Industrial ReportNorth San Diego County4th Quarter 2011PREPARED BY:             COLLIERS INTERNATIONALAdam Molnar         ...
Q4 2011 | INDUSTRIALNORTH COUNTYAT A GLANCE                                                                        OVERVIE...
AT A GLANCE | Q4 2011 | INDUSTRIAL | NORTH COUNTY                  ACTIVITY                  Big tenants made a positive i...
Q4 2011 | INDUSTRIALCARLSBADAT A GLANCE                                                              OVERVIEW             ...
El C                       am                 ino          AT A GLANCE | Q4 2011 | INDUSTRIAL | CARLSBAD                  ...
Q4 2011 | INDUSTRIALESCONDIDOAT A GLANCE                                                                      OVERVIEW    ...
AT A GLANCE | Q4 2011 | INDUSTRIAL | ESCONDIDO                                                        oad                 ...
Q4 2011 | INDUSTRIALOCEANSIDEAT A GLANCE                                                                   INDUSTRIAL/R&D ...
AT A GLANCE | Q4 2011 | INDUSTRIAL | OCEANSIDE                                                                            ...
Q4 2011 | INDUSTRIAL      SAN MARCOS      AT A GLANCE                                                                     ...
Q4 2011 Industrial Report
Q4 2011 Industrial Report
Q4 2011 Industrial Report
Q4 2011 Industrial Report
Q4 2011 Industrial Report
Q4 2011 Industrial Report
Q4 2011 Industrial Report
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Q4 2011 Industrial Report

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Q4 2011 Industrial Report

  1. 1. Industrial ReportNorth San Diego County4th Quarter 2011PREPARED BY: COLLIERS INTERNATIONALAdam Molnar 5901 Priestly Drive, Suite 100Greg Lewis Carlsbad, CA 92008Tucker Hohenstein Fax 760 438 8925Mike Erwin www.colliers.com/carlsbadMike Bench
  2. 2. Q4 2011 | INDUSTRIALNORTH COUNTYAT A GLANCE OVERVIEW The North San Diego County industrial market is largely decentralized and comprised of ve cities including Carlsbad, Escondido, Oceanside, San Marcos and Vista. Situated 35 miles north of downtown San Diego and 52 miles south of John Wayne Airport in Orange Oceanside County, the coastal location is a major factor in the area’s appeal to corporate users and Vista its 826,985 residents. Carlsbad San Escondid The industrial market consists of approximately 52.3 million square feet. By comparison, Marcos Ocean the total San Diego industrial market is 188.3 million square feet. North County represents 27% of the total. Year-end 2011 North County vacancy was 10.9%. The vacancy rate is improving as 566,762 SF of positive net absorption occurred. The following tableMARKET INDICATORS summarizes the inventory and vacancy in the market: Q4 Q1 2011 2012 (forecast) Submarket Buildings Total Inventory Vacant SF Vacancy Rate VACANCY Carlsbad 485 15,011,955 2,116,686 14.10% Escondido 637 7,183,097 445,352 6.20% NET ABSORPTION Oceanside 396 8,038,044 1,374,506 17.10% CONSTRUCTION San Marcos 489 8,703,364 617,939 7.10% RENTAL RATE Vista 530 13,373,882 1,150,154 8.60% Total 2,537 52,310,342 5,701,827 10.90% LEASE CONCESSIONS North San Diego County is well known for its highly skilled labor force, excellent transportation network, pro-growth business environment, signi cant Federal Government presence, desirable vacation destination and abundant employee housing.INDUSTRIAL/R&D VACANCY RATES The North San Diego County industrial market is home to a diversi ed mix of usersQ4 2011INDUSTRIAL/R&D VACANCY RATES including defense, telecommunications, software, medical manufacturing, golf and leisure CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDSQ4 2011 sports, life science and technology rms. Corporate neighbors include: Carlsbad 14.1% Escondido 6.2% Coca-Cola Isis Pharmaceuticals DJO Inc. Medtronic Life Technologies Linear Oceanside 17.1% Titleist Golf Puma Golf Killion Industries San Marcos 7.1% ViaSat TaylorMade Golf Jeld-Wen Windows and Doors Vista 8.6% Covidien Denso Wireless Sumitomo ElectricNorth County 10.9% Abbott Labs U.S. Foodservice McCain Inc. Genentech Philips Respironics Directed Electronics 0% 5% 10% 15% 20% Callaway Golf Thomson Reuters GIA L-3 Communications Rockwell Collins Hunter Industries SAIC John Deere Watkins Manufacturing OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDSwww.colliers.com/carlsbad
  3. 3. AT A GLANCE | Q4 2011 | INDUSTRIAL | NORTH COUNTY ACTIVITY Big tenants made a positive impact in 2011. NORTH COUNTY HISTORICAL MARKET TRENDS The bulk of the year’s absorption can be traced to tenants such as: BREG (88K), Zodiac 1,500 14% (104K), John Deere (76K) SKLZ (150K), 12% 1,000 DJO (53K), PrAna (64K), Allied Swiss (63K) 10% and Teamwork (40K). This demand from Vacancy Rate SF (000s) 500 8% corporate tenants helped 2011 post 566,000 square feet of net absorption, which is well 0 6% above the 5-year moving average of 104,000 4% square feet. Vacancy declined slightly to -500 2% 10.9% at the end of 2011 versus 11.22% at the end of 2010. -1,000 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Owner-users and investors cautiously Net Absorption New Supply Vacancy entered the market during 2011, which led to inconsistent sales activity. First quarter showed promising signs in terms of activity, however the balance of the year was sparse and Q4 nished with only one sale above 15,000 square feet. The most active size segment for owner-users was 15,000-35,000 square feet. These owner-users were able to take advantage of low interest rates (4.0-5.0% during 2011) and sale prices between $75-100/SF. Investors were also buying in the same price range with following notable transactions: LBA purchased 237,000 square feet in the Carlsbad Research Center as part of a sale leaseback to Callaway Golf, Peregrine bought 127,000 square feet of multi-tenant space in Carlsbad, Alliance Partners purchased 200,000 square feet in Oceanside and Bixby Land Company bought the 170,000 square foot Palomar Oaks Technology Park. FORECAST We anticipate the North County industrial market to perform similarly to how it did in 2011. This means lease rates will remain stable across product types and sizes, while North County vacancy could shed another 100- 125 basis points. Consequently, we should continue to see a reduction in supply throughout 2012, as there is no additional industrial product under construction. As demand improves, the result will be an increase in lease rates and fewer tenant concessions. The improving economy and limited product in North County should result in a slight increase in real estate prices in 2012, and a modest increase in property sales. Further supporting this trend is the Lenders willingness to modify and extend problem loans, which has signi cantly limited the amount of distressed properties in the market. We will continue to see investment dollars waiting for lender controlled properties, as well as Sellers that are in a relatively healthy position, continuing to wait for the eventual Buyer. This document has been prepared by Colliers International for advertising and general information only. Colliers prepared by ADAM MOLNAR, GREG LEWIS, TUCKER HOHENSTEIN International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party MIKE ERWIN, MIKE BENCH 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
  4. 4. Q4 2011 | INDUSTRIALCARLSBADAT A GLANCE OVERVIEW Carlsbad rebounded from a negative 3Q 2011 and nished the year on a positive note by posting 93,000 square feet of absorption in 4Q 2011. However, the overall statistics for 2011 reveal a fairly at year with a modest 18,615 square feet of positive absorption. Oceanside Compared to one year ago the overall vacancy rate for Industrial/R&D increased by one Vista percentage point to 14.14%. Despite having a higher overall vacancy rate (15.37% versus 12.81%), R&D product vastly outperformed Industrial in 2011 by posting a positive gain San of 214,000 square feet versus 195,717 square feet of negative absorption. The only Carlsbad Marcos new construction delivered in 2011 was the 176,000 SF BTS for Isis Pharmaceuticals at Ocean Carlsbad Oaks North. ACTIVITYMARKET INDICATORS For the second straight quarter the 15,000 to 25,000 square foot segment of the R&D Q4 Q1 market led the charge in terms of leasing activity with ve transactions during 4Q 2011. 2011 2012 (forecast) The largest lease deal of the quarter, and the year for that matter, was the 150,000 SF VACANCY sublease to SKLZ at 2081 Faraday Avenue. The sublessor was Callaway Golf and the sublease expires in November 2017. SKLZ will be relocating and expanding from their NET ABSORPTION current facility in Carlsbad and will use the building primarily for distribution. The only sale transaction in 4Q was an investment sale between Bixby Land Company and Arden CONSTRUCTION Realty. Bixby purchased the 170,915 square foot Palomar Oaks Technology Park for a RENTAL RATE blended rate of $92.44/SF. The project was approximately 50% leased at the time of the sale and consists of ve R&D properties valued at $75.00/SF and one o ce property atLEASE CONCESSIONS $133.00/SF. FORECAST INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA With no new product proposed Q4 2011 700 16% or planned during 2012 the 600 14% market should begin to correct 500 12%INDUSTRIAL/R&D VACANCY RATES itself and vacancy rates areQ4 2011 400 10% CARLSBAD HISTORICAL MARKET TRENDS Rental expected to decrease. Vacancy Rate SF (000s) INDUSTRIAL/R&D VACANCY RATES 300 VISTA HISTORICAL MARKET TRENDS 8% Q4 2011 rates for the most part have 200 6% Carlsbad Carlsbad 14.1% leveled o after a prolonged 100 4% Escondido 6.2% decline. Sale prices for the 0 2% limited amount of investment Oceanside -100 0% 17.1% product are still well below 2003 2004 2005 2006 2007 2008 2009 2010 2011 San Marcos 7.1% replacement cost and the Vista 8.6% occasional bank owned Net Absorption New Supply Vacancy properties have providedNorth County 10.9% opportunistic owner users a rare chance to buy at a signiMARKETdiscount. These low OCEANSIDE HISTORICAL cant TRENDS SAN 0% 5% 10% 15% 20% prices for lender controlled properties have created a large disparity between distressed and traditional pricing expectations. Sellers that are in a relatively healthy position have been somewhat frustrated by this disconnect which has engendered stagnation in the market. OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDSwww.colliers.com/carlsbad
  5. 5. El C am ino AT A GLANCE | Q4 2011 | INDUSTRIAL | CARLSBAD Ave Rea more l Syca Carlsbad Oaks North Busines s P Whiptail Loop us es s a Carlsbad Research Dr se Center r rk lro r D Me Faraday Ave F Fa rad ay Av e El F Carlsbad ue Oaks Carlsbad rte t Raceway S El L t t Ca oke mi er A Lio no nshead he Ave Re R v vesings al abad Palomurse ar A irpo rt Rd Blvd ge Colle McClellan Palomar Palomar Gateway Rd Forum Carlsbad Airport Airport Bressi Center 7 d Ranch tR or rp Ai ar m alo P Me elr os o eD r r Ave ttia E El F Palomar Airport nse Poi Business Park uer u te S t t t Rd Alga El Ca mi TRANSACTION ACTIVITY - Q4 2011 no Re e Av ala SALES ACTIVITY La Costa Resort Av & Spa iara Pk # PROPERTY NAME/ADDRESS wy BUYER TYPE SIZE SF SALE PRICE PRICE/SF Park Hyatt 1 Aviara Resort Palomar Oaks Technology Park Investor 170,915 $15,800,000 $92.44 LEASING ACTIVITY # PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE/SF 2 2081 Faraday Avenue SKLZ 150,159 69 months $0.60 NNN 3 2721 Loker Avenue Blue Earth, Inc. 20,329 72 months $1.03 NNN 4 1890 Rutherford Road Genoptix, Inc. 20,108 38 months $1.81 NNN 5 1905 Aston Avenue Ryderz Compound, LLC 19,794 52 months $0.87 NNN 6 1815 Aston Avenue JetHead Development, Inc. 17,776 36 months $1.29 MG 7 6197 El Camino Real ViaSat, Inc. 15,303 62 months $0.97 NNN This document has been prepared by Colliers International for advertising and general information only. Colliers prepared by ADAM MOLNAR, GREG LEWIS, TUCKER HOHENSTEIN International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party MIKE ERWIN, MIKE BENCH 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
  6. 6. Q4 2011 | INDUSTRIALESCONDIDOAT A GLANCE OVERVIEW Escondido closed 2011 with the lowest vacancy rate of any city in North San Diego County. Year end direct vacancy was 6.0%. The good news continued with positive net absorption for both the fourth quarter and the year. The fourth quarter ended with 25,184 Oceanside Vista SF of positive net absorption which delivered a year -end total of 128,536 SF. There is no new industrial building or ex construction underway at this time. The new Palomar Medical Center under construction on a 56 acre site in the Escondido Research and San Escondido Carlsbad Marcos Technology Center continues to take shape with a target opening of summer 2102. Ocean ACTIVITY Transaction activity in Escondido the past quarter was limited to one mid-size lease forMARKET INDICATORS the market, two sales and several smaller lease deals. VIT Products leased 26,664 SF at Q4 Q1 2344 Auto Park Way taking down a building that had been empty for over 2 years. There 2011 2012 (forecast) was an REO sale of an 11,264SF building at 1250 Industrial Avenue for $84 SF. The other sale was for a 10,120 SF building at 1200 Simpson Way for $130 SF. A handful of smaller VACANCY multi-tenant leases from 1,000 to 3,000 SF were completed to end 2011 on a good note. NET ABSORPTION FORECAST CONSTRUCTION The road ahead is bright for Escondido. With a healthy vacancy rate of just 6% there will be upward pressure on rental rates and sale prices in 2012. The economy is showing RENTAL RATE signs of recovery and increases in employment will drive demand for industrial space.LEASE CONCESSIONS One of our clients is tentatively planning on breaking ground on a new speculative, for lease industrial project in Escondido which is something we have not seen for several years. ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY NET ABSORINDUSTRIAL/R&D VACANCY RATESQ4 2011 300 10%INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDSQ4 2011 9% 200 Carlsbad 8% 14.1% 100 7% 5-Yr. Avg. = 104,2 Escondido Escondido 6.2% Vacancy Rate SF (000s) 6% 0 Oceanside 17.1% 5% -100 4% San Marcos 7.1% -200 3% Vista 8.6% 2% -300 1%North County 10.9% -400 0% 0% 5% 10% 15% 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net Absorption New Supply Vacancy OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS NORTH COUNTY HISTORICAL MARKET TRENDSwww.colliers.com/carlsbad
  7. 7. AT A GLANCE | Q4 2011 | INDUSTRIAL | ESCONDIDO oad hl R rda NoMyers Avenue 78 Mo ntie l Rd Esc ond oCountry Club Dr Cen ido nter oA Quin ve City ince Mis Par sion nue ak St S Roa Ave ion way d Miss R Roc y kS Spr ings sR d Au ve to nue Ave Dri Pa ton rk Wa hing Was en y eas ndr NA Sim Palomar pso nW Pomerado ay Hospital Ind ust ri a Cit l i Escondido Av rac e St Research Tul ip ado & Tech Center Pk wy ue ven le A Ha Escondido N. Auto Park e riv D en eas ndr SA ay Auto P kw ark Par W ay ley Val Ent erp rise St A 9th TRANSACTION ACTIVITY - Q4 2011 SALES ACTIVITY # PROPERTY NAME/ADDRESS BUYER TYPE SIZE SF SALE PRICE PRICE/SF 1 1250 Industrial Avenue User 11,264 $950,000 $84.34 2 1200 Simpson Way User 10,120 $1,316,500 $130.09 LEASING ACTIVITY # PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE/SF 3 2344 Auto Park Way VIT Products 26,664 48 months $0.47 Gross This document has been prepared by Colliers International for advertising and general information only. Colliers prepared by ADAM MOLNAR, GREG LEWIS, TUCKER HOHENSTEIN International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party MIKE ERWIN, MIKE BENCH 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
  8. 8. Q4 2011 | INDUSTRIALOCEANSIDEAT A GLANCE INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA Q4 2011 OVERVIEW While Oceanside still maintains the highest vacancy rate in North County at 17.1%, 175,000 square feet of positive net absorption during 2011 demonstrates that large corporations continue to relocate to Oceanside. They are taking advantage of attractive Oceanside rental rates and the high corporate image that Oceanside o ers. Vista With 25 buildings in excess of 15,000 SF currently available, landlords are aggressively San pursuing users in the market and looking for ways to di erentiate their real estate from Carlsbad Marcos the competition. Ocean ACTIVITY There were no building sales OCEANSIDE HISTORICAL MARKET TRENDS SAN MMARKET INDICATORS larger than 15,000 SF during 800 20% Q4 2011 Q1 2012 (forecast) the fourth quarter. There 18% 600 were 5 buildings sold in the 16% VACANCY quarter less than 15,000 SF. 400 14% Vacancy Rate SF (000s) 12% Land activity is bolstered by 200 10% NET ABSORPTION U.S. Food Service, which is 8% 0 planning to close escrow on 6% CONSTRUCTION 4% 29 acres in Ocean Ranch in -200 2% RENTAL RATE February 2012. They plan on -400 0% holding the land for the next 2003 2004 2005 2006 2007 2008 2009 2010 2011LEASE CONCESSIONS 3-5 years before constructing Net Absorption New Supply Vacancy a 400,000 – 500,000 SF build-to-suit. Lease transaction activity was relatively slow. A signi cant surge came late in the quarter from Solar Gard, proving to be Oceanside’s most signi cant new leaseINDUSTRIAL/R&D VACANCY RATES transaction completed. Solar Gard which is a subsidiary of Saint Gobain leased 35,463Q4 2011 INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICALve years at 1865 Ord Way in the Prescott Industrial Park. They plan to utilize SF for MARKET TRENDS VISTA HISTORICAL MARKET TRENDS Q4 2011 the manufacturing facility as an expansion for their automotive window lm business. Carlsbad 14.1% Occupancy is contingent upon a conditional use permit through the city that is expected to Escondido 6.2% occur early rst quarter of 2012. Oceanside Oceanside 17.1% FORECAST San Marcos 7.1% Oceanside has started the year strongly with two notable rst quarter 2012 transactions. Vista 8.6% La Cantina Doors recently leased 66,780 SF for 5 years at 2817 Ocean Ranch Blvd in the La Paci ca Business Park. Brixton, Ltd has leased 22,666 SF for 3 years at 1340 RockyNorth County 10.9% Point Drive in the Paci c Coast Business Park. This has created a positive buzz within 0% 5% 10% 15% 20% the business community. We expect leasing to double in the rst quarter of 2012 with 3 signi cant companies exploring Oceanside’s opportunities at this time. OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDSwww.colliers.com/carlsbad
  9. 9. AT A GLANCE | Q4 2011 | INDUSTRIAL | OCEANSIDE Co ll lleg eB Blv d Ol Dr d Gr sa ov Me e Ro a d Te m pl e He iig ht ts e Av Dr rth Paci c Coast No Business Park d Blv n ch Ra ean Oc Oceanside Ocean Gateway Ranch Av Ocean Ranch en Plaza Retail ida i De Ran lO Avenida De La Plata El Corazon r ro c cho Del r Rancho rD Del Oro Oro Dr nte ro Ce te ra po Cor Oceanside Blvd Sprinter Light Rail LineTRANSACTION ACTIVITY - Q3 2011SALES ACTIVITY # PROPERTY NAME/ADDRESS BUYER TYPE SIZE SF SALE PRICE PRICE/SF There were no buildings sales larger than 15,000SF during Q4LEASING ACTIVITY # PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE 1 2817 Ocean Ranch Boulevard La Cantina Doors 66,780 60 months $0.55/NNN 2 1865 Ord Way Solar Gard - Saint Gobain 35,463 60 months $0.54/NNN 3 1340 Rocky Point Drive Brixton 22,666 36 months $0.59/G This document has been prepared by Colliers International for advertising and general information only. Colliers prepared by ADAM MOLNAR, GREG LEWIS, TUCKER HOHENSTEIN International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party MIKE ERWIN, MIKE BENCH 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
  10. 10. Q4 2011 | INDUSTRIAL SAN MARCOS AT A GLANCE OVERVIEW The San Marcos industrial market continues to improve as Q4 followed the positive trends of Q3, which included more companies leasing space, resulting in additional positive absorption and an overall reduction in vacancy. Vacancy decreased from 8.9% to 7.10% Oceanside between Q3 and Q4, and year-end absorption was a positive 103,417 square feet. Vista San Escondido Marcos ACTIVITY Carlsbad Ocean Leasing activity mainly consisted of small tenants in multi-tenant parks and a few notable transactions such as Crescent Electric’s 30,000 square foot lease at 295 Distribution Street. Crescent Electric Supply Company is one of the largest independent distributors MARKET INDICATORS of electrical hardware and supplies in the U.S. Based in East Dubuque, Illinois, Crescent Electric has 120 distribution facilities in 27 states. Another notable lease transaction was Q4AD HISTORICAL MARKET TRENDS Q1 VISTA HISTORICAL MARKET TRENDS 2011 2012 (forecast) the approximately 16,000 square foot lease by Piercan USA, Inc., which is a latex glove company with headquarters in Paris, France and San Marcos, California. VACANCY There were limited sales during the Q4, mainly smaller buildings under 10,000 square feet. NET ABSORPTION Prices maintained its recent levels at approximately $90 - $120/SF. CONSTRUCTION RENTAL RATE FORECAST We should continue to see a reduction in supply throughout 2012 as there is no additional LEASE CONCESSIONS industrial product under construction, combined with the City’s elimination of some industrial zoned real estate. We also expect an uptick in demand as overall improvement in local consumer con dence continues to absorb available product. INDUSTRIAL/R&D VACANCY RATESDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS Q4 2011 INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS 300 VISTA HISTORICAL MARKET TRENDS 9% Q4 2011 8% Carlsbad 14.1% 200 7% Escondido 6.2% 100 6% Vacancy Rate SF (000s) 5% Oceanside 17.1% 0 4% San Marcos San Marcos 7.1% -100 3% Vista 8.6% 2% -200 1% North County 10.9% -300 0% 0% 5% 10% 15% 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net Absorption New Supply Vacancy OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS www.colliers.com/carlsbad

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