North American Industrial Highlights 1Q 201111

831 views

Published on

Published in: Real Estate
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
831
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

North American Industrial Highlights 1Q 201111

  1. 1. HIGHLIGHTS NORTH AMERICA www.colliers.com Q1 2011 | Industrial Ross J. Moore Chief Economist | USA 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 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 activity up and a degree of optimism in most markets, warehouse rents halted a three-year decline to register no change over the quarter. With the economy registering modest growth in the first three months of the year, and reasonable 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 manufacturing, particularly goods intended for export. Exports continued to ratchet higher with 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. 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- ited warehouse construction, vacancy rates are certain to go significantly lower in the coming quarters. 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. The U.S. industrial market posted another robust quarter and all indications are demand will stay strong pulling vacancies significantly lower by year-end market indicators Relative to prior period U.S. Industrial market Summary Statistics, Q1 2011 U.S. Industrial Market Starts the Year with a Flourish Q1 2011 Q2 2011* VACANCY NET ABSORPTION construction rental rate *Projected U.S. industrial MARKET Q1 2009 – Q1 2011 MillionSquareFeet Vacancy(%) -60 -50 -40 -30 -20 -10 0 10 20 30 40 Q1Q4Q3Q2Q1Q4Q3Q2Q1 Absorption Completions Vacancy 2009 2010 2011 8 9 10 11 12 Vacancy Rate: 10.47% Change from Q4 2010: –0.15 Absorption: 26.0 Million Square Feet New Construction: 6.0 Million Square Feet Under Construction: 29.4 Million Square Feet Asking Rents Per Square Foot Average Warehouse/ Distribution Center: $4.76 Change from Q4 2010: -0.1% continued on page 6
  2. 2. p. 2 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America UNITED STATES | INDUSTRIAL SURVEY MARKET EXISTING INVENTORY (SF) MAR. 31, 2011 NEW CONSTRUCTION Q1 2011 (SF) CURRENTLY UNDER 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 11,716,000
  3. 3. highlights | Q1 2011 | INDUSTRIAL | north America Colliers International | p. 3 UNITED STATES | INDUSTRIAL SURVEY MARKET EXISTING INVENTORY (SF) MAR. 31, 2011 NEW CONSTRUCTION Q1 2011 (SF) CURRENTLY UNDER CONSTRUCTION (SF) midwest Chicago, IL 1,303,720,000 319,000 3,732,000 Cincinnati, OH 256,642,000 127,000 127,000 Cleveland, OH 420,374,000 0 231,000 Columbus, OH 211,924,000 0 1,992,000 Detroit, MI 485,071,000 53,000 0 Indianapolis, IN 276,652,000 135,000 239,000 Kansas City, MO-KS 223,515,000 17,000 290,000 St. Louis, MO 262,290,000 0 11,000 West Michigan 113,073,000 0 138,000 MIDWEST TOTAL 3,553,261,000 651,000 6,759,000 west Bakersfield, CA 31,675,000 0 506,000 Boise, ID 32,796,000 0 0 Denver, CO 278,456,000 32,000 103,000 Fairfield, CA 41,552,000 0 0 Fresno, CA 48,600,000 0 0 Honolulu, HI 38,576,000 0 0 Las Vegas, NV 107,792,000 22,000 181,000 Los Angeles - Inland Empire, CA 379,098,000 0 2,916,000 Los Angeles, CA 879,843,000 271,000 2,812,000 Oakland, CA 131,233,000 0 26,000 Orange County, CA 200,453,000 0 0 Phoenix, AZ 247,446,000 244,000 245,000 Pleasanton/Walnut Creek, CA 33,035,000 0 20,000 Portland, OR 192,696,000 0 947,000 Reno, NV 73,621,000 0 0 Sacramento, CA 186,424,000 8,000 0 San Diego, CA 188,338,000 0 238,000 San Francisco Peninsula, CA 40,808,000 0 0 San Jose/Silicon Valley, CA 253,941,000 609,000 152,000 Seattle/Puget Sound, WA 270,581,000 0 0 Stockton/San Joaquin County, CA 92,636,000 0 138,000 WEST TOTAL 3,749,598,000 1,186,000 8,285,000 U.S. TOTAL 13,405,334,000 5,993,000 29,370,000
  4. 4. p. 4 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America UNITED STATES | INDUSTRIAL SURVEY MARKET ABSORPTION Q1 2011 (SF) VACANCY RATE DEC. 31, 2010 (%) VACANCY RATE 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 11.30
  5. 5. highlights | Q1 2011 | INDUSTRIAL | north America Colliers International | p. 5 UNITED STATES | INDUSTRIAL SURVEY MARKET ABSORPTION Q1 2011 (SF) VACANCY RATE DEC. 31, 2010 (%) VACANCY RATE mAR. 31, 2011 (%) midwest Chicago, IL (749,000) 11.62 11.64 Cincinnati, OH (699,000) 8.05 8.83 Cleveland, OH 115,000 9.56 9.54 Columbus, OH (469,000) 12.96 12.81 Detroit, MI 2,343,000 15.24 14.44 Indianapolis, IN 3,356,000 8.54 7.47 Kansas City, MO-KS (830,000) 6.85 7.22 St. Louis, MO 531,000 8.23 8.03 West Michigan 1,000 9.21 9.22 MIDWEST TOTAL 3,599,000 10.83 10.69 west Bakersfield, CA (107,000) 9.66 10.00 Boise, ID (112,000) 10.57 10.91 Denver, CO 128,000 7.77 7.74 Fairfield, CA (56,000) 14.53 14.67 Fresno, CA 40,000 7.90 7.82 Honolulu, HI (33,000) 4.74 4.83 Las Vegas, NV (213,000) 16.56 16.78 Los Angeles - Inland Empire, CA 3,730,000 11.62 10.64 Los Angeles, CA 3,356,000 5.37 5.01 Oakland, CA 626,000 9.54 9.07 Orange County, CA 541,000 5.79 5.52 Phoenix, AZ 677,000 17.00 16.75 Pleasanton/Walnut Creek, CA (426,000) 10.95 12.24 Portland, OR 297,000 9.36 9.21 Reno, NV 234,000 14.89 14.57 Sacramento, CA (239,000) 13.38 13.52 San Diego, CA 355,000 11.36 11.12 San Francisco Peninsula, CA 119,000 9.67 9.37 San Jose/Silicon Valley, CA (1,065,000) 12.99 13.82 Seattle/Puget Sound, WA 729,000 8.34 8.07 Stockton/San Joaquin County, CA 1,942,000 17.71 15.62 WEST TOTAL 10,523,000 9.87 9.62 U.S. TOTAL 26,001,000 10.63 10.47
  6. 6. p. 6 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011 MARKET SALES PRICE (USD PSF) CAP rATE (%) VACANCY FORECAST (3 MONTHS) ABSORPTION FORECAST (3 MONTHS) RENT FORECAST 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 – – –
  7. 7. highlights | Q1 2011 | INDUSTRIAL | north America Colliers International | p. 7 UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011 MARKET SALES PRICE (USD PSF) CAP rATE (%) VACANCY FORECAST (3 MONTHS) ABSORPTION FORECAST (3 MONTHS) RENT FORECAST 3 MONTHS midwest Chicago, IL 45.00 7.00 Down Same Same Cincinnati, OH 32.00 8.00 Same Same Same Columbus, OH 28.00 8.10 Same Same Same Detroit, MI 26.07 8.50 Same Same Down Grand Rapids, MI 28.00 10.00 Up Same Same Indianapolis, IN – 8.75 Same Same Same St. Louis, MO 10.26 10.00 Down Up Up MIDWEST AVERAGE 28.22 8.62 – – – west Bakersfield, CA 38.00 10.00 Same Same Same Boise, ID 45.00 – Same Same Same Denver, CO 45.00 8.20 Down Up Same Fairfield, CA – – Up Down Down Fresno, CA 38.00 9.00 Same Up Same Honolulu, HI 160.00 8.00 Same Same Same Las Vegas, NV 110.35 – Up Same Down Los Angeles - Inland Empire, CA 53.00 5.25 Down Up Up Los Angeles, CA 87.00 6.75 Down Up Same Oakland, CA 91.00 7.00 Down Up Up Orange County, CA 105.00 6.50 Down Up Same Phoenix, AZ 48.00 9.50 Down Up Same Pleasanton/Walnut Creek, CA 150.00 9.00 Down Up Same Portland, OR 69.46 – Same Same Same Reno, NV 51.27 – Same Same Same Sacramento, CA 51.67 8.07 Same Same Same San Diego, CA 92.14 – Down Same Same San Francisco Peninsula, CA 175.00 7.00 Same Same Same San Jose/Silicon Valley, CA – Same Same Same Seattle/Puget Sound, WA 54.68 – Down Up Same Stockton/San Joaquin County, CA 57.00 7.80 Down Up Same WEST AVERAGE 80.08 7.85 – – – U.S. AVERAGE 60.75 8.08 – – –
  8. 8. p. 8 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America Occupancies rise for fourth consecutive quarter. For the fourth consecu- tive three-month period, industrial markets registered an increase in oc- cupied space. During the first quarter, net absorption totaled 25.7 million square feet (MSF)—a small drop from the fourth quarter, when occupied space increased by 28.6 MSF, but in sharp contrast to the 19.3 MSF of industrial space returned to the market in the first quarter of 2010. Of the 59 markets tracked in the U.S., 40 (68 percent) reported positive absorp- tion during the first quarter; however, the West and South accounted for the 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 year in robust fashion with first quarter absorption reaching almost 6.0 MSF, considerably above the 4.0 MSF quarterly averages in 2010. Warehouse construction drops back to first-half 2010 levels. First quar- ter completions totaled 6.0 MSF, a modest decrease from the fourth quar- ter when 9.4 MSF were delivered to the market, and back to delivery levels registered in the first half of 2010. Of the 6.0 MSF delivered, 86 percent was build-to-suit and the balance was classified as speculative (spec) construction. Last quarter, build-to-suit deliveries accounted for 71 per- cent of completions. In the coming quarters construction is anticipated to be largely build-to-suit, with only 35 percent under construction at year- end classified as speculative, but there were early signs the balance be- tween build-to-suit and spec construction will be more even as early as 2012. Quarter-end construction activity totaled 29.4 MSF, a modest in- crease from the 22.7 MSF underway at the end of the fourth quarter, but well below the 107.0 MSF recorded two years ago. Canadian construction remained subdued with 1.2 MSF completed in Q1, broadly in line with con- struction levels experienced in 2010. U.S. industrial vacancies drop by further 15 basis points. The U.S. indus- trial warehouse vacancy rate dropped 15 basis points during the first quarter to register 10.47 percent. This was in addition to a significant drop in the national vacancy rate in the fourth quarter when vacancies fell by 22 basis points. Even though the national average dropped quite significantly during 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 in Q1. Canadian warehouse vacancies by comparison were sharply lower, falling by 33 basis points during the quarter to average 5.30 percent. After 12 quarterly declines, industrial rents hold steady. After three years of consistently lower rents, industrial warehouse lease rates held steady in the first quarter. Warehouse rents registered $4.76 per square foot at the end of the quarter. Bulk warehouse rents also held steady at $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 mixed during the quarter with warehouse and flex lease rates up, while bulk and R&D fell marginally. U.S. Market Starts the Year with a Flourish Continued from page 1 Index 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 A 0 10 20 30 40 50 60 70 80 2009 2010 2011 Institute for Supply Management Manufacturing Index -1,000,000 250,000 1,500,000 2,750,000 4,000,000 Chicago New Jersey - Central New Jersey - Northern Savannah Dallas Detroit Atlanta Los Angeles Indianapolis Los Angeles - Inland Empire aBSORPTION (SF) | sELECT MARKETS | q1 2011 0 30000 60000 90000 120000 150000 MFJDNOSAJJMAMFJ 2010 2011 Millions,Dollars,SeasonallyAdjusted Trade: Exports - Goods, (Mil. $, SA) | q1 2011
  9. 9. highlights | Q1 2011 | INDUSTRIAL | north America Colliers International | p. 9 UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH 2011 MARKET WAREHOUSE/DISTRIBUTION SPACE (USd PSF) BULK SPACE (USd PSF) FLEX/SERVICE SPACE (USd PSF) TECH/R&D SPACE (USd PSF) NORTHEAST Baltimore, MD 4.95 4.43 8.36 – Boston, MA 4.50 4.95 8.00 11.00 Hartford, CT 4.06 4.28 6.50 6.50 Long Island, NY 7.86 14.50 15.97 8.68 Long 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 12.63 New Jersey - Northern 5.92 5.68 10.55 5.82 Philadelphia, PA 4.00 3.75 7.00 11.00 Washington DC 7.82 – 12.27 – NORTHEAST AVERAGE 5.94 6.03 10.23 9.27 SOUTH Atlanta, GA 3.26 2.88 7.27 7.03 Charleston, SC 3.65 4.00 6.00 16.25 Charlotte, NC 3.28 – 8.45 – Columbia, SC 3.75 3.75 – 9.50 Dallas-Ft. Worth, TX 3.00 2.70 6.75 8.30 Ft. Lauderdale-Broward, FL 6.46 6.16 9.71 9.75 Greenville/Spartanburg, SC 2.91 2.95 6.86 – Houston, TX 5.01 4.17 6.95 6.64 Jacksonville, 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 10.50 Miami, FL 6.59 5.30 10.81 8.87 Nashville, TN 4.49 3.12 7.31 – Orlando, FL 4.49 4.20 8.93 8.90 Raleigh, NC 3.83 3.84 8.52 – Savannah, GA 3.95 3.75 7.00 10.00 Tampa Bay, FL 4.23 3.97 8.41 9.48 West Palm Beach, FL 6.89 6.34 10.84 14.71 SOUTH AVERAGE 4.12 16.25 8.03 9.99
  10. 10. p. 10 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH 2011 MARKET WAREHOUSE/DISTRIBUTION SPACE (USd PSF) BULK SPACE (USd PSF) FLEX/SERVICE SPACE (USd PSF) TECH/R&D SPACE (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 9.45
  11. 11. highlights | Q1 2011 | INDUSTRIAL | north America Colliers International | p. 11 CANADA | INDUSTRIAL SURVEY MARKET EXISTING INVENTORY (SF) MAR. 31, 2011 NEW CONSTRUCTION Q1 2011 (SF) CURRENTLY UNDER CONSTRUCTION (SF) Calgary, AB 122,546,000 561,000 561,000 Edmonton, AB 77,155,000 83,000 379,000 Guelph, ON 19,739,000 0 98,000 Halifax, NS 7,077,000 0 80,000 Montreal, QC 347,771,000 0 0 Ottawa, ON 28,027,000 75,000 75,000 Regina, SK 16,195,000 20,000 695,000 Saskatoon, SK 19,700,000 40,000 550,000 Toronto, ON 760,332,000 0 2,244,000 Vancouver, BC 178,202,000 329,000 1,592,000 Waterloo Region, ON 59,829,000 80,000 65,000 CANADA TOTAL 1,636,572,000 1,187,000 6,339,000 canada | INDUSTRIAL SURVEY MARKET ABSORPTION Q1 2011 (SF) VACANCY RATE DEC. 31, 2010 (%) VACANCY RATE mAR. 31, 2011 (%) Calgary, AB 803,000 5.44 5.10 Edmonton, AB 192,000 4.09 3.95 Guelph, ON (17,000) 5.60 5.69 Halifax, NS 10,000 4.96 4.82 Montreal, QC 213,000 6.16 6.10 Ottawa, ON (224,000) 5.82 6.60 Regina, SK 106,000 1.35 0.81 Saskatoon, SK 114,000 2.71 2.12 Toronto, ON 4,294,000 6.00 5.44 Vancouver, BC 440,000 4.10 4.02 Waterloo Region, ON 5,000 6.83 6.36 CANADA TOTAL 5,935,000 5.63 5.30
  12. 12. p. 12 | Colliers International highlights | Q1 2011 | INDUSTRIAL | north America CANADA | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011 MARKET SALES PRICE (USD PSF) CAP rATE (%) VACANCY FORECAST (3 MONTHS) ABSORPTION FORECAST (3 MONTHS) RENT FORECAST 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 MARKET WAREHOUSE/DISTRIBUTION SPACE (USd PSF) BULK SPACE (USd PSF) FLEX/SERVICE SPACE (USd PSF) TECH/R&D SPACE (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 10.46 Glossary Absorption – Net change in leased space over a given period of time. Bulk Space – 100,000 square feet or more with up to 10 percent office space, the balance being general warehouse space with 20 to 36 foot ceiling heights. All loading is dock-height. Flex Space – Single-story buildings having 10- to 18-foot ceilings with both floor-height and dock- height loading. Includes wide variation in office space utilization, ranging from retail and personal service through distribution, light industrial and occasional heavy industrial use. Inventory – Includes all existing multi or single tenant leased and owner-occupied industrial warehouse, light manufacturing, flex and R&D properties greater than or equal to 10,000 square feet. New Construction – Includes completed speculative and build-to-suit construction. New construction quoted on a net basis after any demolitions or conversions. Service Space – Single story (or mezzanine) with 10- to 16-foot ceilings with frontage treatment on one side and dock-height loading or grade level roll-up doors on the other. Less than 15% office. Tech/R&D – One- and two- story, 10- to 15-foot ceiling heights with up to 50% office/dry lab space (remainder in wet lab, workshop, storage and other support), with dock-height and floor-height loading. Triple Net Rent – Includes rent payable to the landlord and does not include additional expenses such as taxes, insurance, maintenance, janitorial and utilities. All industrial and high-tech/R&D rents in this report are quoted on an annual, triple net per square foot basis in U.S. dollars. Vacancy Rate – Percentage of total inventory available (both vacant and occupied) as at the survey date including direct vacant and sublease space. Warehouse – 50,000 square feet or more with up to 15 percent office space, the balance being general warehouse space with 18- to 30- foot ceiling heights. All loading is dock-height.
  13. 13. highlights | Q1 2011 | INDUSTRIAL | north America www.colliers.com COLLIERS INTERNATIONAL 601 Union Street, Suite 4800 Seattle, WA 98101 tel +1 206 695 4200 FOR MORE INFORMATION Ross J. Moore Chief Economist | USA tel +1 617 722 0221 EMAIL ross.moore@colliers.com 512 offices in 61 countries on 6 continents United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117 • $1.5 billion in annual revenue • 979 million square feet under management • Over 12,000 professionals Copyright © 2011 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Accelerating success. INDUSTRIAL VACANCY RATE RANKINGS MARKET | UNITED STATES VACANCY RATE mar. 31, 2011 (%) Boston, MA 21.14 Las Vegas, NV 16.78 Phoenix, AZ 16.75 Savannah, GA 16.44 Little Rock, AR 15.74 Stockton/San Joaquin County, CA 15.62 Fairfield, CA 14.67 Reno, NV 14.57 Detroit, MI 14.44 Atlanta, GA 13.90 San Jose/Silicon Valley, CA 13.82 Charlotte, NC 13.63 Nashville, TN 13.58 Sacramento, CA 13.52 Memphis, TN 13.02 Columbus, OH 12.81 Washington DC 12.77 Charleston, SC 12.44 Orlando, FL 12.25 Pleasanton/Walnut Creek, CA 12.24 Raleigh, NC 11.93 Louisville, KY 11.88 Dallas-Ft. Worth, TX 11.81 Chicago, IL 11.64 San Diego, CA 11.12 Jacksonville, FL 11.03 Boise, ID 10.91 New Jersey - Central 10.91 Tampa Bay, FL 10.79 Los Angeles - Inland Empire, CA 10.64 Baltimore, MD 10.48 Greenville/Spartanburg, SC 10.26 Bakersfield, CA 10.00 West Palm Beach, FL 9.85 Philadelphia, PA 9.57 Cleveland, OH 9.54 Ft. Lauderdale-Broward, FL 9.47 San Francisco Peninsula, CA 9.37 Hartford, CT 9.37 West Michigan 9.22 Portland, OR 9.21 Oakland, CA 9.07 Cincinnati, OH 8.83 Miami, FL 8.65 Seattle/Puget Sound, WA 8.34 St. Louis, MO 8.03 Fresno, CA 7.82 Denver, CO 7.74 New Jersey - Northern 7.62 Indianapolis, IN 7.47 Kansas City, MO-KS 7.22 Columbia, SC 6.35 Long Island-Nassau, NY 6.25 Houston, TX 6.03 Long Island, NY 5.53 Orange County, CA 5.52 Long Island-Suffolk, NY 5.10 Los Angeles, CA 5.01 Honolulu, HI 4.83 INDUSTRIAL VACANCY RATE RANKINGS MARKET | CANADA VACANCY RATE mar. 31, 2011 (%) Ottawa, ON 6.60 Waterloo Region, ON 6.36 Montreal, QC 6.10 Guelph, ON 5.69 Toronto, ON 5.44 Calgary, AB 5.10 Halifax, NS 4.82 Vancouver, BC 4.02 Edmonton, AB 3.95 Saskatoon, SK 2.12 Regina, SK 0.81

×