The Anchorage retail market did not experience much change in occupancy level in the third quarter is at 97.3%
The vacancy rate went from 2.8% in the previous quarter to 2.7% in the current quarter. Net absorption was positive 7,128 square feet. Quoted rental rates increased from second quarter 2014 levels per Costar.
Retail net absorption was basically flat in Anchorage third quarter 2014, with positive 7,128 square feet absorbed in the quarter. In second quarter 2014, net absorption was positive 2,210 square feet, while in first quarter 2014, absorption came in at positive 82,650 square feet. In fourth quarter 2013, posi- tive 17,925 square feet was absorbed in the market.
Tenants moving out of large blocks of space in 2014 include: Wells Fargo Bank NA moving out of 4,500 square feet at Tesoro; Oaken Keg Liquor moving out of 3,284 square feet at 7731 E Northern Lights Blvd; and H&R Block moving out of 2,140 square feet at 7731 E Northern Lights Blvd.
Tenants moving into large blocks of space in 2014 include: Linda Lockheart Design moving into 13,608 square feet at 10927 W Big Lake Rd; Arctic Chiropractic moving into 9,592 square feet at 500 E Benson Blvd; and Zweifel inc. moving into 7,000 square feet at 10927 W Big Lake Rd.
Anchorage’s retail vacancy rate decreased in the third quarter 2014, ending the quarter at 2.7%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 3.2% in the fourth quarter 2013, to 2.8% at the end of the first quarter 2014, 2.8% at the end of the second quarter 2014, to 2.7% in the current quarter.
The amount of vacant sublease space in the Anchorage Alaska market has trended down over the past four quarters. At the end of the fourth quarter 2013, there were 100,908 square feet of vacant sublease space.
The largest lease signings occurring in 2014 included: the 13,608-square-foot-lease signed by Linda Lockheart Design at 10927 W Big Lake Rd; the 9,592-square-foot-deal signed by Arctic Chiropractic at 500 E Benson Blvd; and the 4,976- square-foot-lease signed by Party Craft at Old Navy.
Rental Rates Average quoted asking rental rates in the Anchorage Alaska retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the third quarter 2014 at $17.80 per square foot per year. That compares to
$17.48 per square foot in the second quarter 2014, and $16.03 per square foot at the end of the fourth quarter 2013. This represents a 1.8% increase in rental rates in the current quarter, and a 9.94% increase from four quarters ago.
Inventory & Construction
During the third quarter 2014, no new space was completed in the Anchorage retail market. Over the past four quarters, a total of 0 square feet of retail space has been built in Anchorage. In addition to the current quarter, nothing was completed in second quarter 2014, nothing completed in first quarter 2014, and nothing completed in fourth quarter 2013.
There were 15,000 square feet of retail space under construction at the end of the third quarter 2014.
Total retail inventory in the Anchorage market area amounted to 18,425,681 square feet in 1,012 buildings and 103 centers as of the end of the third quarter 2014.
The Shopping Center market in Anchorage currently consists of 97 projects with 5,139,137 square feet of retail space in 140 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers.
After absorbing 4,553 square feet and delivering no new space in the current quarter, the Shopping Center sector saw the vacancy rate go from 5.1% at the end of the second quarter 2014 to 5.0% this quarter.
Over the past four quarters, the Shopping Center vacancy rate has gone from 5.1% at the end of the fourth quarter 2013, to 5.1% at the end of the first quarter 2014, to 5.1% at the end of the second quarter 2014, and finally to 5.0% at the end of the current quarter.
Rental rates ended the third quarter 2014 at $16.22 per square foot, up from the $15.98 they were at the end of second quarter 2014. Rental rates have trended down over the past year, going from $16.29 per square foot a year ago to their current levels.
Net absorption in the Shopping Center sector has totaled 4,840 square feet over the past four quarters. In addition to the positive 4,553 square feet absorbed this quarter, negative (946) square feet was absorbed in the second quarter 2014, negative (1,249) square feet was absorbed in the first quarter 2014, and positive 2,482 square feet was absorbed in the fourth quarter 2013. New Construction Rental rates are at $33.00 per square foot and holding.
The Power Center average vacancy rate was 0.0% in the third quarter 2014. With no net absorption and no new deliveries, the vacancy rate remained unchanged at 0.0% at the end of the third quarter.
In the second quarter 2014, Power Centers had no absorption, delivered no new space, and the vacancy rate stayed the same at 0.0% over the course of the quarter. Rental rates remained negotiable during this time.
A year ago, in third quarter 2013, the vacancy rate was 0.0%. Over the past four quarters, Power Centers have absorbed a cumulative 0 square feet of space and delivered cumulative 0 square feet of space. There was no sublease space over that same period, and rental rates have remained negotiable.
At the end of the third quarter 2014, there was no space under construction in the Anchorage market. The total stock of Power Center space in Anchorage currently sits at 462,825 square feet in 1 centers comprised of nine buildings.
No space was under construction at the end of the third quarter 2014.
General Retail Properties
The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 2.4% at the end of third quarter 2014. There was a total of 244,509 square feet vacant at that time. The General Retail sector in Anchorage currently has average rental rates of $19.68 per square foot per year. There are 0 square feet of space under construction in this sector, with 0 square feet having been completed in the third quarter. In all, there are a total of 830 buildings with 10,378,749 square feet of General Retail space in Anchorage.
There is currently 1 Specialty Center in the Anchorage market, making up 36,056 square feet of retail space. In this
report the Specialty Center market is comprised of Outlet
Center, Airport Retail and Theme/Festival Centers.
Specialty Centers in the Anchorage market have experienced no net absorption in 2014.
Malls recorded net absorption of 0 square feet in the third quarter 2014. This net absorption number, combined
with no new space that was built in the quarter, caused the
Absorption & Deliveries
Past 9 Quarters
Net Absorption Deliveries Vacancy rate to remain at 0.0% at the end of the third quarter 2014. Rental rates remained negotiable during that time. In this report the Mall market is comprised of 4 Lifestyle Center, Regional Mall and Super Regional Malls.