ALABAMA COMMERCIAL

PROPERTY UPDATEPresented by:

Donald Gambril

Morgan Solomon

Caleb Davis

Carter Harsh

Data Provided by: &

MULTIFAMILY

Huntsville - Multifamily

2008 2009 2010 2011 201284%

86%

88%

90%

92%

94%

96%

98%

100%

94%

91.3%

89.9%

92.1%92.9%

Occupancy 92.9%

2008 2009 2010 2011 2012 $500

$550

$600

$650

$700

$750

$800

$635 $655

$668 $685

$691

$691 ($.71/SF)Market Rate

Huntsville - MultifamilyNew Construction

• Deliveries• 250+ units• Belk Hudson Lofts

Under Construction• 700+ units• Addison Park, Limestone Creek, Providence Place

Pending/Planned • 1800+ units

Belk Hudson Lofts

Birmingham - Multifamily

2008 2009 2010 2011 201286%

88%

90%

92%

94%

96%

98%

100%

92.40%

90.7% 91.1%92.3%

93.6%

Occupancy 93.6%

2008 2009 2010 2011 2012 $500

$550

$600

$650

$700

$750

$800

$733 $749 $744

$761 $768

$768 ($.75/SF)Market Rate

Birmingham - MultifamilyNew Construction

• Deliveries• 740+ units• 29 Seven, The Hill, Parc @ Grandview, Tapestry Park

Under Construction• 650+• Ashby @ Ross Bridge, Lane Park, Vulcan Park

Pending/Planned• 2400+ units • 10+ properties

Tapestry Park

The Hill

Montgomery - Multifamily

2008 2009 2010 2011 201275.0%

80.0%

85.0%

90.0%

95.0%

100.0%

89.3%87.4% 88.5%

89.7% 90.1%

Occupancy 90.1%

2008 2009 2010 2011 2012 $500

$550

$600

$650

$700

$750

$800

$661

$696 $705 $724 $712

$712 ($.71/SF)Market Rate

Montgomery - MultifamilyNew Construction

• 250+ units• Includes 207 LIHTC units

Under Construction• 600+ units• Grand Reserve at Pike Road

Pending/Planned• 770+ units

The Grand Reserve at Pike Road

Mobile - Multifamily

2008 2009 2010 2011 201284.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

93.4%

89.8%

92.6%91.4%

90.3%

Occupancy 90.3%

2008 2009 2010 2011 2012 $500

$550

$600

$650

$700

$750

$800

$651

$675 $686

$709 $714

$714 ($.75/SF)Market Rate

Mobile - MultifamilyNew Construction

• 1090+ units• Campus Quarters, Crossings at Cottage Hill, Woodside

Under Construction• 90+ units

Pending/Planned • 400+ units

Campus Quarters

Alabama - Multifamily

Birming

ham

Hunts

ville

Mob

ile

Mon

tgom

ery

US88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

93.6%

92.1%

90.3% 90.1%

94.2%*

Occupancy 2012 Improvement Consistent with National Trends

• YTY construction starts up (↑39.5%) nationally**

• YTY decrease in unemployment (↓0.7%)

• Shift in preferences towards flexibility of renting

*axiometrics.com** US Census

RETAIL

Huntsville - RetailOccupancy Market Rate92.0% $10.22/SF

2009 2010 2011 201275%

80%

85%

90%

95%

100%

General Mall Power Center

Shopping Center Total Retail

2009 2010 2011 2012$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

General Mall

Power Center Shopping Center

Total Retail

Huntsville - RetailDeliveries• 14 Properties • Total RBA= 589,808 sq. ft.• Shoppes of Madison

Under Construction• No new construction reported for 2013

Top Leases

200 NE Oakwood Ave; 47,293 sq. ft.• 1st Quarter 2012• North Huntsville

University Plaza• 24,980 sq. ft. (Home Goods)• North Huntsville• 3rd quarter 2012

Birmingham – RetailOccupancy Market Rate $9.69/SF91.0%

2008

2009

2010

-1

2010

-2

2010

-3

2010

-4

2011

-1

2011

-2

2011

-3

2011

-4

2012

-1

2012

-2

2012

-3

2012

-475%

80%

85%

90%

95%

100%

General Mall Power Center

Shopping Center Specialty Center Total Retail

2008

2009

2010

-1

2010

-2

2010

-3

2010

-4

2011

-1

2011

-2

2011

-3

2011

-4

2012

-1

2012

-2

2012

-3

2012

-4$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

General Mall

Power Center Shopping Center

Specialty Center Total Retail

Birmingham – Retail Deliveries

• 8 Properties• Total RBA= 85,214 sq. ft.• Walgreens (Clairmont Avenue)

• 20,000 sq. ft.

Under Construction• 9 Properties (5 in Tuscaloosa)• Total RBA = 211,546 sq. ft.

• Elevated 136,000 sq. ft. Target at Brookwood Mall • Opening March 2013

• Westin Hotel and Entertainment District• Regions Field (Birmingham Barons)

• Opening April 2013• Expected to be catalyst for retail development

Top Leases 6400 Aaron Aronov Dr

• (The Foundry Rescue Mission) • 104,620 sq. ft.• 4th Quarter 2012• Bessemer

Winn Dixie at Inverness Corners• 50,000 square feet• Signed January 2013

Montgomery – RetailOccupancy Market Rate92.0% $7.83/SF

2009 2010 2011 201275%

80%

85%

90%

95%

100%

General Mall Power Center

Shopping Center Specialty Center Total Retail

2009 2010 2011 2012$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

General Mall

Power Center Shopping Center

Specialty Center Total Retail

Axis Title

Montgomery – RetailDeliveries

• 1 Property (North Montgomery)• Total RBA= 5,000 sq. ft.

Under Construction• No confirmed new construction reported for 2013• Proposed Mixed-Use project in CBD

• 16,000 sq. ft. of retail under 65 class A apartments

Top Leases• 3801 Eastern Blvd. (North Montgomery)• 1st Quarter 2012• Total RBA= 30,000 sq. ft.• Phillips, Edison, & Company

Mobile – RetailOccupancy Market Rate94.0% $12.35/SF

2009 2010 2011 201275%

80%

85%

90%

95%

100%

General Mall Power Center

Shopping Center Specialty Center Total Retail

2009 2010 2011 2012$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

General Mall

Power Center Shopping Center

Specialty Center Total Retail

Mobile - RetailDeliveries

• 2 Properties (1 West Mobile, 1 Midtown)• Total RBA= 13,178 sq. ft.

Under Construction• No new construction reported for 2013

Top Leases• Hillwood Center (White-Spunner & Associates)• Publix• 1st Quarter 2012• Total RBA= 45,600 sq. ft.

Alabama – Retail Occupancy - 4th quarter 2012 Occupancy consistent with National

trends

• Average statewide occupancy 4th quarter = 93%

• Occupancy rates remained stable since 2009 with slight increases in 2012.

• Huntsville had positive net absorption 4th quarter 2012

• Flat net absorption in Mobile market

• Negative net absorption 4th quarter 2012 in both Birmingham and Montgomery

Hunts

ville

Birming

ham

Mon

tgom

ery

Mob

ileU.S

.89%

90%

91%

92%

93%

94%

92%

91%

92%

94%

93%

Occupancy

OFFICE

Huntsville – Office

Occupancy Market Rate 90.4% $18.00/SF

2009 2010 2011 2012$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2009 2010 2011 201250.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

Class A Class B Total

Huntsville – Office

Deliveries• 2 Properties

• Total RBA= 242,000 SF

Under Construction• 2 Properties

• Total RBA =221,000 SF

Significant Leases• Redstone Gateway, 4 Buildings – 121,000 SF/ each

• Boeing agreed to lease 3 buildings

• Dynetics leased 1 building

Birmingham – Office

Occupancy Market Rate 87.0% $18.33/SF

2009 2010 2011 2012$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2009 2010 2011 201286.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

Class A Class B Total

Birmingham – Office

Significant Deliveries• 2 Properties

• Total RBA= 72,500 SF

No Properties Currently Under Construction

Significant Leases• Regions Plaza - 85,626 SF

• Colonnade 3500- 59,564 SF

• Concord Center – 54,742 SF

• Grandview II- 33,385 SF

Regions PlazaConcord Center

Cardiovascular Assoc.

Levall Building

Montgomery – Office

Occupancy Market Rate 89.7% $15.49/SF

2009 2010 2011 201250.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

2009 1q 2010 1q 2011 1q 2012 1q$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Class A Class B Total

Montgomery – Office

No New Deliveries in 2012

No Properties Currently Under Construction

Significant Sales and Leases• One Commerce Street- 125,000 SF, Sale $13.6 M

• 2545 Taylor Rd- 60,000 SF

• 445 Dexter Av- 18,000

• 1 Dexter Plaza- 16,000

445 Dexter- RSA

One Commerce

Mobile – Office

Occupancy Market Rate 89.9% $11.96/SF

2009 2010 2011 201286.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

2009 2010 2011 2012$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

Class A Class B Total

Mobile – Office

No New Deliveries in 2012

No Properties Currently Under Construction

Significant Leases• Research Park Bldg III - 11,110 SF

• 22 Mobile St- 4,500 - SF

Alabama – Office

Occupancy Strong Occupancy Compared to National Average

• Average occupancy 3% higher than national average

• Since 2011 All for major markets have stabilized around 90%

• New Deliveries and construction well below national average

• Average market rate in Alabama $14.23 compared to national average of $23.12

09 10 2011 201284.0%

85.0%

86.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

Huntsvillel Birmingham Montgomery

Mobile National

INDUSTRIAL

Huntsville – Industrial

Occupancy Market Rate 86.3% $5.98/SF

2009 2010 2011 2012 $-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Flex Warehouse Total Market

2009 2010 2011 20127000%

7500%

8000%

8500%

9000%

9500%

10000%

Flex Warehouse Total Market

Huntsville – Industrial

Deliveries• 2 Properties

• Total RBA= 73,434 SF

Under Construction• There is no new construction scheduled to

be delivered in 2013

Significant Leases• 4905 Moores Mill Rd -1,370,974 SF

• Third Qtr.

• 9805 Kellner Rd - 143,965 SF

• Third Qtr.

Birmingham – Industrial

Occupancy Market Rate 91.1% $3.45/SF

2009 2010 2011 20127000%

7500%

8000%

8500%

9000%

9500%

10000%

Flex Warehouse Total Market

2009 2010 2011 2012 $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Flex Warehouse Total Market

Birmingham – Industrial

Deliveries• 2 Properties

• Total RBA= 1,038,000 SF

• 100% Occupied

Significant Leases• 165 Goodrich Dr

• Tenant: NDI Office Furniture

• 61,658 SF

• 1000 Pinehill Rd

• 45,000 SF

Under Construction• There is no new construction scheduled to

be delivered in 2013

Montgomery– Industrial

Occupancy Market Rate 79.8% $2.94/SF

2009 2010 2011 20127000%

7500%

8000%

8500%

9000%

9500%

10000%

Flex Warehouse Total Market

2009 2010 2011 2012 $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Flex Warehouse Total Market

Montgomery – Industrial

Deliveries• No New Deliveries

Under Construction• No New Projects Under Construction

Significant Leases• Hodges Dixie Warehouse – 40,000 SF

• Third Qtr.

• 3345 Aronov Ave – 20,000 SF

• Third Qtr.

Mobile – Industrial

Occupancy Market Rate 88.6% $4.22/SF

2009 2010 2011 20127000%

7500%

8000%

8500%

9000%

9500%

10000%

Flex Warehouse Total Market

2009 2010 2011 2012 $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Flex Warehouse Total Market

Mobile – Industrial

Deliveries• 1 Property

• Total RBA= 7,531 SF

• 100% Occupied

Under Construction• There is no new construction scheduled to

be delivered in 2012

Significant Leases• 3406 Georgia Pacific Ave – 24,600 SF

• Alabama Roof Supply

• 65 Sidney Philips Dr – 21,100

Alabama – Industrial

Occupancy 90.25% Below Average Occupancy Compared to National Average

• Average occupancy 4% below national average

• Birmingham has had a stable market since 2008

• 2012 New Deliveries: • National: 66,827,568 SF• Alabama: 1,118,965 SF

1.7%

Huntsville Birmingham Montgomery Mobile National50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

95.00%

100.00%

THANK YOU

Tanner SumnersOffice Real Estate Mentor

David OakleyMultifamily Real Estate Mentor

Robert JollyRetail Real Estate Mentor

Jack BrownIndustrial Real Estate Mentor

Mentors