U.S. IndustrialMarketViewQ2 2012                                                                                          ...
Q2 2012                                Figure 1: U.S. Economy Downshifts                                                  ...
Q2 2012The ISM manufacturing index, a great          announcements of new manufacturing             facilitate the transpo...
Q2 2012                                Figure 4: U.S. Industrial Supply and Demand                                        ...
Q2 2012                                                                                                                   ...
INDUSTRIAL CAPITAL MARKETSQ2 2012                               Domestic and cross-border investors                     tr...
REGIONALQ2 2012                                                                                                           ...
NEW JERSEYQ2 2012                               Industrial availability in Central New       York and New Jersey remains s...
DALLAS                                                                                                                    ...
Figure 9: Industrial Availability - Q2 2012                                                                             NN...
contacts                               For more information about this U.S. Industrial MarketView, please contact:Q2 2012 ...
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CBRE U.S. Industrial Marketview

  1. 1. U.S. IndustrialMarketViewQ2 2012 CBRE Global Research and Consulting AVAILABILITY RATE LEASE RATE NET ABSORPTION CONSTRUCTION COMPLETIONS 13.2% $5.46 26.4 MSF 5.2 MSFTHE FIGHT FOR CLASS A SPACE ACCELERATES Executive Summary • Despite a lackluster macroeconomic environment, industrial leasing velocity has improved as users try to lock-in currently favorable rent and lease terms. • Industrial demand will soften over the next several quarters, in line with slowing U.S. and global growth, a faltering manufacturing sector and shrinking international trade. INDUSTRIAL LEASING ACTIVITY: • User demand for Class A space will More active than underlying continue to drive down availability economic trends would suggest rates, leading to upward pressure on lease rates. Construction activity Despite a number of major global Tenants are upgrading, relocating from is back, including both build-to-suit economic headwinds and a U.S. economy Class B to Class A space, but options are and speculative projects across that is fast losing momentum, industrial getting tighter. Manufacturing space some of the nation’s largest leasing remained surprisingly active across requirements were also on the rise, industrial markets. most markets during the past quarter. The particularly in the southeastern and U.S. industrial market continued to show northeastern U.S. markets, due in part to • Low interest rates and the limited signs of recovery, with the national the U.S. “manufacturing renaissance.” supply of Class A industrial product industrial availability rate dropping by 20 for sale will continue to drive cap basis points (bps) to 13.2% in the second The prospect for industrial demand over rates down in the near term. quarter of 2012. Occupiers have begun the next few months will likely be flat, to move off the sidelines, seeking longer however, given weakening headline • Industrial real estate performance term leases to take advantage of lower economic indicators. U.S. economic data continues to recover as signaled by competitive rents, which are expected to has been disappointing, leading to further the NCREIF Property Index. rise. “Extend and blend” user transactions downward revisions to growth. The overall Industrial real estate delivered an continue, but landlords are getting pricing economy, consumer spending, annualized total return of 13.4% power back as industrial market conditions international trade and the broader during Q1 2012, in line with the improve. A number of industrial users are manufacturing sector are among the key overall index. also considering the ownership option drivers of industrial demand, with all given record-low interest rates. pointing to a soft patch through at least the next quarter. Warehouse demand was the main driver for spaces larger than100,000 sq. ft.
  2. 2. Q2 2012 Figure 1: U.S. Economy Downshifts Figure 2: U.S. International Trade Activity Annual Percent Change (%) Total Trade ($ Billions) Annual Percent Change (%) 4.0 $6,000 6% ForecastU.S. Industrial | MarketView 3.5 $5,000 5% Forecast 3.0 4% $4,000 2.5 3% 2.0 $3,000 2% 1.5 $2,000 1% 1.0 $1,000 0% 0.5 0.0 $0 1% 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 Consumer Spending Real GDP 2013Q4 Total Trade (L) Growth % (R) Source: IHS Global Insight, Interim Forecast, July 2012 Source: IHS Global Insight, Interim Forecast, July 2012 The U.S. economy and industrial sector have begun to feel the brunt of the slowdown in global growth, which originated in Europe but has now spread to Latin America and Asia. U.S. trade, which is the sum of imports and exports, slowed during the second quarter and is expected to actually decline in the third quarter. Figure 3: ISM Surprised to the Downside (ISM Purchasing Managers’ Index [Diffusion index, SA]) 70 60 50 40 30 20 10 0 M1 2009 M3 2009 M5 2009 M7 2009 M9 2009 M11 2009 M1 2010 M3 2010 M5 2010 M7 2010 M9 2010 M11 2010 M1 2011 M3 2011 M5 2011 M7 2011 M9 2011 M11 2011 M1 2012 M3 2012 M5 2012 2 Source: Institute for Supply Management
  3. 3. Q2 2012The ISM manufacturing index, a great announcements of new manufacturing facilitate the transportation of oil anddemand-side proxy for industrial real plants, especially in the transportation gas for exports.estate, came in well below expectations. sector, in the southern U.S. markets.The June ISM manufacturing index These companies have been drawn by The expansion of e-retailers continues toslumped to 49.7, the first sub-50 competitive labor costs, the availability fuel the need for warehouse and U.S. Industrial | MarketViewreading since July 2009. The forward- of real estate at competitive rates, and distribution space. Amazon, the leader inlooking details of the survey were also the availability of a skilled and highly e-retailing, continues to push for largerweak, with both new orders and export productive workforce. Part of the facilities close to large metropolitanorders coming in below 50 as global re-shoring of manufacturing to the U.S. areas to decrease delivery times. Asheadwinds appear to be exerting greater has been driven by the needs of the traditional retailers grow their e-retailerpressure on the U.S. industrial sector. consumers, the timely delivery of product strategies, it will likely increase demandThe dip in the ISM suggests that the to the consumer and the demand for for warehouse space and shrink thedownshift in the manufacturing sector custom products such as a specific color need for traditional bricks-and-mortarmay be accelerating. The manufacturing or design. Although with the recent retail, which is typically 10 to 20 timesdata had been weak, but until now the increase in demand, manufacturers will the cost of a warehouse facility.ISM index had looked better than either increase the utilization rates of existingmanufacturing output or durable goods facilities before seeking additionalorders. The ISM survey’s details suggest space. Recent announcements include: that the factory slowdown will continuethrough at least the next few months. • Airbus’ new assembly plant—to be built in Mobile, Alabama—isDomestic demand for local goods has scheduled to be completed in 2015, aalso decreased over the past few months $600 million investment. due to the continued struggles in thehousing sector and weaker-than- • Ford is adding 1,800 jobs in Louisville,anticipated job growth. A silver lining for Kentucky, adding a third shift in the fallconsumer spending and the U.S. of 2012. economy, however, has been the declinein commodity and energy prices globally. • Magna Seating of America, Inc. isIn the U.S., it is estimated that a one- building a 140,000-sq.-ft. plant incent decline in retail gasoline prices Shepherdsville, Kentucky, adding 450equates to roughly $1 billion in new jobs in 2012. economy-wide tax cuts. The lower priceof oil will provide a floor under • Asahi Forge, a Japanese automotiveconsumer spending and likely cause supplier, is adding a seconddomestic consumption to increase manufacturing plant in Richmond,moderately as consumers now have a Kentucky, in 2012. higher level of disposable income. Thechallenge remains with both consumer • Nissan will increase production for theand business confidence levels; this has new Sentra, adding 1,000 new jobs inresulted in cautious spending and Mississippi. investment from both sides. • GM to add 800 jobs, adding a thirdLonger-term, however, we expect the shift to its truck plant in Texas in 2012.drivers of industrial demand to shift to amore positive trajectory given secular The domestic energy sector is having achanges in the global economy. U.S. marginal influence on the industrialmanufacturing companies continue to sector as well, but this will likely changebenefit from the relatively lower value of with the further development in shale, asthe U.S.dollar. Accelerating wage rates existing plants are adapted to 3in Asia and higher transportation costs accommodate the processing andare also fostering a “manufacturing transport of the new materials. Newrenaissance” in the U.S. Over the past plants are also being built in ports tofew months there have been a few
  4. 4. Q2 2012 Figure 4: U.S. Industrial Supply and Demand Completions and Absorption (MSF) Availability Rate (%) 80 16%U.S. Industrial | MarketView 60 15% 40 14% 20 13% 0 12% -20 11% -40 10% -60 9% -80 8% -100 7% 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 Completions (L) Absorption (L) Availability Rate (R) Source: CBRE Econometric Advisors USERS UPGRADING SPACE Despite the lackluster economic availability rate at 13.2%, the scarcity of environment, industrial space demand available space in such buildings means has been relatively stable. Industrial that Class A industrial availabilities users continue to favor higher quality, continue to shrink, in some cases at the newer space that can increase expense of older industrial buildings. productivity and lower the real estate cost. Companies are reviewing everything from their current locations, technology, and plant layout of equipment to increase production efficiencies. In some cases occupiers are moving into newer facilities and reducing space, compared to their prior premises, due to the increase in storage capacity with higher stacking capability and a more efficient plant layout. This is driving the demand by tenants to trade up to newer, more modern Class A industrial facilities. These buildings typically have higher ceilings, super-flat floors and 4 have been built in the last ten years. Even with the national industrial
  5. 5. Q2 2012 U.S. Industrial | MarketViewHERE COMES THE SUPPLYThe lack of available product required 11 million sq. ft., and is on track to industrial availability rates, with availableby users is placing upward pressure on exceed the industrial new supply Class A industrial space virtually non-lease rates for the best space; however, completed in 2011. Most of this new existent. Due to the short supply of newlease rates for average product remain space consists of Class A design-build product, many of these projects areflat. In primary markets, rents for newer projects, although an increase in often pre-leased. In Atlanta, despitefacilities are approaching replacement speculative construction projects across many available warehouse options, alevels and spurring new development. the country is emerging. Pockets of new 630,000-sq.-ft. speculative projectNew construction continues to increase speculative construction activity are is under construction, underscoring theacross key markets due to the drop in occurring in Northern Virginia, demand for state-of-the-art largeavailability rates in 2012 and the lack of Indianapolis, the Inland Empire, Orange warehouse and distribution space.newer, Class A industrial space. New County, Salt Lake City and Atlanta. Manyconstruction for 2012 has totaled nearly of these markets have single-digitTHE PANAMA CANAL FACTORThe Panama Canal has also impacted accommodate the post-panamax ship is inland remains in western ports. In thethe U.S. industrial market with respect to Norfolk. The Port Authority of New York near term, it remains more cost effectivecompetition between East Coast versus and New Jersey has committed $1 and quicker for shippers to offload inWest Coast ports. The race continues in billion to raise the Bayonne Bridge, western ports and transport goods viathe eastern U.S. gateway markets such which connects Bayonne, New Jersey, rail to major markets such as Chicago.as New York, New Jersey, Norfolk, and with Staten Island, New York, by 64 feet Eastern ports will likely benefit fromMiami to invest capital in preparing for to allow larger ships to pass. Port increased container traffic from shipsthe completion of the Panama Canal spending will increase as we near the using the Suez Canal and expandingexpansion. Most of the investment completion of the Panama Canal markets such as Brazil to the south.continues to be for dredging projects, expansion in 2014. 5which will allow the ports toaccommodate larger ships as well as the The investment benefits for eastern portsneed to increase the clearance height of will be minimal in the short term, as thebridges. The only port that can currently transportation infrastructure for goods
  6. 6. INDUSTRIAL CAPITAL MARKETSQ2 2012 Domestic and cross-border investors trends signal improving transaction to focus on Class A and/or value-add continue to closely monitor industrial volume, according to Real Capital properties in primary markets. Record-U.S. Industrial | MarketView sector fundamentals given favorable Analytics. Over the first five months of low interest rates, combined with greater leasing velocity and the lack of Class A 2012, industrial transactions totaled institutional capital than available supply options for newer space. Stronger rental $10.3 billion, a 13% increase over of properties for sale, continue to drive recovery is being used in underwriting year-ago levels. Interest in industrial down cap rates, especially for better industrial acquisitions. Rising sales property has resurfaced, as investors assets. volume reflects the surge in investor increasingly eye portfolio transactions. interest. The industrial capital market Institutional investors, however, continue Figure 5: Institutional Capital Targeting Industrial Assets Industrial Transaction Volume ($ Billions) Cap Rates (%) $12 8.8% 8.6% $10 8.4% $8 8.2% 8.0% $6 7.8% $4 7.6% 7.4% $2 7.2% $0 7.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2010 2011 2012 Industrial Transactions (L) Average Cap Rates (R) Source: Real Capital Analytics Industrial real estate performance western region of the U.S. also continues to recover as signaled by the dominates the market value of industrial NCREIF Property Index. Industrial real properties in the NPI and as such, the estate delivered an annualized total solid performance of industrial markets return of 13.4% during Q1 2012, in line in the west continue to drive overall with the overall index. This was the industrial performance. second highest return, trailing only the multi-housing sector. Much of the return has been due to a surge in appreciation returns that have been driven by cap rate 6 compression earlier this year. The
  7. 7. REGIONALQ2 2012 Q2 2012 Figure 6: 25 Largest Industrial Markets - Q2 2012 OVERVIEW: SUPER-REGIONALU.S. Industrial | MarketView U.S. Industrial | MarketView DISTRIBUTION CENTERS SEATTLE 249,079 SF OUTPERFORM 10.3% DETROIT $6.49 511,766 SF The national availability rate masks MILWAUKEE 11.9% CHICAGO regional performance. According to 226,563 SF $4.47 NEW JERSEY 1,188,170 SF NORTHERN second quarter figures, west coast MINNEAPOLIS/ 11.8% CLEVELAND ST. PAUL 9.7% 409,442 SF markets such as Los Angeles (6.8%) and $3.76 290,783 SF 326,839 SF $3.99 10.1% Orange County (7.4%) are reporting 8.3% lower industrial availability rates than 10.2% $4.59 $6.11 NEW JERSEY any other market. By contrast, east coast $4.70 COLUMBUS CENTRAL markets such as Stamford (25.9%), 208,190 SF 395,459 SF Boston (20.9%) and Atlanta (18.8%) 12.6% 10.4% report among the highest industrial KANSAS $3.04 $4.37 availability rates in the nation. Industrial DENVER CITY SAN JOSE 233,654 SF CINCINNATI PHILADELPHIA markets in older east coast cities suffer 223,929 SF 243,759 SF INLAND 12.3% 267,221 SF 401,433 SF from a higher degree of older and 7.8% 13.5% EMPIRE $4.53 9.5% 12.5% obsolete product. $6.21 $11.42 403,354 SF $3.79 $3.86 11.8% ST. LOUIS INDIANAPOLIS From a regional perspective, the largest LOS BALTIMORE ANGELES $4.08 222,407 SF 238,848 SF increases in absorption occurred in 153,169 SF Chicago, the Inland Empire and New 993,073 SF 14.9% 9.1% ORANGE 15.5% Jersey, respectively, and were mostly 6.8% PHOENIX $4.34 $4.28 MARKET COUNTY $4.79 driven by the demand in Class A $6.52 275,326 SF ATLANTA STOCK (SF x 1000) 252,457 SF DALLAS/ industrial warehouse and distribution 15.0% 551,590 SF AVAILABILITY RATE 7.4% FT. WORTH space. SAN DIEGO $6.84 18.8% NNN ASKING RENT $7.56 721,121 SF 200,759 SF $3.29 15.0% 13.4% $10.32 $3.70 HOUSTON NATIONAL QUICK STATS 448,767 SF 9.2% 200,000,000 SF $3.91 1,000,000,000 SF MIAMI Q2 2012 Current QoQ YoY 211,710 SF Availability Rate 13.2% i i 9.3% $4.68 Lease Rate $5.46 h h Net Absorption* 26.4 MSF i i Construction Completions 5.2 MSF i i Source: CBRE Research 7 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we 8 *The arrows indicate a trend and do not represent a positive or negative value for the underlying statistic have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be (e.g., net absorption could be negative, but still represent a positive trend over the time period). reproduced without prior written permission of the CBRE Global Chief Economist.
  8. 8. NEW JERSEYQ2 2012 Industrial availability in Central New York and New Jersey remains strong, Three new construction projects Jersey remained flat at 10.4%, whereas adding to the demand for warehouse amounting to 1.17 million sq. ft. brokeU.S. Industrial | MarketView availability decreased 40 bps to 10.1% and distribution space. In the northern ground during Q2 2012. More than half in Northern New Jersey during the same portion of New Jersey, the Meadowlands of these new starts are being built on period. The average asking lease rate submarket continues to attract significant speculative development and the recent for industrial property in New Jersey tenant demand with its high increase in new construction is pushing increased during the second quarter for concentration of industrial space in close land prices higher. the first time in the past four years. The proximity to New York City. state’s asking lease rate is still $1.07 below its peak rate set in Q2 2008, As compared to just a few quarters ago, although that gap is expected to tighten, industrial construction activity in New especially for Class A industrial space. Jersey is picking up, due to increasing demand and limited number of options Central New Jersey continues to attract for large, modern industrial users. Four the majority of demand for new space, industrial buildings were completed in mostly consisting of third party logistics Q2 2012: three build-to-suit projects as well as consumer products totaling 652,155 sq. ft. and one companies. Activity at the ports of New 101,600-sq.-ft. speculative project. GREATER LOS ANGELES The Greater Los Angeles industrial Class A distribution centers are in high both manufacturing companies and availability rate fell to 6.8%, a 10 bps demand by logistics companies and wholesalers. The most active size range decrease from the previous quarter; this retailers looking to expand distribution is between 50,000 sq. ft. and 75,000 represents one of the lowest rates in the capabilities. Activity levels are very high sq. ft.—in fact, approximately 63% of U.S. The increased volume of port in the 100,000-sq.-ft. category. The bulk Q2 2012 activity was between 10,000 activity has created an even greater of construction activity in Southern sq. ft. and 100,000 sq. ft. Although need for distribution space for larger California is also occurring in the Inland construction is fairly active in Los and more modern distribution facilities Empire, with 7.3 million sq. ft. currently Angeles County, with 1.8 million sq. ft., of over 100,000 sq. ft. In addition, there under construction (the highest figure the market has not experienced the has been an increase in demand for since pre-recession), of which 38%—or same growth that the Inland Empire is industrial space under 50,000 sq. ft., 2.8 million sq. ft.—is speculative witnessing. However, during the next six mainly coming from small start-up construction. to 12 months, the lack of Class A companies. industrial space will likely spur an In Los Angeles County, Commerce, increased volume of construction, The Inland Empire is dominating market South Bay and San Fernando have been including speculative projects. activity in Southern California, as large particularly strong, with demand from 9
  9. 9. DALLAS Q2 2012The industrial availability rate remained Lease rates are starting to increase,flat in Dallas at 13.4% for Q2 2012. primarily due to a shrinking availability U.S. Industrial | MarketView Figure 7:Most of the recent demand has been of space. Most new construction has Industrial Market Snapshotfrom retailers for warehouse and consisted of build-to-suit activity. Twodistribution buildings. Home Depot speculative projects were recently Lowest Availability Rates (%)recently occupied a large block of announced: approximately 661,000 sq.space, and Kohl’s will be opening a ft. in South Dallas from ProLogis; and LOS ANGELES METRO 6.8facility later this year. The most active 529,000 sq. ft. in Northwest Dallas ORANGE COUNTY 7.4submarket, Great Southwest/Arlington, from IDI.posted the largest amount of absorption WESTCHESTER COUNTY 7.7in the first half of 2012, at 2.8 million DENVER 7.8sq. ft. total. CLEVELAND 8.3CHICAGO Highest Availability Rates (%) STAMFORD 25.9Chicago’s industrial market continues to For new industrial supply, two projects BOSTON 20.9recover, with the availability rate broke ground in the second quarter: adecreasing to 9.7%, a change of 40 bps 239,000-sq.-ft. build-to-suit for FedEx, AUSTIN 19.4from the previous quarter. Three out of and a 604,000-sq.-ft. speculative ATLANTA 18.8the top 10 deals were paper-related project, both of which are in the Far SWcompanies (Kimberly Clark at 716,318 suburban submarket. In addition, there WALNUT CREEK 18.5sq. ft.; Domtar Paper with 453,364 sq. are six projects currently under Source: CBRE Researchft.; and International Paper at 316,000 construction totaling 1.9 million sq. ft.,sq. ft.). Machinery, metal and durable of which two are speculative projectsgoods also had strong showings during while the other four are build-to-suit. Figure 8: Largest Quarterlythe second quarter. The Far SW The last time Chicago had this much Decreases and Increases*suburban market in Chicago (also speculative construction was in 2008.known as the I-55 corridor) dominated An increase in demand is causing rentalleasing activity during Q2 2012, with rates to increase marginally while Decreases in Availabilitymore than 1.7 million sq. ft. of activity. landlords are offering less tenant COLUMBUS -2.9This accounted for 24% of all leasing incentives and moving rents up for Class DETROIT -1.9activity that occurred in Q2 2012. This A industrial buildings.submarket has newer big box product, ORLANDO -1.8lower lease rates and easy access to HARTFORD -1.0expressways, which will keep it intenants’ favor for the foreseeable future. BALTIMORE & STAMFORD -0.9 Increases in AvailabilityATLANTA WESTCHESTER COUNTY 1.7 WALNUT CREEK 1.3The industrial availability rate in Atlanta for modern industrial buildings hasincreased to 18.8%, a difference of 20 caused older product in the Fulton SAN ANTONIO 1.2bps from the previous quarter. Demand industrial market to lag due to the age JACKSONVILLE 1.0for warehouse and distribution space and obsolescence of older industrial 10from third-party logistics firms has buildings. New construction has been LONG ISLAND 0.8increased. Bulk warehouse Class A limited until now, with mostly build-to- *Percentage point changespace in the core submarkets of suit activity taking place in Source: CBRE ResearchNortheast and South Atlanta continues south Atlanta.to be the most sought-after. The demand
  10. 10. Figure 9: Industrial Availability - Q2 2012 NNN Asking Rate ($) Availability Rate (%) Market Region Size Rank Q2 12 Q2 12 Q1 12 Q2 11 BALTIMORE 29 4.79 15.5 16.4 17.8Q2 2012 BOSTON 30 6.45 20.9 21.3 23.1 HARTFORD 41 4.76 14.9 15.9 17.2 LONG ISLAND 44 8.39 14.3 13.5 15.0 MARYLAND SUBURBAN* 39 8.06 15.6 16.2 16.8U.S. Industrial | MarketView NEW JERSEY CENTRAL 10 4.37 10.4 10.4 12.1 NEW JERSEY NORTHERN 7 6.11 10.1 10.5 10.0 NORFOLK 38 4.53 12.6 12.7 11.4 PHILADELPHIA 9 3.86 12.5 12.7 12.7 STAMFORD 50 7.00 25.9 26.8 21.1 VIRGINIA NORTHERN* 42 10.22 15.3 14.7 15.9 WESTCHESTER COUNTY 51 10.74 7.7 6.0 4.5 East 12.9 13.2 13.7 CHICAGO 1 3.99 9.7 10.1 10.5 CINCINNATI 14 3.79 9.5 10.1 10.2 CLEVELAND 12 4.59 8.3 8.5 9.9 COLUMBUS 24 3.04 12.6 15.5 16.1 DETROIT 5 4.47 11.9 13.8 15.1 INDIANAPOLIS 18 4.28 9.1 9.3 10.9 KANSAS CITY 19 4.53 12.3 12.3 12.3 MILWAUKEE 20 3.76 11.8 11.1 12.1 MINNEAPOLIS/ST. PAUL 11 4.70 10.2 10.9 11.5 ST. LOUIS 22 4.34 14.9 15.1 15.0 Midwest 10.7 11.3 12.0 ATLANTA 4 3.29 18.8 18.6 19.2 AUSTIN 43 6.84 19.4 19.1 22.0 DALLAS/FT. WORTH 3 3.70 13.4 13.4 14.7 FT. LAUDERDALE 37 6.63 11.6 11.1 13.4 HOUSTON 6 3.91 9.2 9.3 10.3 JACKSONVILLE 36 3.98 16.5 15.5 14.7 MIAMI 23 4.68 9.3 9.2 10.5 NASHVILLE 28 3.78 15.6 15.3 15.1 ORLANDO 34 5.00 17.5 19.3 19.5 PALM BEACH 45 6.44 12.8 13.3 13.7 SAN ANTONIO 48 4.88 16.7 15.5 17.8 TAMPA 32 5.02 13.4 13.5 13.3 South 14.0 13.9 14.9 ALBUQUERQUE 46 6.50 12.0 11.7 11.4 DENVER 21 6.21 7.8 8.4 9.2 INLAND EMPIRE 8 4.08 11.8 12.5 12.2 LAS VEGAS 35 5.74 13.5 13.2 11.4 LOS ANGELES METRO 2 6.52 6.8 6.9 7.4 OAKLAND 31 5.28 9.2 9.4 10.3 ORANGE COUNTY 15 7.56 7.4 7.8 8.5 PHOENIX 13 6.84 15.0 15.4 16.2 PORTLAND 26 4.44 9.7 9.6 10.5 SACRAMENTO 27 5.16 16.8 16.7 16.0 SALT LAKE CITY 33 4.80 8.7 9.4 9.3 SAN DIEGO 25 10.32 15.0 15.4 16.2 SAN FRANCISCO PENINSULA 40 18.12 9.5 9.9 9.3 11 SAN JOSE 17 11.42 13.5 13.7 15.2 SEATTLE 16 6.49 10.3 10.7 11.8 TUCSON 47 6.65 15.5 15.5 12.7 WALNUT CREEK 49 7.20 18.5 17.2 17.5 West 10.4 10.6 11.1 UNITED STATES 13.2 13.4 14.0 * Maryland Suburban and Virginia Northern represent Washington, DC area. U.S. national figures provided by CBRE Econometric Advisors (CBRE EA), all other figures compiled by CBRE Research
  11. 11. contacts For more information about this U.S. Industrial MarketView, please contact:Q2 2012 Edward J. Schreyer, SIOR Asieh Mansour, Ph.D. James Costello Executive Managing Director Head of Research, Americas and Managing Director, Head of AmericasU.S. Industrial | MarketView Brokerage Services, Americas Senior Managing Director Investment, Consulting and Strategy, CBRE CBRE Global Research and Consulting CBRE Global Research and Consulting t: +1 214 863 3042 t: +1 415 772 0258 t: +1 617 912 5326 e: ed.schreyer@cbre.com e: asieh.mansour@cbre.com e: jim.costello@cbre.com Follow Asieh on Twitter: @AsiehMansourCRE Raymond Wong Heather Edmonds Pamela Murphy Managing Director, COO and Director, Western U.S. Research Division, Senior Vice President, Eastern Industrial Specialist, Americas Research, CBRE Global Research and Consulting and Central U.S. Research Divisions, CBRE Global Research and Consulting CBRE Global Research and Consulting t: +1 416 815 2353 t: +1 909 418 2090 t: +1 212 984 8004 e: raymond.wong@cbre.com e: heather.edmonds@cbre.com e: pamela.murphy@cbre.com Andrea Walker Director Head of Americas Research Publications and Data, CBRE Global Research and Consulting t: +1 919 376 8608 e: andrea.walker@cbre.com FOLLOW US GOOGLE+ FACEBOOK TWITTER Global Research and Consulting This report was prepared by the CBRE U.S. Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. Disclaimer 12 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist.