North American Industrial Highlights 2Q 2011

8/4/2019 North American Industrial Highlights 2Q 2011

1/13

HIGHLIGHTSNORTH AMERICA

www.COllIERs.COM

Q2 2011 | IndustrIal

ROss J. MOORE Chief Economist | USA

The U.S. industrial market continued to be the commercial real estate universes star performer t

quarter. Solid demand for warehouse space in most markets coupled with minimal construction led

another modest decline in the national vacancy rate. Vacancies dropped in the majority of markets a

every region reported a lower vacancy rate for the quarter. Despite a considerable increase in occ

pancy, warehouse rents registered a modest decrease, continuing a three and a half year trend.

The outlook for the rest of 2011 is not so sanguine. With the economy decelerating and continu

unease concerning future tax and spending policies, many businesses are likely to delay expansion a

reduce aggregate demand for warehouse space in the coming months. In spite of relatively robu

exports (year-over-year growth of 17 percent) and considerable growth in manufacturing, the mac

economic environment has cooled signicantly relative to the latter half of 2010. In recent mont

consumer spendingincluding retail saleshas slowed, creating a further headwind for the indust

market. All indications are that the manufacturing sector will stay relatively robust, but will not

enough to sustain the growth in occupancy experienced over the last few quarters.

With the latest slowdown in the economy, a true rebound in the warehouse market is unlikely to occ

before well into 2012. Warehouse construction, however, will remain at very low levels, so any inc

mental increase in occupancies will immediately translate into lower vacancy rates. Except for hig

cube, high-eciency space, rents are unlikely to increase in any meaningful way until the latter half

2012at the earliest. For most landlords and investors, the best that can be expected in the comi

quarters is a modest increase in occupancies and the promise of a stronger economy in 2012.

U.S. industrial market

are very much back in

the black, but with the

economic recovery no

in doubt, leasing mark

are almost certain to

disappoint in the com

months.

MARkET INdICATORsRelative to prior period

U.s. INdUsTRIAl MARkETsUMMARy sTATIsTICs, Q2 2011

U.S. Industrial MarketsEnjoy Robust Quarter

Q22011

Q32011*

VACANCy

NET ABsORPTION

CONsTRUCTION

RENTAl RATE

*Projected

U.s. INdUsTRIAl MARkET Q2 2009 Q2 2011

MillionSquareFeet

Vacancy(%)

-60

-50

-40

-30

-20

-10

0

10

20

30

40

Q1 Q2Q4Q3Q2Q1Q4Q3Q2

Absorption Completions Vacancy

2009 2010 2011

8

9

10

11

12

Vacancy Rate: 10.33%Change from Q1 011: 0.23

Absorption:

35.2 Million Square Feet

New Construction:

10.Million Square Feet

Under Construction:

2. Million Square Feet

Asking Rents Per Square Foot

Average Warehouse/

Distribution Center: $.3Change from Q4 010: -0.2%

continued on pag


2/13P. 2 | COllIERs INTERNATIONAl

hIghlIghts | Q2 2011 | INDUSTRIAL | NRTh AmeRIcA

UNITEd sTATEs | INdUsTRIAl sURVEy

MARkET

EXIsTINGINVENTORy (sF)JUNE. 30, 2011

NEw CONsTRUCTIONQ2 2011 (sF)

NEw CONsTRUCTIONyTd 2011

CURRENTly UNdERCONsTRUCTION (sF)

NORTHEAsT

Baltimore, MD 296,, 29, 29, 29,

Boston, MA 55,629, ,

Hartford, CT 96,95, 22,

Long Island, NY 6,3, , ,

New Jersey - Central 35,33, 2, 33,

New Jersey - Northern 3,22, 3,

Philadelphia, PA 6,23, 39, ,69, ,

Pittsburgh, PA 62,, 5, 23, ,

Washington DC 2,2, 33, 525, 9,

NORTHEAsT TOTAl ,,46, ,, ,6, ,,

sOUTH

Atlanta, GA 59,6, ,632, 5,

Charleston, SC 32,6, 25, 25, 25,

Charlotte, NC 2,36, 3, 5, 3,

Columbia, SC 35,6, ,,

Dallas-Ft. Worth, TX ,9, ,2, ,2, 62,

Ft. Lauderdale-Broward, FL 9,2, , , 6,

Greenville/Spartanburg, SC 2,95, , , ,,

Houston, TX 5,95, 55, 36, 9,

Jacksonville, FL 22,, 55, 235,

Little Rock, AR 5,2, 9,

Louisville, KY ,36, , 5, 6,

Memphis, TN 2,5, 5, 56, 69,

Miami, FL 225,6, 2, 2,

Nashville, TN 59,63, 229, , ,,

Orlando, FL ,,

Raleigh, NC 6,2, o 3,56,

Savannah, GA 3,65, , 66, 5,

Tampa Bay, FL 26,9,

West Palm Beach, FL 5,36, 5, 5, 22,

sOUTH TOTAl ,46,4, 6,78, ,868, ,7,


3/13

hIghlIghts | Q2 2011 | INDUSTRIAL | NRTh AmeRI

COllIERs INTERNATIONAl | P


MARkET





MIdwEsT

Chicago, IL ,3,96, 6, ,96, 3,3,

Cincinnati, OH 25,96, 2, 2, 63,

Cleveland, OH 3,966, 35,

Columbus, OH 2,99, ,992,

Detroit, MI 6,32, 53,

Grand Rapids, MI 2,5,

Indianapolis, IN 2,2, 62, , 523,

Kansas City, MO-KS 23,93, 33, 5, 392,

Minneapolis, MN ,329,

Omaha, NE 6,92, 2,

St. Louis, MO 262,3, , , ,

St. Paul, MN 2,9, 6,

MIdwEsT TOTAl ,777,7, ,7, ,74, 7,,

wEsT

Bakerseld, CA 3,65, 32, 32,

Boise, ID 32,96, 5, 5, 5,

Denver, CO 2,56, 92, , 2,

Faireld, CA ,552, ,

Fresno, CA ,6,

Honolulu, HI 3,56,

Las Vegas, NV ,92, 22, 56,

Los Angeles - Inland Empire, CA 39,9, 5, 2,6,

Los Angeles, CA 9,3, 3, 3, ,33,

Oakland, CA 3,233, 26,

Orange County, CA 2,53,

Phoenix, AZ 2,6, 2,52,

Pleasanton/Walnut Creek, CA 33,35,

Portland, OR 92,696, , , ,

Reno, NV 3,62, Sacramento, CA 6,2, 36, ,

San Diego, CA ,33, 22,

San Francisco Peninsula, CA ,,

San Jose/Silicon Valley, CA 253,9, 69,

Seattle/Puget Sound, WA 2,5, 3,

Stockton/San Joaquin County, CA 92,636, 9,

wEsT TOTAl ,774,46, ,6, ,664, 7,4,

U.s. TOTAl ,7,, ,4, ,884, 7,78,


4/13P. | COllIERs INTERNATIONAl



MARkETABsORPTIONQ2 2011 (sF)

ABsORPTIONyTd 2011 (sF)

VACANCy RATEMAR. 31, 2011 (%)

VACANCy RATEJUNE. 30, 2011 (%)

NORTHEAsT

Baltimore, MD 5, 3, .9 .63

Boston, MA 9, ,5, 2.6 2.3

Hartford, CT , 9, 9.3 9.22

Long Island, NY (35,) 6, 5.55 5.63

New Jersey - Central ,6, (2,) .9 9.9

New Jersey - Northern (2,29,) (52,) .63 .

Philadelphia, PA ,29, 2,663, 9.6 9.53

Pittsburgh, PA , ,5, 6.99 .2

Washington DC ,23, 92, 2.6 2.3

NORTHEAsT TOTAl ,4, ,8, .7 .

sOUTH

Atlanta, GA (392,) 2,3, .3 .

Charleston, SC 3, ,, 2.3 .3

Charlotte, NC ,9, ,95, 3.9 3.2

Columbia, SC (5,) (22,) 6.33 .

Dallas-Ft. Worth, TX 3,569, 5,962, .9 .52

Ft. Lauderdale-Broward, FL 2, (9,) .92 .92

Greenville/Spartanburg, SC 3, 26, .6 9.96

Houston, TX ,32, 2,23, 5.99 5.

Jacksonville, FL 5, 5, .9 .95

Little Rock, AR 39, (39,) 5. .9

Louisville, KY ,26, ,356, . .2

Memphis, TN 39, ,563, 2.53 2.3

Miami, FL 95, 9, .6 .5

Nashville, TN (6,) , 3.6 3.6

Orlando, FL , 39, 2. 2.2

Raleigh, NC (6,) (,) 2. 2.25

Savannah, GA 5, ,36, 6. 5.22

Tampa Bay, FL 69, ,3, .6 .56

West Palm Beach, FL 2, 9, 9. 9.6

sOUTH TOTAl ,67, ,86, .7 .


5/13








MIdwEsT

Chicago, IL (2,93,) (3,52,) .6 .

Cincinnati, OH (6,) . .3

Cleveland, OH 39, 22, 9.3 9.69

Columbus, OH 2,3, ,6, 3.3 2.3

Detroit, MI 2,2, ,63, . 3.95

Grand Rapids, MI 35, 359, 9.2 .6

Indianapolis, IN ,62, ,95, .5 .6

Kansas City, MO-KS 29, (5,) . .25

Minneapolis, MN (2,) (2,) 2.6 3.9

Omaha, NE , 32, 6.33 6.

St. Louis, MO (65,) (,) .23 .

St. Paul, MN (65,) 3, . .6

MIdwEsT TOTAl ,6, 7,64, .7 .6

wEsT

Bakerseld, CA 6, 339, . 9.5

Boise, ID (65,) (,) .95 .2

Denver, CO , (9,) . .

Faireld, CA 52, 69, . 2.5

Fresno, CA 5, , 2. 2.

Honolulu, HI (,) (,) .52 .Las Vegas, NV 6, 2, 6.63 6.25

Los Angeles - Inland Empire, CA 5,36, ,66, .6 9.2

Los Angeles, CA ,3, ,5, 5.3 5.23

Oakland, CA , ,33, 9. .6

Orange County, CA 65, ,36, 5.52 5.

Phoenix, AZ ,56, 2,3, 5. 5.22

Pleasanton/Walnut Creek, CA 299, (26,) 2.2 .33

Portland, OR 532, 5, 9.35 9.

Reno, NV 6, 3, . .6

Sacramento, CA 63, 39, 3.3 3.

San Diego, CA (26,) (9,) .3 .5

San Francisco Peninsula, CA 9, 29, 9.3 .9

San Jose/Silicon Valley, CA ,6, 696, 3.2 3.

Seattle/Puget Sound, WA ,6, 2,39, .96 .53

Stockton/San Joaquin County, CA 339, 2,25, 5. 5.2

wEsT TOTAl ,8, ,6, .7 .

U.s. TOTAl ,4, ,8, .6 .




UNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF JUNE 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT

(3 MONTHs)ABsORPTION FORECAsT

(3 MONTHs)RENT FORECAsT

3 MONTHs

NORTHEAsT

Baltimore, MD .5 .3 Down Same Same

Boston, MA 5. .5 Down Up Same

Hartford, CT 3. .5 Up Down Down

Long Island, NY . . Up Down Same

New Jersey - Central 6. 6. Same Same Same

New Jersey - Northern 39.62 - Same Same Same

Philadelphia, PA 9.3 .5 Down Up Same

Pittsburgh, PA 5. .5 Down Up Up

NORTHEAsT AVERAGE .6 7.

sOUTH

Atlanta, GA 25.5 .99 Down Up Same

Charleston, SC 6. .5 Down Up Up

Columbia, SC - - Down Up Same

Dallas-Ft. Worth, TX 55. . Down Same Same

Ft. Lauderdale-Broward, FL .5 - Same Same Same

Greenville/Spartanburg, SC 33. .3 Down Up Up

Houston, TX 5. 9.5 Down Up Up

Jacksonville, FL .55 .2 Same Same Same

Little Rock, AR 65.5 9. Same Same Same

Memphis, TN .5 9.5 Same Same Same

Miami, FL 63.2 - Down Up Same

Nashville, TN - - Down Up Same

Orlando, FL 65.22 .25 Down Same Same

Raleigh, NC 3. .25 Same Same Same

Savannah, GA 3. .5 Same Same Same

Tampa Bay, FL 5. . Down Up Same

West Palm Beach, FL 5.22 - Same Same Same

sOUTH AVERAGE 47. 8.74


7/13



UNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF JUNE 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT



3 MONTHs

MIdwEsT

Chicago, IL . 6.9 Down Same Same

Cincinnati, OH 32. . Same Same Same

Columbus, OH 3. . Same Same Same

Detroit, MI 2. - Up Down Same

Grand Rapids, MI 2. . Down Up Same

Indianapolis, IN 35.5 .5 Down Up Up

Kansas City, MO-KS .5 Same Same Same

Minneapolis, MN .5 - Down Up Same

Omaha, NE - - Down Up Same

St. Paul, MN - - Up Up Same

MIdwEsT AVERAGE 4. 8.6

wEsT

Bakerseld, CA 3. . Down Same Same

Boise, ID 5. - Down Same Same

Denver, CO 5. . - Up Same

Faireld, CA 55. 6. Down Same Same

Fresno, CA 3. 9. Down Same Same

Honolulu, HI - - Same Down Same

Las Vegas, NV 2.9 - Down Up Same

Los Angeles - Inland Empire, CA 55. 5.25 Down Up UpLos Angeles, CA . 6.5 Same Same Same

Oakland, CA 3.9 . Same Up Up

Orange County, CA . 6.5 - Same Same

Phoenix, AZ 52. 9.2 Same Up Same

Pleasanton/Walnut Creek, CA . 6. Down Same Same

Portland, OR 63.3 - Down Same Same

Reno, NV 5.65 - Down Up Same

Sacramento, CA .39 - Same Down Same

San Diego, CA 25. - Same Up Up

San Francisco Peninsula, CA 5. . Down Same Same

San Jose/Silicon Valley, CA - - Same Same Same

Seattle/Puget Sound, WA .32 . Down Up Same

Stockton/San Joaquin County, CA 59. . Down Up Same

wEsT AVERAGE 6.6 7.4

U.s. AVERAGE 6. 8.8




Occupancie rie for fth conecutive quarter. During the second quar-

ter, net absorption totaled . million square feet (MSF)a substantial

increase from the rst quarter, when occupied space increased by 4.

MSF, and more than three-fold last years 10.4 MSF recorded in the sec-ond quarter of 010. An increasing number of markets reported increases

in occupied space. Of the 1 markets tracked in the U.S., 47 (77 percent

vs. 8 percent in Q1 011) reported positive absorption during the second

quarter; however, the West and South accounted for the lions share of the

countrys absorption, with occupied space increasing by 1. MSF and

10.7 MSF respectively. Canadian markets began the year in robust fashion

with rst quarter absorption reaching almost 7.4 MSF, considerably above

the .0 MSF in Q1.

warehoue contruction rop bac to rt-haf 2010 eve. Second

quarter completions totaled 10.4 MSF, a signicant increase from the rst

quarter when . MSF were delivered to market, and consistent with de-

livery levels registered in Q4 010. Of the 10.4 MSF delivered, percent

was build-to-suit and the balance was classied as speculative (spec)

construction. In contrast, last quarters build-to-suit deliveries accounted

for 8 percent of completions. In the coming quarters most construction

is anticipated to be build-to-suit once again, with only 18 percent under

construction at the end of the second quarter classied as speculative.

Quarter-end construction activity totaled 7. MSF, a modest decrease

from the .4 MSF underway at the end of the rst quarter, and well be-

low the 14.0 MSF recorded three years ago. Canadian construction took

a sharp jump with .7 MSF completed in Q, bringing year-to-date con-

struction to 4.1 MSF.

U.s. inutria vacancie rop 23 bai point. The U.S. industrial ware-house vacancy rate dropped basis points during the second quarter to

register 10. percent (100 basis points equals one percent). This latest

decrease leaves the national vacancy rate 70 basis points lower than a

year ago. Even more encouraging are the decreasing vacancy levels that

the majority of markets are seeing. In Q 011, 48 of the 1 markets

tracked registered a decrease in vacancy from Q1 011. Canadian ware-

house vacancies also dropped, falling by basis points during the quarter

to average 4.0 percent.

Inutria rent near at for the quarter. After three years of consis-

tently lower rents, industrial warehouse lease rates fell by just one cent

during the second quarter. Warehouse rents registered $4. per square

foot at the end of the quarter and have fallen by $1. per square foot sincethe fourth quarter of 007a decline of 0.%. Bulk warehouse rents

also fell during the quarter to average $4. per square foot, while ex

rents slipped $0.0 and R&D rents increased $0.1 per square foot.

Canadian industrial warehouse rents by comparison were up during the

quarter rising by C$0.1 to average C$7.14 per square foot.

U.S. Industrial Markets Enjoy Robust Quarter

Continued from page 1

Index

J F M A M J J A S O N D J F M A M J J A S O N D J JF M MA0

10

20

30

40

50

60

70

80

2009 2010 2011

INsTITUTE FOR sUPPly MANAGEMENT MANUFACTURING INdEX

ABsORPTION (sF) | sElECT MARkETs | Q2 2011

0

30000

60000

90000

120000

150000

M MFJDNOSAJJMA AMFJ

2010 2011

Millions,

Dollars,

SeasonallyAdjusted

TRAdE: EXPORTs - GOOds, (MIl. $, sA)


9/13



UNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF JUNE 2011

MARkETwAREHOUsE/dIsTRIBUTION

sPACE (Usd PsF)BUlk sPACE(Usd PsF)

FlEX/sERVICE sPACE(Usd PsF)

TECH/R&d sPACE(Usd PsF)

NORTHEAsT

Baltimore, MD 5.3 .6 9.3 -

Boston, MA .5 .5 .5 .22

Hartford, CT .5 .2 6.5 6.5

Long Island, NY .6 .25 3.29 .

New Jersey - Central .3 3. 2.5 2.62

New Jersey - Northern 5.3 5.5 .9 5.3

Philadelphia, PA . 3.5 . .

Pittsburgh, PA .29 3.5 2.2 2.2

Washington DC .6 - 2. -

NORTHEAsT AVERAGE .6 .6 . .7

sOUTH

Atlanta, GA 3.2 2. .29 .3

Charleston, SC 3.5 .2 6.25 6.25

Charlotte, NC 3.2 - .52 -

Columbia, SC 3.5 3.5 - 9.5

Dallas-Ft. Worth, TX 3. 2. 6.5 .25

Ft. Lauderdale-Broward, FL 6. 6.9 9.29 6.

Greenville/Spartanburg, SC 2.9 2.95 6.5 -

Houston, TX 5.5 .2 .93 6.6

Jacksonville, FL 3.5 3. 9. -

Little Rock, AR 2.6 2. .35 -

Louisville, KY 3.3 - . -

Memphis, TN 3. 2. 5.63 .

Miami, FL 6.9 .93 .3 .3

Nashville, TN 3.2 .9 .3 -

Orlando, FL .9 .26 .9 .53

Raleigh, NC 3.63 3.3 .69 -

Savannah, GA 3.95 3.5 . .

Tampa Bay, FL .2 .23 .32 9.3

West Palm Beach, FL 6.6 6.35 .99 5.

sOUTH AVERAGE 4.7 .4 8.4 .8




UNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF JUNE 2011





MIdwEsT

Chicago, IL . 2.93 .3 -

Cincinnati, OH 2. 2. 6. 6.

Cleveland, OH 3.2 - .9 -

Columbus, OH 2.56 2.9 . .

Detroit, MI 3.92 3.69 . -

Grand Rapids, MI . 2. .5 -

Indianapolis, IN 3. 2. . -

Kansas City, MO-KS 3.5 3.3 . .9

Minneapolis, MN .59 .23 .6 -

Omaha, NE .5 5.3 5. 5.

St. Louis, MO 3. - 9. -

St. Paul, MN . . . -

MIdwEsT AVERAGE .77 .4 6.78 6.8

wEsT

Bakerseld, CA . 3.2 . -

Boise, ID .5 .5 6.3 6.3

Denver, CO 3.5 3.25 .5 9.5

Faireld, CA 5.62 5. .52 .32

Fresno, CA 2. 2.2 . 5.5

Honolulu, HI .96 - - -Las Vegas, NV . .2 6.32 .26

Los Angeles - Inland Empire, CA 3. 3.2 6.66 .5

Los Angeles, CA 5.6 5.52 9.5 2.5

Oakland, CA .56 3.6 .92 .6

Orange County, CA 6.2 5.52 2.5 3.5

Phoenix, AZ 5. . . .

Pleasanton/Walnut Creek, CA 5. 3. .5 .5

Portland, OR 5.9 . 9.2 9.3

Reno, NV 3.6 3.2 .6 9.Sacramento, CA . 3.5 9. 9.6

San Diego, CA .6 6.96 .2 .2

San Francisco Peninsula, CA 9.2 9.2 2. 2.

San Jose/Silicon Valley, CA 5.55 5.3 . 2.99

Seattle/Puget Sound, WA 5.6 .92 . NA

Stockton/San Joaquin County, CA 3.2 3.66 5.52 .6

wEsT AVERAGE . 4.7 8. .8

U.s. AVERAGE 4.6 (.) 8.4 .6


11/13



CANAdA | INdUsTRIAl sURVEy

MARkET





Calgary, AB 23,9, ,3, ,2, ,3,

Edmonton, AB ,5, 3, 92,

Guelph, ON 9,26, ,

Halifax, NS ,6, , ,

Montreal, QC 3,, 5,

Ottawa, ON 2,2,

Regina, SK 6,95, 2, 5, 6,

Saskatoon, SK 9,95, 25, 3, 39,

Toronto, ON 6,, 6, 6, 2,23,

Vancouver, BC 9,39, 39, 6, ,6,

Victoria, BC ,69, 3, 2,

Waterloo Region, ON 6,69, 29, 9,

CANAdA TOTAl ,648,887, ,7, ,7, 7,787,

CANAdA | INdUsTRIAl sURVEy





Calgary, AB 3, ,9, 5.2 .96

Edmonton, AB 92, 63, 3.95 3.

Guelph, ON (,) 32, 5.6 3.53

Halifax, NS , (5,) .2 6.92

Montreal, QC 23, 2,33, 5.9 5.5

Ottawa, ON (22,) (362,) 6.6 .

Regina, SK 6, 9, . .9

Saskatoon, SK , (99,) 2.3 .2

Toronto, ON ,29, ,2, 5. .9

Vancouver, BC , 35, .3 .

Victoria, BC 5, 62, 3.2 3.3

Waterloo Region, ON , , 6. 6.

CANAdA TOTAl ,, ,4, . 4.




CANAdA | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF JUNE 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT



3 MONTHs

Calgary, AB . . Down Up Up

Edmonton, AB . 6. Down Up Same

Guelph, ON 2. .22 Same Same Same

Halifax, NS . .5 Down Up Up

Montreal, QC 6. .5 Down Up Up

Ottawa, ON 9. .25 Up Same Same

Regina, SK 5. .5 Up Down Same

Saskatoon, SK 2. .5 Up Up Same

Toronto, ON 93. 6.9 Down Up Up

Vancouver, BC 55. 6. Down Up Same

Victoria, BC 5. 6.66 Same Up Same

Waterloo Region, ON 5. .22 Up Down Same

CANAdA AVERAGE . 7.4

CANAdA | INdUsTRIAl sURVEy | RENTs As OF JUNE 2011





Calgary, AB .5 6.25 9.5 .5

Edmonton, AB .25 6. 9.5 .

Guelph, ON . . .2 .2

Halifax, NS .5 5.5 . 5.

Montreal, QC .25 . 6.5 .5

Ottawa, ON .5 6.5 9. .5

Regina, SK 9. . 2. .

Saskatoon, SK 9.5 . 2. 3.

Toronto, ON . . 6.9 .

Vancouver, BC . - - -

Victoria, BC 2. . 3.5 3.5

Waterloo Region, ON 3.93 2. .32 .32

CANAdA AVERAGE 7.4 6. .6 .87

Glossary

Aborption Net change in leased space over agiven period of time.

Bu space 100,000 square feet or more with upto 10 percent oce space, the balance being general

warehouse space with 0 to foot ceiling heights.

All loading is dock-height.

Fex space Single-story buildings having 10- to18-foot ceilings with both oor-height and dock-

height loading. Includes wide variation in oce

space utilization, ranging from retail and personal

service through distribution, light industrial andoccasional heavy industrial use.

Inventor Includes all existing multi or single

tenant leased and owner-occupied industrial

warehouse, light manufacturing, ex and R&Dproperties greater than or equal to 10,000 square

feet.

Ne Contruction Includes completed speculative

and build-to-suit construction. New construction

quoted on a net basis after any demolitions orconversions.

service space Single story (or mezzanine) with

10- to 1-foot ceilings with frontage treatment on

one side and dock-height loading or grade levelroll-up doors on the other. Less than 1% oce.

Tech/R&d One- and two- story, 10- to 1-footceiling heights with up to 0% oce/dry lab space

(remainder in wet lab, workshop, storage and othe

support), with dock-height and oor-height loadin

Tripe 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 per

square foot basis in U.S. dollars.

Vacanc Rate Percentage of total inventoryavailable (both vacant and occupied) as at the sur

date including direct vacant and sublease space.

warehoue 0,000 square feet or more with up

1 percent oce space, the balance being general

warehouse space with 18- to 0- foot ceilingheights. All loading is dock-height.


13/13


COllIERs INTERNATIONAl

01 Union Street, Suite 4800

Seattle, WA 8101

TEl +1 0 400

FOR MORE INFORMATION

Ross J. Moore

Chief Economist | USA

TEl +1 17 7 01

EMAIl [email protected]

1 oces in1 countries on continentsUnited States: 1Canada: 8

Latin America: 18

Asia Pacic: 14EMEA: 117

$1.5 billion in annual rvnu

979 illion squar ft undr

anagnt

vr 12,000 profssionals

Copyright 011 Colliers International.

The information contained herein has been obtainedfrom sources deemed reliable. While every reasonable

eort has been made to ensure its accuracy, we cann

guarantee it. No responsibility is assumed for any

inaccuracies. Readers are encouraged to consult their

professional advisors prior to acting on any of the

material contained in this report.

Accelerating success

INdUsTRIAl VACANCy RATE RANkINGs

MARkET | UNITEd sTATEsVACANCy RATE

JUNE. 30, 2011 (%)

Boston, MA 2.

Las Vegas, NV 6.3

Stockton/San Joaquin County, CA 5.

Savannah, GA 5.2Phoenix, AZ 5.2

Little Rock, AR .9

Reno, NV .

Atlanta, GA .

Detroit, MI 3.9

Nashville, TN 3.

Charlotte, NC 3.3

San Jose/Silicon Valley, CA 3.

Minneapolis, MN 3.

Sacramento, CA 3.

Faireld, CA 2.

Memphis, TN 2.3

Washington DC 2.3

Columbus, OH 2.3

Raleigh, NC 2.2

Orlando, FL 2.2

Fresno, California 2.

Chicago, IL .

Dallas-Ft. Worth, TX .5

San Diego, CA .

Pleasanton/Walnut Creek, CA .3

Louisville, KY .2

Boise, ID .

Jacksonville, Fl .9

Ft. Lauderdale-Broward, FL .9

Charleston, SC .

Baltimore, MD .6

Tampa Bay, FL .6

Greenville/Spartanburg, SC .

New Jersey - Central 9.

West Palm Beach, FL 9.

Cleveland, OH 9.

Philadelphia, PA 9.5

Bakerseld, CA 9.5

Los Angeles - Inland Empire, CA 9.

Hartford, CT 9.2

Portland, OR 9.

San Francisco Peninsula, CA .9

Grand Rapids, MI .9

Cincinnati, OH .

Oakland, CA .

St. Paul, MN .

Miami, FL .6

St. Louis, MO .5

New Jersey - Northern .2Columbia, SC .9

Denver, CO .

Seattle/Puget Sound, WA .5

Kansas City, MO-KS .2

Indianapolis, IN .

Pittsburgh, Pennsylvania .

Omaha, NE 6.

Houston, TX 5.

Long Island, NY 5.6

Los Angeles, CA 5.2

Orange County, CA 5.

Honolulu, HI .

INdUsTRIAl VACANCy RATE RANkINGs

MARkET | CANAdAVACANCy RATE

JUNE. 30, 2011 (%)

Ottawa, ON .

Halifax, NS 6.92

Waterloo Region, ON 6.

Montreal, QC 5.5Toronto, ON .9

Calgary, AB .96

Vancouver, BC .

Saskatoon, SK .2

Guelph, ON 3.53

Edmonton, AB 3.

Victoria, BC 3.3

Regina, SK .9

Documents

North American Industrial Highlights 2Q 2011