NA Industrial Highlights Q1 2012

7/31/2019 NA Industrial Highlights Q1 2012

1/16

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


2/16P. | COLLIERS INTERNATIONAL

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 .


3/16

HIGHLIGHTS | Q1 2012 | INDUSTRIAL | NORTH AMERI

COLLIERS INTERNATIONAL | P

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.




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 .


5/16



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


6/16



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





MARKET



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


8/16




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








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


10/16



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




UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH

MARKETSALES PRICE

(USD PSF)CAP RATE

(%)VACANCY 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


12/16



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




UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH


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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CANADA | INDUSTRIAL SURVEY

MARKET



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




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




CANADA | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH

MARKETSALES PRICE

(CAD PSF)CAP RATE

(%)VACANCY 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


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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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

TEL +

EMAIL [email protected]

Je SimonsonSenior Research Analyst | USA

TEL +


Lauren Chlebowski

Global Brand Designer | Global Marketing

James Cook

Director o Research | USA

TEL +


oces in countries on continentsUnited States:

Canada:

Latin America: Asia Pacifc:

EMEA:

$1.8 billion in annual revenue

1.25 billion square feet under

management

Over 12,300 professionals

NA Industrial Highlights Q1 2012

Documents

Transcript of NA Industrial Highlights Q1 2012