NORTH AMERICAINDUSTRIAL INDICATORS…IN 7 MINUTES SEPTEMBER 2012 DESIGNED FOR THE BUSY REAL ESTATE New Baltimore Intermodal Facility Site: The Port of Baltimore PROFESSIONAL, THIS OVERVIEW PROVIDES could once again become a contender for import cargo bound A SNAPSHOT OF CURRENT ACTIVITY AND for the Midwest as a result of CSX’s decision to locate its new TRENDS AFFECTING THE REAL ESTATE intermodal rail terminal near the Port of Baltimore’s Seagirt LANDSCAPE. WE HOPE THE SUCCINCT Marine Terminal. The $90 million rail terminal at Mount Clare FORMAT AND EASILY ACCESSIBLE will give the port near-dock double stack container service toINFORMATION IS HELPFUL TO YOUR DECISION MAKING AS the Midwest. CSX plans to open the facility in 2015 to coincideWE COVER A VARIETY OF ISSUES THAT MAY NOT BE with the opening of the Panama Canal expansion project.COVERED IN MOST STAND-ALONE REPORTS. China Slowing: The preliminary reading of HSBC’s survey ofThe deepening of the European economic slump, the potential so- purchasing managers shows Chinese production in Augustcalled "fiscal cliff" and the risk of a hard landing for Chinas economy plummeting to a nine-month low. A key manufacturing index inhave added greater uncertainty for U.S. economic prospects. It China fell to 47.8 in August from 49.3 in July. Export businessappears that a full economic recovery may be years off; job growth declined at the sharpest rate since March 2009, when the globalhas been anemic and unemployment has been hovering stubbornly financial crisis dried up European and U.S. demand for Chineseabove 8% since February 2009. Meanwhile, manufacturing in Canada goods.was revived during the first half of 2012 and Mexico’s industrial GDP Mexico Growing: Reflecting the steadily increasing tradegrew 3.6% in the first half of the year. However, continued growth between the NAFTA members and growing consumption by thefor both countries will depend on the strength of the U.S. recovery. Mexican middle class, U.S./Mexico cross-border truck trade hit an all-time high (by value) in May, jumping 17.1% year-over-yearNORTH AMERICA – GDP GROWTH to $29.1 billion, as shipments from Mexico rose 16% and U.S. 6.0% exports expanded by18.4%. Trade among the North American Free Trade Agreement partners has risen steadily this year, with 5.0% total trade rising in value by 8.3% year-over-year in May. 4.0% INDUSTRIAL INVESTMENTS/ACTIVITY 3.0% American Realty Capital Trust III Inc. completed its purchase of a 2.0% 1.04-msf industrial portfolio in Stockton, CA, for nearly $63 million. The assets included two 517,920-sf distribution centers. 1.0% According to Real Estate Capital Analytics, the private sector has 2010 2011 2012F ramped up acquisitions and improved their market share to 33% U.S. Canada Mexico in the first half of 2012 from 30% in 2011.MARKET DRIVERS/INFRASTRUCTURES The listed REITs have made over $1.3 billion of acquisitions in Intermodal Volume Rises: Intermodal shipments on major U.S. 2012, 13% behind their pace in 2011. Their share of all railroads rose 4.3% in August, reaching the second strongest acquisitions in the industrial sector dropped to 9% from 11%. volume for the month on record, according to the Association However, the average reported cap rate on their acquisitions of American Railroads. So far this year, Canadian intermodal continues to trend down due to competition for top assets with volume is up 6.9% year-over-year while Mexican intermodal institutional buyers. volume rose 18.5% in the first 35 weeks of 2012, compared to Institutions and equity funds are on track to buy slightly more the same period in 2011. industrial properties in 2012 than in 2011, but have seen their New Bridge for Long Beach. The Long Beach Board of Harbor share of the market decline slightly, to 29%. Commissioners approved a $649.5 million contract for the Leasing activity for space 500,000 sf or larger recorded its design and construction of a replacement for the Port of Long highest average during 2012 with an average of 771,345 sf in size. Beach’s Gerald Desmond Bridge. Construction of the new In 2009, the average lease size dropped to a low of 614,500 sf bridge is to start in 2013 and is scheduled for completion in 2016 due to the effects of the recession. Since the beginning of 2011, and is designed to ease traffic congestion and improve safety. seven leases over 1.0 msf have been recorded.