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 Names Jack Conger As Sales and Leasing Executive
Stirling Properties is pleased to announce Jack Conger as Sales and Leasing Executive for its Commercial Brokerage Division located in Mobile, Alabama. Conger will work from the company’s Mobile Office located at One St. Louis Centre, 1 St. Louis Street, Suite 4100.
With an emphasis on industrial and office brokerage, Conger joined Stirling in February of 2016 and is actively involved in Stirling University, a comprehensive 3-month training program for new agents, as well as working with the company’s senior brokers in a support role. He graduated from the University of Alabama with a Bachelor’s degree in Human Environmental Sciences.
Prior to working for Stirling, Conger was the General Manager of his family’s restaurant business located in San Antonio, Texas. He now resides in Mobile, Alabama, with his wife and daughter.
Jack Conger can be reached at (251) 342-7229 or jconger@stirlingprop.com.
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.
Alabama Historic Tax Credit Program
In 2013, the state of Alabama along with 33 other states, adopted a Historic Tax Credit program to help revitalize historic properties across the state. This tax credit program, when coupled with the federal Historic Tax Credits, can boost economic vitality in much needed areas as well as encourage development of nearby buildings. Thus far the program has awarded some $60 million in historic tax credits to support 39 qualified projects with a capital investment of close to $400 million. Further, for every $1 tax credit allocated approximately $3.90 is returned to state and local collections over a 20 year period.
The credits are set to expire in May and Lawmakers are debating whether to extend this program for another 7 years, a move which I fully support! Please reach out to your local congressman and urge them to support the extension of the state Historic Tax Credit.
To get all the facts and learn more about the properties that have benefited from the State Historic Tax Credit program, read John Sharp’s article on al.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.
2015: What a year for Mobile
With all the various ranking and awards Alabama received throughout 2015, it’s no surprise Mobile, Alabama had an amazing year!
As Stirling Properties’ Vice President & Regional Manager for Alabama/Florida, a member of the Mobile Area Chamber of Commerce and a member of the Chamber’s Board of Advisors, I was thrilled with all that Mobile accomplished this past year. Here are just a few of the more notable moments from 2015.
Airbus’s U.S. Manufacturing Facility at Mobile Aeroplex opened its first U.S. manufacturing facility on September 14, 2015. By 2018, the facility will produce between 40 and 50 single-aisle aircrafts per year.
GulfQuest National Maritime Museum of the Gulf of Mexico opened on September 26, 2015 and provided a huge impact to the area’s tourism economy.
The Alabama Department of Transportation awarded the I-10 Mobile River Bridge design/engineering contract to Thompson Engineering. This will increase the capacity of I-10 and meet the existing and predicted future traffic volumes.
The Manufacturing Communities Grant was implemented and Mobile was named one of only 12 federally-designated manufacturing communities in 2015. Over the past 5 years, manufacturing jobs in Mobile have increased by 38%, with a 22.9% increase in manufacturing wages.
1702, a group of chief executive officers and business leaders, was established to create an entrepreneurial community that showcases Mobile as one of the best cities for groundbreaking companies. The St. Louis street innovative corridor for tech savvy startups is becoming a reality.
The city executed a 13 month contract for the return of Carnival Cruise Lines starting in November 2016. This promises a huge economic impact to the city.
Mobile Chamber of Commerce surveyed their Partners for Growth Investors. The results showed that between January 2014 and June 2015 2,148 new jobs were created and during that time $936 million was invested in capital.
Stirling Properties is committed to serving Alabama and the Gulf South and we are proud to be one of Mobile’s top commercial real estate firms. We are excited about the great things to come in 2016 to Mobile!
