Numbers Behind Southeast Hottest Market 2015
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Randall Commercial Group, LLC Investment Real Estate Optimized Numbers Behind Southeast Hottest Market Lafayette-Oxford-University Market Report 2015 Randall Commercial Group, LLC 850 Insight Park Ave., University, MS 3867 • Post Office Box 1600, Oxford, MS 38655 Main Office: (662) 234-4044 • Fax: (662) 655-4357 www.randallcommercialgroup.com Oxford at a Glance—Page 1 Home of The University of Mississippi - Ole Miss Square Books on Historic Oxford Square 80 miles south of Memphis, TN & 160 miles north of Jackson, MS 62% increase in gross retail sales since 2006 in Oxford 24% increase in Bank Deposits in the Oxford City limits since 2010 up to $957 MM 54% increase in Oxford’s population from 2000 to 2015 29% increase in The University’s Oxford Campus enrollment from 2010 to 2015 50% increase in the number of students entering 1st Grade compared to students entering 12th grade in the Oxford School System in 2015 27% increase in total enrollment for the Oxford School District since 2006; 14% increase in Lafayette School District en- rollment since 2006 Median Home & Condo Price—$229,000 1,007 retiree households bringing assets of $323 million and over $33 million annually in discretionary income Ranked #1 on Kiplinger’s “10 Smart Places to Retire” list for 2014 Lafayette County (Oxford) had the State’s top growth rate at 11.8%, form April 2010 to July 2014 Oxford’s daytime population grows by 40% (2010) Oxford ranked #17 out of 576 U.S. Micropolitans in Economic Strength in 2015 4 New Hotels either under construction or recently completed: 1. TownePlace Suites by Marriott (Open—94 units); Courtyard by Marriott (Under Construction—121 units); The Graduate (Open—125 units); The Chan- cellor’s House (Under Contruction 32-units); total of 372 new units Comparison—SEC Towns Oxford, MS Athens, GA Baton Rouge, LA Fayetteville, AR Tuscaloosa, AL Measure (Ole Miss) (UGA) (LSU) (Unv. Of Ark.) (Unv. Of AL) Bank Deposits Per Capita $45,790 $21,255 $61,813 $31,220 $26,389 Gross Retail Sales Per Capita $31,006 $14,328 $18,180 $23,659 $21,025 Median Home & Condo Price $229,000 $149,000 $185,000 $199,000 $155,000 Population Growth 2010 - 10.50% 6.38% 0.22% 10.31% 5.61% 2015 University Undergraduate En- 28% 6.17% 6.73% 28% 28% rollment Growth 2010-2015 www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Retail Profile—Page 2 Highland Court 62% Increase 62% growth in gross retail sales in Oxford since 2006. Compares very favorably per capita to other SEC towns. 62% growth in gross retail sales in Lafayette County since 2006. Fiscal Year Surplus/(Leakage) S/(L) as pct. of Po- Total Retail Sales Pull Factor** Potential Sales (Lafayette County) *** tential Sales 2014 $942,760,000 1.28 $735,160,000 $270,600,000 28.2% 2013 $812,310,000 1.16 $700,180,000 $112,130,000 16.0% 2012 $745,530,000 1.41 $527,940,000 $217,590,000 41.2% 2011 $639,740,000 1.31 $486,530,000 $153,210,000 31.5% 2010 $636,820,000 1.30 $488,080,000 $148,740,000 30.5% 2009 $695,090,000 1.36 $509,830,000 $185,260,000 36.3% 2008 $698,400,000 1.44 $486,240,000 $212,170,000 43.6% 2003 $477,180,000 1.37 $347,810,000 $129,360,000 37.2% ** Pull factor—The pull factor identifies how much retail business is leaving your community in comparison to the population. A retail pull factor of 1 is neu- tral; there are as many people coming into the community to shop as are going elsewhere. A retail pull factor of less than 1 means there are more people leaving your community to shop than are coming in from the surrounding area. A retail pull factor greater than 1 means more people come to the community to shop than go elsewhere. ***The Oxford>Lafayette market has a “surplus” of retail sales—consumers are drawn in from outside the market. Sources—www.fdic.gov; Mississippi State University “Extension Service” www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Retail Trade Area (Population)—Page 3 Student Population 2015 Population w/o Students w/ Students (Oxford Campus Only) Oxford City Limits 20,899 19,996 40,895 38655 Zip Code 40,774 19,996 60,770 Lafayette County (Primary Trade Area) 52,324 19,996 72,320 Oxford City Limits 38655 Zip Code Lafayette County (Primary Trade Area) Oxford Traffic Count Map www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Financial Summary—Page 4 FNB Bank on Oxford Square Financial Institutions Number of Institutions: 11 2015 Gross Deposits: $956,959,000.00 18% Growth in Bank Deposits since 2009 in Oxford city limits. Date Gross Deposits 18% Increase June 2014—June 2015 $956,959,000.00 June 2011—June 2012 $885,992,000.00 June 2010—June 2011 $852,315,000.00 June 2009—June 2010 $825,078,000.00 June 2008—June 2009 $812,226,000.00 Property Assessment, Building Permits, Etc. $179 Million of Building Permits Pulled between 2013 & 2014 8.10% growth in Sales Tax Collections in Lafayette County between 2014 & 2015 Currently $1 billion under construction or in planning phase in Oxford 63% increase in Ad Valorem Assessment of Real Property Values since 2006—$432.04 million Off Campus Student Housing Beds Beds Added since 2010 63% Increase Highland Square 753 The Retreat 668 The Hub 582 Molly Bar Trails 303 Faulkner Flats 588 Taylor Bend 288 Total 3,182 www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Market Economy & Major Employers—Page 5 FNC Corporate Office Insignificant foreclosure rate during recession—according to N. Central MS Board of Realtors. Unemployment Rate 2015– Lafayette County 5.8%; Mississippi 7.2% Average HH Income in 38655 zip code—$60,681 Property Assessment, Building Permits, Etc. Company # of Employees The University of Mississippi (Ole Miss) is the flagship university for University of Mississippi 2,600 the state of Mississippi. www.olemiss.edu North Mississippi Regional Intermediate Care Facility for the Mentally Retarded (ICF/MR). Ser- 1,150 Center vices the northern 23 counties of Mississippi. www.nmrc.state.ms.us 217-bed acute care facility serving the northern third of Mississippi. Baptist Memorial Hospital 1,200 New $300MM, 680,000 sq. ft. regional hospital campus currently un- der construction. www.baptistonline.org/north-mississippi/ Winchester is the worldwide leader in the manufacture of commercial Olin Corporation— small caliber and military ammunition. Oxford’s 500,000 sq. ft. manu- 1,100 Winchester Division facturing facility houses Winchester’s Centerfire ammunition produc- tion lines. www.olin.com; www.winchesterguns.com BorgWarner is a global product leader in powertrain solutions. The Borg Warner 485 Water Valley(25 miles south of Oxford) facility is preparing to make its 3rd expansion in 2 years. www.borgwarner.com The world’s largest retailer with nearly 11,000 stores under 71 banners Walmart 400 in 27 countries. www.walmart.com City Of Oxford 340 City municipality. www.oxfordms.net World leading manufacture of construction and mining equipment. Oxford’s 185,000 sq. ft. High Performance Extrusion Group facility Caterpillar, Inc. 305 makes high-pressure couplings used in nearly every piece of equipment Caterpillar makes. www.caterpillar.com Mortgage technology company that has pioneered real estate collateral information technology. Currently in process of developing new FNC, Inc. 275 68,000 sq. ft. headquarters in Oxford that will provide 300+ high sala- ry, high-tech jobs. www.fncinc.com Lafayette County 200 County municipality. www.lafayettecoms.com www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Healthcare—Page 6 New Hospital Rendering 217-bed acute care facility (capacity to expand to 290 beds). Serves the northern 1/3 of Mississippi as a “regional referral center”. $200 Million economic impact to Oxford. Current Construction 90 Medical and Surgical Specialists. Ranked #1 in Mississippi for Cardiac Surgery. 60% of patients come from outside Lafayette County. Voted “Hospital of the Year” by the Mississippi Nurses Association in 2011. New $300 million 680,000 sq. ft. hospital cam- pus currently under construction. Two medical office buildings (MOB) totaling 40,000 sq. ft. will be constructed on the campus. NMRC Campus Services for patients with intellectual and related develop- mental disabilities. A licensed Intermediate Care Facility for the Mentally Re- tarded (ICF/MF). Serves 23 counties in North Mississippi. 1,150 employees 220-acre campus with 25 departments. operates 12 residential cottages housing 280 clients on its 220-acre Oxford campus. www.randallcommercialgroup.com 850 Insight Park Avenue | University, Mississippi 38677 | Post Office Box 1600 | Oxford, Mississippi 38655 | Phone: 662-234-4044 | Fax: 662-655-4357 Education—Page 7 Oxford School District 4,250 students in the Oxford School District. 27 % increase in enrollment since 2006; 18% since 2001 A 50% increase in the number of students entering 1st Grade compared to students entering 12th grade in the Oxford School System. New $30 million, 220,000 sq. ft. Oxford High School—opened spring semester of 2014. Oxford High School & Oxford Middle School are award winning Level 5 (Superior-Performing) Schools.