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    Global industrial midyear 2013 report Global industrial midyear 2013 report Document Transcript

    • Trade Flows Bolster Industrial Demand in Asia and the Americas > Despite anemic U.S. job growth, demand for North American industrial warehouse space and modern distribution centers remains strong. In Q1 2013, the North American vacancy rate declined for the eighth straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate stands at 4.13%. > Thanks in part to a recent drop in exports to the United States, Mexico has seen slowing economic growth. In Q1 2013, several Mexico City industrial warehouses were vacated, slightly increasing the vacancy rate to 3.49%. > While occupier demand for industrial property in Brazil remains strong, the market now appears to have stabilized into a more rational mode of sustained growth. São Paulo has seen positive net absorption, in spite of the final tally in 2012 showing a 23% decrease over the previous year. > Demand for Beijing’s logistics properties remained as strong as it has been since 2011. Rents grew by 11.41% year-over-year as of the end of Q1 2013. Shanghai’s industrial sector remained stable, with average asking rents for ground floor premises of high quality facilities in both the logistics and workshop sectors unchanged. > In Hong Kong, high quality warehouse buildings are nearly fully occupied. Those users seeking to expand or rationalize their real estate costs have had to consider the option of split operations in lower quality buildings. > Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading. Global | Industrial | Midyear 2013 HIGHLIGHTS * December 2012 Rent (USD/PSF/YR) ** Local currency Global Top 10 Industrial Warehouse Rents* 6-Month Change in Rent** LONDON (HEATHROW) HONG KONG SINGAPORE TOKYO OSLO GENEVA PARIS HELSINKI MINSK SYDNEY 21.95 21.83 21.02 20.61 20.04 16.20 14.70 14.70 13.23 13.23 MINSK OSLO SINGAPORE SYDNEY 11.1% 3.9% 2.2% 12.5% PARIS HELSINKI GENEVA TOKYO HONG KONG LONDON - (HEATHROW) LEGEND EMEA APAC
    • 2 Global Industrial Report | Midyear 2013 | Colliers International > Industrial take-up across the UK fell by 6% year on year in 2012 but despite steady, if unspectacular, levels of demand for big sheds, availability continues to fall across all regions. Based on average take-up levels over the past decade, total availability of new or refurbished space represents just over two years of supply across the UK as a whole. > Munich has seen growth among automotive manufacturers and suppliers, which are heavy users of logistics and production space. > In Paris, a decline of household consumption and industrial production against a backdrop of rising production costs and a loss of competitiveness of manufacturing companies have not helped the large warehouse market. Take-up of large warehouses in France through 2012 stood at 5.2 million square feet, down 24% from 2011. North America Strong Demand in North American Port and Distribution Markets Despite anemic U.S. job growth, demand for industrial warehouse space and modern distribution centers remains strong. On the heels of nearly 71 million square feet of net absorption in Q4 2012, the market absorbed another 50.5 million square feet in Q1 2013. The North American vacancy rate declined for the eighth straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate stands at 4.13%. Vacancy has improved the most in primary port cities and inland distribution markets with large intermodal facilities. Cap rates continue to compress and warehouse prices have risen. As institutional investors become anxious about the multifamily market, demand for modern warehouse properties in core port and inland distribution markets grows.
    • 3 Global Industrial Report | Midyear 2013 | Colliers International slowing economic growth in 2013. We expect this situation to be temporary as demands from American consumers and businesses return. A relatively slow but steady growth should continue, accompanied by further industrial property demand. During Q1 2013, several Mexico City industrial warehouses were vacated, slightly increasing the vacancy rate to 3.49%. In that period there were 14 Class A industrial properties under construction in the market. Once complete, they will add over one million square feet of inventory. There are an additional two million square feet in the planning stages, which will deliver between 2013 and 2015. We expect occupier demand combined with the dearth of speculative construction—all but four of the projects under construction are build-to-suit—will ensure that the vacancy rate remains stable. Brazil’s Industrial Market Matures While occupier demand for industrial property in Brazil remains strong, the market now appears to have stabilized into a more rational mode of sustained growth. Prices are not increasing with the rapidity that they once were and developers have become more conservative, waiting until the inventory under construction has been leased before approving new projects. New Supply is picking up, but is neither excessive nor speculative. New industrial construction increased by one-third to 40.6 million square feet. But this is less than the quarterly average net absorption from Q1 2012 to Q1 2013 (45 million square feet). More than half of this new space is pre-leased or build-to-suit distribution centers for major retailers and manufacturers. An estimated 40% of existing U.S. warehouse space is old enough to be considered functionally obsolete. There is added urgency on the part of retailers and manufacturers remaking their supply chains with modern distribution facilities aligned with key post-Panamax ports, intermodal rail facilities, and air cargo/e- commerce fulfillment paths. Latin America Construction in Mexico City, But Little is Speculative Thanks in part to a recent drop in exports to the United States, Mexico’s largest export market, the country has seen North America, Average Prime Warehouse Rent, (USD/SF/YR) & Cap Rate - December 2012 *Note: Average Net rent = Gross Asking Rent - Annual Realty Taxes - Operating Expenses Chicago 6.3%$3.71 Vancouver, BC 5.7%$7.62 Detroit 9.9%$3.70 Los Angeles - Inland Empire 7%$4.2 Dallas-Ft Worth 7.3%$3.15 Los Angeles 7%$6.21 Atlanta 7.9%$3.17 Indianapolis 6.75%$3.67 New Jersey - Central 6.3%$4.37
    • 4 Global Industrial Report | Midyear 2013 | Colliers International São Paulo, which makes up 62% of the national industrial inventory, has seen positive net absorption, although the final tally in 2012 was a 23% decrease over the previous year. Our expectations for the city remain positive. Submarkets close to the Mario Covas Beltway, the city’s ring road, have seen strong demand and high prices thanks in part to a lack of further developable land. Buenos Aires Sees Supply/Demand Imbalance Buenos Aires currently suffers from an imbalanced market. Despite recent construction completions, there are virtually no premium logistics centers available for rent. This lack of supply has hurt demand, as there is simply no supply to meet it. Rental rates have increased in line with national inflation. There are many premium logistics projects currently under construction which will come online this year. Industrial parks have also shown a high occupancy scenario and an upward trend in land sales prices. Bogotá Sees Strong Demand as Users Move to City Outskirts In Bogotá, warehouse demand exceeds supply. In H2 2012, absorption exceeded new construction by 8%, something that has not been seen since 2008. Available warehouse space was down by 45%. Few of the newly constructed warehouses are even making it to the market, as many properties are either build-to- suit or leased or sold before construction begins. The Bogotá market absorbed over two million square feet of warehouse space in the second half of 2012, which was 28% more than the same period in the previous year. Since 2008, development has transitioned to the city’s outskirts and now 99% of available land is to be found there. There were 570 acres of land available in the market, which is the highest we’ve ever recorded. Asia Pacific Consumers Support Asian Industrial Resilience The overall demand for industrial logistics real estate in Asia remains relatively solid despite the slower-than-projected GDP growth in a number of Asian economies and the slackening demand for imports in western economies. Thanks to resilient private expenditure in a number of Southeast Asian countries, quality industrial logistics properties have been in consistent demand, especially those catering to local distribution. Rental growth expectations in most Asian cities remain positive. Beijing is the most prominent city with exceptional rental LATAM, Average Prime Warehouse Rent (USD/SF/YR) & Cap Rate - December 2012       Mexico City 7.75%$6.25 Lima 11%$7.25 Buenos Aires 10.5%$8.81 Panama City 9.5%$9.48 Bogotá 9.8%$9.70 São Paulo 10.25%$10.55 growth, due to the accelerating expansion of third-party logistics companies and the sustained demand for logistics space due to the city’s lack of new supply of quality and modern facilities. In Hong Kong, supply is falling short of demand where high quality industrial logistic warehouses are virtually fully occupied. The sustained demand for logistic space was lately demonstrated in Q2 2013 by the fact that an industrial/logistic development site in the Tsing Yi district—a traditional logistics hub in Hong Kong— was sold for a higher than expected land price. Beijing Sees Sustained Demand for Logistics Space Demand for Beijing’s logistics properties remained as strong as it has been since 2011. The vacancy rate rested at around 2.74% as of the end of Q1 2013. On the back of this, rents grew by 11.41% year-over-year, to RMB 35.55 per square meter per month as of end Q1 2013. One new project was completed in Beijing’s logistics property market in Q1 2013, and total market inventory expanded to more than 14 million square feet. The demand from third party logistics, manufacturing, and pharmacy companies should continue to grow. Several new projects are anticipated to
    • 5 Global Industrial Report | Midyear 2013 | Colliers International complete in 2013, however this will hardly alleviate the current demand. We expect rental and capital values to grow, albeit at a lower rate. Consumer Growth Supports Shanghai Logistics Sector Shanghai’s industrial sector remained stable in Q1 2013, despite global economic uncertainty. China’s official Purchasing Managers’ Index (PMI) and the HSBC’s China Manufacturing PMI stood at 50.9 and 51.6 respectively in March, promoting positive industrial performance. Average asking rental rates for ground floor premises of high quality facilities in both the logistics and workshop sectors remained unchanged from Q4 2012. In the medium to long term, increased consumer demand, founded on rising disposable incomes and the government’s stated goal of increasing efficiencies in the logistics sector will sustain demand for high-quality logistics properties. In the workshop sector, the new supply of high quality facilities will be limited by the availability of land. Quality Hong Kong Warehouses Near Full Occupancy In Hong Kong, high quality warehouse buildings are nearly fully occupied. No new warehouses are set to complete construction until the second half of 2014. Logistics companies have had to negotiate with landlords for lease renewals about one year ahead of lease expiration. Some logistics companies have pre- committed those yet-to-be-vacated spaces. Those users seeking to expand or rationalize their real estate costs have had to consider the option of split operations in lower quality buildings. This trend will continue until developers have completed warehouse construction in the Tsing Yi district. Japanese Exports Improving Japan’s real GDP grew for two consecutive quarters by 0.9% quarter-over-quarter or 3.5% annualized in Q1 2013. The exports stopped decreasing. The Yen depreciated against USD more than 15% since the end of 2012. The decline of industrial land prices Asia Pacific, Average Prime Warehouse Rent (USD/SF/YR) & Cap Rate - December 2012 Jakarta 9%$4.37 Singapore 4.5%$21.02 Tokyo 6.2%$20.61 Adelaide 8.25%$11.98 Beijing 6.88%$6.04 Sydney 8%$13.23 Wellington 8.5%$5.99 Hong Kong 4.1%$21.83 Auckland 7.79%$8.14 Brisbane 8.41%$10.73 *Gross rent data listed for Tokyo
    • 6 Global Industrial Report | Midyear 2013 | Colliers International in Greater Tokyo during 2012 was less than that of 2011, -0.5% compared with -1.8%. Demands from rapidly growing e-commerce sectors and expanding Third Party Logistics users are strong. Both domestic and foreign investors have been active in the industrial property market and we expect this trend to continue. Three Japanese REITs that mainly target industrial properties were newly listed between November 2012 and February 2013. Only five of the thirty-nine Japanese REITs have industrial properties holdings. These holdings make up about 7.5% of total holdings. Seoul Sees Uneven Industrial Demand Seoul has seen a decrease in transaction volume. This has meant that there was no significant change in rent or asset value in the second half of 2012. Recent industrial sales trends have included the sales of properties in order to secure cash flows. Sale/leaseback transactions are also on the rise. The market has also witnessed many cases of PF transfer of ownership of real estate in addition to the sales of factory sites for redevelopment into large-scale residential projects. So while there have been some significant industrial sales, many were transactions where property usage was changed rather than actual industrial investment. Sellers’ Stamp Duty Likely to Rein in Sales Price Growth in Singapore Average capital values of strata-titled warehouses continued to rise in H2 2012. This was supported by high liquidity, low interest rates and investor demand which had diverted from the residential market where several rounds of cooling measures were implemented. Strong demand for industrial sites pushed land values upwards in H2 2012 after having remained stable in H1 2012. Rents for both prime warehouse space and prime bulk space improved further, driven by lease renewals and higher rental expectations from landlords. We expect demand for warehouse space to remain healthy in 2013. However, warehouse rents and capital values will rise at a slower pace. The imposition of a Sellers’ Stamp Duty (with effect from 12 January 2013) on industrial properties sold within three years of purchase to weed out speculative activity is likely to rein in industrial property prices. Government Actions to Propel Delhi Industrial Activity Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve thanks to recent government actions. The government has proposed setting up eight National Investment and Manufacturing Zones (NIMZs), which are integrated industrial townships with state- of- the-art infrastructure and at least 30% of total area devoted to manufacturing. Of the eight proposed NIMZs, three would be located in the Delhi National Capital region. The cabinet has also approved 51% foreign direct investment in multi-brand retail trading, subject to certain conditions. In light of these proactive measures, we anticipate an increase in demand for industrial properties over the coming year, with most submarkets experiencing stability or growth in values and rents on the back of consistent demand and limited space availability.
    • 7 Global Industrial Report | Midyear 2013 | Colliers International Sydney Industrial a Target for Foreign Capital Sydney’s industrial market continues to attract offshore capital with a number of foreign groups inquiring and purchasing industrial assets and teaming up with local institutional owners. The weight of funds chasing Prime Grade assets has seen Prime Grade yields show signs of tightening. The attraction to Sydney’s industrial market from investors continues to be driven by strong fundamentals with tenant demand for Prime Grade assets remaining active. However the ongoing lack of supply combined with demand has kept availability and vacancy levels low. Melbourne’s West Still Seeing Strong Demand from Logistics Sector The Melbourne industrial market continues to be dominated by leasing and development activity in the west precinct, and it continues to be the logistics and transport sector that is demanding the majority of industrial space. Both the North and West markets are seeing good demand from this sector, and enquiries are predominately coming from logistics users involved in the supply chain process coming out of the Port of Melbourne (west) and Melbourne Airport (north). Investment Activity Slows in Brisbane Investment activity has eased in the first half of 2013 with six transactions over $5 million, which is down from 15 transactions in the second half of 2012. This is mainly reflective of a lack of available stock on the market. Leasing activity has improved with 360,892 square feet of industrial floor space taken up during the first half of 2013 compared to 285,433 square feet in the latter half of 2012. With new supply additions at low levels (104,986 square feet of new industrial floor space for facilities over 32,808 square feet currently in construction phase) and demand at trend levels, prime grade net face rents are forecast to grow 1.8% in 2013 from 2012 levels. HONG KONGSINGAPORE TOKYO ORANGE COUNTY,CA SAN JOSE -SILICON VALLEY VANCOUVER,B.C. FRANKFURT OSLO LONDON (HEATHROW) BOGOTÁ PANAMA CITY MEXICO CITY 9.80 1.0 0.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 NORTH AMERICA EMEA LATIN AMERICAASIA 9.0 10.0 % 4.10 4.50 5.70 6.00 6.00 6.20 6.25 6.50 6.70 7.75 9.50 9.80Top Three Markets by Cap Rate (%) and Region - December 2012
    • 8 Global Industrial Report | Midyear 2013 | Colliers International Adelaide Sees Shortfall in Quality Stock Leasing demand remains solid, and with a number of major tenants currently in the market with requirements unfulfilled, this trend will continue. The shortfall in A Grade stock will drive pre-lease demand for design and construct development and the redevelopment of older style buildings. Expect moderate rental growth in 2013 through limited supply of A Grade stock. Institutions are now making strategic purchases and have been selling non-core assets. Expect modest yield compression from Q2 2013 when transactional activity for the year is well underway. 2013 should see some expansion in values, especially in traditional core precincts. Expect Prime Yields to Firm in Auckland Industrial market activity in Auckland was patchy in 2012, with few design build projects undertaken. As difficult economic times continue, businesses are tending to defer expenditures, including property expenditures, choosing instead to concentrate on sustaining their core business. We expect overall vacancy will track modestly down through 2013 but there will be considerable variation between parts of the market, whether in the context of location, quality or building size. As construction costs are expected to increase, particularly as tenants and developers pay more attention to seismic aspects of the building code, rents will have to increase or land costs decline in order to provide owners and developers with the returns that they have been enjoying historically. It is likely that demand for good quality industrial investments will continue to outstrip supply, and this will continue to be the case until more supply is produced. As a consequence prime yields are continuing to firm. Many Wellington Tenants Attracted to Smaller, Newer Space In Wellington there is a trend for businesses to move from older, larger space to newer, smaller, more efficient space, leaving a significant number of large premises vacant. These are typically hard to re-utilize without significant capital expenditure. Industrial leases in Wellington tend to be documented on a gross basis, as do office and retail leases in the capital. Currently this favors tenants as rising insurance premiums cannot be immediately passed on to them. While gross rentals have not reduced, net rentals have dropped slightly as a result of rising operating expenses, particularly insurance costs. We anticipate that insurance premiums will continue to rise in the next twelve months and as a consequence, net incomes will continue to decline. Leasing activity has been steady and we expect a continuation of this modest level of activity. Europe, Middle East & Africa Limited Supply of Quality Space in EMEA Recovery in the European Logistics market remains generally patchy, reflecting a lack of momentum in retail trade and industrial production growth, two of the primary drivers of the market. After a modest pick up towards the start to the year, retail trade volume growth flattened in both Europe and the Eurozone, and remains negative on an annual basis. Industrial production marked its second consecutive monthly increase in March, but the annual trend is also downward. Sentiment in the industrial sector was also dented by a fresh downgrade of growth forecasts for some larger European economies. Generally, the market in Europe continues to be characterized by limited supply of quality space and hardly any speculative projects under construction. This situation, along with stable demand levels, leaves many occupiers with limited choice of modern developments.
    • 9 Global Industrial Report | Midyear 2013 | Colliers International Pre-lease agreements continue to have a significant share in take- up figures in some of the markets (e.g. Poland). However, many tenants are withholding their decisions because of the uncertain economic outlook and the lack of immediately available space. Prime rents remained broadly unchanged across the majority of the markets, with some increases observed in core European locations, mainly on the back of the growing lack of modern supply. By contrast, rental values remain under pressure across most parts of Southern Europe, where demand remains restrained by poor economic performance. Some markets are benefitting from the further expansion of E-Commerce, with new e-fulfillment centers built across the region. Amazon for example is soon to open two new distribution centers in Northern France and Northern Italy. Steady Absorption and Little New Supply in London Heathrow Overall industrial take-up across the UK fell by 6% year-on-year in 2012 but despite steady, if unspectacular, levels of demand for big sheds, availability continues to fall across all regions. Based on average take-up levels over the past decade, total availability of new or refurbished space represents just over two years of supply across the UK as a whole. In London, the figure has slipped below 1.5 years for the best space and is only marginally higher for all Grades. Opportunities for potential occupiers seeking top quality, modern shed space in Greater London are now severely limited with only very modest levels of new supply anticipated over the next 18 months. The Heathrow market over the last four years has seen almost no speculative development, which is a direct consequence of the current economic climate and is the same situation that is prevailing throughout the rest of the South-East, West London, and the rest of the UK. Consequently, there is very little grade A stock available and therefore understandably a number of build-to-suit lettings have been concluded within the last twelve months. Steady absorption of space coupled with a shortage of new space coming to market, has meant a downward movement in vacancy levels across many London submarkets over the past three years. German Market Resilient; Munich Sees Auto Occupier Logistics Demand The German logistics market has been only marginally affected by the economic difficulties gripping the Eurozone. The availability of modern space is tight across the whole market and this has recently driven increases in prime rents in some cities such as Dusseldorf, Stuttgart and Munich. The Munich market is in particularly good shape. Satisfactory take-up figures above the long-term average have combined with ongoing high demand to keep the situation on the demand side solid, even in times of economic uncertainty. In particular, further growth has been noted among automotive manufacturers and suppliers, which are heavy users of logistics and production space, while high purchasing power in the Munich metro area has given retailers opportunities for expansion. The ongoing shortage of space in the latest generation will continue to lead to high advance leasing activity in development projects this year, so large-scale signings are expected again. With all these factors in mind, we believe the market will be able to pick up where it left off, achieving as much as 918,635 square feet in total take-up of space by the end of the year. Paris Logistics Market Suffers from Competition from Southern Picardy Decline of household consumption and industrial production against a backdrop of rising production costs and a loss of competitiveness of our manufacturing companies have not helped the large warehouse market. In contrast, the sharp rise in e-commerce has increased logistic property needs. Despite these stimulating factors, urban logistics is struggling to establish itself in France. Take-up of large warehouses in France through 2012 stands at 5.2 square million feet, down 24% from 2011. However, Global Industrial Capitalization Rates / (Prime Yield/Percent) MARKET (Select Markets) REGION DEC 2012 DEC 2011 Vancouver, BC N.A. 5.70 7.00 London (Heathrow) EMEA 6.00 6.00 Chicago, IL N.A. 6.30 6.50 Munich EMEA 6.90 6.90 Los Angeles - Inland Empire, CA N.A. 7.00 6.50 Paris EMEA 7.00 6.80 Marseille EMEA 7.20 7.20 Dallas-Ft. Worth, TX N.A. 7.30 7.60 Sydney Asia Pacific 8.00 8.15 Madrid EMEA 8.25 8.50 Prague EMEA 8.25 8.50 Athens EMEA 10.00 9.00 Bucharest EMEA 10.25 10.00
    • 10 Global Industrial Report | Midyear 2013 | Colliers International deals above 131,233 square feet accounted for 35% of the annual take-up, and this trend towards a concentration of flows in large scale logistics buildings should increase over the next few years. Ile-de-France undeniably posted the year’s most disappointing performance, with take-up of only 2.2 million square feet, down by 25%. Although the Paris region retains the lion’s share (42%) of the French logistics market, it has suffered more from competition from southern Picardy, which is close to the capital and almost trebled its take-up year-on-year in 2012. The light industrial premises market in Ile-de-France has defied the sluggish economic indicators. Against all expectations, sales to owner- occupiers in that segment were a main driver of the market. The Netherlands: Southern Hubs Faring Well The Dutch logistics real estate market is characterized by relative stability, with some regional variations. Cities in the south of the Netherlands are generally performing well; rents for logistics properties in the province of Noord-Brabant have increased while yields have improved. The main reason for this growth is the increasing demand for industrial space from the e-commerce sector and the availability of skilled employees in the region. For the next 12 months this trend is expected to continue in Noord-Brabant. By contrast, rents and yields have been reversing in Venlo; the city seems to be losing ground to cities such as Eindhoven and Tilburg that are more successfully meeting the growing demand for logistic space. Another notable trend is the decrease of rental prices in Rotterdam due to an expansion of supply. At Amsterdam Schiphol Airport there has also been an increase in supply but this has actually led to an increase in rents; the difference can be explained by the open market in Rotterdam and the airport-bound market in Schiphol. Development activity remains generally subdued and driven by build-to-suits. This has resulted in a limited availability of Class A warehouses. Occupiers on their side are holding on decisions regarding any relocations and only moving when absolutely necessary. EMEA, Average Prime Warehouse Rent (USD/SF/YR) & Cap Rate - December 2012 Paris 7%$14.7 Manchester 7.5%$9.35 Brussels 6.75%$6.10 Frankfurt 6.7%$9.56 Warsaw 7.75%$7.65 Bucharest 10.25%$6.18 London (Heathrow) 6%$21.95 Athens 10%$6.32 Istanbul 9%$6.97 Moscow 10.5%$13.05 Antwerp 7%$5.59 Stockholm 6.75%$12.42
    • 11 Global Industrial Report | Midyear 2013 | Colliers International Other trends in the logistics market are an increase in the demand for large logistics buildings, driven by both the expansion of e-commerce and sites consolidation. With the increasing demands from e-commerce, it is noteworthy that the south of the Netherlands is currently withstanding heavy rivalry from Belgium, the German Ruhr area and the north of France. Economic Crisis Taking its Toll on the Spanish Logistics Market The Spanish industrial and logistics real estate market has felt the effects of the economic and financial crisis. Investment volumes and transactions number have fallen significantly, while the general downward pressure on rents remains. However, certain sub-markets are finding a degree of stability i.e. prime located and specified units over 20,000 sq m. The decrease in consumer spending has led to a logical decline in retail demand and, in turn, reduced the demands for space from industrial and logistics operators. Financial constraints have determined a lack of investment activity from small and medium companies who, traditionally, have sought opportunities for owner occupation. Liquidity constraints have resulted in the closure and decline of many Spanish developers, and speculative projects have virtually disappeared; any new developments are exercised purely on a turnkey basis. Rents for logistics space continue to decrease in all sectors, albeit not as sharply as previously seen. This trend is being exacerbated in secondary locations due to high levels of obsolete and vacant stock. Rental levels in Madrid and Barcelona have been adjusted by approximately 15 to 20% in prime sub markets; in secondary locations the figure is 25 to 35%, and even more in areas with both dated stock and high vacancy levels Activity in CEE Driven by Pre-Lets and Build-to-Suits Activity remains concentrated around the larger centers of population and economic strength, with markets such as Moscow, Warsaw, Prague and Budapest providing the largest volumes of modern stock. Aside from these key city locations, there is a clear clustering of activity around the industrial regions of Poland, the Czech Republic and Slovakia. These locations benefit from proximity to their feeder markets in Germany and Austria in particular, helping drive demand for space from regional distributors, manufacturers and retailers as well as those facilitating the national market. Outside of these locations, only Athens, St Petersburg and Gdansk (Tricity) have a wider distribution role to play as major European trading ports, which escalates the volume of activity in these specific markets. Gdansk and St Petersburg are yet to fulfill their potential. Elsewhere, demand for space is driven primarily by occupiers with local and national distribution needs to satisfy the domestic economy. Generally, given the lack of new speculative development, in most markets pre-lets and built-to-suits make up a large share of new transactions. Prime rents are stable in the majority of the markets. However, some increases were recently registered in Prague, Budapest and Bratislava’s region. A minor correction was observed in Athens.
    • 12 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS MARKET COUNTRY CURRENCY UNIT OF MEASUREMENT TIME PERIOD PRIME WAREHOUSE RENT (LOCAL MEASURE / CURRENCY) 6-MONTH CHANGE IN RENT (LOCAL CURRENCY) PRIME BULK RENT (LOCAL MEASURE / CURRENCY) ASIA PACIFIC Adelaide Australia AUD SM Year 124.00 3.3% 87.00 Brisbane Australia AUD SM Year 111.07 0.0% 82.86 Sydney Australia AUD SM Year 137.00 2.2% 103.00 Beijing China RMB SM Month 33.75 4.5% 30.38 Guangzhou China RMB SM Month 31.95 1.4% 30.40 Hong Kong China HKD SF Month 14.10 0.0% 12.48 Shanghai China RMB SM Month 37.00 2.8% 33.00 Delhi India INR SF Month 34.00 0.0% 33.00 Jakarta Indonesia IDR SM Month 38,400.00 3.2% Tokyo Japan JPY SM Month 1,600.00 0.0% 1,700.00 Auckland New Zealand NZD SM Year 106.00 0.0% Christchurch New Zealand NZD SM Year 93.00 1.1% Wellington New Zealand NZD SM Year 78.00 0.0% Singapore Singapore SGD SF Month 2.14 3.9% 1.45 Seoul South Korea KRW SM Month 10,053.00 0.0% 10,053.00 Bangkok Thailand THB SM Month 200.00 0.0% 170.00 Chonburi Province Thailand THB SM Month 170.00 3.0% 130.00 Ho Chi Minh City Vietnam USD SM Month 4.00 5.0% 2.50 EUROPE, MIDDLE EAST, AFRICA Vienna Austria EUR SM Month 5.00 0.0% 4.90 Minsk Belarus EUR SM Month 9.00 12.5% Antwerp Belgium EUR SM Month 3.80 1.3% 3.35 Brussels Belgium EUR SM Month 4.15 -1.2% 3.30 Sofia Bulgaria USD SM Month 3.80 0.0% Zagreb Croatia EUR SM Month 5.00 0.0% Prague Czech Republic EUR SM Month 4.50 0.0% Copenhagen Denmark DKK SM Year 450.00 0.0% 450.00 Tallinn Estonia EUR SM Month 4.80 0.0% Helsinki Finland EUR SM Month 10.00 0.0% 7.50 Bordeaux France EUR SM Month 4.58 0.0% 3.92 Lille France EUR SM Month 4.60 0.0% 3.50 Lyon France EUR SM Month 5.90 -4.8% 4.16 Marseille France EUR SM Month 8.00 0.0% 3.75 Paris France EUR SM Month 10.00 0.0% 6.00
    • 13 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS MARKET COUNTRY CURRENCY UNIT OF MEASUREMENT TIME PERIOD PRIME WAREHOUSE RENT (LOCAL MEASURE / CURRENCY) 6-MONTH CHANGE IN RENT (LOCAL CURRENCY) PRIME BULK RENT (LOCAL MEASURE / CURRENCY) Toulouse France EUR SM Month 5.80 -7.2% 3.75 Berlin Germany EUR SM Month 5.60 -1.8% 4.20 Düsseldorf Germany EUR SM Month 5.50 10.0% 4.00 Frankfurt Germany EUR SM Month 6.50 0.0% 6.00 Hamburg Germany EUR SM Month 5.80 0.0% 5.80 Munich Germany EUR SM Month 6.30 1.6% 5.50 Stuttgart Germany EUR SM Month 5.50 3.8% 6.30 Athens Greece EUR SM Month 4.30 0.0% Budapest Hungary EUR SM Month 4.50 12.5% Dublin Ireland EUR SM Month 5.00 0.0% 4.50 Riga Latvia EUR SM Month 4.00 14.3% Vilnius Lithuania EUR SM Month 4.80 4.3% Amsterdam Netherlands EUR SM Month 6.25 -0.8% Oslo Norway NOK SM Month 100.00 11.1% 85.00 Katowice Poland EUR SM Month 3.40 0.0% Lodz Poland EUR SM Month 4.00 0.0% Warsaw Poland EUR SM Month 5.20 -3.7% Gdansk Poland EUR SM Month 3.60 -7.7% Poznan Poland EUR SM Month 3.50 -2.8% Lisbon Portugal EUR SM Month 5.00 -4.8% 3.25 Bucharest Romania EUR SM Month 4.20 -4.5% Moscow Russia USD SM Month 11.67 -0.3% Saint Petersburg Russia USD SM Month 10.20 0.0% Bratislava Slovakia EUR SM Month 3.70 -5.1% Madrid Spain EUR SM Month 5.00 -5.7% 3.00 Gothenburg Sweden SEK SM Year 650.00 0.0% 550.00 Malmo Sweden SEK SM Year 550.00 0.0% 530.00 Stockholm Sweden SEK SM Year 870.00 0.0% 550.00 Geneva Switzerland CHF SM Month 13.30 0.0% 10.40 Istanbul Turkey USD SM Month 6.25 4.2% 6.25 Belfast UK GBP SF Year 4.00 0.0% 4.00 Birmingham UK GBP SF Year 5.75 0.0% 5.50 Bristol UK GBP SF Year 7.00 0.0% 5.50 Edinburgh UK GBP SF Year 7.00 0.0% 4.50 Glasgow UK GBP SF Year 6.00 0.0% 5.00
    • 14 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS MARKET COUNTRY CURRENCY UNIT OF MEASUREMENT TIME PERIOD PRIME WAREHOUSE RENT (LOCAL MEASURE / CURRENCY) 6-MONTH CHANGE IN RENT (LOCAL CURRENCY) PRIME BULK RENT (LOCAL MEASURE / CURRENCY) Leeds UK GBP SF Year 5.50 0.0% 5.00 London (Heathrow) UK GBP SF Year 13.50 0.0% 12.00 Manchester UK GBP SF Year 5.75 0.0% 4.25 Kyiv Ukraine USD SM Month 7.00 0.0% LATIN AMERICA Buenos Aires Argentina USD SM Month 7.90 5.8% 7.50 São Paulo Brazil BRL SM Month 19.38 -1.0% 21.90 Bogotá Colombia USD SM Month 8.70 -13.0% 5.90 Mexico City Mexico USD SM Month 5.60 0.0% 5.60 Panama City Panama USD SM Month 8.50 6.3% 7.50 Lima Peru USD SM Month 6.50 18.2% 6.00 NORTH AMERICA Calgary, AB Canada CAD SF Year 8.50 0.0% 7.25 Edmonton, AB Canada CAD SF Year 8.00 0.0% 7.50 Halifax, NS Canada CAD SF Year 7.75 0.0% 6.75 Montréal, QC Canada CAD SF Year 4.75 5.6% 4.25 Ottawa, ON Canada CAD SF Year 8.25 6.5% 7.50 Regina, SK Canada CAD SF Year 9.00 0.0% 9.00 Saskatoon, SK Canada CAD SF Year 10.00 5.3% 9.00 Toronto, ON Canada CAD SF Year 4.83 1.3% Vancouver, BC Canada CAD SF Year 7.60 0.7% 6.80 Victoria, BC Canada CAD SF Year 12.00 0.0% 10.00 Waterloo Region, ON Canada CAD SF Year 3.97 -0.7% 3.12 Winnipeg, MB Canada CAD SF Year 6.00 0.0% 5.25 Atlanta, GA US USD SF Year 3.17 -1.9% 2.83 Bakersfield, CA US USD SF Year 4.00 0.0% 3.42 Baltimore, MD US USD SF Year 4.72 -13.7% 4.73 Birmingham, AL US USD SF Year 7.38 8.7% 4.07 Boise, ID US USD SF Year 5.04 12.0% 4.80 Boston, MA US USD SF Year 5.83 -2.0% 5.58 Charleston, SC US USD SF Year 3.85 0.0% 4.30 Charlotte, NC US USD SF Year 3.34 0.6% 3.54 Chicago, IL US USD SF Year 3.71 -4.9% 2.67 Cincinnati, OH US USD SF Year 3.53 11.4% 2.88
    • 15 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS MARKET COUNTRY CURRENCY UNIT OF MEASUREMENT TIME PERIOD PRIME WAREHOUSE RENT (LOCAL MEASURE / CURRENCY) 6-MONTH CHANGE IN RENT (LOCAL CURRENCY) PRIME BULK RENT (LOCAL MEASURE / CURRENCY) Cleveland, OH US USD SF Year 3.30 1.2% 2.86 Columbia, SC US USD SF Year 4.00 6.7% 4.00 Columbus, OH US USD SF Year 2.62 -1.1% 2.51 Dallas-Ft. Worth, TX US USD SF Year 3.15 3.3% 2.70 Denver, CO US USD SF Year 4.62 2.4% 3.95 Detroit, MI US USD SF Year 3.70 3.1% 3.59 Fairfield, CA US USD SF Year 5.50 1.5% 5.52 Fresno, CA US USD SF Year 3.00 25.0% 3.00 Ft. Lauderdale-Broward, FL US USD SF Year 6.14 1.0% 5.84 Grand Rapids, MI US USD SF Year 3.15 -1.6% 3.09 Greenville/Spartanburg, SC US USD SF Year 2.75 -8.3% 2.95 Hartford, CT US USD SF Year 3.98 -0.7% 3.50 Honolulu, HI US USD SF Year 11.52 0.0% Houston, TX US USD SF Year 5.36 5.9% 4.36 Indianapolis, IN US USD SF Year 3.67 -0.8% 3.24 Jacksonville, Fl US USD SF Year 3.72 -1.6% 3.10 Kansas City, MO-KS US USD SF Year 4.20 -1.6% 3.48 Las Vegas, NV US USD SF Year 4.68 2.6% 4.16 Little Rock, AR US USD SF Year 2.68 0.0% 2.74 Long Island, NY US USD SF Year 9.07 6.0% 9.13 Los Angeles - Inland Empire, CA US USD SF Year 4.20 2.9% 3.96 Los Angeles, CA US USD SF Year 6.21 3.1% 5.94 Louisville, KY US USD SF Year 3.40 0.9% 3.42 Memphis, TN US USD SF Year 2.47 0.4% 2.50 Miami, FL US USD SF Year 7.73 5.7% 7.16 Milwaukee, WI US USD SF Year 4.68 10.1% 3.89 Minneapolis/St. Paul, MN US USD SF Year 4.67 0.0% 6.19 Nashville, TN US USD SF Year 2.95 0.7% 8.38 New Jersey - Central US USD SF Year 4.37 -0.7% 3.49 New Jersey - Northern US USD SF Year 6.28 2.6% 5.98 Oakland, CA US USD SF Year 4.56 0.0% 4.44 Omaha, NE US USD SF Year 4.62 6.7% 3.46 Orange County, CA US USD SF Year 6.96 3.6% 6.12 Orlando, FL US USD SF Year 4.40 0.2% 4.22
    • 16 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS MARKET COUNTRY CURRENCY UNIT OF MEASUREMENT TIME PERIOD PRIME WAREHOUSE RENT (LOCAL MEASURE / CURRENCY) 6-MONTH CHANGE IN RENT (LOCAL CURRENCY) PRIME BULK RENT (LOCAL MEASURE / CURRENCY) Philadelphia, PA US USD SF Year 4.25 3.7% 4.14 Phoenix, AZ US USD SF Year 5.16 3.0% 4.21 Pittsburgh, PA US USD SF Year 4.47 1.1% 4.10 Pleasanton/Walnut Creek, CA US USD SF Year 4.99 -1.0% 4.26 Portland, OR US USD SF Year 5.48 5.8% 5.06 Raleigh, NC US USD SF Year 3.63 -0.3% 4.28 Reno, NV US USD SF Year 3.66 -6.4% 3.12 Richmond, VA US USD SF Year 3.36 0.0% Sacramento, CA US USD SF Year 4.32 2.9% 3.84 San Diego, CA US USD SF Year 8.16 1.5% 7.56 San Francisco Peninsula, CA US USD SF Year 9.48 -6.0% 9.48 San Jose - Silicon Valley US USD SF Year 6.24 6.3% 5.90 Savannah, GA US USD SF Year 3.95 0.0% 3.75 Seattle/Puget Sound, WA US USD SF Year 6.11 0.7% 5.88 St. Louis, MO US USD SF Year 3.81 -1.0% 3.80 Stockton/San Joaquin County, CA US USD SF Year 3.96 4.8% Tampa Bay, FL US USD SF Year 4.52 2.3% 3.86 Washington DC US USD SF Year 6.73 0.1% 5.59 West Palm Beach, FL US USD SF Year 6.81 1.6% 6.13
    • 17 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES MARKET COUNTRY EXCHANGE RATE (USD) DECEMBER 31, 2012 DEC 2012 PRIME WAREHOUSE RENT USD/SF/YR DEC 2012 PRIME BULK RENT (USD/SF/YR) VACANCY RATE (%)  DEC 2012 DEC 2012 YIELD / CAP RATE ASIA PACIFIC Adelaide Australia 0.96 4.99 -1.0% 4.26 8.25 Brisbane Australia 0.96 5.48 5.8% 5.06 8.41 Sydney Australia 0.96 3.63 -0.3% 4.28 8.00 Beijing China 6.23 6.04 5.44 1.71 6.88 Guangzhou China 6.23 5.72 5.44 Hong Kong China 7.75 3.66 -6.4% 3.12 4.10 Shanghai China 6.23 3.36 0.0% Delhi India 54.85 8.16 1.5% 7.56 8.00 Jakarta Indonesia 9,799.95 9.48 -6.0% 9.48 9.00 Tokyo Japan 86.58 6.24 6.3% 5.90 6.20 Auckland New Zealand 1.21 3.95 0.0% 3.75 7.79 Christchurch New Zealand 1.21 6.11 0.7% 5.88 7.90 Wellington New Zealand 1.21 3.81 -1.0% 3.80 8.50 Singapore Singapore 1.22 3.96 4.8% 4.50 Seoul South Korea 1,065.31 10.52 10.52 4.00 Bangkok Thailand 30.59 4.52 2.3% 3.86 Chonburi Province Thailand 30.59 6.73 0.1% 5.59 Ho Chi Minh City Vietnam 1.00 4.00 2.50 27.00 EUROPE, MIDDLE EAST & AFRICA Vienna Austria 0.76 7.35 7.20 8.50 Minsk Belarus 0.76 13.23 15.50 Antwerp Belgium 0.76 5.59 4.93 7.00 Brussels Belgium 0.76 6.10 4.85 6.75 Sofia Bulgaria 1.00 4.24 11.00 Zagreb Croatia 0.76 7.35 10.00 Prague Czech Republic 0.76 6.62 8.25 Copenhagen Denmark 5.66 7.39 7.39 7.50 Tallinn Estonia 0.76 7.06 9.00 Helsinki Finland 0.76 14.70 11.03 7.50 Bordeaux France 0.76 5.76 8.50 Lille France 0.76 6.76 5.15 7.50 Lyon France 0.76 6.12 7.40 Marseille France 0.76 11.76 5.51 7.20
    • 18 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES MARKET COUNTRY EXCHANGE RATE (USD) DECEMBER 31, 2012 DEC 2012 PRIME WAREHOUSE RENT USD/SF/YR DEC 2012 PRIME BULK RENT (USD/SF/YR) VACANCY RATE (%)  DEC 2012 DEC 2012 YIELD / CAP RATE Paris France 0.76 14.70 8.82 7.00 Toulouse France 0.76 5.51 7.50 Berlin Germany 0.76 8.23 6.18 7.40 Düsseldorf Germany 0.76 8.09 5.88 7.25 Frankfurt Germany 0.76 9.56 8.82 6.70 Hamburg Germany 0.76 8.53 8.53 7.20 Munich Germany 0.76 9.26 8.09 6.90 Stuttgart Germany 0.76 8.09 9.26 7.20 Athens Greece 0.76 6.32 10.00 Budapest Hungary 0.76 6.62 9.00 Dublin Ireland 0.76 7.35 6.62 9.00 Riga Latvia 0.76 9.25 Vilnius Lithuania 0.76 7.06 9.25 Amsterdam Netherlands 0.76 9.19 7.00 Oslo Norway 5.56 20.04 17.04 6.50 Katowice Poland 0.76 5.00 8.25 Lodz Poland 0.76 5.88 8.25 Warsaw Poland 0.76 7.65 7.75 Gdansk Poland 0.76 5.29 8.25 Poznan Poland 0.76 5.15 8.25 Lisbon Portugal 0.76 7.35 4.78 9.25 Bucharest Romania 0.76 6.18 10.25 Moscow Russia 1.00 13.01 11.50 Saint Petersburg Russia 1.00 11.38 12.00 Bratislava Slovakia 0.76 5.44 9.00 Madrid Spain 0.76 7.35 4.41 8.25 Gothenburg Sweden 6.51 9.28 7.85 6.75 Malmo Sweden 6.51 7.85 7.57 6.75 Stockholm Sweden 6.51 12.42 7.85 6.75 Geneva Switzerland 0.92 16.20 12.67 7.50 Istanbul Turkey 1.00 6.97 6.97 9.00 Belfast UK 0.62 6.50 6.50 7.00 Birmingham UK 0.62 9.35 8.94 7.50 Bristol UK 0.62 11.38 8.94 7.50 Edinburgh UK 0.62 7.32 7.75
    • 19 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES MARKET COUNTRY EXCHANGE RATE (USD) DECEMBER 31, 2012 DEC 2012 PRIME WAREHOUSE RENT USD/SF/YR DEC 2012 PRIME BULK RENT (USD/SF/YR) VACANCY RATE (%)  DEC 2012 DEC 2012 YIELD / CAP RATE Glasgow UK 0.62 8.13 7.75 Leeds UK 0.62 8.94 8.13 8.00 London (Heathrow) UK 0.62 21.95 19.51 6.00 Manchester UK 0.62 9.35 6.91 7.50 Kyiv Ukraine 1.00 7.81 12.00 LATIN AMERICA Buenos Aires Argentina 1.00 8.81 8.36 6.00 10.50 São Paulo Brazil 2.05 10.55 11.92 16.30 10.25 Bogotá Colombia 1.00 9.70 6.58 9.80 Mexico City Mexico 1.00 6.25 6.25 3.17 7.75 Panama City Panama 1.00 9.48 8.36 11.00 9.50 Lima Peru 1.00 7.25 6.69 11.00 NORTH AMERICA Calgary, AB Canada 0.99 8.53 7.27 5.05 7.00 Edmonton, AB Canada 0.99 8.03 7.52 3.35 6.66 Halifax, NS Canada 0.99 7.77 6.77 9.65 7.25 Montréal, QC Canada 0.99 4.77 4.26 4.34 7.25 Ottawa, ON Canada 0.99 8.28 7.52 5.76 7.50 Regina, SK Canada 0.99 9.03 9.03 3.51 7.40 Saskatoon, SK Canada 0.99 10.03 9.03 4.94 7.15 Toronto, ON Canada 0.99 4.85 4.13 6.50 Vancouver, BC Canada 0.99 7.62 6.82 3.67 5.70 Victoria, BC Canada 0.99 12.04 10.03 4.15 7.00 Waterloo Region, ON Canada 0.99 3.98 3.13 6.80 7.90 Winnipeg, MB Canada 0.99 6.02 5.27 2.97 8.25 Atlanta, GA US 1.00 3.17 2.83 12.41 7.90 Bakersfield, CA US 1.00 4.00 3.42 2.80 10.00 Baltimore, MD US 1.00 4.72 4.73 10.21 6.36 Birmingham, AL US 1.00 7.38 4.07 9.39 Boise, ID US 1.00 5.04 4.80 9.51 9.60 Boston, MA US 1.00 5.83 5.58 17.38 Charleston, SC US 1.00 3.85 4.30 10.36 7.50 Charlotte, NC US 1.00 3.34 3.54 11.78 Chicago, IL US 1.00 3.71 2.67 9.53 6.30 Cincinnati, OH US 1.00 3.53 2.88 9.22
    • 20 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES MARKET COUNTRY EXCHANGE RATE (USD) DECEMBER 31, 2012 DEC 2012 PRIME WAREHOUSE RENT USD/SF/YR DEC 2012 PRIME BULK RENT (USD/SF/YR) VACANCY RATE (%)  DEC 2012 DEC 2012 YIELD / CAP RATE Cleveland, OH US 1.00 3.30 2.86 9.05 Columbia, SC US 1.00 4.00 4.00 8.78 Columbus, OH US 1.00 2.62 2.51 8.76 8.75 Dallas-Ft. Worth, TX US 1.00 3.15 2.70 9.48 7.30 Denver, CO US 1.00 4.62 3.95 7.45 8.20 Detroit, MI US 1.00 3.70 3.59 11.45 9.90 Fairfield, CA US 1.00 5.50 5.52 11.30 7.40 Fresno, CA US 1.00 3.00 3.00 9.26 9.00 Ft. Lauderdale-Broward, FL US 1.00 6.14 5.84 8.35 4.16 Grand Rapids, MI US 1.00 3.15 3.09 7.29 9.88 Greenville/Spartanburg, SC US 1.00 2.75 2.95 9.16 Hartford, CT US 1.00 3.98 3.50 9.19 8.50 Honolulu, HI US 1.00 11.52 3.75 8.00 Houston, TX US 1.00 5.36 4.36 5.15 7.90 Indianapolis, IN US 1.00 3.67 3.24 5.26 6.75 Jacksonville, Fl US 1.00 3.72 3.10 10.08 9.00 Kansas City, MO-KS US 1.00 4.20 3.48 6.72 Las Vegas, NV US 1.00 4.68 4.16 15.53 Little Rock, AR US 1.00 2.68 2.74 11.17 9.00 Long Island, NY US 1.00 9.07 9.13 5.59 7.67 Los Angeles - Inland Empire, CA US 1.00 4.20 3.96 6.45 7.00 Los Angeles, CA US 1.00 6.21 5.94 4.21 7.00 Louisville, KY US 1.00 3.40 3.42 8.96 Memphis, TN US 1.00 2.47 2.50 12.46 7.75 Miami, FL US 1.00 7.73 7.16 6.57 7.00 Milwaukee, WI US 1.00 4.68 3.89 6.51 9.00 Minneapolis/St. Paul, MN US 1.00 4.67 6.19 8.12 Nashville, TN US 1.00 2.95 8.38 8.82 10.32 New Jersey - Central US 1.00 4.37 3.49 9.17 6.30 New Jersey - Northern US 1.00 6.28 5.98 8.35 Oakland, CA US 1.00 4.56 4.44 8.23 6.50 Omaha, NE US 1.00 4.62 3.46 5.09 Orange County, CA US 1.00 6.96 6.12 4.90 6.25 Orlando, FL US 1.00 4.40 4.22 10.21 7.50 Philadelphia, PA US 1.00 4.25 4.14 9.75 7.84
    • 21 Global Industrial Report | Midyear 2013 | Colliers International INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES MARKET COUNTRY EXCHANGE RATE (USD) DECEMBER 31, 2012 DEC 2012 PRIME WAREHOUSE RENT USD/SF/YR DEC 2012 PRIME BULK RENT (USD/SF/YR) VACANCY RATE (%)  DEC 2012 DEC 2012 YIELD / CAP RATE Phoenix, AZ US 1.00 5.16 4.21 12.81 8.00 Pittsburgh, PA US 1.00 4.47 4.10 8.21 7.75 Pleasanton/Walnut Creek, CA US 1.00 4.99 4.26 10.22 Portland, OR US 1.00 5.48 5.06 7.18 Raleigh, NC US 1.00 3.63 4.28 10.23 Reno, NV US 1.00 3.66 3.12 10.97 Richmond, VA US 1.00 3.36 9.98 Sacramento, CA US 1.00 4.32 3.84 12.92 San Diego, CA US 1.00 8.16 7.56 9.87 8.50 San Francisco Peninsula, CA US 1.00 9.48 9.48 9.85 7.00 San Jose - Silicon Valley US 1.00 6.24 5.90 10.73 6.00 Savannah, GA US 1.00 3.95 3.75 11.84 8.50 Seattle/Puget Sound, WA US 1.00 6.11 5.88 5.82 St. Louis, MO US 1.00 3.81 3.80 8.42 Stockton/San Joaquin County, CA US 1.00 3.96 13.45 Tampa Bay, FL US 1.00 4.52 3.86 9.36 8.75 Washington DC US 1.00 6.73 5.59 10.71 6.52 West Palm Beach, FL US 1.00 6.81 6.13 7.29 6.94
    • 22 Global Industrial Report | Midyear 2013 | Colliers International22 Research Contributors Argentina Santiago Poy santiago.poy@colliers.com Asia Simon Lo simon.lo@colliers.com Australia Nerida Conisbee nerida.conisbee@colliers.com Mark Courtney mark.courtney@colliers.com Katy Dean katy.dean@colliers.com Anneke Thompson anneke.thompson @colliers.com Mathew Tiller mathew.tiller@colliers.com Brazil Leandro Angelino leandro.angelino@colliers.com CEE Damian Harrington damian.harrington@colliers.com China Henes Chi henes.chi@colliers.com Cyrus Shen cyrus.shen@colliers.com Aries Shu aries.shu@colliers.com Carlby Xie carlby.xie@colliers.com Ricky Zhang ricky.zhang@colliers.com Colombia Aurora Turriago aurora.turriago@colliers.com EMEA Zuzanna Baranowska zuzanna.baranowska@colliers.com Bruno Berretta bruno.berretta@colliers.com Germany Andreas Trumpp andreas.trumpp@colliers.com Hong Kong Arthur Yim arthur.yim@colliers.com India Surabhi Arora surabhi.arora@colliers.com Japan Yumiko Yasuda yumiko.yasuda@colliers.com Korea Gemma Choi gemma.choi@colliers.com Mexico Flavio Gómez Aranzubia flavio.gomez@colliers.com New Zealand Alan McMahon alan.mcmahon@colliers.com Nina Zhang nina.zhang@colliers.com Nordics Anne Kaag Andersen Anne.kaagandersen@colliers.com Peru Jorge Marcenaro jmarcenaro@colliers.pe Philippines Karlo Pobre karlo.pobre@colliers.com Singapore Chia Siew-Chuin siew-chuin.chia@colliers.com Doreen Goh doreen.goh@colliers.com Michelle Tee michelle.tee@colliers.com Taiwan Paul Lee paul.lee@colliers.com United Kingdom Dr. Walter Boettcher walter.boettcher@colliers.com Mark Charlton mark.charlton@colliers.com United States KC Conway kc.conway@colliers.com Andrea Cross andrea.cross@colliers.com James Cook james.cook@colliers.com Cliff Plank cliff.plank@colliers.com Jeff Simonson jeff.simonson@colliers.com Lauren Chlebowski | Global Brand Designer
    • Copyright © 2013 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot 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. 482 offices in 62 countries on 6 continents United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195 EMEA: 85 $2 billion in annual revenue 2.5 billion square feet under management 13,500 professionals and staff Accelerating success. Editor: James Cook Director of Research | USA +1 602 633 4061 James.Cook@colliers.com Colliers International 601 Union Street, Suite 4800 Seattle, WA 98101 TEL +1 206 695 4200 About Colliers International Colliers International is a global leader in commercial real estate services, with over 13,500 professionals operating out of more than 482 offices in 62 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. colliers.com WE OFFER A FULL RANGE OF PROPERTY SOLUTIONS > Brokerage: Landlord & Tenant Representation > Corporate Solutions > Investment Services > Project Management > Property Marketing > Real Estate Management Services > Research Services > Valuation and Advisory Services contact@colliers.com > Office > Industrial > Retail > Hotels > Residential > Mixed Use ACROSS EVERY PROPERTY TYPE HOW ELSE CAN WE HELP YOU? Copyright © 2013 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot 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.