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North American Industrial Highlights 1Q 201111

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North American Industrial Highlights 1Q  201111 North American Industrial Highlights 1Q 201111 Document Transcript

  • Q1 2011 | IndustrIalNORTH AMERICAHIGHLIGHTS U.S. Industrial Market Starts the Year with a Flourish ROss J. MOORE Chief Economist | USAMARkET INdICATORsRelative to prior period The U.S. industrial market started 2011 on an optimistic note, reinforcing the more bullish environ- ment evident in the latter half of 2010. Solid demand for warehouse space in most regions coupled Q1 Q2 2011 2011* with minimal construction encouraged another substantial decline in vacancy. Vacancies dropped in many markets reflected by every region reporting a lower vacancy rate for the quarter. With leasing VACANCy activity up and a degree of optimism in most markets, warehouse rents halted a three-year decline to register no change over the quarter. NET ABsORPTION With the economy registering modest growth in the first three months of the year, and reasonable CONsTRUCTION growth anticipated in coming quarters, demand for warehouse space is only expected to increase as the year progresses. A key pillar of support for the U.S. industrial market is the continued strength in RENTAl RATE manufacturing, particularly goods intended for export. Exports continued to ratchet higher with *Projected March trade data showing a 19.0 percent year-over-year increase. The healthy state of manufacturing is reflected in the Institute for Supply Management (ISM) manufacturing index for April, which re- mained elevated at 60.4 (well above the critical 50 level indicating expansion). All indications are that the reinvigorated manufacturing sector is set to be the cornerstone of the economic recovery and will be a key source of growth for the U.S. industrial market.U.s. INdUsTRIAl MARkETsUMMARy sTATIsTICs, Q1 2011 Although signs of a true rebound in the warehouse market may not be seen until 2012, almost all economic indicators suggest demand for warehouse space will only increase during 2011. Combined with very lim-Vacancy Rate: 10.47% ited warehouse construction, vacancy rates are certain to go significantly lower in the coming quarters. Change from Q4 2010: –0.15 Rents, however, are unlikely to increase in any meaningful way until well into 2012. For most landlords and investors, the most that can be expected is more leasing activity and rising occupancies.Absorption: continued on page 626.0 Million Square Feet U.s. INdUsTRIAl MARkET Q1 2009 – Q1 2011New Construction: The U.S. industrial 40 126.0 Million Square Feet 30 market posted another robust quarter and all Million Square Feet 20Under Construction: 11 indications are demand 10 Vacancy (%)29.4 Million Square Feet 0 will stay strong pulling -10 10 vacancies significantlyAsking Rents Per Square Foot -20 lower by year-endAverage Warehouse/ -30 9Distribution Center: $4.76 -40 -50Change from Q4 2010: -0.1% -60 8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Absorption Completions Vacancywww.COllIERs.COM
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA UNITEd sTATEs | INdUsTRIAl sURVEy EXIsTING INVENTORy (sF) NEw CONsTRUCTION CURRENTly UNdER MARkET MAR. 31, 2011 Q1 2011 (sF) CONsTRUCTION (sF) NORTHEAsT Baltimore, MD 234,956,000 0 212,000 Boston, MA 154,948,000 0 367,000 Hartford, CT 96,975,000 0 122,000 Long Island, NY 167,407,000 0 0 Long Island-Nassau, NY 55,854,000 0 0 Long Island-Suffolk, NY 111,457,000 0 0 New Jersey - Central 357,355,000 0 303,000 New Jersey - Northern 374,857,000 68,000 71,000 Philadelphia, PA 402,825,000 829,000 478,000 Washington DC 207,563,000 77,000 1,057,000 NORTHEAsT TOTAl 2,164,197,000 974,000 2,610,000 sOUTH Atlanta, GA 595,743,000 1,632,000 725,000 Charleston, SC 32,024,000 10,000 250,000 Charlotte, NC 285,385,000 15,000 696,000 Columbia, SC 35,509,000 0 1,000,000 Dallas-Ft. Worth, TX 707,619,000 140,000 1,520,000 Ft. Lauderdale-Broward, FL 125,514,000 0 126,000 Greenville/Spartanburg, SC 171,209,000 50,000 0 Houston, TX 498,295,000 186,000 724,000 Jacksonville, FL 121,780,000 0 497,000 Little Rock, AR 45,222,000 0 497,000 Louisville, KY 170,611,000 0 391,000 Memphis, TN 199,532,000 72,000 683,000 Miami, FL 225,492,000 0 20,000 Nashville, TN 159,015,000 937,000 2,032,000 Orlando, FL 144,480,000 0 0 Raleigh, NC 102,557,000 140,000 1,676,000 Savannah, GA 43,511,000 0 615,000 Tampa Bay, FL 216,084,000 0 0 West Palm Beach, FL 58,697,000 0 265,000 sOUTH TOTAl 3,938,278,000 3,182,000 11,716,000P. 2 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAUNITEd sTATEs | INdUsTRIAl sURVEy EXIsTING INVENTORy (sF) NEw CONsTRUCTION CURRENTly UNdERMARkET MAR. 31, 2011 Q1 2011 (sF) CONsTRUCTION (sF)MIdwEsTChicago, IL 1,303,720,000 319,000 3,732,000Cincinnati, OH 256,642,000 127,000 127,000Cleveland, OH 420,374,000 0 231,000Columbus, OH 211,924,000 0 1,992,000Detroit, MI 485,071,000 53,000 0Indianapolis, IN 276,652,000 135,000 239,000Kansas City, MO-KS 223,515,000 17,000 290,000St. Louis, MO 262,290,000 0 11,000West Michigan 113,073,000 0 138,000MIdwEsT TOTAl 3,553,261,000 651,000 6,759,000wEsTBakersfield, CA 31,675,000 0 506,000Boise, ID 32,796,000 0 0Denver, CO 278,456,000 32,000 103,000Fairfield, CA 41,552,000 0 0Fresno, CA 48,600,000 0 0Honolulu, HI 38,576,000 0 0Las Vegas, NV 107,792,000 22,000 181,000Los Angeles - Inland Empire, CA 379,098,000 0 2,916,000Los Angeles, CA 879,843,000 271,000 2,812,000Oakland, CA 131,233,000 0 26,000Orange County, CA 200,453,000 0 0Phoenix, AZ 247,446,000 244,000 245,000Pleasanton/Walnut Creek, CA 33,035,000 0 20,000Portland, OR 192,696,000 0 947,000Reno, NV 73,621,000 0 0Sacramento, CA 186,424,000 8,000 0San Diego, CA 188,338,000 0 238,000San Francisco Peninsula, CA 40,808,000 0 0San Jose/Silicon Valley, CA 253,941,000 609,000 152,000Seattle/Puget Sound, WA 270,581,000 0 0Stockton/San Joaquin County, CA 92,636,000 0 138,000wEsT TOTAl 3,749,598,000 1,186,000 8,285,000U.s. TOTAl 13,405,334,000 5,993,000 29,370,000 COllIERs INTERNATIONAl | P. 3
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA UNITEd sTATEs | INdUsTRIAl sURVEy ABsORPTION VACANCy RATE VACANCy RATE MARkET Q1 2011 (sF) dEC. 31, 2010 (%) MAR. 31, 2011 (%) NORTHEAsT Baltimore, MD 272,000 10.59 10.48 Boston, MA 367,000 21.50 21.14 Hartford, CT (54,000) 9.32 9.37 Long Island, NY 154,000 5.62 5.53 Long Island-Nassau, NY 85,000 6.41 6.25 Long Island-Suffolk, NY 160,000 5.24 5.10 New Jersey - Central (468,000) 10.78 10.91 New Jersey - Northern (320,000) 7.54 7.62 Philadelphia, PA 1,976,000 9.87 9.57 Washington DC (189,000) 12.66 12.77 NORTHEAsT TOTAl 1,984,000 10.11 10.05 sOUTH Atlanta, GA 2,623,000 14.11 13.90 Charleston, SC 410,000 11.22 12.44 Charlotte, NC 630,000 13.84 13.63 Columbia, SC 230,000 7.00 6.35 Dallas-Ft. Worth, TX 2,172,000 12.10 11.81 Ft. Lauderdale-Broward, FL (418,000) 9.14 9.47 Greenville/Spartanburg, SC 125,000 10.53 10.26 Houston, TX 532,000 5.95 6.03 Jacksonville, FL 36,000 10.94 11.03 Little Rock, AR (782,000) 13.96 15.74 Louisville, KY 135,000 11.96 11.88 Memphis, TN 744,000 13.28 13.02 Miami, FL 733,000 8.97 8.65 Nashville, TN 474,000 14.15 13.58 Orlando, FL 109,000 12.33 12.25 Raleigh, NC 132,000 12.08 11.93 Savannah, GA 926,000 18.57 16.44 Tampa Bay, FL 923,000 11.21 10.79 West Palm Beach, FL 161,000 10.13 9.85 sOUTH TOTAl 9,895,000 11.48 11.30P. 4 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAUNITEd sTATEs | INdUsTRIAl sURVEy ABsORPTION VACANCy RATE VACANCy RATEMARkET Q1 2011 (sF) dEC. 31, 2010 (%) MAR. 31, 2011 (%)MIdwEsTChicago, IL (749,000) 11.62 11.64Cincinnati, OH (699,000) 8.05 8.83Cleveland, OH 115,000 9.56 9.54Columbus, OH (469,000) 12.96 12.81Detroit, MI 2,343,000 15.24 14.44Indianapolis, IN 3,356,000 8.54 7.47Kansas City, MO-KS (830,000) 6.85 7.22St. Louis, MO 531,000 8.23 8.03West Michigan 1,000 9.21 9.22MIdwEsT TOTAl 3,599,000 10.83 10.69wEsTBakersfield, CA (107,000) 9.66 10.00Boise, ID (112,000) 10.57 10.91Denver, CO 128,000 7.77 7.74Fairfield, CA (56,000) 14.53 14.67Fresno, CA 40,000 7.90 7.82Honolulu, HI (33,000) 4.74 4.83Las Vegas, NV (213,000) 16.56 16.78Los Angeles - Inland Empire, CA 3,730,000 11.62 10.64Los Angeles, CA 3,356,000 5.37 5.01Oakland, CA 626,000 9.54 9.07Orange County, CA 541,000 5.79 5.52Phoenix, AZ 677,000 17.00 16.75Pleasanton/Walnut Creek, CA (426,000) 10.95 12.24Portland, OR 297,000 9.36 9.21Reno, NV 234,000 14.89 14.57Sacramento, CA (239,000) 13.38 13.52San Diego, CA 355,000 11.36 11.12San Francisco Peninsula, CA 119,000 9.67 9.37San Jose/Silicon Valley, CA (1,065,000) 12.99 13.82Seattle/Puget Sound, WA 729,000 8.34 8.07Stockton/San Joaquin County, CA 1,942,000 17.71 15.62wEsT TOTAl 10,523,000 9.87 9.62U.s. TOTAl 26,001,000 10.63 10.47 COllIERs INTERNATIONAl | P. 5
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA UNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011 sAlEs PRICE CAP RATE VACANCy FORECAsT ABsORPTION FORECAsT RENT FORECAsT MARkET (Usd PsF) (%) (3 MONTHs) (3 MONTHs) 3 MONTHs NORTHEAsT Baltimore, MD 49.92 7.40 Down Up Up Boston, MA 55.00 9.00 Down Up Same Hartford, CT 40.00 8.50 Up Down Down Long Island, NY 100.00 8.00 Down Up Same Long Island-Nassau, NY 60.00 5.00 Same Same Same Long Island-Suffolk, NY 60.00 5.00 Same Same Same New Jersey - Central 54.28 6.10 Down Up Same New Jersey - Northern 54.06 9.70 Same Same Same Philadelphia, PA 49.27 8.50 Down Up Same NORTHEAsT AVERAGE 58.06 7.47 – – – sOUTH Atlanta, GA 32.30 8.70 Down Down Same Charleston, SC 45.50 7.75 Down Same Same Columbia, SC – – Down Up Up Dallas/Fort Worth, TX 45.00 8.00 Down Same Same Ft. Lauderdale/Broward Co., FL 100.00 – Same Same Down Greenville, SC 30.00 10.70 Down Up Up Houston, TX 67.00 7.80 Down Same Same Jacksonville, FL 45.00 8.00 Down Up Same Little Rock, AR 65.45 9.00 Same Same Same Memphis, TN 17.00 10.00 Down Up Same Miami-Dade, FL 57.55 6.00 Down Same Down Nashville, TN – – Down Up Up Orlando, FL 40.54 9.00 Same Up Same Raleigh/Durham/Chapel Hill, NC 67.14 8.69 Same Same Same Savannah, GaA 37.00 8.50 Down Up Same Tampa, FL 40.52 7.50 Down Up Same West Palm Beach/Palm Beach Co., FL 73.56 – Down Same Down sOUTH AVERAGE 50.90 8.43 – – –P. 6 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAUNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011 sAlEs PRICE CAP RATE VACANCy FORECAsT ABsORPTION FORECAsT RENT FORECAsTMARkET (Usd PsF) (%) (3 MONTHs) (3 MONTHs) 3 MONTHsMIdwEsTChicago, IL 45.00 7.00 Down Same SameCincinnati, OH 32.00 8.00 Same Same SameColumbus, OH 28.00 8.10 Same Same SameDetroit, MI 26.07 8.50 Same Same DownGrand Rapids, MI 28.00 10.00 Up Same SameIndianapolis, IN – 8.75 Same Same SameSt. Louis, MO 10.26 10.00 Down Up UpMIdwEsT AVERAGE 28.22 8.62 – – –wEsTBakersfield, CA 38.00 10.00 Same Same SameBoise, ID 45.00 – Same Same SameDenver, CO 45.00 8.20 Down Up SameFairfield, CA – – Up Down DownFresno, CA 38.00 9.00 Same Up SameHonolulu, HI 160.00 8.00 Same Same SameLas Vegas, NV 110.35 – Up Same DownLos Angeles - Inland Empire, CA 53.00 5.25 Down Up UpLos Angeles, CA 87.00 6.75 Down Up SameOakland, CA 91.00 7.00 Down Up UpOrange County, CA 105.00 6.50 Down Up SamePhoenix, AZ 48.00 9.50 Down Up SamePleasanton/Walnut Creek, CA 150.00 9.00 Down Up SamePortland, OR 69.46 – Same Same SameReno, NV 51.27 – Same Same SameSacramento, CA 51.67 8.07 Same Same SameSan Diego, CA 92.14 – Down Same SameSan Francisco Peninsula, CA 175.00 7.00 Same Same SameSan Jose/Silicon Valley, CA – Same Same SameSeattle/Puget Sound, WA 54.68 – Down Up SameStockton/San Joaquin County, CA 57.00 7.80 Down Up SamewEsT AVERAGE 80.08 7.85 – – –U.s. AVERAGE 60.75 8.08 – – – COllIERs INTERNATIONAl | P. 7
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAU.S. Market Starts the Year with a Flourish INsTITUTE FOR sUPPly MANAGEMENT MANUFACTURING INdEXContinued from page 1 80Occupancies rise for fourth consecutive quarter. For the fourth consecu-tive three-month period, industrial markets registered an increase in oc- 70cupied space. During the first quarter, net absorption totaled 25.7 million 60square feet (MSF)—a small drop from the fourth quarter, when occupiedspace increased by 28.6 MSF, but in sharp contrast to the 19.3 MSF of 50industrial space returned to the market in the first quarter of 2010. Of the Index59 markets tracked in the U.S., 40 (68 percent) reported positive absorp- 40tion during the first quarter; however, the West and South accounted for 30the lion’s share of the country’s absorption, with occupied space increas-ing by 9.9 MSF and 10.5 MSF respectively. Canadian markets began the 20year in robust fashion with first quarter absorption reaching almost 6.0MSF, considerably above the 4.0 MSF quarterly averages in 2010. 10 0warehouse construction drops back to first-half 2010 levels. First quar- 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 F M Ater completions totaled 6.0 MSF, a modest decrease from the fourth quar- 2009 2010 2011ter when 9.4 MSF were delivered to the market, and back to delivery levelsregistered in the first half of 2010. Of the 6.0 MSF delivered, 86 percentwas build-to-suit and the balance was classified as speculative (spec) ABsORPTION (sF) | sElECT MARkETs | Q1 2011construction. Last quarter, build-to-suit deliveries accounted for 71 per-cent of completions. In the coming quarters construction is anticipated to -1,000,000 250,000 1,500,000 2,750,000 4,000,000be largely build-to-suit, with only 35 percent under construction at year-end classified as speculative, but there were early signs the balance be- Los Angeles - Inland Empiretween build-to-suit and spec construction will be more even as early as Indianapolis2012. Quarter-end construction activity totaled 29.4 MSF, a modest in- Los Angelescrease from the 22.7 MSF underway at the end of the fourth quarter, but Atlantawell below the 107.0 MSF recorded two years ago. Canadian constructionremained subdued with 1.2 MSF completed in Q1, broadly in line with con- Detroitstruction levels experienced in 2010. Dallas SavannahU.s. industrial vacancies drop by further 15 basis points. The U.S. indus- New Jersey - Northerntrial warehouse vacancy rate dropped 15 basis points during the firstquarter to register 10.47 percent. This was in addition to a significant drop New Jersey - Centralin the national vacancy rate in the fourth quarter when vacancies fell by 22 Chicagobasis points. Even though the national average dropped quite significantlyduring the quarter, many markets are still seeing vacancies go higher: al-most 40 percent of U.S. markets (23 out of 59) saw vacancies increase inQ1. Canadian warehouse vacancies by comparison were sharply lower, TRAdE: EXPORTs - GOOds, (MIl. $, sA) | Q1 2011falling by 33 basis points during the quarter to average 5.30 percent. 150000 Millions, Dollars, Seasonally AdjustedAfter 12 quarterly declines, industrial rents hold steady. After threeyears of consistently lower rents, industrial warehouse lease rates held 120000steady in the first quarter. Warehouse rents registered $4.76 per squarefoot at the end of the quarter. Bulk warehouse rents also held steady at 90000$4.37 per square foot, while both flex and R&D rents slipped $0.07 and$0.55 per square foot respectively. Canadian industrial rents were mixedduring the quarter with warehouse and flex lease rates up, while bulk and 60000R&D fell marginally. 30000 0 J F M A M J J A S O N D J F M 2010 2011P. 8 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAUNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011 wAREHOUsE/dIsTRIBUTION BUlk sPACE FlEX/sERVICE sPACE TECH/R&d sPACEMARkET sPACE (Usd PsF) (Usd PsF) (Usd PsF) (Usd PsF)NORTHEAsTBaltimore, MD 4.95 4.43 8.36 –Boston, MA 4.50 4.95 8.00 11.00Hartford, CT 4.06 4.28 6.50 6.50Long Island, NY 7.86 14.50 15.97 8.68Long Island-Nassau, NY 7.96 6.98 12.00 –Long Island-Suffolk, NY 7.81 – 9.56 –New Jersey - Central 4.47 3.70 12.10 12.63New Jersey - Northern 5.92 5.68 10.55 5.82Philadelphia, PA 4.00 3.75 7.00 11.00Washington DC 7.82 – 12.27 –NORTHEAsT AVERAGE 5.94 6.03 10.23 9.27sOUTHAtlanta, GA 3.26 2.88 7.27 7.03Charleston, SC 3.65 4.00 6.00 16.25Charlotte, NC 3.28 – 8.45 –Columbia, SC 3.75 3.75 – 9.50Dallas-Ft. Worth, TX 3.00 2.70 6.75 8.30Ft. Lauderdale-Broward, FL 6.46 6.16 9.71 9.75Greenville/Spartanburg, SC 2.91 2.95 6.86 –Houston, TX 5.01 4.17 6.95 6.64Jacksonville, FL 3.75 3.10 9.00 –Little Rock, AR 2.68 2.74 7.35 –Louisville, KY 3.35 – 7.10 –Memphis, TN 2.72 2.45 7.35 10.50Miami, FL 6.59 5.30 10.81 8.87Nashville, TN 4.49 3.12 7.31 –Orlando, FL 4.49 4.20 8.93 8.90Raleigh, NC 3.83 3.84 8.52 –Savannah, GA 3.95 3.75 7.00 10.00Tampa Bay, FL 4.23 3.97 8.41 9.48West Palm Beach, FL 6.89 6.34 10.84 14.71sOUTH AVERAGE 4.12 16.25 8.03 9.99 COllIERs INTERNATIONAl | P. 9
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA UNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011 wAREHOUsE/dIsTRIBUTION BUlk sPACE FlEX/sERVICE sPACE TECH/R&d sPACE MARkET sPACE (Usd PsF) (Usd PsF) (Usd PsF) (Usd PsF) MIdwEsT Chicago, IL 3.67 2.30 7.40 – Cincinnati, OH 2.88 2.88 6.08 6.08 Cleveland, OH 3.44 7.91 – Columbus, OH 2.72 3.13 4.19 4.19 Detroit, MI 3.92 3.72 8.01 – Grand Rapids, MI 4.14 2.80 7.50 – Indianapolis, IN 4.48 3.83 8.34 7.32 Kansas City, MO-KS 3.95 9.69 – St. Louis, MO 3.05 3.25 5.02 4.49 MIdwEsT AVERAGE 3.58 3.13 7.13 5.52 wEsT Bakersfield, CA 4.00 3.42 7.00 – Boise, ID 4.50 4.50 6.30 6.30 Denver, CO 3.50 3.25 8.50 9.50 Fairfield, CA 5.52 5.52 8.16 10.20 Fresno, CA 2.40 2.28 4.00 5.50 Honolulu, HI 11.16 – Las Vegas, NV 4.76 4.62 6.51 10.45 Los Angeles - Inland Empire, CA 3.72 3.48 6.66 7.89 Los Angeles, CA 5.64 5.52 9.75 12.50 Oakland, CA 4.44 3.01 4.92 8.40 Orange County, CA 6.72 5.64 12.50 13.50 Phoenix, AZ 5.26 4.10 10.74 10.62 Pleasanton/Walnut Creek, CA 4.80 4.20 1.05 1.05 Portland, OR 5.20 4.96 9.36 8.94 Reno, NV 3.36 3.33 9.96 9.96 Sacramento, CA 4.18 3.75 8.63 9.25 San Diego, CA 7.80 7.08 11.28 13.56 San Francisco Peninsula, CA 9.36 9.36 22.44 22.44 San Jose/Silicon Valley, CA 5.44 5.03 8.02 12.38 Seattle/Puget Sound, WA 5.40 4.92 10.20 – Stockton/San Joaquin County, CA 3.72 3.66 5.76 7.80 wEsT AVERAGE 5.28 4.58 8.59 10.01 U.s. AVERAGE 4.76 4.37 8.47 9.45P. 10 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcACANAdA | INdUsTRIAl sURVEy EXIsTING INVENTORy (sF) NEw CONsTRUCTION CURRENTly UNdERMARkET MAR. 31, 2011 Q1 2011 (sF) CONsTRUCTION (sF)Calgary, AB 122,546,000 561,000 561,000Edmonton, AB 77,155,000 83,000 379,000Guelph, ON 19,739,000 0 98,000Halifax, NS 7,077,000 0 80,000Montreal, QC 347,771,000 0 0Ottawa, ON 28,027,000 75,000 75,000Regina, SK 16,195,000 20,000 695,000Saskatoon, SK 19,700,000 40,000 550,000Toronto, ON 760,332,000 0 2,244,000Vancouver, BC 178,202,000 329,000 1,592,000Waterloo Region, ON 59,829,000 80,000 65,000CANAdA TOTAl 1,636,572,000 1,187,000 6,339,000CANAdA | INdUsTRIAl sURVEy ABsORPTION VACANCy RATE VACANCy RATEMARkET Q1 2011 (sF) dEC. 31, 2010 (%) MAR. 31, 2011 (%)Calgary, AB 803,000 5.44 5.10Edmonton, AB 192,000 4.09 3.95Guelph, ON (17,000) 5.60 5.69Halifax, NS 10,000 4.96 4.82Montreal, QC 213,000 6.16 6.10Ottawa, ON (224,000) 5.82 6.60Regina, SK 106,000 1.35 0.81Saskatoon, SK 114,000 2.71 2.12Toronto, ON 4,294,000 6.00 5.44Vancouver, BC 440,000 4.10 4.02Waterloo Region, ON 5,000 6.83 6.36CANAdA TOTAl 5,935,000 5.63 5.30 COllIERs INTERNATIONAl | P. 11
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA CANAdA | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011 sAlEs PRICE CAP RATE VACANCy FORECAsT ABsORPTION FORECAsT RENT FORECAsT MARkET (Usd PsF) (%) (3 MONTHs) (3 MONTHs) 3 MONTHs Calgary, AB 110.00 7.00 Down Same Same Edmonton, AB – - Down Up Same Guelph, ON 53.00 7.00 Down Up Same Halifax, NS 80.00 8.00 Same Same Same Montreal, QC 60.00 8.50 Down Up Same Ottawa, ON 88.00 8.25 Same Same Same Regina, SK 98.00 8.00 Same Up Same Saskatoon, SK 120.00 7.50 Up Up Up Toronto, ON 10.77 - Down Up Up Vancouver, BC 154.85 - Down Up Same Waterloo Region, ON 49.00 7.00 Down Up Up CANAdA AVERAGE 82.36 7.66 – – – CANAdA | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011 wAREHOUsE/dIsTRIBUTION BUlk sPACE FlEX/sERVICE sPACE TECH/R&d sPACE MARkET sPACE (Usd PsF) (Usd PsF) (Usd PsF) (Usd PsF) Calgary, AB 7.50 6.00 9.50 10.00 Edmonton, AB 7.25 6.75 9.50 10.50 Guelph, ON 4.74 4.59 7.53 7.53 Halifax, NS 7.00 5.50 10.00 15.00 Montreal, QC 4.25 4.00 6.50 8.50 Ottawa, ON 7.25 6.25 8.25 11.00 Regina, SK 9.00 7.00 12.00 14.00 Saskatoon, SK 9.50 8.00 12.00 13.00 Toronto, ON 4.97 4.55 7.13 7.73 Vancouver, BC 6.50 5.75 8.50 9.25 Waterloo Region, ON 3.97 2.76 8.56 8.56 CANAdA AVERAGE 6.54 5.56 9.04 10.46Glossary Inventory – Includes all existing multi or single tenant leased and owner-occupied industrial (remainder in wet lab, workshop, storage and other support), with dock-height and floor-height loading. warehouse, light manufacturing, flex and R&D Triple Net Rent – Includes rent payable to the properties greater than or equal to 10,000 squareAbsorption – Net change in leased space over a landlord and does not include additional expenses feet.given period of time. such as taxes, insurance, maintenance, janitorial and New Construction – Includes completed speculative utilities. All industrial and high-tech/R&D rents inBulk space – 100,000 square feet or more with up and build-to-suit construction. New construction this report are quoted on an annual, triple net perto 10 percent office space, the balance being general quoted on a net basis after any demolitions or square foot basis in U.S. dollars.warehouse space with 20 to 36 foot ceiling heights. conversions.All loading is dock-height. Vacancy Rate – Percentage of total inventory service space – Single story (or mezzanine) with available (both vacant and occupied) as at the surveyFlex space – Single-story buildings having 10- to 10- to 16-foot ceilings with frontage treatment on date including direct vacant and sublease space.18-foot ceilings with both floor-height and dock- one side and dock-height loading or grade levelheight loading. Includes wide variation in office warehouse – 50,000 square feet or more with up to roll-up doors on the other. Less than 15% office.space utilization, ranging from retail and personal 15 percent office space, the balance being generalservice through distribution, light industrial and Tech/R&d – One- and two- story, 10- to 15-foot warehouse space with 18- to 30- foot ceilingoccasional heavy industrial use. ceiling heights with up to 50% office/dry lab space heights. All loading is dock-height.P. 12 | COllIERs INTERNATIONAl
  • hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcAINdUsTRIAl VACANCy RATE RANkINGs INdUsTRIAl VACANCy RATE RANkINGs VACANCy RATE VACANCy RATE 512 offices in 61 countries onMARkET | UNITEd sTATEs MAR. 31, 2011 (%) MARkET | CANAdA MAR. 31, 2011 (%)Boston, MA 21.14 Ottawa, ON 6.60Las Vegas, NVPhoenix, AZ 16.78 16.75 Waterloo Region, ON Montreal, QC 6.36 6.10 6 continentsSavannah, GA 16.44 Guelph, ON 5.69Little Rock, AR 15.74 United States: 125 Toronto, ON 5.44 Canada: 38Stockton/San Joaquin County, CA 15.62 Calgary, AB 5.10 Latin America: 18Fairfield, CA 14.67Reno, NV 14.57 Halifax, NS 4.82 Asia Pacific: 214Detroit, MI 14.44 Vancouver, BC 4.02 EMEA: 117Atlanta, GA 13.90 Edmonton, AB 3.95 • $1.5 billion in annual revenueSan Jose/Silicon Valley, CA 13.82 Saskatoon, SK 2.12Charlotte, NC 13.63 Regina, SK 0.81 • 979 million square feet underNashville, TN 13.58 managementSacramento, CA 13.52 • over 12,000 professionalsMemphis, TN 13.02Columbus, OH 12.81Washington DC 12.77 COllIERs INTERNATIONAlCharleston, SC 12.44Orlando, FL 12.25 601 Union Street, Suite 4800Pleasanton/Walnut Creek, CA 12.24 Seattle, WA 98101Raleigh, NC 11.93 TEl +1 206 695 4200Louisville, KY 11.88Dallas-Ft. Worth, TX 11.81Chicago, IL 11.64 FOR MORE INFORMATIONSan Diego, CA 11.12Jacksonville, FL 11.03 Ross J. MooreBoise, ID 10.91 Chief Economist | USANew Jersey - Central 10.91 TEl +1 617 722 0221Tampa Bay, FL 10.79 EMAIl ross.moore@colliers.comLos Angeles - Inland Empire, CA 10.64Baltimore, MD 10.48Greenville/Spartanburg, SC 10.26Bakersfield, CA 10.00 Copyright © 2011 Colliers International.West Palm Beach, FL 9.85 The information contained herein has been obtainedPhiladelphia, PA 9.57 from sources deemed reliable. While every reasonableCleveland, OH 9.54 effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for anyFt. Lauderdale-Broward, FL 9.47 inaccuracies. Readers are encouraged to consult theirSan Francisco Peninsula, CA 9.37 professional advisors prior to acting on any of theHartford, CT 9.37 material contained in this report.West Michigan 9.22Portland, OR 9.21Oakland, CA 9.07Cincinnati, OH 8.83Miami, FL 8.65Seattle/Puget Sound, WA 8.34St. Louis, MO 8.03Fresno, CA 7.82Denver, CO 7.74New Jersey - Northern 7.62Indianapolis, IN 7.47Kansas City, MO-KS 7.22Columbia, SC 6.35Long Island-Nassau, NY 6.25Houston, TX 6.03Long Island, NY 5.53Orange County, CA 5.52Long Island-Suffolk, NY 5.10Los Angeles, CA 5.01Honolulu, HI 4.83 Accelerating success.www.COllIERs.COM