate. The final phase of Project Headlands has begun an effort to renovate the stretch of Alexander Avenue that begins just north of the Golden Gate Bridge and continues along the descent into Sausalito. The $11 million construction project will significantly widen the shoulder,
increasing safety and usability while hopefully alleviating traffic delays. Other aspects of the project include wetlands restoration, resurfacing of several roads, construction of new parking lots in the Marin Headlands area and restoration projects. The Matthews are a local Mill Valley couple who purchased the grounds of Mill Valley Lumber whose buildings date back to the 1890’s. Although the site was approved for multi-family residential development, the Matthews bought the property specifically in order to save it from such a fate. They have managed other historic renovations in the Bay Area and they hope to find a hardware or mercantile store to fill the space, but are also open to other options. Southern Marin has seen a number of shifts in its office vacancies over the course of the past year, but this may be stabilizing as the past quarter resulted in a mere 0.1% increase over the previous. There have been fluctuations in the industrial submarket as well, but it is a fairly small submarket with limited offerings. The retail vacancy rate in this submarket is down to a mere 4.3%.
SOUTHERN MARIN - RETAILSOUTHERN MARIN - OFFICE
NOTABLE TRANSACTIONS
AREA MAP
Santa Rosa - (707) 528-1400 Larkspur - (415) 461-1010 Petaluma - (707) 664-1400 Napa - (707) 252-1400
January 2013: 501 Sir Francis Drake Blvd., Greenbrae - 4,227± sf leased to Fidelity National Title.March 2013: 100 Drakes Landing Rd., Larkspur - 2,475± sf leased.March 2013: 1363 South Eliseo Blvd., Greenbrae (Medical Office Investment) - 5,411± sf sold for $1,867,000.
1363 & 1375 So. Eliseo DriveGreenbrae
Central MarinCorte Madera, Greenbrae, Kentfield,
roSS & San anSelMo In response to growing enrollment, construction on a new school campus will commence in Corte Madera this June. This will be the first new school to be added to the Larkspur-Corte Madera district in thirty years. The location will be the former San Clemente school which was converted to a private French school after attendance declined in the early 1980s. The old buildings will be demolished to make way for a 35,000 square foot building that will accommodate 325, expected to open in time for the 2014-2015 school year. The number of electric vehicles registered in Marin County has doubled over the last six months - from 200 to 400 and as ownership has increased, so have the number of charging stations. The estimate is that the cost to travel a mile equates to around four cents per mile with an electric car as opposed to an average of $0.40 per mile standard gasoline engine. As of February, there were fourteen charging stations in the County, but that number is expected to nearly double since the County has secured two grants from the State of California to install additional stations. Among the most recent additions are the spaces at Red Hill Shopping Center in San Anselmo and the town plans
on adding four charging stations in the parking lot on Magnolia Avenue as well. Orchid Thai of San Anselmo is temporarily closed following the death of the restaurant’s co-owner and chef, Jeiranan “Tommy” Thongnopneua in January. The restaurant, which has received numerous Pacific Sun awards, has yet to announce its future plans. Marin’s hospitality industry is recovering steadily and significantly. The total hotel room revenue for 2012 rose $7 million over previous years, and room rates and vacancy rates charted similar trends. This is the second year of recovery for the county’s hotel sector. Lodging and hospitality also accounts for 7,000 jobs in the County, which makes it a significant contributor to Marin’s economic recovery in general. Retail vacancies in Central Marin have been declining fairly steadily since they peaked at 6.8% in the third quarter of 2011.
CENTRAL MARIN - OFFICE CENTRAL MARIN - RETAIL
NOTABLE TRANSACTIONS
AREA MAP
Santa Rosa - (707) 528-1400 Larkspur - (415) 461-1010 Petaluma - (707) 664-1400 Napa - (707) 252-1400
January 2013: 39 Larkspur St., #C, San Rafael - 3,530± sf leased.February 2013: 45 Mitchell Blvd., San Rafael - 2,633± sf leased to Consortium for Children.
1421 East Francisco Blvd.
San rafael
In March of this year, Loch Lomond Marina was sold to Woodridge Capital Partners with expectations of development and improvements. City approval has already been granted for a mixed use project with up to 81 residential units, commercial space, and park in addition to one of the largest marinas in the North Bay with over 500 berths. It is widely acknowledged that the site has fallen into disrepair and hopes are high that renovations will soon begin. The San Rafael Business Improvement District is restructuring itself, with the goal of providing greater marketing and services to downtown businesses through the “Clean and safe” campaign. By expanding its reach several blocks, the Business Improvement District will include an additional 500 businesses in its reach. Consortium for Children moved into a new office space at 45 Mitchell Boulevard in the Northgate Properties Business Park. A non-profit organization that was founded in 1999, it is active they provide critical support for foster care placements. San Rafael’s Pet Emergency and Specialty Center of Marin completed an expansion and renovation that increased the size of the fifteen year old veterinary facility to 12,000 square feet. Offering around-the-clock care for pets requiring
emergency or intensive care services and serves the entire North Bay and offers surgical and internal medicine specialists. The future of Grady Ranch, the 240 acre parcel off of Lucas Valley Road in San Rafael, continues to be debated. Although George Lucas abandoned his plans to build an expansive film production studio on the property, plans to turn it into a multi-residential site have met resistance. In order to continue qualifying for highway improvement grant funding, the County needs to approve new sites for affordable housing, otherwise, the provisional funding that it has enjoyed may evaporate. The project has faced challenges from residents who are concerned about insufficient local services, schools and the fact that a non-profit low income housing developer would be exempt from paying the usual property taxes which would generally help support the local schools. Office vacancy in San Rafael decreased by 3.0% over the course of the last year and by 2.3% over the prior quarter. Industrial vacancies continued the steady decline that they have shown for the past year. Only in retail vacancies, does a year-over-year comparison show a rise, and even then the total vacancy rate is 4.5%, on par with Southern and Central Marin.
SAN RAFAEL - OFFICE SAN RAFAEL - RETAILSAN RAFAEL - INDUSTRIAL
NOTABLE TRANSACTIONS
AREA MAP
Santa Rosa - (707) 528-1400 Larkspur - (415) 461-1010 Petaluma - (707) 664-1400 Napa - (707) 252-1400
695 De Long Avenue
novato
Novato’s City Manager, Michael Frank, was optimistic during his State of the City address in February. He cited decreases in vacancy rates and a rise in business activity, incomes and lease rates in the many reasons why he sees the city as well poised for expansion and success this year. Existing business relationships in the video game and biotech industries as well as improvements such as the SMART train among the city’s strengths that will help it build upon its already substantial presence in the County. Colorado-based Smashburger is expected to open its first North Bay location in Novato in May 2013. With over two hundred locations, including stores in Canada and Costa Rica, the chain is in an expansion phase. The line advertises hand “smashed” burgers that with 100% certified Angus beef that has never been frozen and menus that are customized to local demands. Home Instead Senior Care signed a lease for office space on Ignacio Boulevard in Novato. The office serves the Marin County area, offering and coordinating non-medical support
services for seniors which help them remain independent and live in their homes longer. The company spans multiple continents operating through franchises and insured and bonded administrators and professionals. A significant wetlands restoration project that involves over 2,500 acres of land in the Bel Marin Keys-Hamilton region of Novato will be further expanded through the incorporation of an additional eight acres that have been claimed by the California Coastal Conservancy. Park officials have yet to determine a plan for the additional land, but their initial efforts will focus on clean-up and enforcing laws which make dumping, vandalism and off-road motorcycling illegal in such areas. The industrial vacancy rate in Novato has remained the same since it dropped by nearly 4% in the third quarter of 2012. It crept up slightly this past quarter, but remained well below the high of 17.7% seen in the second quarter of 2011. Novato’s retail vacancies remain the highest in the county at 7.4%
