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HARTFORD COUNTY COMMERCIAL REAL ESTATE MARKET NOVEMBER 2008

HARTFORD COUNTY COMMERCIAL REAL ESTATE MARKET NOVEMBER 2008. Presented by: Andrews & Galvin Appraisal Services, LLC 16 Spring Lane, Farmington, CT john@agvalues.com 860-677-5522. REAL ESTATE MARKET PRESENTATION OVEVIEW. What is Current Perception in Hartford County

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HARTFORD COUNTY COMMERCIAL REAL ESTATE MARKET NOVEMBER 2008

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  1. HARTFORD COUNTY COMMERCIAL REAL ESTATE MARKETNOVEMBER 2008 Presented by: Andrews & Galvin Appraisal Services, LLC 16 Spring Lane, Farmington, CT john@agvalues.com 860-677-5522

  2. REAL ESTATE MARKET PRESENTATION OVEVIEW • What is Current Perception in Hartford County • Property Type Snap Shot & General Trends • Where are We Going From Here

  3. Connecticut Counties

  4. Hartford County Map

  5. HARTFORD MARKET AREA City of Hartford Downtown North Market – North Suburbs South Market – South Suburbs East Market – East Suburbs West Market – West Suburbs

  6. What Does the Hartford Commercial Real Estate Market Look Like?

  7. Where Are We Now?

  8. What Segment of the Coaster Do You Operate In?

  9. Total Number of SalesTracked by Conn-compsNovember 1989 to 2008

  10. Feeling the Trend?

  11. Growth – Core Growth How Much Are We Talking? • Housing Units • 348,252 units in 1997 to 367,078 Units 2006 • 18,827 Net Gain in Housing Units • Population • 825,141 in 1997 to 878,298 in 2006 • 53,000 + more people • Industrial Growth – Added 5 +/- Million SF (past 5 yrs) • Office Growth – Added 2.2 +/- Million SF (past 5 yrs) • Retail Growth – Expansions in All Four Quadrants

  12. Value Trends

  13. Typical Sales Activity 2008

  14. 780 James P. Casey RdBristol, CT • Sold January 2008 for: $60,500,000 - $50.42/SF • Sold November 2006 for: $28,300,000 - $23.58/SF • Sold June 2003 for: $23,500,000 - $19.58/SF • Sold Sept 1997 for: $ 4,280,000 - $ 3.57/SF

  15. Industrial Survey Results • CBRE – Market Overview 2nd Qtr 2008 • Overall Vacancy Rate 10.8% 2nd Qtr – Jumped 11.34% 3rd Qtr • -- (7% in the West / 14.6% in the East 2nd Qtr) • Industrial Rental Rates $4.50 to $5.70 with Avg @ $5.00/SF NNN • -- (Landlord negotiating to keep tenants) • Absorption – Negative 650,000 SF YTD • -- (However - 300,000 SF New Constriction & 300,000 SF Raymore & Flanagan Leased at 61 Chapel Road, Manchester) • Reason – lower demand for space

  16. Industrial Survey Results • Cushman & Wakefield – Market Beat 2nd Qtr 2008 • Overall Vacancy Rate 9.5%, down from 10.2% in 2007 • Absorption – positive 180,000 +/- SF • Rental Rates - $4.25/SF NNN +/- Slight increase over 1st Qtr - below 2007

  17. Apartment Trends

  18. Apartment Trends • No of Sales Has Tapered Off …… • Average Sale Price Stabilized Off …. • Vacancy Rates Remain Stable …. • Rents Slight Increases with Expenses …. • Municipalities Concerned with Absentee Landlords .. • Out of State Investors – No more Bi-model Data … • Job Losses – Foreclosures – Housing Age … • Sellers Still Want Higher Prices – Buyers waiting for fall . • Leveraged Properties – Economic Life vs. Physical Life • Mortgage Financing Nearly Gone …. Or Is It?

  19. Recent Apartment Sales(Both Openly Marketed)

  20. What Has Changed?

  21. Hartford County Office Market

  22. Recent Office SalesHartford County

  23. Retail MarketHartford Count

  24. What Are Lenders Doing?Hartford County Market • Increasing Credit Terms – Lowering loan to value ratios and increasing debt service coverage ratios • Points – ½ to a 1.5 points • Rates – Spreads nearly all increased and now tied to FHLBB 5 yr mostly • Recourse is Back • Why – less competition

  25. Thank you … Andrews & Galvin Appraisal Services, LLC 16 Spring Lane, Farmington, CT john@agvalues.com 860-677-5522

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