Mobile Office Market Survey
John Toomey III, CPM® is a Broker and Mobile New Business Development Coordinator in our Mobile, Alabama, office with over 30 years’ experience in the commercial real estate industry. He recently completed an Office Market Survey of the West Mobile and Mobile CBD markets, with plans to periodically update the survey to track trends and establish absorption rates.
Here’s an excerpt from John’s Market Assessment:
Our office market has seen challenging times the last five years. Some buildings have fared better than others in terms of occupancy. The good news is while the Mobile Office Market vacancy rate has been relatively stagnant, it has recently started to improve. The Downtown Mobile Alliance and the City of Mobile were successful in creating a statewide Historic Tax Credit in October 2013. After going into effect, this tax credit has been instrumental in spurring office redevelopment. Many historic, but vacant, buildings were revitalized using these tax credits and put back into commerce. One such example is the RSA Van Antwerp Building located in the CBD. This roughly 60,000 SF building has taken over 2 years to renovate and will open summer of 2015 with Phelps Dunbar and BBVA Compass Bank occupying most of the building, essentially pre-leasing nearly the entire building before it comes online.
We have seen a fair amount of leasing activity in our office market the last 12 to 18 months. Unfortunately, a lot of space was subleased, which does not have the desired effect on our rental rates and absorption rates. The Trustmark sublease at RSA Trustmark Building is an example. Newly restored buildings like RSA Van Antwerp Building add more inventory to the market. It is a positive step to see these buildings restored, but it remains to be seen how this will affect future rental and absorption rates.
In summary, we expect the office market to see leisurely positive growth in the future.
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.
President’s Message: A Championship Season
With the coming of Fall (hopefully soon) and the kickoff of a brand new football season filled with lofty expectations, excitement is in the air.
Let’s cheer our economic environment – our region remains strong and the nation continues to notice. Just last week, Louisiana was recognized again by a national publication – this time ranking #1 for Best Business Climate in the United States on Business Facilities’ annual Rankings Report, with Alabama rounding out the Top 10. According to the article, “if natural gas, gumbo and Mardi Gras are the only things that come to mind when you think about Louisiana, think again. Name a growth sector – digital media, advanced manufacturing, IT/software – and Louisiana has a specific program geared to welcome new players, with a proven track record of successful startups.”
Perhaps even more impressive, the same magazine’s annual Metro Rankings Report placed Baton Rouge #2, Mobile #3 and New Orleans #5 for Economic Growth Potential – three cities along the booming Gulf Coast in the Top 5, and all are cities where Stirling Properties is actively engaged. Other metro markets in our region are expanding as well – namely Lake Charles, Lafayette, Houma/Thibodaux and Shreveport/Bossier City.
Since my last President’s Message, Stirling too has continued to expand and grow in all of these markets. Our recent efforts include the acquisition of John Toomey & Company in Mobile, commencement of Phase II of Fremaux Town Center in Slidell and the addition of Sam’s Club to Stirling Bossier Shopping Center in Bossier City. We also have in the pipeline two new retail developments in Lake Charles and Lafayette, and we are actively involved in a number of other exciting initiatives.
Our new projects and growth, positive national rankings for our region and the upcoming football season are all certainly creating a buzz of excitement around here…let’s add football champions to the growing list!
Stirling Properties Expands Presence in Mobile, Alabama by Acquiring John Toomey & Company, Inc.
COVINGTON, LOUISIANA (MAY 13, 2014) – Stirling Properties announces the acquisition of John Toomey & Company, Inc., a commercial real estate company based in Mobile, Alabama. The acquisition of John Toomey & Company, Inc. further strengthens Stirling Properties’ presence in the Gulf South and is a critical step in Stirling’s long-term strategic growth plans.
Toomey’s current portfolio of 1.8 million square feet will be integrated into Stirling Properties’ portfolio bringing the total to 15.5 million square feet. John Toomey and his team will join Stirling Properties, with Mr. Toomey to serve as Broker/New Business Development Coordinator for the Mobile Area.
Marty Mayer, President and CEO of Stirling Properties, said, “The incredible resurgence of the Gulf Coast as the country’s Third Coast has provided growth and opportunities all along the Gulf South. We feel as though Mobile is a key component in this resurgence. To increase our regional presence, we are excited to collaborate with a company that has over 20 years’ experience and deep roots in Mobile.”
The founder of John Toomey & Company, Inc., John Toomey, believes that aligning with Stirling Properties will provide a higher caliber of service to existing and future clients. “Stirling Properties is a very strategic and forward-thinking company. The resources they offer our brokers and property owners will enable us to take our client services to a new level. I am so proud of my team and find it very gratifying that our work was noticed and appreciated by Stirling Properties.”
“This alignment reinforces Stirling Properties’ commitment to personally invest in the markets we serve and provides a strong foundation for continued growth in all facets of our company that include the development, management, brokerage and acquisition of commercial properties throughout Alabama and the Gulf South”,” stated Will Barrois, Stirling Properties Vice President/Regional Manager of Alabama and Florida.
For commercial real estate needs in Alabama, contact Stirling Properties at their Mobile office located at 182 St. Francis Street, Suite 101, or call (251) 706-6457.
