Cushman & Wakefield - North American Industrial Market Beat - Mid-Year 2012

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y three years, thegauge of new oro 47.8, the first llen below 50.

facturing activity although its con of the U.S. recoconsecutive monational shipmentnged. Even with , over 115,000 mhs ending May 20May 2012, the s

oyment.

o’s industrial GDnsus is that econtations in 2012. creased the grow the average ford downward). T

ct to a sustained emphatic promo

NTINUED IMPRd-year, the U.S. nd and declining d-year 2012, the when the vacant uptrend that b

million square feeecorded at mid-yhs of the year tofor the remainded the year with lWhile overall vacr in 2011, the stnt growth and re Although there it is still down fr

ORTH AM

DUSTRARK

ushman & Wak

World Headquartmericas 6178 d.com/knowledge

ECONOMIC The deepening slump, the potethe risk of a hahave added greeconomic pros

e U.S. manufacturders, a measuretime since the r

y in Canada was ntinued growth wovery. Howevernth in May. This ts of machinery higher labor co

manufacturing jo012, the most insector accounted

DP grew 3.6% innomic growth w In its mid-year wth projection fr Latin America aThe degree of th recovery in theotion of local de

ROVEMENT industrial marke vacancies. The lowest vacancy cy rate was 8.6%

began in 2011, thet (msf) of spaceyear 2011. Leasotaled 199.2 msf.er of 2012, the Ueasing velocity j

cancy and absorpteady stream of ental rates have e has been a slighrom the same p

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OVERVIEW of the Europeanential so-called "rd landing for C

eater uncertaintypects. For the furing sector shrae of future activirecession ended

revived during twill depend on tr, factory jobs in is surprising, giv and equipment

osts and an elevaobs were createdn any similar perd for 10.4% of th

n the first half ofwill continue outp world economyfor Mexico in 20and for the Woris upturn will, ho

e international ecemand.

et continued to overall vacancy level since the f%. Reflecting a che U.S industrial e at mid-year, uping activity durin. If activity contU.S. industrial maust below 2011’ption completelydemand had virt yet to reach preht uptick in renteriod a year ago

NAPSHOEAT

ch Publication

The market terms and definit

No warranty or representationformation contained hereinother conditions, withdrawal

© 2012 Cushman & Wakefiel

n economic "fiscal cliff" and

China's economy y to U.S. first time in ank in June. Thety, plunged from that this index

the first half of the speed and ncreased for the ven that were largely

ated Canadian d in the six iod on record. he country’s tot

f the year and thperforming y report, the IMF012 to 3.9%, rld (which were owever still be conomy and a

post healthy rate fell to 9.3%fourth quarter oontinuation of a sector absorbedp from the 53.5 ng the first six tinues at this arket is on track’s level of 417.1 y turned the tually no impact e-recession ts since year-endo. However with

OT

tions in this report are based

on, express or implied, is ma, and same is submitted subje without notice, and to any s

ld, Inc. All rights reserved.

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d on NAIOP standards.

ade to the accuracy or compect to errors, omissions, chaspecial listing conditions impo

y level of demanrial sector shoulciation.

all demand strengts remains expa

tions is translatinons. Demand moian markets, par

ry and Edmonton and needs creat

opment. The conontributing to gr

Wal-Mart expand s Target, establi across Canada,

so seeing expansng number of reng.

RTH AMERICA

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pleteness of the ange of price, rental or osed by our principals.

nd and general lald be entering a

gth across mostansionary. Howeng into a more comentum is clearticularly in Alben have been buoted by huge megntinued evolutiorowth across ind their distributioish major facilitie scheduled to osion within the foetailers add groce

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t Canadian indusever, challenging cautious approacarly stronger witerta, where tenaoyed of late by inga projects relatn of the Canadiadustrial markets on facilities and nes to support a pen in 2013. Caood distributionery operations t

OWTH (SOURCE: M

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MID-YEAR 2

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uct, the ined rental

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n sector, as a to their service

OODY’S ANALYTICS)

ANGE IN TEU TOTALS)

2012F

BC) Oakland, CA

2012

EAR 2012

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GREAcontindroppThe reand leHowecontinby-promsf atis up 7onlineassets

INLANlower (bps) lbox spfinishinprevioquarteactivitmsf, nmarks2011.

ORANindustduringreturnthe sixconsec865,07quartefor neavailabconce

SAN Dmomeresultithat qthreshaskingto findof gooCountbuild-t

SILICOindustincreadown activitacceleexpanforeca

U.S. –


ATER LOS ANGnue to improve wping the overall vegion also remaiads the nation in

ever, leasing activnue to be cautiouoduct of lack of t mid-year, inves74.8% from a yee for sale, investo.

ND EMPIRE, CA than the previolower than this tpace resulted in ng second quartous quarter. Thiers of positive abty improved signearly double the

s the highest qua

NGE COUNTY trial market was g the second halfn to levels more xth quarter of pocutive quarters. 70 sf. Overall vaer with all produewer class A warble inventory andssions that were

DIEGO, CA Recentum in the secing in positive neuarterly net abs

hold since the fog rent remains std in certain markod options for laty markets will ito-suit opportun

ON VALLEY, CAtrial market throased 10.8% to 7.7 240 bps to 12.5ty caused vacancerated with 1.4 msion and require

ast horizon.

– WESTERN R


ELES, CA Markewith occupancy vacancy rate to 4ins the tightest in leasing activityvity is down 5.4%us in this econoquality space thatment activity coar ago. With so ors are bidding m

A Overall vacanous quarter, and time last year. T another quarterter at just over 2is represents an bsorption in theificantly during s

e 4.9 msf leased arterly leasing ac

CA While the r interrupted by tf of 2011, the fir consistent withositive absorptio At mid-year, tocancy declined b

uct types recordrehouse space exd landlords are ne available in pre

covery in the Sancond quarter witet absorption oforption surpasse

ourth quarter of table, but as quaket areas, rents arge space requirncrease construnities to fit their

A Demand is heough the first hal7 msf. The high-5% from one ye

cy to drop 150 bmsf sold, bringingements are expe

REGION

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et fundamentals gains of 1.3 msf 4.6% - the lowesndustrial market

y with 18.9 msf s% from last yearmic environmenat users demandontinued to gain few quality propmore aggressive

cy rates declined an impressive 1

The continued der of positive net 2.5 msf, which is astounding twe IE industrial masecond quarter t in the previous ctivity since the f

recovery of the the general marrst half of 2012 d recent recover

on out of the lasotal overall absoby 40 bps to 5.6ing declines in vxceeds Orange no longer offerinevious years.

n Diego industrith leasing activityf 1.1 msf. This is ed the one millio 2007. The counlity spaces are bwill begin to increments in the M

uction activity as size needs.

althy for Silicon lf of 2012 as leas-tech overall vacar ago and healt

bps to 5.6%. Inveg year-to-date toected to sustain




for the region at mid-year, st since 2009. t in the country so far this year. r. Although usernt, this is also a d. Totaling 8.4 n momentum anperties coming ly for prime

d to 7.6%, 10 bp40 basis points emand for big absorption, on par with thelve straight

arket. Leasing to just under 7.9quarter and first quarter of

Orange County ket slowdown demonstrated a ry trend and wasst eight orption stands at% during second

vacancy. DemandCounty’s ng the generous

al market gainedy of 3.8 msf the first time on square foot

ntywide average becoming harderrease. The lack

Mid-to-North tenants look to

Valley’s sing activity cancy rate tickedthy warehouse estment activity o 2.4 msf. Tech activity in the




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OAKLas of thyears. renewLack ooveralrents icontinexpecteconodownwgrowth

PORTmomedownwfrom ssubmaunderwthe ecorents a

SEATTOvera1.5 msrecordloggedthe Seainvestmreachepsf is u

LAS Vquartewith threturnsecondthere hhave remarketharderover thon con

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LAND, CA Overhe end of last qu The squeeze on

wals, which repreof quality space hl asking rents roincreasing by as ued to pick up pt a slow recovermy. Through 20wards and rentah in 2014 and 20

LAND, OR Marentum in Portlanward trend endinsecond quarter 2arkets and produway and most ofonomy improveand spurring con

TLE, WA Seattleall vacancy is dowsf of positive oveded in 2011 and d so far this yearattle industrial mment markets ined the 2.8 msf inup 43% over the

EGAS, NV The er 2012 to 14.9%he jump in vacan

ned to the 15.0%d quarter 2011. has not been muemained flat sinct continues to imr to come acroshe next few yeantinued job grow

REGIONAL O

6.9%

%

%

%

%

%

%

%

%

WESTERNREGION

MR


rall vacancy dropuarter, reaching n quality space cesented over 35%has allowed landose 2.6% during much as 7.0% inpace during the ry in response to013, vacancy ratel rates slowly up015.

rket fundamentad. Overall vacanng second quart2011. Rental ratuct types. Theref what is being d

es, increasing demnstruction.

e continued on itwn 130 bps fromerall absorption leasing activity rr. Solid leasing comarket, which han the region. Then all of 2011 and e $58-psf average

overall vacancy %, compared to ncy last quarter,

% vacancy rate w Despite an upticuch pressure once second quartmprove and vacas, expect to see

ars. This market wth and an impr

OVERALL VAC

9.4%

9.7%

MIDWESTREGION

SOUTHWESTREGION

pped 60 bps to its lowest pointontinues to spur% of leasing activlords to push upthe quarter, witn some submarksecond quarter.o uncertainty in es are expected pwards, followed

als are gaining poncy continued itster 2012 at 7.4%tes have stabilize is very little co

developed is builmand will tip the

ts path towards m year-end 2011 has nearly surparemained strongontinues to attraas been one of te 2.1 msf in tran the average salee last year.

decreased durin15.6% in first qu the current ma

we witnessed at tck in activity in t

n rent growth aster 2010. Howevant space starts

e slightly higher a improvement woved economy.

CANCY RATES

9.9%

10.8

%

T NORTHEASTREGION

SOUTHREGIO

7.9% from 8.5% t in nearly four r tenant vity this quarterp rents, and th warehouse kets. User sales Oakland should the national to tick slowly d by faster

ositive s gradual

%, down 120 bpsed in almost all nstruction ld-to-suit. As e scale, boosting

recovery. to 7.8%. The assed the 1.7 msg with 3.4 msf act investors to the most active sactions nearly e price of $83

ng the second uarter 2012. Everket has the end of the market, asking rents ver, as the to become asking lease rate

will be dependent

S

10.8

%

9.3%

HEASTON

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CHICA9.4% alast yeunchatotal otransaaccouMost nwarehdeployhas mawith a

CLEVEthe seto 8.39.6% aattribuinventstrongthe sidto theamounAlthouslow b

DETRThe o300 bpimpronew teand grto addemploa 381,invest that thATS.

COLUincreamany largestthe samsf into-datprevio

ST. LOgrowtrecordof 6059.5%, addedoccur recess

U.S. –


AGO, IL Overaat the end of secear. Chicago’s dollenged and newof 18.2 msf, for aactions in excessnting for 7.3 msnotably, Home D

house that will byment facility buade huge strides

a total of 6.1 msf

ELAND, OH Thecond quarter 20% as compared a year ago. The mutable to steady tory on market ager than leasing adelines are readye party as vacancnt of quality prough demand exisbecause of the c

ROIT, MI Activityverall vacancy raps compared to

ove as the automechnology and inrowth of other md 400 jobs, whileoyees at their res708-sf building t $60 million intohey will hire an a

UMBUS, OH Ovased activity fromsale prices weret transactions thle of Centerpoindustrial buildingte industrial buildous year.

OUIS, MO The Sth for the secondded in both quar5,580 sf. The va100 bps lower t to the hope tha and alleviate feasion.

– MIDWEST R


ll vacancy contincond quarter, a dominance as an i

w leasing activity a 30.5% year-oves of 200,000 sf hf, or 40.2% of trDepot, Inc. come built adjacent

uilt in Joliet earlies in absorbing thf of overall supp

he Greater Clev012 with anotheto 8.5% at the emain factor to th activity in the mat this time. Saleactivity, as compy to make decisicy rates continueoduct available wsts for new consost.

y within the induate closed the q one year ago. E

motive companiennovations, whicmarket area. Bae GE announcedsearch center. Bthis quarter and o the facility. Geadditional 600 e

verall, the Columm fourth 2011 the discounted forhat occurred witnt Business Park sold for $40.9 mding sales activit

St. Louis industrd quarter of 201rters of the yearcancy rate for ththan a year befoat this will be thars that the econ

EGION

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nues to improvedecline of 110 binland hub rema grew significanter-year increaseave fueled the leransactions signemitted to lease to its 657,600-sfer this year. Thehe heavy supply oly absorbed mid

eland industrial r decrease in va

end of the first qhe decrease in v

market and the lies activity will copanies that have ions. However, te to decline and

will lead to a premstruction, activit

ustrial market reuarter at 14.7%,Economic condits drive the markch in turn fuels tattery maker A12 they plan to hirBrose North Am they plan to addeneral Motors amployees to bui

mbus Industrial mhrough second qr all cash buyers.thin the last fourk - CP#1 in Grovmillion or $35.1ty in 2012 is up c

ial market exper2. Positive abso

r, resulting in yeahe St. Louis marre. The decrease year that steadnomy will fall ba




and measured bps from this timined ly with mid-year

e. Large lease easing recovery, ed mid-year. a 1.6-msf f rapid e Chicago markeof vacant space

d-year.

market ended acancy, adjusting uarter 2012 and

vacancy rate is imited amount oontinue to remai been waiting onthey maybe late the limited mium in prices. ty will remain

emains steady. , a decrease of tions continue tket with their the expansion 23 Systems planre 300 merica purchasedd 450 jobs and lso announced ild the Cadillac

market showed quarter 2012, bu One of the r quarters was veport. This 1.2-2 psf. Total yearcompared to the

rienced modest orption was ar-to-date total

rket dropped to se in vacancy hasdy growth will ck into




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INDIAmake irate feleasingpositivcontininvestmconstrthe Indbusineto run no fordistribis in th2012.

MILWAgain stquarteFurthe7.9% wrise withe thispeculaimpresProper

KANSAhave bactivitysupplyconstrbuildinthe hewill bedistribvacancsf, thesbenefitnationaKansasindustr

U.S.

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0



ANAPOLIS, IN Timpressive gainsell to 6.8% from g activity outpacive absorption anue. The continument sale activitruction. Ongoingdianapolis markeess owners looki their businesse

reseeable let up ution space, it is

he pipeline, and t

WAUKEE, WI Thetrength in with ter, making it the er positive indicawhich is down frith expectationsird quarter as wative developmessive gains with rty Group both

AS CITY, MO Rbegun to stabilizey for the industr

ying the increasinruction and devengs are under coealth of the local e available in earution project is

cy rate around 3se buildings provt from Kansas Cal economy can s City should corial submarkets.

REGIONAL D

$5.5

4

00

00

00

00

00

00

WESTERNREGION

NOR


The Indianapolis s in the second q 7.5% in the firsting that of the p

nd steadily declining decline in va

ty and spurred a g interest in the et continues to aing for best and s. As net rents cin demand for las anticipated thathat it will likely

e Milwaukee aretotal absorption eighth consecutator includes a srom 8.6% a year s to have anothe

well as a potentiaent in the area. ICenterpoint Pro completing larg

Rents and sale pre after declining rial sector is posng demand in a melopment is still onstruction and w market. A 821,ly 2013 and a se expected to de

3% for institutionvide much-need

City’s attractive d avoid dipping in

ontinue to exper

DIRECT WARE

$4.9

5

$4.2

0

ORTHEASTREGION

SOUTHWESTREGION

Industrial markequarter as the ovt quarter. With yprevious four yeaning vacancy rateacancy has led to new wave of sp favorable econoattract both inve most fiscally soucontinue to incrarge contiguous at more speculaty break ground b

ea industrial mar of 528,181sf in ttive quarter of pecond quarter v ago. Industrial d

er positive absoral for announcemInvestment salesoperties Trust ae portfolio acqu

rices in the Kans through the recsitive, but the bigmarket where finlagging. Two indwill provide goo663-sf class A di

eparate 155,000-liver this Octobnal grade spacesed options for udistribution infranto another recerience positive g

EHOUSE NET

$3.8

4

$3.4

8

T MIDWESTREGION

SOUTHREGIO

et continued to verall vacancy year-to-date ars, this trend ofes is expected too an increase in peculative omic climate of estors and und environmen

rease, and with warehouse/ tive constructionbefore the end o

rket continued tthe second

positive growth. vacancy rate of demand is on therption quarter inments of s made nd Zilber

uisitions.

sas City market cession. Overalggest challenge inancing for newdustrial spec od measure for istribution facilit-sf speculative er. With a above 100,000

users looking to astructure. If theessionary periodrowth across its

RENT

$3.4

8

$4.3

0

HEASTON

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ATLAof impvacancThis isreportto decabsorpoccupof leassame p

MIAMclimbeThe orentab3.9% dmost hinvestooptimanticip

ORLAevolutthe fiftpoint tdemangrowthalf offirst. Ethe ma

JACKSindustquartevacancThe coprovidvacanceconoreactivstagnaremain

CHARoveralshouldmanuflocatefive yebreaki25% pannoutheir oexpect2012 afacilitie

U.S. –


ANTA, GA Atlanprovement throucy continued to s a 150-bp decreted for the secocrease, the Atlanption which broancy gains. Witsing activity has period in 2011 b

MI, FL. The Miamed half a percentverall direct ask

ble square foot fdecrease. Miami-highly coveted mors. The forecasistic as rent growpated at the beg

ANDO, FL The Otion in the seconth consecutive qto 12.4% - as thnd into continueth is needed for f 2012 should geExpect rental ratarket continues

SONVILLE, FL Ftrial market conter again failed tocy unchanged at ompletion of sevde at least a partcy to resume itsomic gains – and vate the marketant over the last nder of 2012.

RLOTTE, NC Lell vacancy rate od see increased dfacturing facilitiee closer to the eears occurred thing ground on R

pre-leased to Avunced a built-to-soperations fromt to see additionas cap rates comes closer to rep

– SOUTHEAST


nta’s industrial mughout the seco decrease endingease year-over-yond quarter of 20nta market posteught the year-toth 9.1 msf of leasexceeded total aby 29%.

i-Dade County otage point to 7.4king rental rate afrom $5.45 psf a-Dade County w

markets amongstst for the remainwth and absorptinning of the yea

Orlando industrnd quarter of 20quarter – falling te market conve

ed positive absorthe market’s lon

enerally extend ates to remain fla to work off exc

Future growth ptinue to exceed

o produce any no 11.1% and absoveral transactiontial spark in the downward traje perhaps politica’s recovery. Ask twelve months

easing activity toof 16.9%. With rdemand for quals in an attempt tnd user. The firs

his quarter with Ridge C reek IV, eritt Express. Kesuit project for three locationsnal build-to-suitsmpress, pushing vlacement value.

T REGION

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market continuednd quarter of 20g the second quayear from the 11011. As vacancy ed 1.7 msf of poo-date total to 3sing activity at mactivity reported

overall vacancy 4% from 6.9% atat mid-year dippeat mid-year 2011will continue to bt institutional ownder of 2012 remtion did not incrar.

ial market conti012. Overall vacathree-tenths of rted small pockerption. While mong-term recoverand expand the pat through 2012 cess inventory.

rospects for the current conditiootable new demaorption only modns pending at misecond half of 2ectory; howeveral clarity - are neking rents have and should rem

otaled 1.9 msf at ising energy costlity distribution to shorten suppst speculative deChildress Klein a 270,000-sf buieith CorporatioBritax, which wi into one 500,00s announced in tvalues of moder




d to show signs 012. Overall arter at 9.8%. .3% rate rates continued

ositive overall .0 msf of

mid-year, the pacd during the

rate at mid-year mid-year 2011. ed to $5.24 per , resulting in a be one of the wners and mains cautiouslyrease at the pace

nued its steady ancy declined foa percentage ets of new ore robust job ry, the second progress of the and into 2013 a

e Jacksonville ons. The secondand, leaving destly positive. d-year should 012, causing r, greater eeded to truly proven largely ain so for the

mid-year with ts, the region and

ply chains and evelopment in Properties lding which is n also ill consolidate 00-sf facility. Wethe second half orn distribution




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e of

NASHsmall srate ofabsorpdistribupgradmove tmakinglithiumsecond305,00and CrCowan

MEMP2012, ocompaindustrinvestmfrom 1rents alist. Demarket

LOUISvacancnegativcomplebuoyedsouthedeveloincreasunemp

HAMPsecondabsorpsubmaheld stdeclinibright buyersstrugglprice o2012 s

RICHMfrom 2quartestartinof oneuptick sign aftabsorp193,85down tAbsorpAmazoin Che



HVILLE, TN The steps to recoverf 10.2%. Net reption totaled 276ution buildings i

ding its engine prthat should creag huge investme

m-ion battery plad quarter with L00-sf building at ross Point Comn Street for $5.0

PHIS, TN The Meoutpacing the naared to the natiorial market is strment sales and n13.9% to 13.4%. and local incentiemand remains st is seeing specu

SVILLE, KY Despcy increased in tve absorption coetions. Two sigd the industrial ern Indiana markopment may be ose. Key manufacployment level to

PTON ROADS, d quarter of 201ption stands at 1arket have showteady at close tong slowly, as are spot, with ratess. Since 2008, thled. In 2008 therof $80 psf. This iso far at a media

MOND, VA Lea2.4 msf through er, the industrial g to renew lease

e or three-year l in interest fromfter almost four ption was 375,3550 sf through theto 10.5% from 1ption should remon is on schedulesterfield by the


industrial markery. The quarter ental rates were 6,878 sf. Amazoin the Nashville roduction capabate up to 500 nents in Smyrna, c

ant of 1.3 msf. SaLNR Property C7355 Cockrill Bmunity Church 0 million.

emphis economation with a 1.6%onal growth of 1rengthening on snew constructio A central U.S. loves keeps Mempstrong, and for tulative construct

pite considerablehe second quartoupled with 232gnificant build-tomarket in both tkets. Financing fon the horizon icturing growth ho at or below th

VA Regional ind2 has slowed sig77,024 sf. Eleven negative absoro 8.0% over the e industrial builds for industrial pe industrial salesre were over 60is compared to an price of $50 p

sing activity slowthe second quar market is slowles for longer tereases in some c

m contracting andyears of contrac56 sf through the second quarte11.1% in the secmain in positive e to open a mas end of 2012.

et in Nashville c ended with an o $3.66 psf and oon.com is set to market. Additio

bilities at their Spew jobs this yearconstructing a biales volume pickorporation’s puend Boulevard facquiring 114,39

y fared well in t% increase in job.3%. Activity inseveral fronts inn. Direct vacanocation coupledphis on the top the first time sintion.

e leasing activityter due in part t

2,600 sf of new c-suits for Amazothe Louisville mefor speculative inif absorption conhas reduced thehe national avera

dustrial absorptiognificantly. Year-en out of 20 Hamrption year-to-d past few years. ding prices. Finanurchases under s market in Ham0 properties soldless than ten propsf.

wed to 894,698 rter of 2011. Dey getting strongrms, opting for fases. Brokers ald construction fction in that indue second quarte

er of 2011. That cond quarter of 2 territory for thessive 1.0-msf dist

ontinued to takeoverall vacancy verall net deliver two new

onally, GM is pring Hill plant, ar. Nissan is also llion dollar

ked up in the rchase of a for $5.2 million 99 sf at 291-299

the first half of b growth, n the Memphis ncluding leasing, ncy fell 50 bps d with attractive of many tenants

nce 2008 the

y, industrial to 182,000 sf of construction on.com have etro and ndustrial ntinues to

e local age.

on for the -to-date mpton Roads ate. Vacancy hasLease rates are ncing is the one 5% for qualifyin

mpton Roads hasd at a median operties sold in

sf year-to-date espite the rougher. Tenants are five years insteadso report an firms, a welcomeustry. Net er, up from drove vacancy 2011. e rest of 2012. tribution facility

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NEW marketo a cupsf. Dyear-odistribthe firthe seindustsecondreminVacanrise as

LONGleasingtotalinand thsuit ofin leasremainslightlyexpect

PHILAvacancbp droyear 2positivvacancleasingmarkenew aportioleases flex le

PA I-89.1% fquarteincreaspeculincludValleythe 70With the amexceefor tendeveloup due

PITTSannouin Pittsite wPittsbu

U.S. –


JERSEY – CENTet saw modest imurrent 9.2% and

Despite several sover-year decreabution transactiorst half of 2012, wecond quarter. Mtrial market shoud half of 2012. Lder of the year acy is expected ts a result of the

G ISLAND NY Tg transactions tong 1.4 msf, year-the overall weightf first quarter’s psing activity but sns a widespready declining vacanted to endure fo

ADELPHIA, PA Tcy rate declined op since mid-yea2012 absorption ve absorption. Tcy and absorptiog activity over thet posted a stronctivity bringing t

on of this activity experienced in ase at Pfizer’s co

81/I-78 DISTRIBUfor is the lowester of 2006. Howase over the nexlative constructiing the 1.2-msf f, the 972,000-sf

00,000-sf spec pronly 3.4 msf of s

mount expected d that. Not onlynants, but it alsoopers. This will ae to the influx o

BURGH, PA Thunced plans for Asburgh’s Oaklan

was purchased byurgh-based foun

– NORTHEAST


TRAL & NORTHmprovements, wd direct average substantial transaase. Including reons over 100,000with 17 of these

Market fundamenuld continue to sLeasing activity salthough it will no continue fallinincreasing dema

The second quarotaling 980,212 sto-date. The ovted average rentperformance, thstrong in user sa theme, parallel ncy rates and sligor the second ha

The Philadelphia in the second qar 2009 when th climbed further

The current healton can be attribuhe past two yearng quarter of leathe year-to-datey can be attribut the market. Doorporate campu

UTION CORRIt vacancy for the

wever, the overalxt six months. Thon scheduled tofacility at 2785C building at 40 Lroject at 724 Allspeculative cons to deliver over y will this add neo demonstrates aalso help drive a

of prime space av

e Regional IndusAlmono, the 178nd submarket. Thy Almono Partnedations, in 2001

T REGION

ers T

Nino

©

HERN New Jerswith overall vacanasking rents risinactions, leasing senewals, 30 ware0 sf have occurre transactions tantals for the Newslowly improve hould remain stnot likely approang, and asking reand for existing p

rter of 2012 clossf and overall saverall vacancy ratal rate is $6.95 e second quarteales activity. As u market conditioghtly increasing alf of 2012.

industrial markuarter of 2012 t

he vacancy reachr into the positivth of the industruted to the incrers. The Philadelpasing activity wite total up to 3.2 ted to the latest ow Chemical signs in Collegeville

DOR The overae market since thll vacancy rate ishere is currentlyo deliver by yearCommerce Boule

ogistics Drive inlen Road also in struction added f the next six moew class A spacea return of conf

average asking revailable for lease

strial Developm8-acre former J &he brownfield reers, a collection for $10 million




sey’s industrial ncy falling 80 bpng 1.4% to $5.70saw a 17.3% ehouse/

red throughout king place durinw Jersey through the rong through thach 2011 figuresntal rates will product.

sed with overall ales transactionsate is at 12.5% psf. Following er remained weauncertainty ons, that is, asking rents, are

et’s overall to 6.4%, a 230- hed 8.7%. Mid-ve with 1.9 msf orial market’s ease in new phia industrial h 1.75 msf of msf. A good uptick in flex ned an 800,000-s, PA.

all vacancy of he second s expected to y 3.3 msf of r-end 2012, evard in Lehigh n Central PA, an Central PA. from 2009-2012

onths will nearly e to the market fidence by ental rates back e.

ent Corporation& L Steel mill sitedevelopment of four .




s 0

g

he .

ak

e

of

sf

d

2,

n te

The mwith a light inShell cdemanThougapproxhouse 589,52close o85% inactivity2011. to $7.5

BALTIin bothindustrfrom ywith 2such aindustrrate bySciencreductconstr

BOSTOfor theactivityquartenot tracontinremainmsf of witnesthe secasking decline

U.S. O

1

2

3

4

5

msf



master plan includ central green ar

ndustrial use. As continue to incrend for warehousgh the vacancy raximately 100 bps space is expecte24 sf, while invesof second quartencrease in investy for the first haDirect asking re57 psf triple net

MORE, MD In th flex and warehrial market. Its oyear-end 2011. T.1 msf of industrs IndCor Properrial market is exy year-end 2012es Logistics, LLCtions will be limiruction deliverie

ON, MA While e Greater Bostoy more than douer with 2.7 msf leanslate into posiued to shed spaned relatively unf negative overalssed a 2.3% declcond quarter at rents took place of over 8.7% s

OVERALL OC

351.

53

75.9

2

0.0

100.0

200.0

300.0

400.0

500.0

2008

LEASING A


des a high-densitrea and 692,000 the major corpease their play inse and flex indusate did creep ups, demand for laed to increase. Ystment sales werer, representing tments sales ovealf of 2012 totaleental rates saw a..

the second quarthouse/distributiooverall vacancy rThe market remrial product soldrties, Inc. and C

xpected to see m2. Despite tenantC at 8901 Snowdited by conservas anticipated in t

the quarter-oveon industrial marubled the amouneased year-to-daitive market fundace during the qunchanged from ol absorption yeaine year-over-ye $5.91 psf NNNe in the manufac

since this time la

CCUPIER ACTI

295.

40

62.1

4

2009

ACTIVITY

ty, 2.1-msf mixe0-sf echo-tech paporations such asn Marcellus and trial space conti

p slightly year-ovarge blocks of claYear-to-date usere approximatel a 53% increase

er the same perioed 916,401 sf, doa 6.6% increase y

ter of 2012, vacon product in thrate, at 9.6%, deained attractive

d in portfolio salabot Properties

modest declines t occupancies, suden River Parkwative tenant activthe second half

er-quarter overarket increased 1nt reported duriate. This activitydamentals as mauarter. The overone year ago at 1ar-to-date. Askinear and remaine

N, overall. The shcturing sector wast year.

IVITY

345.

97

417.

05

90.8

2

2010 20

USER SALES AC

ed-use district ark focused on s Chevron and Utica shale, inues to rise. ver-year by ass A warehouseer sales totaled y 1.5 msf at the in user sales anod 2011. Leasingown 37.1% fromyear-over-year

ancies declined e Baltimore

ecreased 100 bps to investors les to buyers, , Inc. The in its vacancy uch as Life

way, vacancy ratevity and of 2012.

all vacancy rate 50 bps, leasing ing the first y, however, did any companies rall vacancy rate18.8% with 2.2 ng rents d stable during harpest decline i

which saw a

199.

18

95.8

1

47.3

7

11 2012 YTD

CTIVITY

e

d g

m

s

e

n

D


DALLAretail stheir mleasingabsorpSouthwDistribexpectMoody1.7% i2.2% dturn, wjob gr

HOUSsignificimprothe airalmostWarehspace job fomanuflikely cyear 2msf w

PHOEmsf ofyear. half oflevels.develobeing Phoen

DENVquarteoveralthe clolowestpre-reconsecIndusthealthhold shigher

SALT relativyear stypicaactivitmarkerates hthough

U.S. –


AS/FORT WORspending by conmomentum throg activity led to ption totaling 4.wire, Home Debution Internatioted to improve y’s Analytics, pon 2012 and 201during 2012 and warehouse distrowth continue t

STON, TX The cantly over last y

oving economy, arports. Overall t 200 bps to 7.6house vacancy r remained at a precast through tfacturing and enecontinue to incr

2012, more than were under const

ENIX, AZ Signifif absorption yea Leasing remainef 2012. Overall The lack of ava

opment underwaannounced, a 59

nix to break grou

VER, CO Denveers of positive abll vacancy rate siose of second qut rate recorded ecession levels, bcutive years andtrial market fundy in coming qua

steady at presentr rental rates.

LAKE CITY, UTvely flat, now sittupply of inventol in this part of t

ty is up 500,000 et is reaching cohave shown littleh the activity lev

– SOUTHWES


RTH, TX As thensumers, warehoough mid-year. Urising absorption1 msf. Major ocpot, Kellogg, Sceonal, Mobis and during the next

opulation growth3 while nonfarm 2.5% during 20

ribution demand to strengthen.

industrial markeyear, driven by tand strong trade vacancy rates ac% at the end of

rates fell to 7.8%premium with onthe end of 2012,ergy-related indrease. Already, 2 all the completitruction.

cant leasing activr-to-date, on paed healthy with 5vacancy declined

ailable big-box spay led to a secon92,000-sf distribuund in Septembe

r’s industrial mabsorption, leadinince peaking at 9uarter, vacancy s since fourth quabut they have tred ended second qdamentals in metarters. We expect levels and resu

T The overall vating at 9.1% and ory in the 9.6 msthe market cyclesf, or 21% year mparable activitye change over thvels have increas

T REGION

ers T

Nino

©

job market conouse distributionUser sales in comn levels with oveccupiers of spaceentsy, Automoti Exel. The indust two years. Acch in DFW is exp

m job growth is e13. Expect reta to increase as p

et continued to the energy induse activities throucross all classes the second quar

%, and quality manly 4.1% vacant. , especially in keustries, new con2.1 msf was comions in 2011, and

vity in 2011 tranace to exceed 5.05.2 msf posted td to 12.2%, retupace and only onnd speculative dution center in Ser 2012.

arket has seen ning to a 190-bp d9.0% in first quarstood at 7.1% ovarter 2008. Renended upward foquarter at $5.70tro Denver shouct leasing and sault in further tigh

cancy rate has r the market has sf total of vacante. Overall leasingover year, suggey levels of 2006 he same period sed significantly.




ntinues to bolsten users continuembination with erall net e included ve Parts trial market is cording to ected to rise

expected to rise il sales and in population and

improve stry, an overall ugh the port anddropped by rter. anufacturing With a strong

ey areas such as nstruction will mpleted by mid-d another 2.1

nslated into 2.5 0 msf for the through the firsturning to 2007 ne speculative evelopment Southwest

ine consecutive decline in the rter 2009. At verall – the nts remain belowor two 0 psf overall. uld remain ales volumes willhtening and

remained about a two- t space which is g and sales esting that the and 2007. Leaselast year even




er d

t

w

e

Demanduring prices horizodestinademan

Manufaindustrissue inoccupasales, w

VANCquarteactive, quartescrutinprocesgenerafuture constrwill bevacanc

CALGrelativeongoinexpansactivitywhich 4.9% ddriver,and ge

EDMOsomewthe sumto Forsands pNeedlecity is

WES

CAN

0.0

2.0

4.0

6.0

8.0

10.0

12.0



nd was buoyant g the second qua soften, many of

ons and will ensuation of choice fnd for industrial

acturing activity rial landscape. An this market, anancy costs have which continued

COUVER, BC Vaer, generating ov bringing 650,00

er. Landlords areny, and tenants ass, which is lengtal lack of produc costs, are drivinrained by excesse influenced by rcy held flat at 4.3

GARY, AB Calgare to inventory sng long-term prosionary for the fy in Calgary is th is outpacing supduring the secon, with wood man

eneral distributio

ONTON, AB Strwhat during the mmer slowdow

rt McMurray, theprojects, which ess to say, the oclosely tied to t

STERN CANA

NADIAN OVER

4.3%

4.3%

0%

0%

0%

0%

0%

0%

0%

Vancouver Calgar


across western arter, and while f the mega projeure continued acfor some large bspace in this hot

generally remaiA shortage of devnd high rental ra created a buoyad into the secon

ancouver saw stver 780,000 sf of00 sf of new suppe looking at tenaare investing mothening transactct for sale, as weng the strata masive land costs. Aresource prices i3%

ry is the most acsize, and althougojects will ensurforeseeable futuhe strongest in tpply, drove the vnd quarter. The onufacturing, foodon also experien

rong expansionasecond quarter,n than lower oile market acts asgenerally have b

outlook for industhe health of the

ADA

RALL VACAN

4.9%

6.1%

ry St. John's Toronto

Canadian indusit may ease in C

ects underway hactivity. Calgary hbox distributors,t market.

ns weak across velopable land rates and uncertaant market for sd quarter.

trong demand in f absorption. Deply to market duant covenants wore time in the dtion time. High laell as a strong dearket. SpeculativeActivity in the Vain the longer run

ctive market in tgh oil prices are re this market rere. Speculative dthe country, thovacancy rate dowoil sector is the d production an

ncing strong grow

ary demand in Ed which may be ml prices. Becauses a staging area fobusiness time spastrial demand in

e energy industry

CY RATES

6.2%

7.1%

o Ottawa Moncton

trial markets Calgary if oil ave long time

has become the , which is fueling

the Vancouver remains a huge ainty over futuretrata (condo)

the second evelopers were uring the ith greater

due-diligence and costs and a esire to control e development iancouver marken. The overall

the country softening,

emains development ough demand, wn to 4.3% from dominant

nd distribution, wth.

dmonton cooledmore related to e of its proximityor massive oil-ans of 20 years. Alberta’s capitay.

8.3%

8.5%

Montreal Halifax

g

e

s t

m

d y

al


Toronexpanrates, price fcentraor easlarger availab

MONTexpanthe sespace distribAlthouconditshouldvacancapprox

OTTAmodesDemaenvirobusinegrowtleasingsome term f2012,

TORONorth2012. multipleading

The Gdistribwith 2Recennew 6expan

The Gwestetendinthe eadiligen

Land rpositioensurerequir

CENT


nto and Montreasionary demand with the exceptfor new design-bal Canadian markstern Canadian m and it takes a hbility and influen

TREAL, QB Thesionary demand

econd quarter. C drove demand ibution tenants cough there is somtions and a slowd occur into the cy rate in Montrximately 206,00

AWA, ON Ottast industrial mar

and remains weaonment of goveress driver and a th. Very recentlyg a number of smindication that itfuture. Ottawa’s climbing from 5

ONTO, ON Moh America’s third The Toronto mple-location operg to modest exp

GTA West indusbution requireme28-foot or highent transactions in630,000-sf facilityd to 835,000 sf.

GTA East marketrn counterpart.

ng to be more foast is active and tnce and transact

remains a hot coon themselves we they have sizearements in a mar

TRAL CANAD


al continue to ex strength, with ltion of some bigbuild developmekets tend to be markets, in part uge change in mce rate pressure

e Montreal mark, with 960,000 s

Continued interein the second quompleted transa

me concern overwing U.S. econom

final quarter of real was flat at 80 sf in the first h

awa is Canada’s rket that focusesak within the marnment cutbacksmajor contribut

y, the federal govmall to medium t could become s vacancy rose to.8% in the previ

derate demand d largest industr

market continuesrations, and growpansionary dema

trial market conents. Options for clear height, canclude Lowe’s ley rise by Februar

t is active, but la Tenants here arocused on suppotours are underwions are tough t

ommodity acroswithin a recoveriable sites to meerket that is curre

DA

ers T

Nino

©

xperience modeittle upward mo-box tenants wh

ents. Interestinglsignificantly lowbecause these m

momentum to ime.

ket continues tosf of absorption gest in smaller anduarter, though soactions earlier inr weakening globmy, positive dem 2012 and into 2.3%, with new suhalf of the year.

fourth largest cis on the distriburket, particularly

s. The governmetor to the markevernment has shsize industrial bl a demand playeo 6.2% in the secous quarter.

momentum wasrial market in thes to see consolidwing business coand.

ntinues to be drior blocks in excean be counted oease in Milton, wry 2013, with th

acks the transactre less traditionaorting local commway, tenants reqto close.

s the GTA, as bng constructionet long-term demently devoid of l




rate ovement in rentaho must pay the y, rental rates iner than western

markets are mucmpact overall

see generated durind medium block ome larger the year.

bal economic and momentum

2013. The overaupply of

ity and houses aution sector. y amidst an ent is a dominantet’s economic hown interest in locks, providing

er in the near-cond quarter of

s the story of e first half of dations of onfidence is

ven by big-box ess of 300,000 sfon one hand. which will see a

e capacity to

tion depth of its al in nature, munities. While quire greater du

uyers try to cycle and mand larger options.




al n n ch

g k

ll

a

t

f,

e

Modespublic Canadregion governjob andthe initis not

Newfoleader,expectand indLabradMobil provinsignificrequireprojecprojecrecoverevenujobs on2018.

Additiohydroebillion link wimarket

CAN

HALIFdistribthe fedfor thefor indthis rethan refinal coGoverVacanc

1

1

2

2

msf

ATLA



st U.S. economic sector capital spa in the near ter is expected to

nment shipbuildid economic growtial planning staglikely to be felt

oundland & Labr, although someted and this maydustrial space. Tdor Offshore PetCorp-led group

nce’s fourth offshcant increased gred to avoid dam

ct is estimated atct alone, containerable resourcesue during the prnce peak produc

onally, once giveelectric project v undersea cable ill bring electricits in New Engla

ADIAN VACA

FAX, NS Demanution-based induderal governmene economy and wdustrial space. Soelated more to thecent changes inontract is signedrnment, work incy rates rose ma

0

5

0

5

20

25

2005 2006NEW

ANTIC CANA


c growth, a stropending will mearm, particularly gfall at or below ing contract wonwth in Halifax ages, and any reauntil 2013 and b

rador continues e reduction in oiy temper near-teThat said, the Catroleum Board a to move forwahore oil project,rowth. Because

mage from floatint between $5 aning an estimateds, is expected toroject’s 25-year lction of 170,000

en the green lighventure will see between Newfoty from the Chund and Eastern

ANCY VS. SUP

nd remained relaustrial market innt shipbuilding cwill ultimately dome upward renhe expectation on underlying demd between Irvingitiatives on the rarginally to 8.5%

2007 2008 20SUPPLY

ADA

ng dollar and rean subdued growgiven real GDP 2.0%. The $25-bn by Irving Shipbnd Nova Scotia,l impact on regiobeyond.

to be the regionl output from oferm pent-up demanada-Newfoundapproved plans rd the Hebron o which is expectof the unusual t

ng icebergs, the cnd $7 billion. Thed 700 million baro bring about $2lifespan and crea0 barrels per day

ht, the $6.2-billioe Emera Inc. conoundland and Caurchill River in LCanada.

PPLY

atively weak acron the first half ofontract secures rive employmenntal rate pressurof improved bus

mand fundamentg Oil and the Fedrelated projects

% from 8.4% last

009 2010 2011VACANC

eductions in wth in Atlantic growth in the billion federal building will fuel but it is still at onal economies

n’s growth ffshore oilrigs is mand for office dland and by an Exxon oil field, the ted to drive technology cost of the e Hebron rrels of 0 billion in ate some 4,000 y is reached in

on Muskrat Fallsstruct a $1.2-ape Breton. TheLabrador to

oss Halifax’s f 2012, though a bright future

nt and demand re occurred, butsiness activity tals. Once the deral can begin. quarter.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

MY12CY RATE

e


MONgeograhub ofentrepduringcases, the geindustthrougover t

ST. JOsomewprojecfor offlight oNewfoInvestemplo$6.2-bprocu2012,

CAN

The Mrecoveincreahas beexporsustain

Withindomesdrivingunder was limthe firsubmaremain37% o

OutstaCity’s markedeman

msf

MEXI


CTON, NEW Baphic center of tf the region. Dripreneurial markeg the first half of at the expense

eneral economy trial space shouldgh the balance othe quarter.

OHN’S NEWFOwhat, the St. Johcts, which have afice and industria

of approved Exxooundland Labradment in the regi

oyment conditionbillion Muskrat Frement process the market rem

NADIAN VACA

Mexican industriaery. The Mexicaasingly linked it iseen more rapid trts and rise in invned a good perfo

n Mexico City’s stic consumptiog the strength o a supply enviromited and dominrst half of 2012, varkets, with the ned the most dy

of total leasing ac

anding transactio Tultitlán submaet is in growing nnd already amou

-6

0

6

12

18

24

2005 2006

NET AB

CO


BRUNSWICK Mthe Maritime Proiven by distributet experienced rf 2012, winning nof other marketand continued md result in an inc

of 2012. Vacancy

UNDLAND Whhn’s market is dra significantly lonal space remainson plans to devedor Offshore Petion continues tons. With the HeFalls hydroelectr, healthy provinc

mained tight at on

ANCY VS. NET

al sector continuan industrial secs to the U.S. ecothan other areasvestment have tormance during

industrial real en and regional trf demand recovenment where thnated in recent yvacancy rates deoverall rate dec

ynamic industrialctivity taking plac

ons, like Unilevearket, illustrate hneed of new supunting to 90% of

6 2007 2008 20

BSORPTION

ers T

Nino

©

Moncton is locateovinces and is thtion companies, reasonable demanew business entts in the region. moderate growtcrease in develoy rates fell to 7.1

hile oil prices arriven by very spenger run-time hos relatively stronelop Hebron by troleum Board (

o mean solid groebron project unic project in thecial GDP growthnly 4.9% vacancy

T ABSORPTIO

ued moving firmtor continued to

onomy and, as sus of the economurned on deman the year.

estate submarketrade are the detery. Notably, thhe development years by build toecreased across reasing to 6.6%;l location in Mexce at its diverse

er’s 700,100-sf lehow the industripply alternatives f last year’s total

009 2010 2011

VACAN




ed at the he transportatioMoncton’s and strength trants in some Optimism abouh in demand forpment activity % from 8.9%

e softening ecific energy orizon. Demandng, particularly inthe Canada-(CNLOPB). wth and tight

nderway and thee engineering andh is very likely. Iy.

ON

ly on its path too reflect how uch, its recoveryy. An upturn in

nd, which has

ts, an upturn in termining factoris is happening of new space o suit activity. In most ; Cuautitlán xico City, with stock.

ease at Mexico al real estate to cope with a .

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

MY12

NCY RATE




n

ut r

n

d n

y n

s

n

Very lilevels tis resuinvestmyear.

The seMontelarge ccontinlocatioaccounlarge mCarrie

NorthoutperThe BaSan Luhinterlautomlargesthinterl140,00

MEXI

MEXI

psf/y

r

0

2

4

6

8

msf



imited speculativtight and, as dev

ulting in expandement activity is r

econd largest inderrey, continued class A offer. Moued expanding a

on and labor avants for 40% of thmanufacturing oper’s 420,000 sf at

ern Mexico is inrforming all otheajio region, incluuis Potosí, reflectlands, for exampotive corridor Gt city in Mexico, land, is taking pa00 sf expansion a

ICO CITY REN

ICO CITY LEA

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

2009

DIRECT GR

1.6

0.0

2.0

4.0

6.0

8.0

2009


ve development velopers are takied construction reflected in the o

dustrial market i reactivating its

onterrey’s six maand experiencedailability advantaghe total market perations were ct Finsa Santa Cat

ncreasingly activeer regions and isuding the states ts the accelerateple the aerospacGuanajuato-San Guadalajara, wiart in this procesat Parque Indust

NTAL VS. VAC

ASING

9 2010

ROSS RENTAL RA

2.9

2010

LEASING AC

activity has alsoing note of growactivity. The awover 1.1 msf sol

in Mexico, the c supply pipeline, ajor metropolita

d increased activges, Apodaca susize. In metro Mcompleted, for etarina park.

e, but Central Ms subject to the of Guanajuato, Qed integration ofce industry in QuLuis Potosí. Alsoith a prominent ss, as exemplifietrial Tecnológico

CANCY RATE

2011 Q2

ATE VACA

7

2011

CTIVITY

o kept supply wing demand, thi

wakening of ld through the

ity of consolidating itsan submarkets vity. Following itsbmarket still

Monterrey many example

Mexico continueslargest activity. Queretaro and f industrial ueretaro and theo, the second electronics

ed by Intel’s o II.

S

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

2 2012

ANCY RATE

6.3

2012 YTD

is

s

s

s

e


TAT

UNIT

MARKET NAM

Greater L

Inland Em

Orange C

San Diego

Silicon Va

Oakland,

Portland,

Seattle, W

Las Vegas

WESTER

Chicago,

Cleveland

Columbu

Detroit,

St. Louis,

Kansas C

Indianapo

Milwauke

MIDWE

Atlanta, G

Miami, FL

Orlando,

Jacksonvi

Charlotte

Nashville

Memphis,

Louisville

Hampton

Richmond

SOUTH

New Jerse

New Jerse

Long Islan

PA I-81/I-

Philadelp

Pittsburgh

Baltimore

Boston, M

NORTH

Dallas/Fo

Houston,

Phoenix,

Denver, C

Salt Lake

SOUTH

U.S. TO

U.S. TO

NOTE: OnRental rat


S

TED STATES

E

Los Angeles, CA

mpire, CA

County CA

o, CA

alley, CA

CA

OR

WA *

s, NV *

RN REGION

IL

d, OH *

s, OH *

MI *

MO *

City, MO *

olis, IN *

ee, WI *

EST REGION

GA

L

FL

lle, FL

e, NC *

, TN *

, TN *

, KY *

Roads, VA *

d, VA*

EAST REGION

ey - Central

ey - Northern

nd, NY

-78 Distribution Corridor

hia, PA

h, PA *

e, MD

MA

HEAST REGION

ort Worth, TX

TX

AZ

CO

City, UT *

HWEST REGION

OTAL- ALL MARKE

OTAL- C&W MARK

nly markets with over 100Mtes reflect weighted averag


I

1,068,818

415,478

275,686

194,225

242,237

139,865

170,046

129,954

103,009

2,739,322

1,148,952

427,772

244,259

332,973

222,732

213,632

213,303

193,382

2,997,008

516,011

160,875

105,579

100,687

202,404

188,536

173,600

127,946

118,704

106,584

1,800,931

327,076

284,938

126,195

215,270

277,464

151,494

194,095

160,649

1,737,184

514,412

353,750

263,298

228,018

105,836

1,465,315,

TS 12,864,807,

KETS 8,118,973,

M SF of industrial inventory is ge asking $psf/year

ers T

Nino

©

DirectTotal Vacancy

nventory Rate

8,710 4.3%

8,185 7.4%

6,012 5.5%

5,956 9.2%

7,792 9.8%

5,199 7.4%

6,243 7.2%

4,794 7.2%

9,762 14.9%

,653 6.6%

2,426 8.9%

2,935 8.2%

9,788 9.4%

3,069 14.3%

2,503 9.4%

2,075 6.9%

3,774 6.3%

2,236 7.9%

,806 9.1%

1,066 9.7%

5,806 7.4%

9,186 12.1%

7,468 11.0%

4,957 16.3%

6,962 9.7%

0,690 13.4%

6,963 7.6%

4,192 7.2%

4,380 10.3%

,670 10.5%

6,264 8.0%

8,891 9.3%

5,121 11.9%

0,850 8.6%

4,546 6.0%

4,024 8.8%

5,511 9.3%

9,137 17.4%

,344 9.3%

2,336 10.8%

0,019 7.3%

8,403 11.7%

8,145 6.6%

6,515 9.1%

,418 9.3%

,198 8.9%

,884 8.3%

included in this analysis. The MF=Manufacturing




Overall Vacancy

Rate

4.6% 1

7.6% 1

5.6%

9.7%

10.2%

7.9%

7.4%

7.8%

14.9%

6.9% 63,

9.4% 1

8.3%

9.5%

14.7%

9.5%

7.2%

6.8%

7.9%

9.4% 32,

9.8%

7.4%

12.4%

11.1%

16.9%

10.2%

14.2%

7.6%

7.6%

10.5%

10.8% 24,

8.6%

9.9%

12.5%

9.1%

6.4%

9.0%

9.6%

18.8%

9.9% 24,

11.2%

7.6%

12.2%

7.1%

9.1%

9.7% 32,5

9.3% 199

8.7% 152

e U.S total includes all mark W/D = Warehouse/Dist




YTDLeasingActivity

8,872,249 4,459

2,876,110 1,509

6,324,863 1,534

7,067,418 98

7,706,992 1,742

2,745,667 857

2,031,090 1,222

3,414,214 228

2,049,220 728

,087,823 13,264,

8,171,803 4,259

1,087,228 2,850

2,974,095

****

3,227,329 574

2,274,441 760

3,856,259 750

1,209,437 2,54

,800,592 11,737,

9,069,777 1,820

1,433,878 4

2,444,058 38

609,026 499

1,915,341

1,936,194 690

2,903,019 1,006

1,325,221 122

1,514,811

894,698

,046,023 4,561,

6,635,679 796

3,460,048 749

980,212 1,245

4,250,909

3,229,224 510

916,401 589

2,081,204 39

2,767,119 332

,320,796 4,615,

9,766,869 2,246

9,130,399 2,244

5,233,062 1,537

6,231,094 1,358

2,188,336 520

549,760 7,908,

,175,780 47,372

2,762,852 33,029

ets. * Alliance Marketstribution



YTDUser UnderSales Construction

9,359 2,327,316

9,124 6,642,648

4,343 26,000

1,328 284,440

2,159 198,000

7,800 0

2,893 581,477

8,833 0

8,797 0

636 10,059,881

9,541 3,683,246

0,957 350,500

**** ****

**** 407,910

4,322 0

0,499 1,698,637

0,613 1,858,722

1,214 922,296

146 8,921,311

0,742 2,325,047

1,300 189,906

1,224 237,960

9,490 0

**** 1,291,169

0,418 1,254,000

6,000 0

2,040 1,130,000

**** 251,000

**** 2,324,335

214 9,003,417

6,107 864,000

9,978 567,639

5,516 196,000

0 6,044,673

0,748 1,348,000

9,524 65,378

1,490 1,292,000

2,546 182,335

909 10,560,025

6,878 2,955,146

4,970 2,087,404

7,677 237,992

8,469 783,234

0,924 674,558

918 6,738,334

2,037 49,163,417

9,685 34,672,412


YTDr Newn Construction

626,964

3,588,134

0

0

33,000

0

0

0

0

4,248,098

2,134,907

241,000

* ****

0

0

350,000

245,400

552,056

3,523,363

0

0

76,158

0

638,113

15,720

879,000

237,600

40,908

28,500

1,915,999

558,613

285,000

400,000

108,800

0

196,449

0

262,800

1,811,662

138,000

2,068,930

453,462

60,000

1,328,088

4,048,480

17,516,407

11,684,639

YTDOverall

Net Absorption

1,288,544

5,115,073

865,070

1,485,767

2,192,852

655,260

2,235,455

1,518,911

(221,401)

15,135,531

6,078,532

1,929,749

4,256,778

9,057,250

605,580

785,438

3,390,678

1,037,593

27,141,598

3,017,391

510,664

633,394

(101,596)

394,310

769,777

(970,593)

70,307

177,024

375,356

4,876,034

2,789,636

(1,817,530)

(853,249)

1,997,175

1,903,090

527,784

1,295,795

(2,213,810)

3,628,891

4,075,023

700,914

2,528,122

1,913,579

30,914

9,248,552

65,099,658

39,652,440

MF W

$5.62 $6.2

$4.77 $4.0

$7.59 $6.7

$7.32 $8.1

$8.70 $5.7

$5.94 $4.6

$4.80 $5.1

$4.48 $4.9

$6.36 $5.2

$6.27 $5.5

$3.71 $3.9

$0.00 $3.2

$4.45 $4.4

$4.15 $4.1

$3.85 $3.7

$6.19 $4.1

$2.03 $3.0

$3.96 $3.8

$3.98 $3.8

$3.29 $3.3

$4.23 $5.2

$3.88 $4.2

$3.01 $3.4

$2.56 $3.0

$0.00 $3.2

$0.00 $2.5

$3.25 $3.3

$4.82 $4.7

$3.61 $4.4

$3.08 $3.4

$4.31 $4.2

$4.85 $5.8

$7.33 $6.8

$3.50 $3.8

$3.90 $4.3

$3.91 $5.5

$0.00 $4.4

$5.33 $5.2

$4.70 $4.9

$3.30 $3.4

$4.62 $4.2

$5.64 $5.7

$4.30 $4.4

$3.80 $4.4

$4.67 $4.2

$4.50 $4.3

$4.96 $4.6

Direct AskinNet Rental Rat

WD

29

06

74

6

71

60

6

92

28

4

99

28

40

0

71

5

01

86

4

7

21

20

48

08

25

50

4

73

40

8

21

83

82

82

5

50

41

22

5

47

24

76

47

40

0

0

7

ngtes


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Sicola ve Managing Direcas 5) 773-3542 [email protected]

industry-leading in

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dustrial Platform 47) 518-3225 [email protected]


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Total

Inventory

,885,411

,368,358

,898,965

,530,682

,561,111

432,675

409,781

,957,739

,398,544

,990,265

433,531

TotalInventory

132,004,941

113,331,862

63,536,875

308,873,678

dvisory and suppo

eet their objectives

t:

Tina ArambuloRegional DirectoU.S. Industrial ReTel: (562) 276-14tina.arambulo@c

ort your real estate

AL CONTACvisory and agency s

onal industrial clie

eeking to improve

ustrial property anrket conditions or

John C. MorrisSenior ManagingGlobal Business Tel: (847) 518-3john.morris@cu




Overall

Vacancy

Rate

4.3% 7

4.3% 3

6.1% 8

6.2%

8.3%

8.4%

12.5%

7.1%

8.5%

4.9%

6.2% 19,2

Overall Vacancy

Rate

6.6%

8.4%

6.0%

7.1%

orting role to our

s and enhance the

o or esearch 411 cushwake.com

and business decisi

TS services to occupi

ents to create se

e shareholder valu

nd bring a wealth r acquiring and dis

s g Director Consulting 218

ushwake.com




YTD

Leasing

Activity

,765,639 1

,043,277 1

,060,708 3

337,184

N/A

N/A

N/A

N/A

N/A

N/A

206,808 7

YTDLeasingActivity

6,345,046

3,524,950

1,375,420

11,245,416

clients. Through d

ir competitive pos

StuartNationaCanadaTel: (41stuart.b

ions, go to Cushma

iers, developers an

amless, consistent

ue and maximize co

of experience whsposing of develop

Peter Execut Busines Global Tel: (31 peter.q



Under

Construction

1,918,814

1,479,502

3,253,898

43,000

435,000

0

0

0

0

192,990

,323,204 3

YTDUserSales

558,088

112,510

107,790

778,388

delivery of timely,

sition.

t Barron al Research Directa 16) 359-2652 barron@cushwake

an & Wakefield’s Kn

nd investors of ind

t and tailor made

ost saving opportu

hether relocating pment land.

W. Quinn, IV, Stive Managing Diress Development & Supply Chain Solu7) 713-2107

[email protected]


YTD

New

Construction

834,886

1,190,641

1,438,134

0

206,500

0

0

0

0

45,356

3,715,517

UnderConstruction

2,766,400

N/A

N/A

2,766,400

accurate, high-qu

tor

e.com

nowledge Center at

dustrial and distrib

e industrial real e

unities.

new premises, di

SIOR ector & Operations utions

com

YTD

Overall

Net Absorption

1,438,645

1,525,949

(155,454)

45,965

2,405,886

2,702

(13,365)

52,926

(114,900)

61,025

5,249,379

YTDNew

Construction

808,460

N/A

N/A

808,460

ality research rep

Jose Luis RubiManager Mexico Market Tel: (52-55) 85

joseluis.rubi@cu

t www.cushmanwak

bution premises ac

estate solutions t

sposing of surplus

Jamie Kishel Director of OpU.S. Industrial STel: (847) 518-3

jamie.kishel@cu

Net TMI

$7.59 $3.2

$8.18 $3.26

$4.90 $3.30

$8.27 $4.70

$5.00 $3.10

$7.38 $4.44

$6.65 $3.32

$5.83 $2.90

$7.11 $4.29

$9.12 $2.44

$5.59 $3.27

Direct Askin

Rental Rate

Direct AskinNet Rental Rate

All Classe

$5.96

$5.46

$5.57

$5.69

orts, we aim to as

i

Research 25 80 00 ushwake.com

kefield.com/knowle

cross the globe. It

hat deliver better

s accommodation

perations Services 3240 ushwake.com

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