5.91% 328 $.81 $122 - Escondido...industrial market report q1 2015 submarket vacancy supply by size...
Transcript of 5.91% 328 $.81 $122 - Escondido...industrial market report q1 2015 submarket vacancy supply by size...
NORTH COUNTY SAN DIEGOINDUSTRIAL MARKET REPORT
Q1 2015
SUPPLY BY SIZESUBMARKET VACANCY
1Industrial Property Report
VACANCY RATE
5.91% 328K sfNET ABSORPTION (YTD)
$.81 nnnAVERAGE RENTAL
RATES / SF
$122/sfAVERAGE SALE
PRICES / SF
51.6M sfMARKET SIZE
OVERVIEW
The North County San Diego 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 849,420 residents.
MARKET TRENDS BUILDINGS TOTAL INVENTORY VACANT SF VACANCY RATE YTD ABSORPTION
Carlsbad 484 14,567,600 1,169,569 8.03% 153,317
Escondido 642 7,401,885 303,910 4.11% 53,227
Oceanside 393 7,996,611 709,628 8.87% 35,884
San Marcos 485 8,171,011 300,123 3.67% 31,967
Vista 531 13,551,760 571,748 4.22% 53,742
TOTAL 2,535 51,688,867 3,054,978 5.91% 328,137
0
10
20
30
40
50
60
70
80
90
100
110
5,000 to 9,999 SF 10,000 to 19,999 SF 20,000 to 49,999 SF 50,000 to 99,999 SF 100,000+ SFN
um
ber
of
Spaces\
Build
ings
Ava
ilable
SPACES AVAILABLE
11.1
%
6.2
%
11.9
%
4.0
%
6.9
%
10.4
%
4.8
%
9.3
%
4.0
%
4.3
%
8.0
%
4.1
%
8.9
%
3.6
%
3.9
%
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
YEAR-TO-DATE
Q1 2014
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Yr.-over-Yr.)
Q4 2014 Q1 2015
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Current Qtr.)(Prior Qtr.)
2Industrial Property Report
NORTH COUNTY - Q1 2015
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
Total Future Inventory 30,000
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION
DIST
31.5%
MFG
32.9%
IMT
14.0%
R&D
22.9%
NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 51,688,867
Total Future Inventory 1,434,551
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Distribution Manufacturing Multi-Tenant R&D
NORTH COUNTYTotal Vacancy by Product Type
VISTATotal Vacancy by Product Type
Total Future Inventory 30,000
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
DIST 15,636,446
MFG 17,002,299
IMT 7,231,204
R&D 11,818,918
Total Existing Inventory 51,688,867
Total Future Inventory 1,434,551Total Future Inventory 30,000
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 51,688,867
Under Construction 345,000
Proposed 1,089,551
Total Future Inventory 1,434,551
SIGNIFICANT LEASE TRANSACTIONS
SF Term Eff ective Rate
5858 Edison Place | Carlsbad 16,568 63 $0.84 NNN
2612 Temple Heights Drive | Oceanside 18,160 60 $0.78 Gross
2370 Oak Ridge Way #A | Vista 19,113 50 $0.55 NNN
2560 Progress Street | Vista 45,920 120 $0.67 NNN
2325 Cousteau Court | Vista 50,980 64 $0.54 NNN
SIGNIFICANT SALE TRANSACTIONS
SF COE Price/SF
700 Rancheros Drive | San Marcos 55,921 1/30/15 $121.60
2120 Harmony Grove Road | Escondido 56,352 1/27/15 $143.74
2293 Cosmos Court | Carlsbad 47,762 1/20/15 $119.87
1309 Simpson Way | Escondido 55,844 2/24/15 $130.72
5999 Avenida Encinas | Carlsbad 67,840 2/12/15 $175.41
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 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
NORTH COUNTYWeighted Monthly Average Asking Rents
VISTAWeighted Monthly Average Asking Rents
ESCONDIDO HISTORICAL MARKET TRENDS
0%
2%
4%
6%
8%
10%
12%
14%
-750
-500
-250
0
250
500
750
1,000
1,250
1,500
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
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
6,705,286Distribution 200 620,489 9.25% 0 0.00% 620,489 9.25% -969 -969 0 0 0 895,6810.00%
8,931,160Industrial 681 351,059 3.93% 0 0.00% 351,059 3.93% 288 288 0 0 0 00.00%
17,002,299Manufacturing 931 646,045 3.80% 43,956 0.26% 690,001 4.06% 116,917 116,917 0 0 0 95,3700.00%
7,231,204Multi-Tenant 384 382,363 5.29% 7,879 0.11% 390,242 5.40% 52,256 52,256 0 0 0 00.00%
2,196 39,869,949 1,999,956 5.02% 51,835 0.13% 168,492 0 0 0 991,051168,492 0.00%2,051,791 5.15%Industrial
11,761,611R&D 337 942,930 8.02% 2,950 0.03% 945,880 8.04% 159,645 159,645 31,058 31,058 0 443,5000.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
339 11,818,918 1,000,237 8.46% 2,950 0.02% 159,645 31,058 31,058 0 443,500159,645 0.00%1,003,187 8.49%R&D
2,535 51,688,867 3,000,193 5.80% 54,785 0.11% 328,137 31,058 31,058 0 1,434,551328,137 0.00%Total 3,054,978 5.91%
NORTH COUNTY - Q1 2015
CARLSBAD - Q1 2015
Industrial Property Report 4
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
2.6% MFG
28.1%
IMT
15.7%
R&D
53.6%
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
ESCONDIDOTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
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 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
DIST 376,140
MFG 4,095,975
IMT 2,285,360
R&D 7,810,125
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Under Construction 80,000
Proposed 310,392
Total Future Inventory 390,392
Total Future Inventory 44,000
3-POINT SUMMARY
» Two new spec industrial developments of 220,000 SF are
underway by SR Commercial and Burke Development in East
Carlsbad. This is the fi rst new spec industrial development in
Carlsbad since 4Q 2007.
» Multi-tenant industrial vacancy in Carlsbad drops to 5.8% and
is expected to be below 5% by 4Q2015.
» Several large users are running proformas and analyzing BTS
proposals on land sites.
CARLSBAD - Q1 2015
Industrial Property Report 5
INDUSTRIAL STATS
CARLSBAD MARKET TRENDS CARLSBAD INDUSTRIAL RENT TRENDS
ESCONDIDOWeighted Monthly Average Asking Rents
$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 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
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 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
Net Absorption New Supply Vacancy
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS 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
376,140Distribution 5 17,086 4.54% 0 0.00% 17,086 4.54% 0 0 0 0 0 00.00%
4,095,975Manufacturing 155 186,686 4.56% 1,600 0.04% 188,286 4.60% 2,820 2,820 0 0 0 80,3920.00%
2,285,360Multi-Tenant 96 129,380 5.66% 4,418 0.19% 133,798 5.85% -7,862 -7,862 0 0 0 00.00%
256 6,757,475 333,152 4.93% 6,018 0.09% -5,042 0 0 0 80,392-5,042 0.00%339,170 5.02%Industrial
7,752,818R&D 226 773,092 9.97% 0 0.00% 773,092 9.97% 158,359 158,359 31,058 31,058 0 390,0000.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
228 7,810,125 830,399 10.63% 0 0.00% 158,359 31,058 31,058 0 390,000158,359 0.00%830,399 10.63%R&D
484 14,567,600 1,163,551 7.99% 6,018 0.04% 153,317 31,058 31,058 0 470,392153,317 0.00%Total 1,169,569 8.03%
Industrial Property Report 6
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Under Construction 0
Proposed 9,500
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
ESCONDIDO
INVENTORY BREAKDOWN
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
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
25.0%
MFG
52.8%
IMT
17.6%
R&D
4.7%
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
CARLSBAD INVENTORY DISTRIBUTION
DIST 1,847,528
MFG 3,908,523
IMT 1,301,398
R&D 344,436
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
ESCONDIDO - Q1 2015
3-POINT SUMMARY
» SR Commercial has the 76,495 SF Enterprise Heights
Business Center multi-tenant industrial project in escrow.
» Building sale prices continue to increase with 20% year over
year growth the last 3 years.
» Users are having a diffi cult time fi nding free standing buildings
of any size available for sale or for lease.
Industrial Property Report 7
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95
$1.00
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
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 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
Net Absorption New Supply Vacancy
ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY HISTORICAL MARKET TRENDS
INDUSTRIAL STATS
ESCONDIDO MARKET TRENDS ESCONDIDO INDUSTRIAL RENT TRENDS
ESCONDIDO - Q1 2015
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
859,169Distribution 41 35,896 4.18% 0 0.00% 35,896 4.18% -1,633 -1,633 0 0 0 00.00%
988,359Industrial 122 48,895 4.95% 0 0.00% 48,895 4.95% 4,116 4,116 0 0 0 00.00%
3,908,523Manufacturing 366 192,232 4.92% 0 0.00% 192,232 4.92% 40,043 40,043 0 0 0 00.00%
1,301,398Multi-Tenant 86 26,887 2.07% 0 0.00% 26,887 2.07% 10,701 10,701 0 0 0 00.00%
615 7,057,449 303,910 4.31% 0 0.00% 53,227 0 0 0 053,227 0.00%303,910 4.31%Industrial
344,436R&D 27 0 0.00% 0 0.00% 0 0.00% 0 0 0 0 0 9,5000.00%
27 344,436 0 0.00% 0 0.00% 0 0 0 0 9,5000 0.00%0 0.00%R&D
642 7,401,885 303,910 4.11% 0 0.00% 53,227 0 0 0 9,50053,227 0.00%Total 303,910 4.11%
Industrial Property Report 8
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 2014 1Q2015
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 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
DIST
70.6%
MFG
3.2%IMT
14.3%R&D
11.9%
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
DIST 5,644,973
MFG 256,997
IMT 1,140,556
R&D 954,085
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
OCEANSIDE - Q1 2015
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Under Construction 265,000
Proposed 615,659
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
3-POINT SUMMARY
» IIT in escrow on 204,000 SF building with 6 acres of excess
land at 4010 Ocean Ranch Blvd. for a redevelopment play.
» MagnaFlow is expanding their production facility with a BTS
by Hamann in Ocean Ranch.
» FedEx Ground has broken ground on their 34 acre
development in Pacifi c Coast Business Park with a completion
scheduled for 1Q 2016.
Industrial Property Report 9
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
$0.90
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
Insufficient data for R&D rents
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
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 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
Net Absorption New Supply Vacancy
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDSOCEANSIDE MARKET TRENDS OCEANSIDE INDUSTRIAL RENT TRENDS
OCEANSIDE - Q1 2015
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 25 477,777 32.34% 0 0.00% 477,777 32.34% 5,186 5,186 0 0 0 865,6810.00%
4,167,483Industrial 272 164,492 3.95% 0 0.00% 164,492 3.95% -6,928 -6,928 0 0 0 00.00%
256,997Manufacturing 12 6,006 2.34% 0 0.00% 6,006 2.34% -6,006 -6,006 0 0 0 14,9780.00%
1,140,556Multi-Tenant 64 47,029 4.12% 0 0.00% 47,029 4.12% 33,375 33,375 0 0 0 00.00%
373 7,042,526 695,304 9.87% 0 0.00% 25,627 0 0 0 880,65925,627 0.00%695,304 9.87%Industrial
954,085R&D 20 14,324 1.50% 0 0.00% 14,324 1.50% 10,257 10,257 0 0 0 00.00%
20 954,085 14,324 1.50% 0 0.00% 10,257 0 0 0 010,257 0.00%14,324 1.50%R&D
393 7,996,611 709,628 8.87% 0 0.00% 35,884 0 0 0 880,65935,884 0.00%Total 709,628 8.87%
Industrial Property Report 10
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 2014 1Q2015
Distribution Manufacturing Multi-Tenant R&D
SAN MARCOSTotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
DIST
64.2%
MFG
17.2%
IMT
6.8%
R&D
11.8%
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
DIST 5,244,309
MFG 1,403,602
IMT 557,068
R&D 966,032
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Total Future Inventory 44,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,401,885
Total Future Inventory 9,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 880,659
Total Existing Inventory 7,996,611
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,171,011
SAN MARCOS INVENTORY DISTRIBUTION
Total Existing Inventory 14,567,600
Total Future Inventory 390,392
Under Construction 0
Proposed 44,000
Total Future Inventory 44,000
SAN MARCOS - Q1 2015
3-POINT SUMMARY
» San Marcos continues to boast the lowest industrial vacancy rate in North County at a very healthy 3.6%.
» Investor demand is strong with owners receiving multiple unsolicited off ers on user occupied facilities.
» The craft beer industry continues to fl ourish with multiple users in the market looking for additional space.
Industrial Property Report 11
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
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
SAN MARCOSWeighted Monthly Average Asking Rents
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
-300
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
Net Absorption New Supply Vacancy
SAN MARCOS HISTORICAL MARKET TRENDSSAN MARCOS MARKET TRENDS SAN MARCOS INDUSTRIAL RENT TRENDS
SAN MARCOS - Q1 2015
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
1,972,666Distribution 105 51,644 2.62% 0 0.00% 51,644 2.62% -4,522 -4,522 0 0 0 00.00%
3,271,643Industrial 251 96,840 2.96% 0 0.00% 96,840 2.96% 3,100 3,100 0 0 0 00.00%
1,403,602Manufacturing 71 24,324 1.73% 0 0.00% 24,324 1.73% 10,064 10,064 0 0 0 00.00%
557,068Multi-Tenant 28 62,095 11.15% 3,461 0.62% 65,556 11.77% 23,018 23,018 0 0 0 00.00%
455 7,204,979 234,903 3.26% 3,461 0.05% 31,660 0 0 0 031,660 0.00%238,364 3.31%Industrial
966,032R&D 30 61,759 6.39% 0 0.00% 61,759 6.39% 307 307 0 0 0 44,0000.00%
30 966,032 61,759 6.39% 0 0.00% 307 0 0 0 44,000307 0.00%61,759 6.39%R&D
485 8,171,011 296,662 3.63% 3,461 0.04% 31,967 0 0 0 44,00031,967 0.00%Total 300,123 3.67%
Industrial Property Report 12
VISTA
NORTH COUNTYTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Distribution Manufacturing Multi-Tenant R&D
VISTATotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
18.6%
MFG
54.1%
IMT
14.4%
R&D
12.9%
Total Future Inventory 30,000
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 51,688,867
Total Future Inventory 1,434,551
Total Future Inventory 30,000
DIST 2,523,496
MFG 7,337,202
IMT 1,946,822
R&D 1,744,240
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 51,688,867
Total Future Inventory 1,434,551
Under Construction 0
Proposed 30,000
Total Future Inventory 30,000
Total Existing Inventory 13,551,760
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 51,688,867
Total Future Inventory 1,434,551
VISTA - Q1 2015
3-POINT SUMMARY
» Pennysaver is vacating a building and consolidating into a Los
Angeles area facility.
» Rivulus (formerly John Deere) is downsizing and relocating
out of Vista to lower rent space in Otay Mesa.
» Small building sale prices to users continue to rise with recent
closings in the $145 to $155 SF range.
Industrial Property Report 13
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 2014 1Q2015
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
VISTAWeighted Monthly Average Asking RentsCARLSBAD HISTORICAL MARKET TRENDS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-200
-100
0
100
200
300
400
500
2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Vacancy R
ate
SF
(0
00
s)
Net Absorption New Supply Vacancy
VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
VISTA MARKET TRENDS VISTA INDUSTRIAL RENT TRENDS
VISTA - Q1 2015
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 38,086 1.89% 0 0.00% 38,086 1.89% 0 0 0 0 0 30,0000.00%
503,675Industrial 36 40,832 8.11% 0 0.00% 40,832 8.11% 0 0 0 0 0 00.00%
7,337,202Manufacturing 327 236,797 3.23% 42,356 0.58% 279,153 3.80% 69,996 69,996 0 0 0 00.00%
1,946,822Multi-Tenant 110 116,972 6.01% 0 0.00% 116,972 6.01% -6,976 -6,976 0 0 0 00.00%
497 11,807,520 432,687 3.66% 42,356 0.36% 63,020 0 0 0 30,00063,020 0.00%475,043 4.02%Industrial
1,744,240R&D 34 93,755 5.38% 2,950 0.17% 96,705 5.54% -9,278 -9,278 0 0 0 00.00%
34 1,744,240 93,755 5.38% 2,950 0.17% -9,278 0 0 0 0-9,278 0.00%96,705 5.54%R&D
531 13,551,760 526,442 3.88% 45,306 0.33% 53,742 0 0 0 30,00053,742 0.00%Total 571,748 4.22%
Industrial Property Report 14
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
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Prepared by:
TUCKER HOHENSTEIN LIC# 00999360
MIKE ERWIN LIC# 01242826
CONOR BOYLE LIC# 01813305
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 51.6 M
Total Vacancy 5.91%
Under Construction 345,000