Retailers looking at Alaska, residential sales up slightly
At the Anchorage Chamber of Commerce on Aug. 13, Brandon Spoerhase of Jack White Commercial gave a rundown of new developments to look out for in the future while Michael Droege of Century 21 said home sales are looking good.
One new retail development will be as 45,000-square foot Gallo Center on the north side of Dimond Boulevard. Retail space should be available between $2.50 per square foot and $2.80 per square foot.
Cabela’s, a large outdoor retailer, will be entering the Alaska market in South Anchorage in 2014. Spoerhase said an interesting thing about this location is that there is no sewer line to that development and the nearby Target operates using a septic system.
“So it’ll be interesting to see what Cabela’s does on that,” he said.
This deal is being brokered entirely by out-of-state principles between Cabela’s and Target. Spoerhase said this is “kind of” against state law and so it will be interesting to see how that develops. He said deals like this generally do eventually contact a licensee in Ketchikan or Nome, which is legal. The deal is announced but has not yet been signed.
In other news from Spoerhase, Ken Brady Construction has received the go-ahead on a 176,000-square foot Wal-Mart on Debarr Road and Muldoon Road.
“So that’s going to change the landscape quite a bit in East Anchorage,” Spoerhase said.
Pfeffer Development is trying to do some pre-leasing on eight acres near there.
Sam’s Club will soon break ground on a 145,000-square foot store and gas station at Tikahtnu Commons. This will be the center’s last big tenant because it has reached full capacity.
Walgreens is investigating possibilities for a new store at the intersection of Abbott Road and 88th Avenue. A new, unnamed restaurant will also be going into the vacant Chili’s building at this location.
Spoerhase said restaurants like Red Lobster and Texas Roadhouse have been looking around Anchorage but have not committed.
Natural Pantry has been negotiating for six months to relocate from the University Center to a $15 million, 40,000-sqaure foot location at the corner of 36th Avenue and A Street. No deal has been signed.
Massage Envy is locating to Tikahtnu Commons and is looking for a South Anchorage location. Other newcomers include AutoZone and Verizon.
Old Navy and Famous Footwear will be moving out of Glenn Square. Glen Square is trying to replace that space with a single national tenant. Old Navy will head to Tikahtnu Commons.
Spoerhase also addressed the office market, saying that Anchorage is healthy with an overall vacancy rate at just less than 6 percent out of about 6 million total square feet.
In the residential market, Droege said Alaska is doing fairly well with modest increases in sales and prices.
At the end of July, the average year-to-date prices were up 4.83 percent.
There were 2,588 homes sold statewide in the same year-to-date period. This is a 5.2 percent increase.
There were 3,312 pending home transactions, 17.4 percent increase.
New listings went up 19.7 percent through the month and 4.1 percent for the year-to-date.
Droege said Alaska’s supply and demand, plus low interest rates, which popped up a bit but have generally been at record lows over time, are responsible for the average increases.
During the same time period, average Anchorage residence sales prices went up 3.68 percent. Condo sales were the exception, dropping 2.59 percent for the year.
Sold listings rose 10.1 percent on average for residences. Average condo sales only went up 3 percent and multiple-family sales dropped 20.9 percent.
Active listings dropped 2.1 percent in Anchorage. Droege said this is because there isn’t much inventory out there but that might flatten out by the end of the year as new listings become available. New listings rose 0.7 percent in the year-to-date.
Eagle River and Palmer rose in average sales by 3.63 percent and 8 percent respectively. Eagle River had a 2.5 increase in sales for the year while Palmer dropped by 19.6 percent. Both had slightly increased new listings.