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Cushman & Wakefield - North American Industrial Market Beat - Mid-Year 2012
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Cushman & Wakefield - North American Industrial Market Beat - Mid-Year 2012
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Sep 06, 2012
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Transcript of "Cushman & Wakefield - North American Industrial Market Beat - Mid-Year 2012"
1. MARKETBE EATINDUSTR RIAL SN NAPSHO OTNO ORTH AM MERICA MID-YE EAR 2012 2A Cu ushman & Wak kefield Researc Publication ch ECONOMIC OVERVIEW healthy level of deman and general la of new product, the y nd ack The deepening of the European economic n industr sector shoulld be entering a period of sustai rial ined rental slump, the poteential so-called "fiscal cliff" and " apprecciation. the risk of a hard landing for Chinas economy C have added gre eater uncertainty to U.S. y NOR RTH AMERICA – GDP GRO A OWTH ( SO U RC E : M O O DY ’ S AN AL Y T I CS) economic prospects. For the first time in f 6.0% %nearly three years, the U.S. manufactu y e uring sector shra in June. The ank e 5.0% %ISM’s ggauge of new or rders, a measure of future activity, plunged from e m60.1 to 47.8, the first time since the recession ended that this index o r 4.0% %has fal below 50. llen 3.0% %Manuf facturing activity in Canada was revived during the first half of y t 2.0% %2012, although its con ntinued growth will depend on the speed and w tdepth of the U.S. reco overy. However factory jobs in r, ncreased for the 1.0% %sixth c consecutive mon in May. This is surprising, giv that nth ven 2010 20 011 2012Finternational shipment of machinery and equipment were largely ts U U.S. Canad da Mexicounchanged. Even with higher labor co and an eleva osts ated Canadian Overa demand streng across most Canadian indus all gth t strial real estatedollar, over 115,000 manufacturing jo were created in the six , m obs d market remains expa ts ansionary. Howe ever, challenging global economicmonth ending May 20 the most in any similar period on record. hs 012, n condittions is translatin into a more c ng cautious approac to occupancy chAs of May 2012, the sector accounted for 10.4% of th country’s total s d he decisio Demand mo ons. omentum is clea stronger wit arly thin westernemplooyment. Canad ian markets, par rticularly in Albeerta, where tena demand in antMexico’s industrial GD grew 3.6% in the first half of the year and th DP n f he Calgar and Edmonton have been buo ry n oyed of late by in ncreasing oilconsensus is that econ nomic growth will continue outp w performing prices and needs creat by huge meg projects relat to oil sands ted ga tedexpect tations in 2012. In its mid-year world economy report, the IMF y F develoopment. The con ntinued evolution of the Canadia retail sector is anhas inccreased the grow projection for Mexico in 20 to 3.9%, wth f 012 also co ontributing to gr rowth across ind dustrial markets as companiesabove the average for Latin America and for the Wor (which were r a rld like W Wal-Mart expand their distributio facilities and n entrants, on newrevised downward). The degree of this upturn will, ho T owever still be such a s Target, establiish major facilitie to support a network of essubjec to a sustained recovery in the international ec ct e conomy and a stores across Canada, scheduled to open in 2013. Canadian marketsmore emphatic promo otion of local de emand. are als seeing expans so sion within the fo distribution sector, as a ood n growin number of re ng etailers add groce operations t their service ery toCON NTINUED IMPR ROVEMENT offerin ng.By mid d-year, the U.S. industrial marke continued to post healthy etdeman and declining vacancies. The overall vacancy rate fell to 9.3% nd % TO FIVE NORT AMERICAN PORTS OP TH N ( % C H A N GE I N TE U T O T AL S)at midd-year 2012, the lowest vacancy level since the fourth quarter of f o2008, when the vacancy rate was 8.6% Reflecting a continuation of a %. 25.0 0%robust uptrend that began in 2011, th U.S industrial sector absorbed t b he d 15.0 0%65.1 m million square fee (msf) of space at mid-year, up from the 53.5 et e pmsf reecorded at mid-y year 2011. Leasing activity durin the first six ng 5.0 0%month of the year to hs otaled 199.2 msf. If activity cont . tinues at this -5.0 0%pace f the remainde of 2012, the U.S. industrial ma for er U arket is on track kto end the year with leasing velocity just below 2011’ level of 417.1 d ’s -15.0 0%msf. W While overall vac cancy and absorp ption completely turned the y -25.0 0% LA/Long Beach, N New York/New Savan nnah, GA Vancouver (B BC) Oakland, CAcorner in 2011, the st teady stream of demand had virt tually no impact CA Jerseyon ren growth and re nt ental rates have yet to reach pree-recession 2010 2011 MID-YEAR 2 2012levels. Although there has been a sligh uptick in rent since year-end e ht ts d2011, it is still down fr rom the same period a year ago However with o. hCushm & Wakefield World Headquarters man W The market terms and definit T tions in this report are based on NAIOP standards. d1290 A Avenue of the Am mericas No warranty or representatio express or implied, is ma to the accuracy or comp N in on, ade nformation contained herein, and same is submitted subje to errors, omissions, cha ect pleteness of the ange of price, rental orNew YYork, NY 10104-6 6178 other conditions, withdrawal without notice, and to any s o special listing conditions impo osed by our principals.www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved. ld,
U.S. – WESTERN REGION R OAKL LAND, CA Over vacancy drop rall pped 60 bps to 7.9% from 8.5% as of th end of last qu he uarter, reaching its lowest point in nearly four tGREA ATER LOS ANGELES, CA Marke fundamentals for the region et years. The squeeze on quality space continues to spur tenant n rcontin to improve with occupancy gains of 1.3 msf at mid-year, nue w renewwals, which repre esented over 35% of leasing activ this quarter % vity r.dropp the overall vacancy rate to 4.6% - the lowes since 2009. ping v 4 st Lack o quality space h allowed landlords to push up rents, and of has pThe reegion also remai the tightest industrial market in the country ins t overal l asking rents ro 2.6% during the quarter, wit warehouse ose thand leads the nation in leasing activity with 18.9 msf so far this year. n y s rents iincreasing by as much as 7.0% in some submark n kets. User salesHowe ever, leasing activ is down 5.4% from last year Although users vity % r. contin ued to pick up ppace during the second quarter. Oakland should dcontin to be cautiou in this economic environmen this is also a nue us nt, expect a slow recover in response to uncertainty in the national t ry oby-prooduct of lack of quality space tha users demand Totaling 8.4 at d. econo my. Through 20 013, vacancy rate are expected to tick slowly esmsf at mid-year, investment activity co t ontinued to gain momentum and n downw wards and rental rates slowly up pwards, followed by faster dis up 7 74.8% from a year ago. With so few quality prop perties coming growth in 2014 and 20 h 015.online for sale, investo are bidding more aggressively for prime e ors massets. PORT LAND, OR Mar rket fundamenta are gaining po als ositive mome entum in Portland. Overall vacan continued its gradual ncy sINLAN EMPIRE, CA Overall vacancy rates declined to 7.6%, 10 bp ND A d ps downw ward trend endin second quart 2012 at 7.4% down 120 bps ng ter %,lower than the previo quarter, and an impressive 140 basis points ous from ssecond quarter 2 2011. Rental rat have stabilize in almost all tes ed(bps) llower than this time last year. The continued de t T emand for big submaarkets and produ types. There is very little construction uctbox sp pace resulted in another quarter of positive net absorption, r underw and most of what is being d way f developed is buil ld-to-suit. Asfinishin second quart at just over 2.5 msf, which is on par with the ng ter 2 e the ecoonomy improve increasing dem es, mand will tip the scale, boosting e gprevio quarter. Thi represents an astounding twelve straight ous is rents a spurring con and nstruction.quarte of positive ab ers bsorption in the IE industrial ma arket. Leasingactivit improved significantly during second quarter to just under 7.9 ty s t 9 SEATT TLE, WA Seattle continued on it path towards recovery. e tsmsf, nearly double the 4.9 msf leased in the previous quarter and e Overa vacancy is dow 130 bps from year-end 2011 to 7.8%. The all wn mmarks the highest qua s arterly leasing ac ctivity since the first quarter of f 1.5 ms of positive ove sf erall absorption has nearly surpa assed the 1.7 ms sf2011. record in 2011 and leasing activity r ded remained strong with 3.4 msf g logged so far this year Solid leasing co d r. ontinues to attra investors to actORAN NGE COUNTY CA While the recovery of the Orange County r the Sea attle industrial m market, which ha been one of t most active as theindusttrial market was interrupted by the general market slowdown t investm ment markets in the region. The 2.1 msf in transactions nearly n eduring the second half of 2011, the fir half of 2012 demonstrated a g f rst d reache the 2.8 msf in all of 2011 and the average sale price of $83 ed n ereturn to levels more consistent with recent recover trend and was n ry s psf is u 43% over the $58-psf average last year. up e ethe six quarter of po xth ositive absorptio out of the las eight on stconsec cutive quarters. At mid-year, to overall abso otal orption stands at t LAS V EGAS, NV The overall vacancy decreased durin the second ng865,07 sf. Overall vacancy declined by 40 bps to 5.6% during second 70 b d quarte 2012 to 14.9% compared to 15.6% in first qu er %, uarter 2012. Evenquarte with all produ types recording declines in vacancy. Demand er uct v d with th jump in vacan last quarter, the current market has he ncyfor neewer class A warrehouse space ex xceeds Orange County’s return to the 15.0% vacancy rate w witnessed at t end of ned % we theavailab inventory and landlords are no longer offerin the generous ble d n ng second quarter 2011. Despite an uptic in activity in t market, d ck theconcessions that were available in pre e evious years. there h not been mu pressure on rent growth as asking rents has uch n have reemained flat sinc second quart 2010. Howev as the ce ter ver,SAN D DIEGO, CA Rec covery in the San Diego industrial market gained n d market continues to im t mprove and vaca space starts to become antmome entum in the seccond quarter wit leasing activity of 3.8 msf th y harder to come acros s, expect to see slightly higher a r e asking lease ratesresulti in positive ne absorption of 1.1 msf. This is the first time ing et f over th next few yea This market improvement w be dependent he ars. will tthat quarterly net absorption surpasse the one millio square foot ed on on conntinued job grow and an improved economy. wththreshhold since the fo ourth quarter of 2007. The coun ntywide averageasking rent remains st g table, but as quality spaces are becoming harder b rto find in certain mark areas, rents will begin to increase. The lack d ket U.S. REGIONAL O OVERALL VAC CANCY RATES Sof goo options for la od arge space requir rements in the Mid-to-North M 14.0 %Count markets will increase constru ty uction activity as tenants look to o 12.0 %build-tto-suit opportun nities to fit their size needs. 10.0 %SILICO VALLEY, CA Demand is healthy for Silicon Valley’s ON A 8.0 %industtrial market thro ough the first hal of 2012 as leas activity lf sing 6.0 %increaased 10.8% to 7.7 msf. The high- 7 -tech overall vac cancy rate tickedd 4.0 %down 240 bps to 12.5 from one year ago and healt warehouse 5% thy 10.8% 6.9% 9.4% 9.7% 9.9% 9.3% 2.0 %activit caused vacanc to drop 150 bps to 5.6%. Inve ty cy b estment activity 0.0 %acceleerated with 1.4 msf sold, bringing year-to-date to 2.4 msf. Tech m g o WESTERN M MIDWEST SOUTHWESTT NORTHEAST SOUTHHEAST NATIONAL REGION RREGION REGION REGION REGIO ONexpansion and require ements are expe ected to sustain activity in theforeca horizon. astCushm & Wakefield World Headquarters man W The market terms and definit T tions in this report are based on NAIOP standards. d1290 A Avenue of the Am mericas No warranty or representatio express or implied, is ma to the accuracy or comp N in on, ade nformation contained herein, and same is submitted subje to errors, omissions, cha ect pleteness of the ange of price, rental orNew YYork, NY 10104-6 6178 other conditions, withdrawal without notice, and to any s o special listing conditions impo osed by our principals.www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved. ld,
U.S. – MIDWEST R EGION INDIA ANAPOLIS, IN T Indianapolis Industrial marke continued to The et make iimpressive gains in the second q s quarter as the ov verall vacancyCHICA AGO, IL Overall vacancy contin nues to improve and measured rate fe to 6.8% from 7.5% in the first quarter. With y ell t year-to-date9.4% a the end of sec at cond quarter, a decline of 110 bps from this tim d b me leasing activity outpaciing that of the p g previous four yea this trend of ars, flast ye Chicago’s do ear. ominance as an inland hub remained i positiv absorption an steadily declin vacancy rate is expected to ve nd ning es ounchallenged and new leasing activity grew significantly with mid-year w r contin ue. The continuing decline in va acancy has led to an increase in ototal o 18.2 msf, for a 30.5% year-ove of er-year increase Large lease e. investm ment sale activit and spurred a new wave of sp ty peculativetransaactions in excess of 200,000 sf have fueled the le s easing recovery, constr ruction. Ongoing interest in the favorable econo g omic climate ofaccounting for 7.3 msf, or 40.2% of tr ransactions signe mid-year. ed the Ind dianapolis marke continues to a et attract both inve estors andMost n notably, Home Depot, Inc. committed to lease a 1.6-msf D busine owners lookiing for best and most fiscally sou environmen ess und ntwareh house that will be built adjacent to its 657,600-sf rapid f to run their businesses. As net rents c continue to incrrease, and withdeploy yment facility bu in Joliet earlie this year. The Chicago marke uilt er e et no for reseeable let up in demand for la arge contiguous warehouse/has ma huge strides in absorbing th heavy supply of vacant space ade s he o distrib ution space, it is anticipated tha more speculat construction s at tive nwith a total of 6.1 msf of overall supply absorbed mid f d-year. is in th pipeline, and t he that it will likely break ground b y before the end of o 2012.CLEVE ELAND, OH Th Greater Cleveland industrial market ended hethe seecond quarter 20 with another decrease in va 012 acancy, adjusting MILWA WAUKEE, WI The Milwaukee are industrial mar e ea rket continued toto 8.3% as compared to 8.5% at the end of the first quarter 2012 and e d gain st trength in with t total absorption of 528,181sf in t second the9.6% a year ago. The main factor to th decrease in vacancy rate is m he v quarte making it the eighth consecut quarter of p er, tive positive growth.attribu utable to steady activity in the market and the li m imited amount of o Furthe positive indica er ator includes a second quarter v vacancy rate ofinventtory on market at this time. Sale activity will co a es ontinue to remai in 7.9% wwhich is down frrom 8.6% a year ago. Industrial d demand is on the estrong than leasing activity, as comp ger a panies that have been waiting on n rise wiith expectations to have anothe positive absor s er rption quarter in nthe sid delines are ready to make decisi y ions. However, they maybe late t the thiird quarter as w as a potentia for announcem well al ments ofto the party as vacanc rates continue to decline and the limited e cy e speculaative developme in the area. I ent Investment sales made samoun of quality pro nt oduct available will lead to a prem w mium in prices. impresssive gains with Centerpoint Pro operties Trust and ZilberAlthou demand exis for new cons ugh sts struction, activit will remain ty Proper Group both completing large portfolio acqu rty uisitions.slow bbecause of the cost. KANSA CITY, MO R AS Rents and sale pr rices in the Kans City market sasDETR ROIT, MI Activity within the indu y ustrial market re emains steady. have bbegun to stabilize after declining through the rec e cession. OverallThe overall vacancy ra closed the quarter at 14.7%, a decrease of ate , activity for the industr sector is pos y rial ggest challenge is sitive, but the big300 bp compared to one year ago. Economic condit ps E tions continue to supply the increasin demand in a m ying ng market where fin nancing for newimpro as the autom ove motive companies drive the mark with their ket constr ruction and deve elopment is still lagging. Two inddustrial specnew teechnology and innnovations, whic in turn fuels the expansion ch t buildin are under co ngs onstruction and w provide goo measure for will odand grrowth of other market area. Ba m attery maker A12 Systems plans 23 the heealth of the local market. A 821,663-sf class A di istribution facilit tyto add 400 jobs, while GE announced they plan to hir 300 d e re will be available in early 2013 and a se e eparate 155,000- speculative -sfemplooyees at their res search center. Brose North Am B merica purchasedd distrib ution project is expected to deliver this October. With aa 381,708-sf building this quarter and they plan to add 450 jobs and t d vacanc rate around 3 for institution grade spaces above 100,000 cy 3% nalinvest $60 million into the facility. Ge o eneral Motors also announced sf, thes buildings prov se vide much-needed options for u users looking tothat th will hire an additional 600 employees to bui the Cadillac hey a ild benefit from Kansas C t City’s attractive d distribution infra astructure. If theeATS. nationa economy can avoid dipping in another rece al nto essionary period d, Kansas City should co s ontinue to exper rience positive growth across its sCOLU UMBUS, OH Ov verall, the Colum mbus Industrial market showed m industr submarkets. rialincrea ased activity from fourth 2011 th m hrough second quarter 2012, bu q utmany sale prices were discounted for all cash buyers. One of the e rlargest transactions th occurred wit the last four quarters was t hat thin rthe sale of Centerpoin Business Park - CP#1 in Grov nt k veport. This 1.2-- U.S. REGIONAL D DIRECT WARE EHOUSE NET RENTmsf industrial building sold for $40.9 million or $35.12 psf. Total year m r- $7.0 00to-dat industrial build sales activit in 2012 is up compared to the te ding ty c e $6.0 00previo year. ous $5.0 00ST. LO OUIS, MO The St. Louis industrial market exper S rienced modestgrowt for the second quarter of 2012. Positive abso th d orption was $4.0 00record in both quar ded rters of the year resulting in yea r, ar-to-date total $3.0 00 $5.54 $4.95 $4.20 $3.84 $3.48 $4.30of 605 5,580 sf. The vacancy rate for th St. Louis mar he rket dropped to9.5%, 100 bps lower than a year before. The decreas in vacancy has t se s $2.0 00 WESTERN NO ORTHEAST SOUTHWESTT MIDWEST SOUTHHEAST NATIONALadded to the hope tha this will be the year that stead growth will at dy REGION R REGION REGION REGION REGIO ONoccur and alleviate fea that the econ ars nomy will fall back intorecess sion.Cushm & Wakefield World Headquarters man W The market terms and definit T tions in this report are based on NAIOP standards. d1290 A Avenue of the Am mericas No warranty or representatio express or implied, is ma to the accuracy or comp N in on, ade nformation contained herein, and same is submitted subje to errors, omissions, cha ect pleteness of the ange of price, rental orNew YYork, NY 10104-6 6178 other conditions, withdrawal without notice, and to any s o special listing conditions impo osed by our principals.www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved. ld,
U.S. – SOUTHEAST REGION T NASH HVILLE, TN The industrial marke in Nashville continued to take et e small ssteps to recover The quarter ended with an o ry. overall vacancyATLA ANTA, GA Atlan nta’s industrial market continued to show signs m d rate of 10.2%. Net re f ental rates were $3.66 psf and overall netof impprovement throu ughout the second quarter of 20 Overall 012. absorpption totaled 276 6,878 sf. Amazo on.com is set to deliver two new wvacanc continued to decrease ending the second qua cy g arter at 9.8%. distrib ution buildings iin the Nashville market. Additio onally, GM isThis is a 150-bp decre s ease year-over-y year from the 11.3% rate upgrad its engine pr ding roduction capab bilities at their Sp pring Hill plant, areport for the seco quarter of 20 As vacancy rates continued ted ond 011. d move t that should crea up to 500 ne jobs this year Nissan is also ate ew r.to deccrease, the Atlan market poste 1.7 msf of po nta ed ositive overall making huge investments in Smyrna, c g constructing a billion dollarabsorpption which brought the year-to o-date total to 3.0 msf of lithium m-ion battery pla of 1.3 msf. Sa volume pick up in the ant ales kedoccupancy gains. Wit 9.1 msf of leas activity at mid-year, the pac th sing m ce second quarter with L d LNR Property Corporation’s purchase of aof leas activity has exceeded total activity reported during the sing a d 305,0000-sf building at 7355 Cockrill Bend Boulevard f $5.2 million forsame p period in 2011 by 29%. b and Cr ross Point Community Church acquiring 114,39 sf at 291-299 99MIAM FL. The Miami-Dade County overall vacancy rate at mid-year MI, o r Cowan Street for $5.0 million. n 0climbe half a percent ed tage point to 7.4 from 6.9% at mid-year 2011. 4% MEMP PHIS, TN The Me emphis economy fared well in t first half of theThe overall direct ask rental rate at mid-year dippe to $5.24 per king a ed 2012, o outpacing the na ation with a 1.6% increase in job growth, % brentab square foot from $5.45 psf at mid-year 2011, resulting in a ble f a compa ared to the natio growth of 1.3%. Activity in the Memphis onal n3.9% ddecrease. Miami- -Dade County will continue to be one of the w b industr market is str rial rengthening on s several fronts in ncluding leasing,most hhighly coveted markets amongst institutional ow m t wners and investm ment sales and n new construction. Direct vacan fell 50 bps ncyinvesto The forecas for the remain ors. st nder of 2012 rem mains cautiouslyy from 1 13.9% to 13.4%. A central U.S. loocation coupled with attractive doptimistic as rent grow and absorpt wth tion did not incr rease at the pace e rents a local incentives keeps Memp on the top of many tenants and phis s’anticip pated at the beginning of the yea ar. list. Deemand remains s strong, and for t first time sin 2008 the the nceORLA ANDO, FL The Orlando industrial market continued its steady O market is seeing specu t ulative constructtion.evolut tion in the secon quarter of 20 Overall vaca nd 012. ancy declined for LOUIS SVILLE, KY Desp considerable leasing activity industrial pite e y,the fift consecutive quarter – falling three-tenths of a percentage th q t vacanc increased in the second quart due in part to 182,000 sf of cy ter tpoint t 12.4% - as the market converted small pocke of new to ets negativ absorption co ve oupled with 232 2,600 sf of new c constructiondeman into continue positive absor nd ed rption. While mo robust job ore comple etions. Two sig gnificant build-to-suits for Amazoon.com havegrowt is needed for the market’s lon th ng-term recover the second ry, buoyed the industrial market in both t Louisville me d the etro andhalf of 2012 should ge f enerally extend and expand the progress of the a p southe Indiana mark ern kets. Financing f speculative in for ndustrial Expect rental rat to remain fla through 2012 and into 2013 asfirst. E tes at develo opment may be o the horizon i absorption con on if ntinues tothe ma arket continues to work off exccess inventory. increas Key manufac se. cturing growth h reduced the local has eJACKS SONVILLE, FL Future growth prospects for the Jacksonville F e unemp ployment level to at or below th national avera o he age.indust trial market conttinue to exceed current conditio The second ons. d HAMP PTON ROADS, VA Regional ind dustrial absorptio for the onquarte again failed to produce any no er o otable new dema and, leaving second quarter of 2012 has slowed sig d gnificantly. Year- -to-datevacanc unchanged at 11.1% and abso cy orption only moddestly positive. absorpption stands at 177,024 sf. Eleve out of 20 Ham en mpton RoadsThe coompletion of sevveral transaction pending at mid-year should ns subma arket have shown negative absor rption year-to-date. Vacancy has sprovid at least a part spark in the second half of 2012, causing de tial held stteady at close to 8.0% over the past few years. Lease rates are ovacanc to resume its downward traje cy ectory; however greater r, declini ng slowly, as are industrial build prices. Finan e ding ncing is the oneeconoomic gains – and perhaps politica clarity - are ne al eeded to truly bright spot, with rates for industrial purchases under 5% for qualifying s vate the market’s recovery. Ask rents have proven largelyreactiv king buyers Since 2008, the industrial sales market in Ham s. s mpton Roads has sstagna over the last twelve months and should remain so for the ant strugglled. In 2008 ther were over 60 properties sold at a median re 0 dremainnder of 2012. price o $80 psf. This iis compared to less than ten pro of operties sold inCHAR RLOTTE, NC Le easing activity to otaled 1.9 msf at mid-year with 2012 s far at a media price of $50 p so an psf.overal vacancy rate of 16.9%. With rising energy cost the region ll o ts, RICHM MOND, VA Leasing activity slow to 894,698 sf year-to-date wedshould see increased demand for qual distribution and d d lity from 2 msf through the second quar of 2011. De 2.4 rter espite the roughmanuf facturing facilities in an attempt to shorten supp chains and t ply quarte the industrial market is slowly getting stronger. Tenants are er,locate closer to the end user. The firs speculative de e st evelopment in startin g to renew lease for longer ter es rms, opting for f years instead five dfive ye occurred th quarter with Childress Klein Properties ears his of one or three-year leases in some cases. Brokers also report an ebreaki ground on Ridge C reek IV, a 270,000-sf building which is ing R uptick in interest from contracting and construction f m d firms, a welcome e25% p pre-leased to Averitt Express. Ke Corporation also eith sign aft almost four years of contrac fter ction in that indu ustry. Netannou unced a built-to-s project for Britax, which wi consolidate suit ill absorpption was 375,35 sf through the second quarte up from 56 er,their ooperations from three locations into one 500,00 00-sf facility. We e 193,85 sf through the second quarte of 2011. That drove vacancy 50 e erexpect to see addition build-to-suits announced in the second half of t nal s t o down t 10.5% from 1 to 11.1% in the sec cond quarter of 2 2011.2012 a cap rates com as mpress, pushing values of moder distribution v rn Absorp ption should rem in positive territory for the rest of 2012. main efacilitie closer to replacement value. es Amazo is on schedule to open a mas on ssive 1.0-msf dist tribution facility in Cheesterfield by the end of 2012.Cushm & Wakefield World Headquarters man W The market terms and definit T tions in this report are based on NAIOP standards. d1290 A Avenue of the Am mericas No warranty or representatio express or implied, is ma to the accuracy or comp N in on, ade nformation contained herein, and same is submitted subje to errors, omissions, cha ect pleteness of the ange of price, rental orNew YYork, NY 10104-6 6178 other conditions, withdrawal without notice, and to any s o special listing conditions impo osed by our principals.www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved. ld,