Mobile Office Market Assessment 3rd Quarter 2016
Stirling Properties is pleased to present the 2016 third quarter Mobile Office Market Survey. This report, compiled by Jack Conger and Jill Meeks, Sales and Leasing Executives of our Mobile office, is intended to track average rental rates, occupancy rates, and average absorption rates for West Mobile and the downtown Central Business District (CBD) on office buildings greater than 20,000 square feet. It was created to be a resource for agents, as well as tenants, landlords, developers, lenders, fellow brokers and anyone else looking for information about the Mobile Office market.
Jack Conger is our newest Sales and Leasing Executive in our Mobile office, focusing on industrial and office brokerage. Jill Meeks has over 27 years’ experience in commercial real estate.
Here’s an excerpt from Jack and Jill’s Market Assessment:
Since the Q1-16 Mobile Office Market Survey, the West Mobile office market had a number of noteworthy transactions that created quite a stir in the market. In the end, the office market experienced a slight decrease in average occupancy from 79.5%-79.4% and an average rental rate decrease from $15.50 per sq. ft. to $15.35 per sq. ft., reflecting a decrease in the absorption rate of 0.09% from Q1-16.
Mobile’s growth is evident with several building projects planned and underway. In the CBD, a new Federal Courthouse is under construction and the Meridian at the Port, a 264-unit apartment complex located at 300 Water Street, is awaiting construction. Walmart announced plans for a new 2.9 million sq. ft. distribution center in West Mobile, and Airbus launched the first airplane assembled by its new $600 million final assembly plant back in April. This activity promises to further stabilize the office market in Mobile, and Stirling Properties looks forward to being a part of this season of growth and creativity!
Please click here to view and download the PDF of the Mobile Office Market Survey. This survey provides a good summary of the Mobile office market and my hope is that it becomes a valuable resource in the market.
British Airways to connect London & New Orleans with nonstop flights
This morning, British Airways announced it was initiating a direct flight between New Orleans and London. This is truly a “game changer” for our region and a confirmation about the outlook for the Gulf South economy.
The effort to bring British Airways back was years long and required presenting a strong regional business support throughout Louisiana and over to Mobile.
Michael Hecht, CEO of GNO Inc. stated:
“Mobile (Ala.) was a major support for us because we talked about starting up a bus service for executives from Mobile into New Orleans, so they can fly direct into Europe instead of going into Chicago.”
Stirling Properties Philanthropic Spotlight
Everyone loves getting flowers. They miraculously lift our spirits and bring a smile to our face. And some people need that pick-me-up more than others.
Stirling Properties Senior Vice President, Donna Taylor, recently discovered the power of flowers through a nonprofit organization called Bouquets of Hope.
Taylor’s daughter was just married in Memphis, Tennessee. The ceremony and reception areas were beautifully decorated with exquisite floral arrangements and bouquets, along with those held by the bridal party. All of the festivities went off without a hitch, and the happy couple departed for their lifelong journey. But what do you do with all of those flowers after the wedding?
Ironically, Taylor saw a news program on a nonprofit organization that founded a program called Bouquets for Hope. The organization collects flowers from weddings and events, rearranges them, and delivers them to local nursing homes, hospitals, hospice homes, rehabilitation centers, and anywhere there is a need to brighten someone’s day. In addition, the ministry also serves as a job training and employment opportunity for clients.
From the Taylor wedding, volunteers were able to create 50 bouquets that were delivered to seniors at Christian Care Center. They were thrilled to receive the arrangements, especially the gorgeous bridesmaids’ bouquets! Taylor hopes that by sharing this message, others will do the same.
Here at Stirling Properties, community philanthropy is a big deal. We pride ourselves in giving back to the communities that support us. The company encourages our leaders and employees to give their time and resources to support nonprofit organizations and community groups, and we couldn’t be prouder.
Every act of kindness, no matter how big or small, can go a long way. So we encourage everyone to get out there and brighten someone else’s day!
#StirlingProud
Mobile Office Market Assessment 1st Quarter 2016
Stirling Properties is pleased to present the 2016 first quarter Mobile Office Market Survey. This report, compiled by Jack Conger and Jill Meeks, Sales and Leasing Executives of our Mobile office, is intended to track the direction of the office market by establishing an absorption rate, a market occupancy rate and an average rental rate for West Mobile and the downtown Central Business District (CBD) on office buildings greater than 20,000 square feet. It was created to be a resource for agents, as well as tenants, landlords, developers, lenders, fellow brokers and anyone else looking for information about the Mobile Office market.
Jack Conger is our newest Sales and Leasing Executive in our Mobile office, focusing on industrial and office brokerage. Jill Meeks has over 27 years’ experience in commercial real estate.
Here’s an excerpt from Jack and Jill’s Market Assessment:
Since the Q3-15 survey, the office buildings surveyed in this report in West Mobile experienced a very modest increase in average occupancy rate from 80% to 80.1%, and the average rental rate decreased from $15.61 to $15.45/per square foot. West Mobile has a fair amount of older, unimproved office space available at below-market rental rates that contributes to low rental rates. We have seen several new Healthcare related expansions in West Mobile and expect that this trend will continue around the hospital campus.
In the CBD, there was a decrease in the occupancy rate from approximately 72% to 65.9%, and average rental rates decreased from $17.42 to $17.29/per square foot. The decrease in the occupancy rate is due in part to a few notable transactions: Regions Bank’s consolidation of its St. Francis Street and Water Street branches, Servis1st Bank’s relocation to the redeveloped Phelps Dunbar office at Royal and Dauphin Street, and lastly, BBVA Compass Bank and Phelps Dunbar’s move into RSA’s recently completed Van Antwerp renovation.
Overall leasing activity in updated CBD office buildings continue to be solid, along with demand for smaller renovated historic properties.
Please click here to view and download the PDF of the Mobile Office Market Survey. This survey provides a good summary of the Mobile office market and my hope is that it becomes a valuable resource in the market.
Stirling Properties Announces New Real Estate Transactions In South Alabama
Stirling Properties commercial real estate company is pleased to announce new transactions in Orange Beach, Mobile and Spanish Fort, Alabama.
- Cowgirls Inc. restaurant and nightclub will occupy 16,000 square feet at The Wharf located at 23101 Canal Road in Orange Beach and is expected to open on March 1, 2016. Stirling Properties Broker, Jeff Barnes, handled the transaction.
- Rio Mexican Restaurant will occupy 2,987 square feet at Aircrest Plaza located at 6401 Airport Boulevard in Mobile with anticipated opening date in the spring of 2016. Stirling Properties Broker Associate, Angie McArthur, represented the tenant and Colby Herrington with Herrington Realty, Inc. represented the property owner.
- Tetra Tech engineering firm has renewed its lease for 1,675 square feet of office space at the Wells Fargo Building located at 61 St. Joseph St. in Mobile. Stirling Properties Senior Sales and Leasing Executive, Jill Meeks, handled the transaction.
- Michael Ross Jewelers will move to occupy 2,400 square feet at Hillwood Shopping Center and is expected to open in the spring of 2016. Hillwood Shopping Center, anchored by Publix Super Market, is located at 2370 Hillcrest Road in Mobile, Alabama. Stirling Properties’ Angie McArthur represented the tenant and Michael Reid with White-Spunner Realty represented the property owner.
- Doctors Diet Program, a medical weight loss company, will occupy 2,100 square feet at Eastern Shore Plaza in Spanish Fort, AL and is expected to open in the spring of 2016. This will be their 1st location in Baldwin County. Eastern Shore Plaza regional power center, anchored by Best Buy, PetSmart, Michael’s, and Ross Dress for Less, is located on the eastern shore of Mobile Bay at the northeast intersection of I-10 and State Highway 181, adjacent to Eastern Shore Centre. Angie McArthur represented both sides in the transaction.
Stirling Properties is located in One St. Louis Centre, 1 St. Louis Street, Suite 4100 in Mobile. For more information regarding our services, please visit us at www.stirlingproperties.com.
Stirling Properties Announces Recent Transactions in Mobile, Alabama
Welcomes new tenants to Bel Air Office Tower
Stirling Properties commercial real estate company announces two new tenants and one renewal at Bel Air Office Tower in Mobile, Alabama.
- Alabama Department of Revenue, occupying 26,030 square feet for a 15-year lease term, with anticipated opening date in summer of 2016.
- Bankers Life and Casualty Co., offering life insurance and retirement planning services, will occupy 4,399 square feet for a 5-year lease term and is expected to open in March 2016.
- Walker Jewelers, a fine jewelry retailer occupying 1,722 square feet, has renewed its lease for a 3-year term.
Bel Air Office Tower is located at 851 I-65 Service Road in Mobile, Alabama. Stirling Properties worked on behalf of the owner in cooperation with Cushman & Wakefield/EGS Commercial Real Estate for all of the listed transactions. For more information, please contact Jason Scott, Senior Sales and Leasing Executive with Stirling Properties in Mobile.
Stirling Properties is located in One St. Louis Centre, 1 St. Louis Street, Suite 4100 in Mobile. For more information regarding our services, please visit us at www.stirlingproperties.com.
