NA Industrial Highlights Q1 2012
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7/31/2019 NA Industrial Highlights Q1 2012
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HIGHLIGHTSNORTH AMERICA
WWW.COLLIERS.COM
Q1 2012 | INDUSTRIAL
K.C. CONWAY EMD | Market Analytics
U.S. Industrial TrendsA U.S. manuacturing renaissance combined with growing agriculture and energy exports uels
demand or industrial real estate.
Proximity to intermodal inrastructure, ports and resources inuence investor demand or indus
trial space.
High vacancy rates in some markets are propped up by unctionally obsolete warehouses with l
clear heights or lack o rail access, which mask the need or new bulk warehouse construction.East Coast industrial is poised or demand growth, with port trafc growing aster than the Gul o
West Coast, and a Panama Canal expansion just around the corner.
Investor demand in non-core industrial is growing, as demonstrated by the recent $770 millionDEXUS Property Group portolio sale.
Colliers International continues to believe that modern industrial property is an attractive asset cla
MARKET INDICATORSRelative to prior period
U.S. INDUSTRIAL MARKETSUMMARY STATISTICS, Q
Industrial Real Estate Remains the Littl
Engine that Could
Q
Q*
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
*Projected, relative to prior period
Vacancy Rate: .%Change rom Q : .%
Absorption:
. Million Square Feet
New Construction:
.Million Square Feet
Under Construction:
. Million Square Feet
Asking Rents Per Square Foot
Average Warehouse/
Distribution Center: $.Change rom Q : .%
Sq. Ft. By Region
2.
1.0
2.
Total_OSF-Vacan
Vacant_OSF
Absorption Per Mark
Q4 '11 - Q1 '12
2,300,000
230,000
-230,000
-1,200,000
4 m
2 m
400
Occupied Sq. Ft.
Vacant Sq. Ft.
8.5% vac.
9.7% vac.
10.4% vac.
10.1% vac.
4.6% vac.
NORTH AMERICAN INDUSTRIAL VACANCY, INVENTORY AND ABSORPTIONQ1 2012
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
Manuacturing Is Leading the U.S. Recovery The growth in manuactur-
ing industry is not just a good thing or manuacturing property demand:
When goods are manuactured, they are also transported and stored be-
ore they are sold. In act, manuacturing growth has an eventual spillover
eect to all property types, starting with warehouse and distribution
properties.
Specialized Manuacturing Drives Regional Demand As modern manu-
acturers become more specialized, they are oten anchored to a certain
region by the specialized resources they require. These resources might
include the skilled labor ound in cities with clusters o institutions o
higher education; needed inputs such as rare-earth minerals, water and
energy; and robust intermodal networks with accessible ports. The fnd-
ings o a recent study by the Brookings Institute, Locating AmericanManuacturing Trends in the Geography o Production highlight this
trend.
Since , U.S. metropolitan areas have seen increasing specialization
in manuacturing, but the specialties o each metro can vary greatly.
There are six industry concentrations which gravitate to dierent met-
ros: computers and electronics, transportation equipment, low-wage
manuacturing, chemicals, machinery, and ood production.
This increase in specialized manuacturing has translated into increased
demand or industrial space. In Q , there was net positive absorption
Q NORTH AMERICAN INDUSTRIAL OVERVIEW
MEASURE NORTH AMERICA CANADA UNITED STATES WEST/MIDWEST SOUTH NORTHEAST
# o MarketsInventory (SF)
7115,536.6
111,570.9
6013,965.7
327,569.4
194,105.3
92,291.0
% o NA Inventory 100% 10% 90% 49% 26% 15%
New Supply(Q1 12 Million SF)
8.3 1.6 6.6 3.5 2.6 .06
% o NA New Supply 100% 19% 81% 42% 31% 8%
Vacancy % 9.14% 4.59% 9.66% 9.15% 10.37% 10.06
Absorption(Millions SF)
26.6 3.9 22.7 11.8 9.9 1.0
% o NA Inventory 100% 15% 85% 44% 37% 4%
Leadership Markets Calgary & Toronto(each with
>1.1 MSF o positiveabsorption)
Honolulu, LosAngeles, OrangeCounty, CA (have
(5% vacancy)
Los Angeles,Columbus,OH, and
Indianapolis
Houston,Charlotte, Dallas,
Nashville &Orlando with
>1.1 MSF absorp
Baltimore & DC(positive
absorption)Long Island &
Pittsburgh (lowvacancy)
Laggard Markets Haliax, Ottawa &Waterloo
(vacancy > 5%)
New Jersey &Chicago
Chicago,St. Louis,Las Vegas,
San Jose havenegativeabsorp.
Atlanta hashighest vacancy;
Memphis>1.0 MSF
negative absorp.
New Jersey &Philadelphia
in North America o . million square eet (MSF). This demand or
dustrial space was not spread evenly across the continent, but was str
gest in markets with the cluster o resources that modern manuactu
require. For example, this alignment o resources is ound in many M
Atlantic cities with a combination o a healthy transportation inrastr
ture, aordable cost o living, access to materials and chemical manuact
and an educated workorce.
Our overall U.S. outlook is bullish or manuacturing, intermodal transp
tation, port activity, and thus or industrial real estate.
Transport Sector Growth Indicates Further Industrial Demand This U
manuacturing renaissance has been propelled by lower American la
costs, a weaker dollar as compared with many other manuacturing tions, and lower natural gas prices.
Despite elevated energy prices and a contracting European econo
frst-quarter earnings rom bellwether manuacturing and shipping co
panies have improved. Transport frm CSX saw record Q earnings
$ million, up . percent year-over-year. Shipping container tra
volumes and inter-modal activity have also improved. Georgia Po
Authority handled a record . million tons o cargo in March and c
tainer volume at the Port o Charleston rose by . percent to its high
level since October .
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
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Toronto and Calgary Drive Canadas Absorption In Canada, a combination
o limited new supply and strong demand rom the energy and bulk mate-
rials sectors has set the stage or low vacancy rates and strong absorp-
tion. . MSF o Canadian industrial space was absorbed by occupiers.
Together, Toronto and Calgary, which reported more than . MSF o net
absorption each, provided more than hal o the net absorption in the
country. This is an especially noteworthy eat or Calgary, which makes up
only eight percent o the nations inventory, yet contributed thirty percent
to the national absorption.
Vacancy rates remain low in the primary Canadian markets, averaging
less than percent. The overall Canadian vacancy rate declined rom .
percent in Q to . percent in Q . Only three markets (Haliax,
Ottawa and Waterloo) have vacancy rates above percent.
Southern Demand Rises Despite Elevated Vacancies The combined nine-
teen southern U.S. markets show a vacancy rate o . percent, which
is the highest among all regions in North America. Yet, the southern U.S.
markets contributed the most positive absorption o any region in North
America, thanks to growing port trac and strengthening manuacturing.
Recent announcements have bolstered our outlook or southern industrial
markets. These include jumps in container volume in Charleston, record
port tonnage in Georgia, a new airport intermodal acility in Charlotte, a
new roll-on/roll-o South American shipping service in Port Everglades,
and the selection o Richmond as the last port o call by CKYH Allianc
Asian service.
One reason or the high vacancy rate in the South is the act that mu
o the standing warehouse space in markets like Atlanta, Columbia
Savannah is unctionally obsolete. Perhaps as much as percen
warehouse space is unusable by modern occupiers, with low cei
heights, limited rail access, or inadequate power supply. IDI, one o No
Americas largest industrial developers, acknowledged this act wit
recent announcement to develop speculative bulk warehouse proper
MANUFACTURING AT A GLANCE - APRIL
INDEX SERIES INDEX APR SERIES INDEX MAR % POINT CHANGE DIRECTION RATE OF CHANGE TREND* (MONTHS
PMI 53.5 54.8 -1.3 Growing Slower 34
New Orders 60.1 58.2 1.9 Growing Faster 37
Production 55.6 61.0 -5.4 Growing Slower 36
Employment 56.9 57.3 -0.4 Growing Slower 32
Supplier Deliveries 48.7 49.2 -0.5 Faster Faster 4
Inventories 46.0 48.5 -2.5 Contracting Faster 2
Customer Inventories 43.5 45.5 -2.0 Too low Faster 6
Prices 47.5 61.0 -13.5 Decreasing From Increasing 1
Backlog o Orders 47.0 49.5 -2.5 Contracting Faster 2
Exports 53.5 59.0 -5.5 Growing Slower 7
Imports 53.5 53.5 0.0 Growing Same 6
Growing Slower 36
Growing Slower 34
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Jan09
Mar09
May09
Jul09
Sep09
Nov09
Jan10
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
Sep11
Nov11
Jan12
INSTITUTE FOR SUPPLY MANAGEMENT MANUFACTURING INDE
OVERALL ECONOMY
Manuacturing Sector
*Number o months moving in current direction.
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
along I- West, Atlantas primary logistics corridor. Some initial observers doubted the need or
such product in a market with a . percent vacancy rate. Yet, IDIs decision was based on a
careul analysis o the Atlanta market that showed a dearth o modern bulk warehouse space
near this primary corridor.
East Coast Leads in Growing Port Trafc On both coasts the growing container trac will sup-
port new industrial property demand. According to PIERS, a leading shipping research frm, U.S.
trade as measured in TEUs (Twenty-Foot Equivalent Units) was up . percent in . The
growth rate in container trac among East Coast ports is now higher than the West Coasts. East
Coast ports posted a . percent year-over-year increase in container trac in , compared
with a . percent increase in West Coast markets. In the East and Gul coasts, growth opportu-
nities lie in export trade: East Coast ports handle percent o all U.S. export trac. In contrast,
the West Coast leads the nation in import trade with percent o the import market share, with
much o this trac coming rom Asia.
Panama Canal Expansion Will Recalibrate U.S. Port Dynamics in
As the completion o the Panama Canal expansion project approaches in , East Coast ports
are making ready or the anticipated jump in trac. In Savannah and Charleston, projects are
underway to dredge deeper channels. Miami is working to upgrade its crane equipment. Florida
ports are enhancing their roll-on, roll-o rail service. Right-to-work states rom Virginia to Texasare automating port activities. Port authority directors along the East and Gul coasts expect that
warehouse demand will grow at double-digit rates in response to new larger vessels calling on
their ports.
Northeast Region Most Exposed to European Woes The Northeast region is weak in comparison
to the other regions, due in part to anemic trade ows inhibited by the European recession par-
ticularly New York and Baltimore. As Europe wrestles with austerity measures and the United
Kingdom endures a double-dip recession, warehouse demand growth will remain somewhat
anemic in the Northeast.
The Northeast markets showed the least amount o net absorption in Q , with only ,
square eet. It was also the only region to not see a decline in warehouse vacancy. Overall va-
cancy remained unchanged at . percent.
Two o the largest Northeast industrial markets, Central New Jersey and Philadelphia, each saw
negative absorption in Q and have vacancy rates in excess o percent. But the good news or
this region is that there is little new supply being added to the market. Only , square eet
o industrial property was delivered in Q . Central New Jersey and Philadelphia together
saw only , square eet o new warehouse supply.
U.S. INDUSTRIAL MARKET Q Q
MillionSquareFeet
Vacancy(%)
-30
-20
0
10
20
30
40
50
Q1Q4Q3Q2Q1Q4Q3Q2Q1
Absorption Completions Vacancy
2010 2011 2012
0
2
6
4
14
12
10
8
11.10 11.00 11.00 10.809.66
10.56 10.29 9.7710.01
48%
46%
6%
Excluding renewals, of the leases signed
this quarter in your CBD/downtown,
did most tenants:
Contract
Expand
Hold Steady
What was the trend for free rent
(in months) oered by CBD landlords
this quarter?
82%
12% 6%
Same
Less More
What was the trend for tenant
improvement allowances ($ per SF)
oered by landlords this quarter?
85%
12% 3%
Same
Less More
Excluding renewals, of the leases
signed this quarter in yoursuburban
oce market, did most tenants:
48%Expand 44%
Contract
8%
Hold Steady
While Q demand or
Industrial space
moderated vs. Q ,
industrial vacancy ell
to .%the sixth
consecutive drop in
vacancy since Q .
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
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As Goes Western Industrial, So Goes the Nation The western industrial
markets account or almost percent o North American industrial
space, and the two largest industrial marketsLos Angeles and Chicago
are in the two western regions. Thus, together the West and Midwest
dictate much o the overall trend in North America.
Los Angeles, Columbus and Indianapolis each had in excess o MSF o
net absorption. Yet, hal o the North American markets with negative
net absorption were also in the two western regions. Western markets
which led in negative absorption were Chicago with -, square eet,
San Jose/Silicon Valley with -, square eet, and Boise with
-, square eet. St. Louis, Las Vegas and San Francisco Peninsula
also saw six-fgure negative absorption.
Both the West and Midwest saw modest declines in vacancy in Q
and experienced positive net absorption. Together, they totaled . MSF
o absorbed space, percent o all absorption. Western regions, unlike
the Northeast, have seen signifcant additions o new supply in recent
quarters. To some degree, additions to supply are contributing to the ele-
vated vacancy rate and absence o rent growth in the West and Midwest.More than hal the total new warehouse supply added in the U.S. in Q
came rom these two western regions, and hal o that was in just
three markets: Los Angeles, Phoenix and Chicago.
Blackstone Purchase Demonstrates Industrials Attraction Beyond Core
Markets The demand or under-perorming warehouse real estate in non-
core markets is growing, as investors begin to chase yields in secondary
markets. Global investment frm Blackstone Group LP cast a $ million
vote o confdence in secondary U.S. industrial markets with its purchase
o warehouse properties rom DEXUS Property Group, an Australian
property trust. The portolio was sold with a cap rate o around percent
and contains mostly properties in the central U.S.
-2.0 -1.0 0.0 1.0 2.0
Savannah, GA
Chicago, IL
New Jersey - Central
Los Angeles - Inland Empire, CA
New Jersey - Northern
Detroit, MI
Atlanta, GA
Indianapolis, IN
Dallas-Ft. Worth, TX
Los Angeles, CA
3.0
Million
ABSORPTION (SF) | SELECT MARKETS | Q
Other than warehouse, only multiamily properties have demonstrated kind o transaction demand beyond core markets.
Disconcerting News or Maturing Debt The value o delinquent comm
cial mortgage-backed securities (CMBS) real estate loans is now at $
billion, according to research frm TREPP. However, the mounting wave
maturing debt is less o a concern or industrial than other property typ
Industrial properties make up the smallest percentage o outstanding d
lars in maturing CMBS debt. The delinquency rate is also less concern
or industrial when one looks at the outstanding debt in absolute dolla
The delinquent industrial debt is skewed toward ex space, which ha
higher percentage o oce space and comparatively lower ceiling heig
than bulk warehouse.
Source: Thinkstock.com
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
COLLIERS INTERNATIONAL | P
UNITED STATES | INDUSTRIAL SURVEY
MARKET
EXISTINGINVENTORY (SF)
MAR. , NEW CONSTRUCTION
Q (SF)CURRENTLY UNDECONSTRUCTION (S
NORTHEAST
Baltimore, MD 299,256,000 70,000 0Boston, MA 154,142,000 0 1,548,000
Hartord, CT 97,098,000 0 220,000
Long Island, NY 163,756,000 0 0
New Jersey - Central 356,987,000 0 214,000
New Jersey - Northern 375,013,000 102,000 424,000
Philadelphia, PA 402,830,000 50,000 2,734,000
Pittsburgh, PA 167,454,000 115,000 73,000
Washington, DC 274,440,000 299,000 743,000
NORTHEAST TOTAL/AVERAGE 2,290,975,000 635,000 5,956,000SOUTH
Atlanta, GA 602,043,000 28,000 1,664,000
Charleston, SC 31,992,000 325,000 300,000
Charlotte, NC 290,064,000 0 0
Columbia, SC 36,656,000 0 0
Dallas-Ft. Worth, TX 707,483,000 206,000 1,527,000
Ft. Lauderdale-Broward, FL 124,356,000 65,000 264,000
Greenville/Spartanburg, SC 174,015,000 0 950,000
Houston, TX 481,127,000 594,000 2,997,000Jacksonville, FL 121,714,000 0 0
Little Rock, AR 45,011,000 0 497,000
Louisville, KY 178,444,000 0 0
Memphis, TN 210,849,000 235,000 1,270,000
Miami, FL 220,963,000 0 311,000
Nashville, TN 159,614,000 658,000 2,257,000
Orlando, FL 293,055,000 152,000 176,000
Raleigh, NC 113,220,000 0 106,000
Savannah, GA 44,421,000 295,000 0Tampa Bay, FL 209,386,000 0 0
West Palm Beach, FL 60,886,000 0 13,000
SOUTH TOTAL/AVERAGE 4,105,298,000 2,558,000 12,331,000
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
UNITED STATES | INDUSTRIAL SURVEY
MARKET
EXISTINGINVENTORY (SF)
MAR. , NEW CONSTRUCTION
Q (SF)CURRENTLY UNDECONSTRUCTION (S
MIDWEST
Chicago, IL 1,309,069,000 493,000 2,897,000Cincinnati, OH 274,399,000 0 1,166,000
Cleveland, OH 417,767,000 0 0
Columbus, OH 213,419,000 0 898,000
Detroit, MI 499,473,000 68,000 0
Grand Rapids, MI 112,917,000 329,000 239,000
Indianapolis, IN 282,808,000 0 292,000
Kansas City, MO-KS 233,449,000 350,000 0
Minneapolis/St. Paul, MN 263,491,000 0 246,000
Omaha, NE 67,788,000 0 33,000
St. Louis, MO 262,862,000 0 0
MIDWEST TOTAL/AVERAGE 3,937,441,000 1,241,000 5,771,000
WEST
Bakersfeld, CA 32,273,000 29,000 716,000
Boise, ID 34,841,000 0 0
Denver, CO 211,259,000 0 48,000
Fairfeld, CA 46,162,000 107,000 72,000
Fresno, CA 48,600,000 0 0
Honolulu, HI 38,993,000 0 0
Las Vegas, NV 108,437,000 0 0
Los Angeles - Inland Empire, CA 382,706,000 692,000 5,693,000
Los Angeles, CA 865,987,000 221,000 735,000
Oakland, CA 131,233,000 0 26,000
Orange County, CA 200,098,000 0 645,000
Phoenix, AZ 268,900,000 560,000 3,374,000
Pleasanton/Walnut Creek, CA 33,215,000 0 0
Portland, OR 198,443,000 316,000 416,000
Sacramento, CA 187,142,000 0 200,000
San Diego, CA 188,446,000 0 253,000
San Francisco Peninsula, CA 41,065,000 257,000 0
San Jose/Silicon Valley, CA 253,520,000 0 0
Seattle/Puget Sound, WA 266,364,000 0 144,000
Stockton/San Joaquin County, CA 94,300,000 29,000 0
WEST TOTAL/AVERAGE 3,631,985,000 2,211,000 12,322,000
U.S. TOTAL/AVERAGE 13,965,699,000 6,644,000 36,380,000
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
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UNITED STATES | INDUSTRIAL SURVEY
MARKETABSORPTIONQ (SF)
VACANCY RATEDEC. , (%)
VACANCY RATEMAR. , (%)
NORTHEAST
Baltimore, MD 1,225,000 10.50 10.11
Boston, MA 628,000 20.00 19.33
Hartord, CT (245,000) 9.50 9.74
Long Island, NY (66,000) 5.27 5.37
New Jersey - Central (1,297,000) 9.96 10.32
New Jersey - Northern 692,000 8.63 8.48
Philadelphia, PA (852,000) 9.80 10.02
Pittsburgh, PA (1,000) 7.26 7.76
Washington, DC 909,000 11.21 10.98
NORTHEAST TOTAL/AVERAGE 994,000 10.06 10.06
SOUTH
Atlanta, GA 995,000 13.52 13.35
Charleston, SC 256,000 10.64 10.86
Charlotte, NC 1,165,000 12.82 12.56
Columbia, SC 50,000 7.49 7.33
Dallas-Ft. Worth, TX 1,169,000 10.41 10.27
Ft. Lauderdale-Broward, FL 315,000 9.50 9.15
Greenville/Spartanburg, SC 395,000 9.73 9.86Houston, TX 1,232,000 5.34 5.31
Jacksonville, FL 141,000 10.42 10.30
Little Rock, AR 705,000 13.50 12.32
Louisville, KY 198,000 10.01 9.97
Memphis, TN -1,025,000 12.75 13.34
Miami, FL 536,000 7.86 7.36
Nashville, TN 1,227,000 12.68 12.07
Orlando, FL 1,978,000 11.35 10.73
Raleigh, NC (68,000) 10.98 11.04
Savannah, GA 216,000 14.31 13.73
Tampa Bay, FL 86,000 10.27 10.28
West Palm Beach, FL 336,000 8.78 8.23
SOUTH TOTAL/AVERAGE 9,909,000 10.54 10.37
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
UNITED STATES | INDUSTRIAL SURVEY
MARKETABSORPTIONQ (SF)
VACANCY RATEDEC. , (%)
VACANCY RATEMAR. , (%)
MIDWEST
Chicago, IL (701,000) 10.63 10.70
Cincinnati, OH 706,000 9.45 9.19
Cleveland, OH 906,000 9.32 8.61
Columbus, OH 1,281,000 11.79 10.90
Detroit, MI 694,000 13.19 13.15
Grand Rapids, MI 695,000 8.85 8.24
Indianapolis, IN 1,246,000 5.96 5.65
Kansas City, MO-KS 49,000 6.80 6.92
Minneapolis/St. Paul, MN 525,000 8.53 8.33
Omaha, NE 342,000 6.14 5.64
St. Louis, MO (315,000) 9.14 9.35
MIDWEST TOTAL/AVERAGE 5,427,000 9.86 9.70
WEST
Bakersfeld, CA 317,000 7.94 7.04
Boise, ID (469,000) 10.23 11.58
Denver, CO 325,000 8.60 8.26
Fairfeld, CA 135,000 13.25 12.92
Fresno, CA 200,000 11.83 11.42
Honolulu, HI 20,000 4.77 4.72
Las Vegas, NV (234,000) 15.89 16.10
Los Angeles - Inland Empire, CA 612,000 6.57 6.53
Los Angeles, CA 2,213,000 4.85 4.84
Oakland, CA 285,000 9.00 8.78
Orange County, CA 226,000 4.94 4.82
Phoenix, AZ 89,000 13.92 13.78
Pleasanton/Walnut Creek, CA 20,000 13.79 13.62
Portland, OR 600,000 7.92 7.77
Sacramento, CA 908,000 13.07 12.62San Diego, CA 559,000 11.53 11.27
San Francisco Peninsula, CA (140,000) 8.76 9.20
San Jose/Silicon Valley, CA (570,000) 11.57 11.74
Seattle/Puget Sound, WA 867,000 7.32 6.99
Stockton/San Joaquin County, CA 408,000 14.83 14.42
WEST TOTAL/AVERAGE 6,372,000 8.64 8.54
U.S. TOTAL/AVERAGE 22,701,000 9.77 9.66
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
COLLIERS INTERNATIONAL | P
UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH
MARKETSALES PRICE
(USD PSF)CAP RATE
(%)VACANCY FORECAST
( MONTHS)ABSORPTION FORECAST
( MONTHS)RENT FORECAST
( MONTHS)
NORTHEAST
Baltimore, MD 43.01 7.80 Down Up Up
Boston, MA 44.00 - Down Up Same
Hartord, CT 38.00 8.50 Same Same Same
Long Island, NY 81.09 8.24 Same Same Same
New Jersey Central 31.64 7.04 Down Up Same
New Jersey Northern 46.78 7.04 Same Same Same
Philadelphia, PA 51.50 7.50 Down Up Up
Pittsburgh, PA 50.00 7.75 Down Up Up
Washington, DC 51.59 8.20 Same Same Same
NORTHEAST TOTAL/AVERAGE 48.62 7.76
SOUTH
Atlanta, GA 37.35 8.34 Down Same Same
Charleston, SC 46.00 7.50 Down Up Same
Columbia, SC - - Same Same Same
Dallas-Ft. Worth, TX 60.00 7.60 Up Same Same
Ft. Lauderdale-Broward, FL 70.29 - Down Up Same
Greenville/Spartanburg, SC 32.00 8.75 Down Up Up
Houston, TX 71.00 7.70 Same Same Same
Jacksonville, FL 45.50 9.00 Down Up Same
Little Rock, AR 65.45 9.00 Same Same Same
Memphis, TN 26.00 8.95 Down Up Up
Miami, FL 68.97 - Down Up Up
Nashville, TN 44.83 - Down Up Same
Orlando, FL 114.00 15.00 Down Same Same
Raleigh, NC - - Same Same Same
Savannah, GA 37.00 8.50 Down Up Same
Tampa Bay, FL 38.65 8.50 Down Up Same
West Palm Beach, FL 50.41 9.00 Down Up -
SOUTH TOTAL/AVERAGE 50.47 8.30
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH
MARKETSALES PRICE
(USD PSF)CAP RATE
(%)VACANCY FORECAST
( MONTHS)ABSORPTION FORECAST
( MONTHS)RENT FORECAST
( MONTHS)
MIDWEST
Chicago, IL 49.00 6.50 Down Down Same
Cincinnati, OH 37.50 8.25 Same Same Same
Columbus, OH 36.00 - Down Same Same
Detroit, MI - - Up Same Up
Grand Rapids, MI 41.62 8.27 Down Up Up
Indianapolis, IN 36.00 7.60 Down Same Up
Kansas City, MO-KS - - Down Up Same
Minneapolis/St. Paul, MN 77.64 10.00 Down Up Same
Omaha, NE Same Same Same
MIDWEST TOTAL/AVERAGE 46.29 8.12
WEST
Bakersfeld, CA 38.00 10.00 Down Same Same
Boise, ID 55.00 - Same Same Same
Denver, CO 82.39 7.80 Up Up Up
Fairfeld, CA - - Same Same Same
Fresno, CA 40.00 9.00 Down Up Up
Honolulu, HI - - Same Same Same
Las Vegas, NV 47.59 - Up Up Down
Los Angeles - Inland Empire, CA 64.00 7.00 Same Same Up
Los Angeles, CA 86.00 6.25 Same Same Up
Oakland, CA - 6.50 Down Up Same
Orange County, CA 110.00 6.20 Down Up Same
Phoenix, AZ 43.00 8.50 Down Up Same
Pleasanton/Walnut Creek, CA 152.00 8.10 Up Down Same
Portland, OR 48.85 - Up Up Same
Sacramento, CA 54.46 - Up Down Same
San Diego, CA 121.95 7.10 Down Down Same
San Francisco Peninsula, CA 250.00 7.00 Same Same Same
San Jose/Silicon Valley, CA - - Down Up Up
Seattle/Puget Sound, WA 68.80 7.05 Down Up Up
Stockton/San Joaquin County, CA 58.00 7.25 Down Up Same
WEST TOTAL/AVERAGE 82.50 7.52
U.S. TOTAL/AVERAGE 60.49 7.90
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
COLLIERS INTERNATIONAL | P
UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH
MARKETWAREHOUSE/DISTRIBUTION
SPACE (USD PSF)BULK SPACE(USD PSF)
FLEX/SERVICE SPACE(USD PSF)
TECH/R&D SPACE(USD PSF)
NORTHEAST
Baltimore, MD 5.49 4.74 9.76 -
Boston, MA 5.71 5.15 6.28 10.92
Hartord, CT 3.96 3.50 6.50 6.50
Long Island, NY 8.40 7.95 13.49 9.43
New Jersey Central 4.38 3.72 10.79 12.51
New Jersey Northern 6.07 5.75 10.45 10.75
Philadelphia, PA 4.00 3.95 7.00 11.00
Pittsburgh, PA 4.47 4.00 11.51 11.39
Washington, DC 6.70 5.77 11.31 14.84
NORTHEAST TOTAL/AVERAGE 5.46 4.95 9.68 10.92
SOUTH
Atlanta, GA 3.18 2.86 7.33 10.04
Charleston, SC 3.85 4.30 6.25 16.25
Charlotte, NC 3.29 - 9.03 -
Columbia, SC 3.75 3.75 9.50 9.50
Dallas-Ft. Worth, TX 3.05 2.65 6.70 8.20
Ft. Lauderdale-Broward, FL 6.16 5.70 8.88 6.00
Greenville/Spartanburg, SC 2.93 2.95 6.80 -
Houston, TX 5.12 4.19 6.20 6.26
Jacksonville, FL 3.75 3.10 8.93 -
Little Rock, AR 2.68 2.74 7.35 -
Louisville, KY 3.37 - 7.51 -
Memphis, TN 2.46 2.45 5.02 9.00
Miami, FL 7.23 6.16 10.27 10.93
Nashville, TN 3.90 3.08 7.83 -
Orlando, FL 4.37 4.25 8.57 8.54
Raleigh, NC 3.75 4.75 9.37 11.50
Savannah, GA 3.95 3.75 7.00 10.00
Tampa Bay, FL 4.18 4.10 8.28 -
West Palm Beach, FL 6.62 6.09 11.12 11.37
SOUTH TOTAL/AVERAGE 4.10 3.95 8.03 9.70
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13/16P. | COLLIERS INTERNATIONAL
HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH
MARKETWAREHOUSE/DISTRIBUTION
SPACE (USD PSF)BULK SPACE(USD PSF)
FLEX/SERVICE SPACE(USD PSF)
TECH/R&D SPACE(USD PSF)
MIDWEST
Chicago, IL 3.82 2.37 10.29 -
Cincinnati, OH 3.15 3.15 7.12 7.12
Cleveland, OH 3.42 - 7.99 -
Columbus, OH 2.59 2.53 4.77 4.77
Detroit, MI 3.83 3.72 7.78 -
Grand Rapids, MI 3.14 2.91 3.17 4.59
Indianapolis, IN 3.99 2.83 7.90 -
Kansas City, MO-KS 4.48 3.66 8.81 7.32
Minneapolis/St. Paul, MN 4.68 4.21 4.57 -
Omaha, NE 4.34 4.77 5.60 4.10
St. Louis, MO 3.82 - 8.98 -
MIDWEST TOTAL/AVERAGE 3.75 3.35 7.00 5.58
WEST
Bakersfeld, CA 4.00 3.42 8.00 -
Boise, ID 4.50 4.25 5.25 5.50
Denver, CO 4.48 3.81 8.79 9.50
Fairfeld, CA 5.11 5.31 7.73 9.03
Fresno, CA 2.40 2.28 4.00 5.50
Honolulu, HI 11.40 - - -
Las Vegas, NV 4.56 4.56 5.88 8.76Los Angeles - Inland Empire, CA 3.96 3.84 6.95 7.85
Los Angeles, CA 5.90 5.66 9.75 12.50
Oakland, CA 4.68 4.56 5.40 7.68
Orange County, CA 6.84 6.12 12.65 13.45
Phoenix, AZ 5.01 4.07 10.31 10.63
Pleasanton/Walnut Creek, CA 5.31 4.21 12.67 12.67
Portland, OR 5.16 4.69 9.59 9.38
Sacramento, CA 4.08 3.72 8.04 8.16
San Diego, CA 7.92 7.32 12.24 14.28
San Francisco Peninsula, CA 9.84 9.84 23.04 23.04
San Jose/Silicon Valley, CA 5.67 5.25 9.00 13.93
Seattle/Puget Sound, WA 5.90 5.06 13.02 -
Stockton/San Joaquin County, CA 3.78 3.54 5.40 7.80
WEST TOTAL/AVERAGE 5.53 4.82 9.35 10.57
U.S. TOTAL/AVERAGE 4.72 4.31 8.51 9.79
U.S. QUARTERLY CHANGE IN RENT 0.1% -1.6% -0.3% 0.0%
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI
COLLIERS INTERNATIONAL | P
CANADA | INDUSTRIAL SURVEY
MARKET
EXISTINGINVENTORY (SF)
MAR. , NEW CONSTRUCTION
Q (SF)CURRENTLY UNDERCONSTRUCTION (SF)
Calgary, AB 121,387,000 560,000 2,814,000
Guelph, ON 20,138,000 169,000 0
Haliax, NS 7,270,000 116,000 0
Montral, QC 347,771,000 0 500,000
Ottawa, ON 28,027,000 0 25,000
Regina, SK 16,441,000 0 107,000
Saskatoon, SK 20,497,000 300,000 150,000
Toronto, ON 762,535,000 465,000 0
Vancouver, BC 177,512,000 0 1,958,000
Victoria, BC* 8,619,000 0 28,000
Waterloo Region, ON 60,669,000 0 209,000
CANADA TOTAL/AVERAGE 1,570,866,000 1,609,000 5,791,000
CANADA | INDUSTRIAL SURVEY
MARKETABSORPTIONQ (SF)
VACANCY RATEDEC. , (%)
VACANCY RATEMAR. , (%)
Calgary, AB 1,172,000 4.80 4.27
Guelph, ON 122,000 3.70 3.90
Haliax, NS 12,000 5.89 7.22
Montral, QC 459,000 5.39 5.25
Ottawa, ON 31,000 6.12 6.01
Regina, SK 5,000 1.93 1.90
Saskatoon, SK 317,000 4.94 4.88
Toronto, ON 1,112,000 4.46 4.37
Vancouver, BC 305,000 3.63 3.80
Victoria, BC* 0 3.37 3.37
Waterloo Region, ON 370,000 7.06 6.44
CANADA TOTAL/AVERAGE 3,905,000 4.70 4.59
* Victoria, BC, year end is Q
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7/31/2019 NA Industrial Highlights Q1 2012
15/16P. | COLLIERS INTERNATIONAL
HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
CANADA | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH
MARKETSALES PRICE
(CAD PSF)CAP RATE
(%)VACANCY FORECAST
( MONTHS)ABSORPTION FORECAST
( MONTHS)RENT FORECAST
( MONTHS)
Calgary, AB 125.00 6.50 Down Up Up
Guelph, ON 76.00 7.50 Down Up Up
Haliax, NS - - Down Same Same
Montral, QC 60.00 8.00 Up Same Down
Ottawa, ON 102.00 8.00 Down Up Same
Regina, SK 136.00 7.50 Down Up Same
Saskatoon, SK - 7.50 Down Up Same
Toronto, ON 85.00 6.50 Down Same Up
Vancouver, BC 122.11 5.80 Down Up Up
Victoria, BC 175.00 6.50 Up Same Down
Waterloo Region, ON 57.00 7.50 Same Up Up
CANADA TOTAL/AVERAGE 104.23 7.13
CANADA | INDUSTRIAL SURVEY | RENTS AS OF MARCH
MARKETWAREHOUSE/DISTRIBUTION
SPACE (CAD PSF)BULK SPACE(CAD PSF)
FLEX/SERVICE SPACE(CAD PSF)
TECH/R&D SPACE(CAD PSF)
Calgary, AB 8.25 6.75 11.00 10.75
Guelph, ON 4.59 4.75 7.36 7.36
Haliax, NS 7.75 6.50 10.50 15.00
Montral, QC 4.50 4.25 6.50 8.50
Ottawa, ON 7.75 7.25 8.50 12.00
Regina, SK 9.00 8.00 11.00 13.00Saskatoon, SK 9.50 8.50 11.00 13.00
Toronto, ON 5.45 4.60 7.25 7.85
Vancouver, BC 7.55 6.58 9.50 14.00
Victoria, BC 12.00 11.00 13.50 13.50
Waterloo Region, ON 3.93 3.22 8.79 8.79
CANADA TOTAL/AVERAGE 7.23 6.21 9.51 11.30
CANADA QUARTERLY CHANGE IN RENT 1.0% 4.5% 0.2% -0.4%
Glossary
Absorption Net change in leased space over agiven period o time.
Bulk Space , square eet or more, with up
to percent oce space, the balance being general
warehouse space with - to -oot ceiling heights.
All loading is dock-height.
Flex Space Single-story buildings having - to-oot ceilings with both oor-height and dock-
height loading. Includes wide variation in oce
space utilization, ranging rom retail and personal
service, to distribution, light industrial and occasionalheavy industrial use.
Inventory Includes all existing multi- or single-
tenant leased and owner-occupied industrial
warehouse, light manuacturing, ex and R&Dproperties greater than or equal to ,
square eet.
New Construction Includes completed speculative
and build-to-suit construction. New constructionquoted on a net basis ater any demolitions or
conversions.
Service Space Single story (or mezzanine) with
- to -oot ceilings with rontage treatment on
one side and dock-height loading or grade-levelroll-up doors on the other. Less than % oce.
Tech/R&D One- and two-story, - to -ootceiling heights with up to % oce/dry lab space
(remainder in wet lab, workshop, storage and othe
support), with dock-height and oor-height loadin
Triple Net Rent Includes rent payable to the
landlord, and does not include additional expensessuch as taxes, insurance, maintenance, janitorial a
utilities. All industrial and high-tech/R&D rents in
this report are quoted on an annual, triple net persquare oot basis in U.S. and Canadian dollars.
Vacancy Rate Percentage o total inventoryavailable (both vacant and occupied) as at the sur
date including direct vacant and sublease space.
Warehouse , square eet or more with up
percent oce space, the balance being general
warehouse space with - to -oot ceiling heighAll loading is dock-height.
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7/31/2019 NA Industrial Highlights Q1 2012
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HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERICA
COLLIERS INTERNATIONAL
Union Street, Suite
Seattle, WA
TEL +
Copyright Colliers International.
The inormation contained herein has been obtained
rom sources deemed reliable. While every reasonable
eort has been made to ensure its accuracy, we cannguarantee it. No responsibility is assumed or any
inaccuracies. Readers are encouraged to consult their
proessional advisors prior to acting on any o the
material contained in this report.
Accelerating succes
INDUSTRIAL VACANCY RATE RANKINGS
MARKET | UNITED STATESVACANCY RATE
MAR. , (%)
Honolulu, HI 4.72
Orange County, CA 4.82
Los Angeles, CA 4.84
Houston, TX 5.31Long Island, NY 5.37
Omaha, NE 5.64
Indianapolis, IN 5.65
Los Angeles - Inland Empire, CA 6.53
Kansas City, MO-KS 6.92
Seattle/Puget Sound, WA 6.99
Bakersfeld, CA 7.04
Columbia, SC 7.33
Miami, FL 7.36
Pittsburgh, PA 7.76
Portland, OR 7.77
West Palm Beach, FL 8.23
Grand Rapids, MI 8.24
Denver, CO 8.26Minneapolis/St. Paul, MN 8.33
New Jersey - Northern 8.48
Cleveland, OH 8.61
Oakland, CA 8.78
Ft. Lauderdale-Broward, FL 9.15
Cincinnati, OH 9.19
San Francisco Peninsula, CA 9.20
St. Louis, MO 9.35
Hartord, CT 9.74
Greenville/Spartanburg, SC 9.86
Louisville, KY 9.97
Philadelphia, PA 10.02
Baltimore, MD 10.11
Dallas-Ft. Worth, TX 10.27Tampa Bay, FL 10.28
Jacksonville, FL 10.30
New Jersey - Central 10.32
Chicago, IL 10.70
Orlando, FL 10.73
Charleston, SC 10.86
Columbus, OH 10.90
Washington, DC 10.98
Raleigh, NC 11.04
San Diego, CA 11.27
Fresno, CA 11.42
Boise, ID 11.58
San Jose/Silicon Valley, CA 11.74
Nashville, TN 12.07
Little Rock, AR 12.32
Charlotte, NC 12.56
Sacramento, CA 12.62
Fairfeld, CA 12.92
Detroit, MI 13.15
Memphis, TN 13.34
Atlanta, GA 13.35
Pleasanton/Walnut Creek, CA 13.62
Savannah, GA 13.73
Phoenix, AZ 13.78
Stockton/San Joaquin County, CA 14.42
Las Vegas, NV 16.10
Boston, MA 19.33
INDUSTRIAL VACANCY RATE RANKINGS
MARKET | CANADAVACANCY RATE
MAR. , (%)
Regina, SK 1.90
Victoria, BC 3.37
Vancouver, BC 3.80
Guelph, ON 3.90Calgary, AB 4.27
Toronto, ON 4.37
Saskatoon, SK 4.88
Montral, QC 5.25
Ottawa, ON 6.01
Waterloo Region, ON 6.44
Haliax, NS 7.22
FOR MORE INFORMATION
K.C. Conway
EMD Market Analytics | USA
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Global Brand Designer | Global Marketing
James Cook
Director o Research | USA
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