Industrial Market Reporteccrenc.com/wp-content/uploads/2019/07/Industrial-Market-Report-.… · INDUSTRIAL MARKET REPORT Market Key Statistics 2 Leasing 3 Rent 7 Construction 9 Under

Wilmington Market

PREPARED BY

Nick Silivanch

Industrial Market Report

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 9

Under Construction Properties 10

Sales 11

Sales Past 12 Months 12

Economy 14

Market Submarkets 16

Supply & Demand Trends 18

Rent & Vacancy 20

Sale Trends 22

Wilmington Industrial

7/3/2019Copyrighted report licensed to Eastern Carolinas Commercial - 982000.

OOverviewWilmington Industrial

12 Mo Deliveries in SF

78 K12 Mo Net Absorption in SF

570 KVacancy Rate

2.0%12 Mo Rent Growth

4.6%Wilmington's industrial leasing has been strong in recentyears, compressing vacancies and allowing for rents toclimb. Several leases involving large logistics andtechnology firms have contributed to this trend, andconstruction has been limited enough to be outpaced by

strong leasing. Rent growth has averaged 4.6% in thepast year. Investor interest in Wilmington has trendedupward in recent years, with several years exceeding$20 million in annual sales volume.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability Rate Net AbsorptionSF Deliveries SF Under

Construction

$5.312.2%7,968,059Logistics 3.0% (12,000) 0 32,800

$5.643.2%3,378,319Specialized Industrial 13.5% 0 0 0

$9.610.9%4,810,148Flex 1.6% (720) 0 24,000

$6.662.0%16,156,526Market 4.8% (12,720) 0 56,800

ForecastAverage

HistoricalAverage12 MonthAnnual Trends Peak When Trough When

2.5%8.3%-3.5%Vacancy Change (YOY) 15.2% 2012 Q2 2.0% 2019 Q2

48,167144,963570 KNet Absorption SF 755,796 2018 Q4 (679,186) 2010 Q3

71,53271,93578 KDeliveries SF 274,069 2007 Q4 0 2014 Q1

2.1%1.4%4.6%Rent Growth 5.5% 2018 Q1 -3.5% 2010 Q1

N/A$14.9M$32.3 MSales Volume $32.3M 2019 Q2 $700.0K 2010 Q1


Page 2

LLeasingWilmington Industrial

Strong leasing in recent quarters has resulted in fallingvacancies in Wilmington's industrial market. Partiallyalleviated by a combination of relatively strong demandand a limited amount of new supply, vacancies havefallen to 2.0%. The Port of Wilmington is among keydrivers of logistics demand, and includes access to

intermodal rail provided by CSX which allows for freightto be moved directly to a larger terminal in Charlotte. Theport features a 42-foot navigational channel, nine berthswith 6,740 feet of wharf frontage, four post-Panamaxcontainer cranes, and a capacity of up to 600,000 TEUsat its terminal.

NET ABSORPTION, NET DELIVERIES & VACANCY


Page 3


VACANCY RATE

AVAILABILITY RATE


Page 4


12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Airport 292,353 0 0 0 0 0 282,819718 N 23rd St

West Pender County 448,687 98,934 57,172 16,014 0 0 274,251Cape Fear Industrial Complex

Market Street Corridor 42,173 0 0 0 0 0 40,797306 Old Dairy Rd

Airport 37,800 0 21,600 0 0 0 21,600North Kerr Industrial Park (1)

Airport 15,000 0 0 0 0 0 14,5102414 N 23rd St

Downtown 33,750 0 0 3,200 0 0 14,450101 Marstellar St

Airport 14,250 0 0 0 0 0 14,2502955 Orville Wright Way

Airport 14,250 0 0 0 0 0 13,7853018 Hall Waters Dr

Airport 29,000 0 0 0 0 0 12,0002027 Capital Dr

Airport 10,000 0 10,000 0 0 0 10,000North Kerr Industrial Park (2)

Airport 70,000 24,500 10,000 0 0 0 10,000Corbett Building

Airport 10,000 0 10,000 0 0 0 10,0003313 Kitty Hawk Rd

Airport 9,500 0 9,500 0 0 0 9,5004545 Technology Dr

West Pender County 9,000 0 0 0 0 0 9,000354 Sawdust Rd

Market Street Corridor 8,000 0 8,000 0 0 0 8,0006729 Amsterdam Way

Market Street Corridor 20,000 0 0 0 0 0 7,500220 N Green Meadows Dr

East Pender County 12,000 0 0 0 0 0 5,804231-233 Sloop Point Loop Rd

1,075,763 123,434 126,272 19,214 0 0 758,266Subtotal Primary Competitors15,080,763 205,992 (97,415) (31,913) (12,720) 0 (187,895)Remaining Wilmington Market

16,156,526 329,426 28,857 (12,699) (12,720) 0 570,371Total Wilmington Market


Page 5


TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

1830 Carver Dr West Pender County 64,147 FILMWERKS - Environments Unlimited…Q4 18

306 Old Dairy Rd Market Street Corridor 42,173 Tru Colors Brewing Commercial Realty… Commercial Realty Co…Q3 18

3024 Hall Waters Dr Airport 21,600 FX Air Guns AB - Atlantic Brokerage IncQ4 18

2100 Capital Dr Airport 18,800 - - Coldwell Banker Comm…Q1 19

3310 Fredrickson Rd New Hanover Outlying 17,600 - - Eastern Carolinas Com…Q1 19

1930 Oleander Dr Hospital/Independence 17,500 - - Cape Fear CommercialQ1 19

2020 Capital Dr Airport 17,385 - - Cornerstone Realty Gro…Q4 18

717 Us-117 Byp S West Pender County 14,474 Pender EMS and Fire Inc Creative Commercial… Creative Commercial Pr…Q1 19

312 Raleigh St Port 12,000 - - Coldwell Banker Comm…Q4 18


6500A Windmill Way Market Street Corridor 10,000 Window World - Creative Commercial Pr…Q2 19

1326 Castle Hayne Rd Airport 7,700 - - Coastal RealtyQ1 19

6508 Windmill Way Market Street Corridor 7,100 P2P Rescue Cape Fear Commercial Creative Commercial Pr…Q4 18

293 N Green Meadows Rd Market Street Corridor 7,000 - - Wicker PropertiesQ2 19

2610 N 23rd St Airport 6,960 - - Wilmington Internationa…Q1 19

3414 Merchant Ct Airport 6,000 Pre Floor - Allard Properties, LLCQ1 19

6508 Windmill Way Market Street Corridor 5,400 Mark and Ellie Henderson Creative Commercial… Creative Commercial Pr…Q3 18

15858 US Highway 17 N East Pender County 4,800 Miss Carla's Creative Commercial… Creative Commercial Pr…Q4 18

6506 Market St Market Street Corridor 4,775 - - Cape Fear CommercialQ3 18

401 Cornelius Harnett Dr Airport 4,015 Dawn Williamson and Am… Coldwell Banker Co… Creative Commercial Pr…Q2 19

3232 Kitty Hawk Rd Airport 3,500 - - Maus, Warwick, Matthe…Q4 18

315 Van Dyke Dr Market Street Corridor 2,600 - - Chip HicksQ3 18

6413 Windmill Way Market Street Corridor 2,500 - - Griffin Resources, LLCQ3 19

6413 Windmill Way Market Street Corridor 2,500 - - Griffin Resources, LLCQ1 19

3112 Enterprise Dr Airport 2,450 - - Karnes Holdings LLCQ2 19

364 Metro Cir New Hanover Outlying 2,400 - - Coldwell Banker Comm…Q1 19

364 Metro Cir New Hanover Outlying 2,400 - - Coldwell Banker Comm…Q3 18

4553 Technology Dr Airport 1,780 - - Remax Essential - Bea…Q2 19

4557 Technology Dr Airport 1,725 - - Wicker PropertiesQ2 19

1200 N 23rd St Airport 1,600 - - Coldwell Banker Comm…Q4 18

2710 Exchange Dr Airport 1,569 - - Coldwell Banker Comm…Q3 18

2708 Exchange Dr Airport 1,569 - - Coldwell Banker Comm…Q4 18

6624 Gordon Rd Market Street Corridor 1,450 Richard and Megan Oates - Creative Commercial Pr…Q3 18


*Renewal


Page 6

RRentWilmington Industrial

Rents continue to climb in the Wilmington metro asvacancies have compressed well below the historicalaverage. Construction is expected to slow in the coming

years, and new deliveries are unlikely to apply upwardpressure on vacancies in the near term. However, rentgrowth has generally trailed the nationally observed rate.

MARKET RENT GROWTH (YOY)


Page 7

RRentWilmington Industrial

MARKET RENT PER SQUARE FOOT


Page 8

CConstructionWilmington Industrial

Construction lagged in the metro for most of the cycleuntil 2017. New construction in the metro is generallyless than 20,000 SF, and most often single tenant. Andwhile this holds true for the majority of the neweradditions, one larger project was added to the market aswell. Newbers Refrigeration, Inc. built a roughly 80,000-SF warehouse building, located at 5815 Oleander Ave.and subsequently sold the fully-occupied building toBradley Creek Station LLC.

In late 2017, the Airport Business Center Phase Xdelivered more than 20,000 SF of distribution space tothe metro, and is currently represented by AtlanticBrokerage, Inc. Asking rents range between $7.25-$11.50/SF MG. A few projects underway, equating toroughly 21,000 SF, are expected to deliver in the firsthalf of 2019 and were more than 45% preleased in late2018.

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 New Hanover Outlying 2 35 17,60068.2% 1 22,43024 22 Airport 1 22 21,6000% 2 18,7000 13 Carolina Beach 0 - -- - 8,815- -4 Castle Hayne 0 - -- - 13,019- -5 Downtown 0 - -- - 17,361- -6 East Pender County 0 - -- - 7,305- -7 Hospital/Independence 0 - -- - 13,321- -8 Landfall 0 - -- - 21,331- -9 Market Street Corridor 0 - -- - 14,527- -

10 Midtown 0 - -- - 16,604- -All Other 0 - -- 27,760-

Totals 3 57 18,93342.3% 18,80924


Page 9

UUnder Construction PropertiesWilmington Industrial

Properties

3Square Feet

56,800Percent of Inventory

0.5%Preleased

42.3%UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Mar-20193820 US Highway 421 N

24,000 1 Jan-2020--

1

Mar-20193030 Hall Waters Dr

21,600 1 Dec-2019--

2

Oct-20183871-3879 US Highway 4…

11,200 1 Aug-2019-Randy L Blanton

3


Page 10

SSalesWilmington Industrial

Industrial investment in Wilimington has increasedconsiderably this cycle. While total sales volume wasoften less than $10 million annually prior to 2010, totalsales has surpassed $15 million annually in each yearsince 2012. Among recent deals was the August 2018sale of the 3 Star warehouse , located at 718 N 23rd St.,which sold for $5.25 million ($18/SF). In the exchange,New Hanover Regional Medical Center acquired the

asset from IP Commercial Properties, Inc. The buyerintends to use the vacant building as a distribution plant.

Pricing tends to be volatile for Wilmington’s olderindustrial assets, which was particularly evident in 2014and 2015, when logistics inventory turnover exceeded10%: 2014's median pricing was $98/SF, and 2015'smedian pricing was $10.60/SF.

SALES VOLUME & MARKET SALE PRICE PER SF


Page 11

SSales Past 12 MonthsWilmington Industrial

Sale Comparables

38Avg. Cap Rate

-Avg. Price/SF

$52Avg. Vacancy At Sale

0%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $105,000 $1,295,713 $815,000 $5,800,000

Price Per SF $18 $52 $86 $1,020

Cap Rate - - - -

Time Since Sale in Months 0.5 5.3 5.0 11.5

Property Attributes Low Average Median High

Building SF 2,400 21,881 10,000 292,353

Ceiling Height 10' 17' 16' 24'

Docks 0 1 0 9

Vacancy Rate At Sale 0% 0% 0% 0%

Year Built 1940 1982 1990 2017

Star Rating 2.0


Page 12

SSales Past 12 MonthsWilmington Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 805 N 23rd St1972 111,419 0% $5,800,000 $523/1/2019 -----------

-2 718 N 23rd St1959 292,353 0% $5,250,000 $188/9/2018 ------------

-3 3605 Carolina Beach Rd1950 4,900 0% $5,000,000 $1,0205/30/2019 -----

-4 49 International Rd1992 50,000 0% $1,800,000 $364/9/2019 ------------

-5 7207 Ogden Business Ln2015 16,524 0% $1,200,000 $739/28/2018 -------

-6 2919 Orville Wright Way2008 5,000 0% $1,100,000 $2205/21/2019 -----------

-7 136 Roymac Dr1995 6,665 0% $1,000,000 $1504/22/2019 ------

-8 2936 N Kerr Ave2017 10,000 0% $950,000 $956/6/2019 -------------

-9 6725 Netherlands Dr1990 10,000 0% $950,000 $952/8/2019 ------

-10 2901 N Kerr Ave1975 10,000 0% $925,000 $936/18/2019 -------

-11 6737 Amsterdam Way1990 10,300 0% $890,000 $8610/25/2018 ----

-12 310 Sampson St- 7,500 0% $830,000 $11110/5/2018 ------

-13 1631 Castle Hayne Rd1940 11,004 0% $800,000 $732/28/2019 -----

-14 5517 Eastwood Service Rd1950 2,800 0% $629,000 $2256/3/2019 ------

-15 118 Portwatch Way1999 10,076 0% $600,000 $605/23/2019 -------

-16 221 Sutton Lake Rd1990 6,400 0% $550,000 $863/21/2019 ----

-17 1851 Dawson St1959 15,000 0% $535,000 $363/1/2019 ------

-18 354 Sawdust Rd1994 9,000 0% $455,000 $5110/15/2018 -----

-19 116 Bryan Rd1996 5,000 0% $427,000 $851/31/2019 ------------

-19 116 Bryan Rd1996 5,000 0% $427,000 $851/30/2019 ----------------


Page 13

EEconomyWilmington Industrial

After a slow recovery following the recession,Wilmington’s economy has performed well in recentyears and job growth has exceeded 2% annually.Government and trade sectors are the largestemployment industries, collectively accounting for almost40% of total employment in Wilmington. Walmart,Corning, Inc., and GE Hitachi are among the leadingtrade-sector companies conducting business in the area.Castle Branch, an employment screening company,recently expanded efforts in Wilmington with a new $12million, 50,000 SF headquarters off of Sir Tyler Drive that

is believed to have added 130 new jobs.

While white-collar, office-using sectors such asbusiness services, finance, education and health servicesaccount for less than a third of all jobs in the metro;these three industries have led the way in terms ofgrowth in recent years. These sectors have observed jobgrowth north of 3% in the past year and show totalemployment levels well above where they were beforethe downturn. Overall, office-using employment isroughly 15% above the prerecession peak.

WILMINGTON EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

0.13%-0.14%0.79%-1.74%1.41%3.50%0.56Manufacturing

0.42%0.95%1.16%1.39%1.19%-0.25%1.025Trade, Transportation and Utilities

0.31%1.28%0.86%1.68%0.12%0.43%1.317 Retail Trade

0.40%0.93%1.00%1.98%1.27%1.83%0.86Financial Activities

0.76%1.42%-0.03%1.02%0.54%0.37%1.224Government

0.27%0.34%1.99%1.93%3.30%-1.99%1.29Natural Resources, Mining and Construction

0.32%0.66%2.08%1.53%1.97%-1.37%0.715Education and Health Services

0.86%1.00%2.61%2.24%2.48%1.74%0.916Professional and Business Services

0.43%1.39%0.06%1.76%-0.12%3.61%1.33Information

0.40%0.86%2.46%3.26%2.25%4.25%1.521Leisure and Hospitality

0.21%0.46%0.95%0.34%0.99%-3.61%1.05Other Services

Total Employment 131 1.0 0.78% 1.62% 1.57% 1.41% 0.90% 0.47%Source: Oxford Economics

LQ = Location Quotient


Page 14

EEconomyWilmington Industrial

Source: Oxford Economics

YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,259,156295,559 1.2% 0.7% 1.6% 0.7% 1.2% 0.7%Households 121,269,094120,725 1.1% 0.6% 1.6% 0.7% 1.1% 0.6%Median Household Income $63,996$56,406 3.5% 3.6% 2.0% 2.3% 3.8% 4.3%Labor Force 163,693,469147,711 0.2% 1.2% 1.3% 0.6% 1.0% 0.5%Unemployment 3.8%3.8% 0% -0.1% -0.6% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 15

SSubmarketsWilmington Industrial

WILMINGTON SUBMARKETS


Page 16

SSubmarketsWilmington Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Airport 4,787 14.8% 1 1 22 0.5% 2256 6 62 1.3% 12 Castle Hayne 352 1.1% 15 0 - - -27 0 0 0% -3 Downtown 1,128 3.5% 11 0 - - -65 0 0 0% -4 Market Street Corridor 2,513 7.8% 3 0 - - -173 2 12 0.5% 25 Midtown 863 2.7% 13 0 - - -52 0 0 0% -6 New Hanover Outlying 1,323 4.1% 9 2 35 2.7% 159 0 0 0% -7 Port 2,335 7.2% 5 0 - - -75 0 0 0% -8 West Pender County 1,762 5.5% 7 0 - - -54 0 0 0% -

SUBMARKET RENT

Growth

Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

1 Airport 1.3%3 4.2% 4$7.47 42 Castle Hayne -35.9%5 3.9% 6$5.39 73 Downtown -29.0%8 3.8% 7$5.24 54 Market Street Corridor 31.7%2 4.6% 3$7.78 35 Midtown -31.8%1 2.2% 8$8.05 66 New Hanover Outlying -57.7%6 4.0% 5$5.34 87 Port 198.8%4 8.0% 1$5.39 18 West Pender County 37.6%7 4.8% 2$5.29 2

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Airport 52,991 1.1% 0.1390,526 8.2% 142 Castle Hayne - - -0 0% --3 Downtown 5,720 0.5% -8,828 0.8% 434 Market Street Corridor 9,100 0.4% 0.255,860 2.2% 325 Midtown 46,706 5.4% -(110,905) -12.8% 866 New Hanover Outlying 2,500 0.2% -(178) 0% 617 Port 44,120 1.9% -(37,000) -1.6% 758 West Pender County 134,411 7.6% -286,515 16.3% 27


Page 17

SSupply & Demand TrendsWilmington Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 66,190 0.4% 0.3%57,127 1.216,460,8902022 70,874 0.4% 0.3%54,945 1.316,394,7002021 72,084 0.4% 0.3%41,669 1.716,323,8262020 85,820 0.5% 0.5%80,941 1.116,251,7422019 (28,444) -0.2% -0.1%(21,359) -16,165,922YTD (37,840) -0.2% 0%3,438 -16,156,5262018 132,605 0.8% 4.7%755,796 0.216,194,3662017 100,600 0.6% 1.1%178,495 0.616,061,7612016 65,086 0.4% 0.5%74,522 0.915,961,1612015 16,524 0.1% 2.3%361,199 015,896,0752014 14,625 0.1% 1.9%307,688 015,879,5512013 (7,755) 0% 3.3%529,029 -15,864,9262012 10,400 0.1% -1.4%(222,144) -15,872,6812011 51,363 0.3% -2.8%(446,728) -15,862,2812010 14,000 0.1% -1.2%(191,889) -15,810,9182009 88,889 0.6% -1.1%(168,816) -15,796,9182008 217,100 1.4% 2.0%306,625 0.715,708,0292007 - - 2.0%313,015 -15,490,929

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2023 3,730 0.1% 0.1%2,745 1.43,392,2792022 3,995 0.1% 0.1%1,721 2.33,388,5492021 4,068 0.1% 0%(904) -3,384,5542020 2,274 0.1% 0.2%6,126 0.43,380,4862019 (107) 0% 1.9%62,633 -3,378,212YTD 0 0% 2.1%72,068 03,378,3192018 14,250 0.4% 6.6%223,591 0.13,378,3192017 0 0% 1.6%52,147 03,364,0692016 0 0% 0.4%14,494 03,364,0692015 0 0% 11.4%382,927 03,364,0692014 0 0% -0.9%(31,381) -3,364,0692013 0 0% 7.6%255,207 03,364,0692012 0 0% -14.0%(471,467) -3,364,0692011 0 0% -12.7%(428,247) -3,364,0692010 0 0% -1.8%(61,900) -3,364,0692009 0 0% -1.1%(37,000) -3,364,0692008 61,247 1.9% 2.5%84,647 0.73,364,0692007 - - 2.9%96,900 -3,302,822


Page 18

SSupply & Demand TrendsWilmington Industrial

LOGISTICS SUPPLY & DEMAND



2023 39,040 0.5% 0.4%35,848 1.18,146,9412022 41,803 0.5% 0.4%34,932 1.28,107,9012021 42,504 0.5% 0.3%27,671 1.58,066,0982020 45,460 0.6% 0.6%44,456 1.08,023,5942019 (49,780) -0.6% -1.3%(101,986) -7,978,134YTD (59,855) -0.7% -1.3%(100,375) -7,968,0592018 109,755 1.4% 6.0%484,972 0.28,027,9142017 65,800 0.8% 1.2%92,866 0.77,918,1592016 12,086 0.2% -0.5%(36,346) -7,852,3592015 16,524 0.2% -1.2%(94,420) -7,840,2732014 0 0% 2.9%224,872 07,823,7492013 (7,755) -0.1% 2.0%155,794 -7,823,7492012 0 0% 3.3%254,963 07,831,5042011 51,363 0.7% 0.1%5,083 10.17,831,5042010 0 0% -1.5%(115,107) -7,780,1412009 0 0% -0.8%(59,833) -7,780,1412008 35,291 0.5% -0.5%(42,264) -7,780,1412007 - - 2.7%211,120 -7,744,850

FLEX SUPPLY & DEMAND



2023 23,420 0.5% 0.4%18,534 1.34,921,6702022 25,076 0.5% 0.4%18,292 1.44,898,2502021 25,512 0.5% 0.3%14,902 1.74,873,1742020 38,086 0.8% 0.6%30,359 1.34,847,6622019 21,443 0.4% 0.4%17,994 1.24,809,576YTD 22,015 0.5% 0.7%31,745 0.74,810,1482018 8,600 0.2% 1.0%47,233 0.24,788,1332017 34,800 0.7% 0.7%33,482 1.04,779,5332016 53,000 1.1% 2.0%96,374 0.54,744,7332015 0 0% 1.5%72,692 04,691,7332014 14,625 0.3% 2.4%114,197 0.14,691,7332013 0 0% 2.5%118,028 04,677,1082012 10,400 0.2% -0.1%(5,640) -4,677,1082011 0 0% -0.5%(23,564) -4,666,7082010 14,000 0.3% -0.3%(14,882) -4,666,7082009 88,889 1.9% -1.5%(71,983) -4,652,7082008 120,562 2.7% 5.8%264,242 0.54,563,8192007 - - 0.1%4,995 -4,443,257


Page 19

RRent & VacancyWilmington Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 131 0.6% 11.6%$7.29 423,586 2.6% 0%2022 130 1.2% 10.9%$7.24 415,213 2.5% 0.1%2021 128 1.8% 9.5%$7.15 399,926 2.4% 0.2%2020 126 3.3% 7.6%$7.02 369,466 2.3% 0%2019 122 4.2% 4.2%$6.80 363,775 2.3% 0%YTD 120 2.0% 2.0%$6.66 329,426 2.0% -0.3%2018 117 5.2% 0%$6.53 370,704 2.3% -3.9%2017 112 5.3% -4.9%$6.21 993,895 6.2% -0.5%2016 106 4.6% -9.7%$5.89 1,071,790 6.7% -0.1%2015 101 3.9% -13.7%$5.63 1,081,226 6.8% -2.2%2014 97 3.1% -17.0%$5.42 1,425,901 9.0% -1.9%2013 94 2.2% -19.5%$5.26 1,718,964 10.8% -3.4%2012 92 0.4% -21.3%$5.14 2,255,748 14.2% 1.5%2011 92 -1.5% -21.6%$5.12 2,023,204 12.8% 3.1%2010 93 -3.2% -20.3%$5.20 1,525,113 9.6% 1.3%2009 97 -3.4% -17.7%$5.37 1,319,224 8.4% 1.6%2008 100 -1.6% -14.7%$5.57 1,061,519 6.8% -0.7%2007 102 - -13.4%$5.66 1,151,044 7.4% -

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 128 0.7% 14.9%$6.16 120,700 3.6% 0%2022 128 1.3% 14.1%$6.12 119,741 3.5% 0.1%2021 126 2.2% 12.6%$6.04 117,486 3.5% 0.1%2020 123 4.1% 10.2%$5.91 112,522 3.3% -0.1%2019 118 5.9% 5.9%$5.68 116,346 3.4% -1.9%YTD 118 5.2% 5.2%$5.64 107,012 3.2% -2.1%2018 112 6.4% 0%$5.36 179,080 5.3% -6.2%2017 105 4.5% -6.0%$5.04 388,421 11.5% -1.6%2016 101 4.2% -10.1%$4.82 440,568 13.1% -0.4%2015 97 2.7% -13.7%$4.63 455,062 13.5% -11.4%2014 94 2.4% -15.9%$4.51 837,989 24.9% 0.9%2013 92 2.9% -17.9%$4.40 806,608 24.0% -7.6%2012 89 -0.3% -20.2%$4.28 1,061,815 31.6% 14.0%2011 90 -2.5% -19.9%$4.30 590,348 17.5% 12.7%2010 92 -3.8% -17.9%$4.41 162,101 4.8% 1.8%2009 96 -4.5% -14.6%$4.58 100,201 3.0% 1.1%2008 100 -2.3% -10.6%$4.80 63,201 1.9% -0.7%2007 102 - -8.5%$4.91 86,601 2.6% -


Page 20

RRent & VacancyWilmington Industrial

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 132 0.6% 11.8%$5.83 214,569 2.6% 0%2022 132 1.2% 11.1%$5.80 211,590 2.6% 0.1%2021 130 1.8% 9.8%$5.73 204,926 2.5% 0.2%2020 128 3.3% 7.8%$5.63 189,952 2.4% 0%2019 124 4.4% 4.4%$5.45 188,782 2.4% 0.7%YTD 121 1.8% 1.8%$5.31 177,019 2.2% 0.5%2018 118 5.4% 0%$5.22 136,499 1.7% -4.8%2017 112 5.8% -5.1%$4.95 511,716 6.5% -0.4%2016 106 5.2% -10.3%$4.68 538,782 6.9% 0.6%2015 101 4.2% -14.7%$4.45 490,350 6.3% 1.4%2014 97 3.9% -18.2%$4.27 379,406 4.8% -2.9%2013 93 2.5% -21.3%$4.11 604,278 7.7% -2.1%2012 91 0.1% -23.2%$4.01 767,827 9.8% -3.3%2011 91 -1.0% -23.3%$4.00 1,022,790 13.1% 0.5%2010 92 -4.2% -22.5%$4.04 976,510 12.6% 1.5%2009 96 -4.2% -19.1%$4.22 861,403 11.1% 0.8%2008 100 -2.5% -15.6%$4.41 801,570 10.3% 1.0%2007 103 - -13.4%$4.52 724,015 9.3% -

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 131 0.6% 10.1%$10.47 88,317 1.8% 0.1%2022 130 1.2% 9.4%$10.41 83,882 1.7% 0.1%2021 128 1.7% 8.1%$10.29 77,514 1.6% 0.2%2020 126 2.9% 6.3%$10.11 66,992 1.4% 0.2%2019 122 3.3% 3.3%$9.83 58,647 1.2% 0.1%YTD 120 1.0% 1.0%$9.61 45,395 0.9% -0.2%2018 119 4.5% 0%$9.51 55,125 1.2% -0.8%2017 113 5.2% -4.3%$9.10 93,758 2.0% 0%2016 108 4.4% -9.1%$8.65 92,440 1.9% -0.9%2015 103 4.2% -12.9%$8.29 135,814 2.9% -1.5%2014 99 2.7% -16.4%$7.96 208,506 4.4% -2.1%2013 97 1.7% -18.5%$7.75 308,078 6.6% -2.5%2012 95 0.9% -19.9%$7.62 426,106 9.1% 0.3%2011 94 -1.6% -20.6%$7.55 410,066 8.8% 0.5%2010 96 -2.1% -19.3%$7.67 386,502 8.3% 0.6%2009 98 -2.3% -17.6%$7.84 357,620 7.7% 3.4%2008 100 -0.4% -15.6%$8.03 196,748 4.3% -3.4%2007 100 - -15.3%$8.06 340,428 7.7% -


Page 21

SSale TrendsWilmington Industrial

OVERALL SALESCompleted Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 175- $78.04 8.0%2022 -- - -- 171- $76.28 7.9%2021 -- - -- 166- $74.39 7.9%2020 -- - -- 163- $72.67 7.8%2019 -- - -- 158- $70.42 7.7%YTD $22.6 M25 1.9% $82.14$1,360,750 154- $69.04 7.6%2018 $19.9 M43 3.7% $39.88$910,671 1538.1% $68.36 7.6%2017 $15.8 M56 4.9% $41.93$578,692 14210.5% $63.67 7.6%2016 $25.0 M47 5.9% $33.26$942,043 1327.4% $59.05 7.8%2015 $20.6 M43 6.5% $21.41$696,027 124- $55.26 8.0%2014 $23.6 M38 5.7% $29.68$1,143,311 117- $52.48 8.2%2013 $21.7 M49 7.0% $21.92$797,622 1069.0% $47.17 8.5%2012 $11.1 M28 5.4% $17.49$598,611 10011.5% $44.81 8.7%2011 $12.1 M31 2.7% $35.12$549,476 956.8% $42.48 9.0%2010 $7.3 M10 0.9% $50.63$805,556 93- $41.65 9.2%2009 $0.9 M2 0.1% $67.64$428,500 90- $40.33 9.5%2008 $3.6 M6 0.5% $46.46$693,500 100- $44.69 9.0%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALESCompleted Transactions (1)




2023 -- - -- 185- $57.04 7.7%2022 -- - -- 180- $55.73 7.7%2021 -- - -- 176- $54.30 7.7%2020 -- - -- 171- $52.88 7.6%2019 -- - -- 165- $50.88 7.5%YTD $1.1 M2 0.7% $45.26$567,500 161- $49.58 7.4%2018 $0.4 M1 0.1% $75.02$375,100 157- $48.36 7.4%2017 -- - -- 143- $44.08 7.6%2016 $0.7 M3 0.7% $65.60$333,500 131- $40.49 7.8%2015 $0.2 M1 0.1% $65.00$221,000 123- $38.05 7.9%2014 $6.9 M2 16.0% $12.78$3,436,664 117- $36.24 8.2%2013 $3.0 M3 16.3% $5.43$990,833 105- $32.54 8.5%2012 $5.6 M3 15.0% $12.25$2,787,500 100- $31.03 8.7%2011 $0.2 M2 2.4% $5.12$230,000 96- $29.59 8.9%2010 $2.1 M3 1.4% $44.32$715,000 93- $28.73 9.1%2009 $0.5 M1 0.3% $50.22$452,000 90- $27.83 9.5%2008 -- - -- 100- $30.88 8.9%



Page 22

SSale TrendsWilmington Industrial

LOGISTICS SALESCompleted Transactions (1)




2023 -- - -- 172- $68.19 8.0%2022 -- - -- 169- $66.65 8.0%2021 -- - -- 164- $65.00 8.0%2020 -- - -- 161- $63.48 7.9%2019 -- - -- 155- $61.48 7.8%YTD $12.6 M10 2.7% $60.15$1,559,875 152- $60.18 7.7%2018 $12.5 M19 5.5% $33.25$1,249,500 152- $59.99 7.6%2017 $8.8 M27 7.2% $36.14$665,692 14110.5% $55.85 7.7%2016 $8.6 M18 9.0% $14.91$1,073,812 1316.5% $51.76 7.8%2015 $14.6 M22 10.1% $19.31$967,190 123- $48.65 8.0%2014 $13.7 M13 2.8% $80.86$1,517,489 121- $47.66 8.1%2013 $5.6 M14 2.6% $30.87$617,559 1079.5% $42.25 8.5%2012 $1.9 M8 1.4% $46.23$352,000 101- $39.93 8.7%2011 $9.1 M12 2.9% $39.88$756,083 956.8% $37.58 9.0%2010 $3.7 M5 0.9% $50.57$745,000 93- $36.69 9.2%2009 $0.4 M1 0% $110.35$405,000 90- $35.57 9.5%2008 $1.8 M3 0.8% $27.83$589,167 100- $39.54 9.0%


FLEX SALESCompleted Transactions (1)




2023 -- - -- 173- $109.11 7.9%2022 -- - -- 170- $106.65 7.9%2021 -- - -- 165- $104.06 7.9%2020 -- - -- 162- $101.77 7.8%2019 -- - -- 157- $98.95 7.7%YTD $8.9 M13 1.4% $218.16$1,359,667 155- $97.43 7.6%2018 $7.0 M23 3.3% $59.46$625,400 1538.1% $96.25 7.6%2017 $6.9 M29 4.6% $52.65$491,692 144- $90.37 7.6%2016 $15.7 M26 4.4% $95.73$952,226 1349.8% $84.15 7.7%2015 $5.8 M20 5.0% $28.44$419,686 124- $78.27 7.9%2014 $3.1 M23 3.0% $34.74$259,500 114- $71.82 8.2%2013 $13.1 M32 7.6% $50.28$867,017 1048.5% $65.57 8.5%2012 $3.6 M17 5.1% $26.35$312,727 9911.5% $62.55 8.7%2011 $2.8 M17 2.6% $38.74$279,500 95- $59.64 9.0%2010 $1.5 M2 0.5% $64.14$1,380,000 94- $58.93 9.1%2009 -- - -- 91- $56.97 9.5%2008 $1.9 M3 0.3% $128.72$850,000 100- $62.89 9.0%



Page 23

Documents

Industrial Market Reporteccrenc.com/wp-content/uploads/2019/07/Industrial-Market-Report-.… · INDUSTRIAL MARKET REPORT Market Key Statistics 2 Leasing 3 Rent 7 Construction 9 Under