3Q2013 North County
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Transcript of 3Q2013 North County
NORTH COUNTY SAN DIEGOINDUSTRIAL MARKET REPORT
Q3 2013
SUPPLY BY SIZESUBMARKET VACANCY
1Industrial Property Report
VACANCY RATE
8.93% 675.5K sfNET ABSORPTION (YTD)
$.75 nnnAVERAGE RENTAL
RATES / SF
$105 AVERAGE SALE
PRICES / SF
52.2M sfMARKET SIZE
OVERVIEW
The North San Diego County industrial market is largely decentralized and comprised of fi ve cities including Carlsbad, Escondido, Oceanside, San
Marcos and Vista. Situated 35 miles north of downtown San Diego and 52 miles south of John Wayne Airport in Orange County, the coastal
location is a major factor in the area’s appeal to corporate users and its 826,985 residents.
MARKET TRENDS BUILDINGS TOTAL INVENTORY VACANT SF VACANCY RATE YTD ABSORPTION
Carlsbad 486 14,958,382 1,773,135 11.85% 305,500
Escondido 638 7,336,330 393,540 5.36% 120,929
Oceanside 393 7,992,771 1,144,085 14.31% <1,110>
San Marcos 488 8,520,535 504,589 5.92% 117,153
Vista 530 13,389,776 843,428 6.30% 133,014
TOTAL 2,535 52,197,794 4,658,777 8.93% 675,486
0
5
10
15
20
25
30
35
40
45
50
55
60
65
5,000 to 9,999 10,000 to
19,999
20,000 to
49,999
50,000 to
99,999
100,000+N
um
ber
of
Spaces
Availa
ble
SPACES AVAILABLE
ANALYSIS BY SIZE
13.5
%
6.0
%
13.1
%
7.0
% 7.9
%
12.3
%
5.7
%
14.5
%
6.7
%
7.5
%
11.9
%
5.4
%
14.3
%
5.9
%
6.3
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Carlsbad Escondido Oceanside San Marcos Vista
Vacancy (
%)
SUBMARKET INDUSTRIAL DIRECT VACANCY For Lease For Sale
SPACES AVAILABLE
ANALYSIS BY SIZE
YEAR-TO-DATE
Q3 2012
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Yr.-over-Yr.)
Q2 2013 Q3 2013
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Current Qtr.)(Prior Qtr.)
2Industrial Property Report
NORTH COUNTY - 3Q 2013
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
Total Future Inventory 634,921
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION
DIST
31.5%
MFG
32.7%
MULTI
12.8%
R&D
23.0%
NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,197,794
Total Future Inventory 3,946,954
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
NORTH COUNTYTotal Vacancy by Product Type
VISTATotal Vacancy by Product Type
Total Future Inventory 634,921
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
DIST 16,425,237
MFG 17,091,555
MULTI 6,698,357
R&D 11,982,645
Total Existing Inventory 52,197,794
Total Future Inventory 3,946,954
Total Future Inventory 634,921
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,197,794
Under Construction 156,421
Proposed 3,790,533
Total Future Inventory 3,946,954
SIGNIFICANT LEASE TRANSACTIONS
SF Term
Eff ective
Rate
Natural Alternatives (Vista) 162,000 120 $0.73
Hay House (Vista) 109,952 48 $0.61
ViaSat (Carlsbad) 32,245 25 $1.53
RF Surgical (Carlsbad) 23,976 39 $0.86
North American Repower (Oceanside) 21,656 60 $0.71
SIGNIFICANT SALE TRANSACTIONSSF COE Price/SF
2251 Faraday Ave, Carlsbad 56,840 9/10/13 $193
5600 Avenida Encinas, Carlsbad 154,400 7/16/13 $81
207 E Pennsylvania Ave, Escondido 57,140 9/12/13 $120
1081 Poinsettia Ave, Vista 65,002 7/31/13 $86
2751 Auto Park Way, Escondido 32,753 8/6/13 $79
3Industrial Property Report
INDUSTRIAL STATS
NORTH COUNTY MARKET TRENDS NORTH COUNTY INDUSTRIAL RENT TRENDS
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
2007 2008 2009 2010 2011 2012 2013 Q3
$/S
F/M
o. (T
riple
Net)
Distribution Manufacturing Multi-Tenant R&D
NORTH COUNTYWeighted Monthly Average Asking Rents
VISTAWeighted Monthly Average Asking Rents
ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY NET ABSORPTION TRENDS
5-Yr. Avg. =
203,507 SF
0%
2%
4%
6%
8%
10%
12%
14%
-1,000
-500
0
500
1,000
1,500
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
NORTH COUNTY HISTORICAL MARKET TRENDS
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
7,289,916Distribution 208 811,274 11.13% 20,184 0.28% 831,458 11.41% 91,493 289,088 59,815 147,548 0 1,425,8350.00%
9,135,321Industrial 687 616,290 6.75% 0 0.00% 616,290 6.75% 38,338 -3,100 0 0 0 425,2460.00%
17,091,555Manufacturing 932 1,365,406 7.99% 0 0.00% 1,365,406 7.99% 148,799 190,144 0 37,050 156,421 148,97827.61%
6,698,357M
Light
ulti-Tenant 364 592,680 8.85% 15,004 0.22% 607,684 9.07% 8,946 108,532 0 0 0 00.00%
2,191 40,215,149 3,385,650 8.42% 35,188 0.09% 584,664 59,815 184,598 156,421 2,000,059287,576 27.61%3,420,838 8.51%Industrial
11,925,338R&D 342 1,170,734 9.82% 9,898 0.08% 1,180,632 9.90% 45,609 90,822 0 0 0 1,790,4740.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
344 11,982,645 1,228,041 10.25% 9,898 0.08% 90,822 0 0 0 1,790,47445,609 0.00%1,237,939 10.33%R&D
2,535 52,197,794 4,613,691 8.84% 45,086 0.09% 675,486 59,815 184,598 156,421 3,790,533333,185 27.61%Total 4,658,777 8.93%
NORTH COUNTY - 3Q 2013
CARLSBAD - 3Q 2013
2Industrial Property Report
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
3.5%MFG
29.0%
MULTI
15.3%
R&D
52.2%
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
ESCONDIDOTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
DIST 527,340
MFG 4,341,496
MULTI 2,285,360
R&D 7,804,186
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Under Construction 0
Proposed 1,839,132
Total Future Inventory 1,839,132
Total Future Inventory 53,000
3-POINT SUMMARY
» Lease renewal activity continues to
dominate the offi ce and industrial leasing
market
» Building prices have increased 25% in
the last 18 months
» Strong investor demand
CARLSBAD - 3Q 2013
3Industrial Property Report
INDUSTRIAL STATS
CARLSBAD MARKET TRENDS CARLSBAD INDUSTRIAL RENT TRENDS
ESCONDIDOWeighted Monthly Average Asking Rents
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
0%
2%
4%
6%
8%
10%
12%
14%
16%
-100
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
527,340Distribution 6 0 0.00% 0 0.00% 0 0.00% 3,459 3,459 0 0 0 100,0000.00%
4,341,496Manufacturing 156 591,410 13.62% 0 0.00% 591,410 13.62% -25,942 96,380 0 37,050 0 00.00%
2,285,360Multi-Tenant 96 212,335 9.29% 0 0.00% 212,335 9.29% 38,417 77,031 0 0 0 00.00%
258 7,154,196 803,745 11.23% 0 0.00% 176,870 0 37,050 0 100,00015,934 0.00%803,745 11.23%Industrial
7,746,879R&D 226 912,083 11.77% 0 0.00% 912,083 11.77% 45,898 128,630 0 0 0 1,739,1320.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
228 7,804,186 969,390 12.42% 0 0.00% 128,630 0 0 0 1,739,13245,898 0.00%969,390 12.42%R&D
486 14,958,382 1,773,135 11.85% 0 0.00% 305,500 0 37,050 0 1,839,13261,832 0.00%Total 1,773,135 11.85%
4Industrial Property Report
ESCONDIDO
INVENTORY BREAKDOWN
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
DIST
25.8%
MFG
53.5%
MULTI
16.0%
R&D
4.7%
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
DIST 1,894,537
MFG 3,926,740
MULTI 1,170,616
R&D 344,436
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Under Construction 0
Proposed 39,500
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
3-POINT SUMMARY
» Sales and lease demand has increased
» Sales prices have increased 25% in the
last twelve months
» Escondido vacancy is the lowest in North
County San Diego
ESCONDIDO - 3Q 2013
5Industrial Property Report
$0.50
$0.55
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-400
-300
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY NET ABSORPTION TRENDS
5-Yr. Avg. =
203,507 SF
NORTH COUNTY HISTORICAL MARKET TRENDS
INDUSTRIAL STATS
ESCONDIDO MARKET TRENDS ESCONDIDO INDUSTRIAL RENT TRENDS
ESCONDIDO - 3Q 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
932,367Distribution 42 94,269 10.11% 0 0.00% 94,269 10.11% 59,898 143,594 59,815 147,548 0 30,0000.00%
962,171Industrial 120 34,593 3.60% 0 0.00% 34,593 3.60% 11,526 1,984 0 0 0 00.00%
3,926,740M
Light
anufacturing 364 179,129 4.56% 0 0.00% 179,129 4.56% 12,860 -39,462 0 0 0 00.00%
1,170,616Multi-Tenant 85 69,142 5.91% 0 0.00% 69,142 5.91% -10,152 23,230 0 0 0 00.00%
611 6,991,894 377,133 5.39% 0 0.00% 129,346 59,815 147,548 0 30,00074,132 0.00%377,133 5.39%Industrial
344,436R&D 27 16,407 4.76% 0 0.00% 16,407 4.76% 6,790 -8,417 0 0 0 9,5000.00%
27 344,436 16,407 4.76% 0 0.00% -8,417 0 0 0 9,5006,790 0.00%16,407 4.76%R&D
638 7,336,330 393,540 5.36% 0 0.00% 120,929 59,815 147,548 0 39,50080,922 0.00%Total 393,540 5.36%
6Industrial Property Report
OCEANSIDE
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
DIST
70.6%
MFG
3.2%MULTI
14.3%R&D
11.9%
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
DIST 5,641,183
MFG 256,997
MULTI 1,140,506
R&D 954,085
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Under Construction 0
Proposed 1,380,401
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
3-POINT SUMMARY
» Land market and activity for build-to-
suits continues to improve
» Vacancy rate and negative absorption is
highest in North County San Diego
» Availability of large buildings should
draw tenants to this market
OCEANSIDE - 3Q 2013
7Industrial Property Report
INDUSTRIAL STATS
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
$0.50
$0.55
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
Insufficient data for R&D rents
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-400
-300
-200
-100
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
OCEANSIDE MARKET TRENDS OCEANSIDE INDUSTRIAL RENT TRENDS
OCEANSIDE - 3Q 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
1,477,490Distribution 25 555,203 37.58% 19,000 1.29% 574,203 38.86% 0 36,229 0 0 0 1,023,3420.00%
4,163,693Industrial 272 339,696 8.16% 0 0.00% 339,696 8.16% 8,330 5,296 0 0 0 342,0810.00%
256,997M
Light
anufacturing 12 53,382 20.77% 0 0.00% 53,382 20.77% 0 -12,819 0 0 0 14,9780.00%
1,140,506Multi-Tenant 64 119,480 10.48% 5,000 0.44% 124,480 10.91% -5,172 -19,481 0 0 0 00.00%
373 7,038,686 1,067,761 15.17% 24,000 0.34% 9,225 0 0 0 1,380,4013,158 0.00%1,091,761 15.51%Industrial
954,085R&D 20 45,887 4.81% 6,437 0.67% 52,324 5.48% -11,682 -10,335 0 0 0 00.00%
20 954,085 45,887 4.81% 6,437 0.67% -10,335 0 0 0 0-11,682 0.00%52,324 5.48%R&D
393 7,992,771 1,113,648 13.93% 30,437 0.38% -1,110 0 0 0 1,380,401-8,524 0.00%Total 1,144,085 14.31%
8Industrial Property Report
SAN MARCOS
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
0%
5%
10%
15%
20%
25%
30%
35%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
SAN MARCOSTotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
DIST
68.5%
MFG
16.3%MULTI
1.8%
R&D
13.3%
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
DIST 5,838,680
MFG 1,390,013
MULTI 155,053
R&D 1,136,789
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,330
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Under Construction 0
Proposed 53,000
Total Future Inventory 53,000
3-POINT SUMMARY
» Signifi cantly constrained supply above
15,000 square feet
» Three consecutive quarters of net
absorption
» Current overall vacancy of 5.92%
SAN MARCOS - 3Q 2013
9Industrial Property Report
INDUSTRIAL STATS
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
SAN MARCOSWeighted Monthly Average Asking Rents
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
-300
-250
-200
-150
-100
-50
0
50
100
150
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
SAN MARCOS MARKET TRENDS SAN MARCOS INDUSTRIAL RENT TRENDS
SAN MARCOS - 3Q 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
2,332,898Distribution 111 106,354 4.56% 1,184 0.05% 107,538 4.61% 17,865 84,730 0 0 0 00.00%
3,505,782Industrial 259 186,055 5.31% 0 0.00% 186,055 5.31% 11,462 31,938 0 0 0 53,0000.00%
1,390,013M
Light
anufacturing 74 98,775 7.11% 0 0.00% 98,775 7.11% 9,235 16,154 0 0 0 00.00%
155,053Multi-Tenant 9 34,286 22.11% 2,400 1.55% 36,686 23.66% -6,456 -6,251 0 0 0 00.00%
453 7,383,746 425,470 5.76% 3,584 0.05% 126,571 0 0 0 53,00032,106 0.00%429,054 5.81%Industrial
1,136,789R&D 35 72,074 6.34% 3,461 0.30% 75,535 6.64% 1,758 -9,418 0 0 0 00.00%
35 1,136,789 72,074 6.34% 3,461 0.30% -9,418 0 0 0 01,758 0.00%75,535 6.64%R&D
488 8,520,535 497,544 5.84% 7,045 0.08% 117,153 0 0 0 53,00033,864 0.00%Total 504,589 5.92%
10Industrial Property Report
VISTA
NORTH COUNTYTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
VISTATotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
18.8%
MFG
53.6%
MULTI
14.5%
R&D
13.0%
Total Future Inventory 634,921
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,197,794
Total Future Inventory 3,946,954
Total Future Inventory 634,921
DIST 2,523,496
MFG 7,176,309
MULTI 1,946,822
R&D 1,743,149
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,197,794
Total Future Inventory 3,946,954
Under Construction 156,421
Proposed 478,500
Total Future Inventory 634,921
Total Existing Inventory 13,389,776
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,197,794
Total Future Inventory 3,946,954
3-POINT SUMMARY
» Limited supply above 15,000 SF is
leading to higher prices
» Distribution space vacancy at 4.4%
makes it diffi cult to fi nd good dock high
loading spaces
» Overall vacancy is at 6.3%
VISTA - 3Q 2013
11Industrial Property Report
INDUSTRIAL STATS
NORTH COUNTYWeighted Monthly Average Asking Rents
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
2007 2008 2009 2010 2011 2012 2013 Q3
Distribution Manufacturing Multi-Tenant R&D
VISTAWeighted Monthly Average Asking Rents
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-200
-150
-100
-50
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 Q3
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
VISTA MARKET TRENDS VISTA INDUSTRIAL RENT TRENDS
VISTA - 3Q 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
2,019,821Distribution 24 55,448 2.75% 0 0.00% 55,448 2.75% 10,271 21,076 0 0 0 272,4930.00%
503,675Industrial 36 55,946 11.11% 0 0.00% 55,946 11.11% 7,020 -42,318 0 0 0 30,1650.00%
7,176,309M
Light
anufacturing 326 442,710 6.17% 0 0.00% 442,710 6.17% 152,646 129,891 0 0 156,421 134,00027.61%
1,946,822Multi-Tenant 110 157,437 8.09% 7,604 0.39% 165,041 8.48% -7,691 34,003 0 0 0 00.00%
496 11,646,627 711,541 6.11% 7,604 0.07% 142,652 0 0 156,421 436,658162,246 27.61%719,145 6.17%Industrial
1,743,149R&D 34 124,283 7.13% 0 0.00% 124,283 7.13% 2,845 -9,638 0 0 0 41,8420.00%
34 1,743,149 124,283 7.13% 0 0.00% -9,638 0 0 0 41,8422,845 0.00%124,283 7.13%R&D
530 13,389,776 835,824 6.24% 7,604 0.06% 133,014 0 0 156,421 478,500165,091 27.61%Total 843,428 6.30%
12Industrial Property Report
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations
or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any
interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied
terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
Prepared by:
ADAM MOLNAR
TUCKER HOHENSTEIN
MIKE ERWIN
760 438 8950
AIRPORT
BUSINESS
PARK
INDUSTRY STREETSEAGATE
CORPORATE
CENTER
RANCHO DEL ORO
PACIFIC COAST
BUSINESS PARK
OCEAN RANCH
CORPORATE CENTER
OCEANSIDE GATEWAY
OCEAN VISTA
VISTA PACIFIC
WEST CARLSBADCARLSBAD RANCH
CARLSBAD
RESEARCH
CENTER
CARLSBAD
AIRPORT CENTRE
PALOMAR AIRPORT
BUSINESS PARK
GATEWAY
CENTER
PALOMAR
TECH CENTER
CARLSBAD
OAKS NORTH
OAK RIDGE
BUSINESS CENTER II
CARLSBAD
OAKS WEST
NORTH COUNTY
INDUSTRIAL PARK
OAK RIDGE
BUSINESS CENTER I
VENTURE COMMERCE
CENTER
SYCAMORE VISTA
RANCHO
VISTA
BUSINESS
PARK
PALOMAR
CORPORATE
CENTERCARLSBAD
RACEWAY
SAN MARCOS
INDUSTRIAL PARK
TWIN OAKS
INDUSTRIAL
RANCHEROS
DRIVE
ESCONDIDO
AUTO PARK
EAST ESCONDIDO
INDUSTRIAL
LA COSTA MEADOWS
INDUSTRIAL PARK
UNIVERSITY AREA
MEYERS/BARHAM
BUSINESS PARK
ESCONDIDO
RESEARCH &
TECHNOLOGY
CENTERWINERDIGE
BUSINESS PARK
76
78
5
PRESCOTT
BRESSI RANCH
CORPORATE
CENTER
CARLSBAD
CORPORATE
CENTERLIBERTY
GATEWAY
CARLSBAD
OAKS EAST
PALOMAR
FORUM
North County San Diego
Total Industrial Buildings 2,535
Total Square Footage 52.2 M
Total Vacancy 8.93%
Under Construction 156,421