U.S INVE  S.   ESTME           ENT SA                ALES VS DIRE                      S.   ECT RE                        ...
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Cushman & Wakefield Industrial Fact of the Week - August 21 12


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US Investment Sales vs. Direct Rents

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Cushman & Wakefield Industrial Fact of the Week - August 21 12

  1. 1. U.S INVE S. ESTME ENT SA ALES VS DIRE S. ECT RE ENTSKEY FACTS Y • The ability to proje increasin rent rolls remains a k determinant of inve ect ng key estment decisions. The thr years im ree preceding th market’s early 2008 peak mmediately p he asking rent of $6.8 per squar foot contr 84 re lmost half of the decade’s total ributed to al investm ment volume while the period’s gre e, eatest year-over-year decline in as sking rents in 2009 coinc n cided with th lowest an he nnual total o product tr of ransacted. • encing early 2011, five consecutive quarters o moderate rental rate growth Comme y e of have co ontributed to a surge in demand am o n mong invest tors for high quality ass h sets in core loc cations. In 2 2011, 153.3 msf of inve duct change hands, higher estment prod ed than all but the thre previous l ee 005-2007) a comparable to sly-reference years (20 ed and 2009 an 2010 com nd mbined. Thi year is on pace to mirror 2011 le is n evels at 76.1 1msf year-to-date. • 2011 and a 2.9% year- Following a 0.2% increase in 2 growth at mid-year, -over-year g the indu ustrial secto should be entering a period of su or e ustained ren appreciation ntal healthy leve of demand and general lack of n due to h el d new product. With pock kets of investo reportedl now willin to slowly venture bey ors ly ng yond a few select mark kets and ultra-sa rent rolls - and free rent and concessions c afe s continuing to erode - o investm ment activity should con y ntinue its upswing over the next few years. wNeil.Hamilton@ @cushwake.com 407-5 541-4417Source: Cushman & Wakef field Research. Only m markets track by Cush ked hman & Wakefieldoffice are includ in this a es ded analysis. MY annual growth is 2 Y12 2Q2012 vs. 2Q2011INDUSTRIAL FACT TE L EAMTina Arambulo Ted Harris son Jared Jacobs dLos A Angeles Phoenix Philad delphiaJame Breeze es Steve Harr ris Aman Ortiz ndaLos A Angeles Dallas Chica agoNeil Hamilton Robert Ho oeferOrlan ndo Houstonwww w.cushmanw wakefield.c com