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MARKETBE       EATINDUSTR      RIAL SN            NAPSHO                 OTNO ORTH AM       MERICA                        ...
U.S. – WESTERN REGION               R                                                                                     ...
U.S. – MIDWEST R EGION                                                                                INDIA ANAPOLIS, IN L...
U.S. – SOUTHEAST REGION               T                                                                                   ...
Cushman & Wakefield North American Industrial Year End Marketbeat
Cushman & Wakefield North American Industrial Year End Marketbeat
Cushman & Wakefield North American Industrial Year End Marketbeat
Cushman & Wakefield North American Industrial Year End Marketbeat
Cushman & Wakefield North American Industrial Year End Marketbeat
Cushman & Wakefield North American Industrial Year End Marketbeat
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Cushman & Wakefield North American Industrial Year End Marketbeat

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Cushman & Wakefield North American Industrial Year End Marketbeat

  1. 1. MARKETBE EATINDUSTR RIAL SN NAPSHO OTNO ORTH AM MERICA YEAR-EN 2011 NDA Cu ushman & Wak kefield Researc Publication ch ECONOMIC OVERVIEW and deeclining vacancies. Leasing activit of 417.1 millio square feet ty on The North Am merican economy is weathering y (msf) i n 2011 is 20.5% higher than the 345.8 msf lease in 2010 and % e ed the storm desp the economic turmoil in pite the hig ghest level of act tivity since 2007 Increased dem 7. mand led to Europe. Business investment fr rom the private occupa ancy gains of 137 msf in 2011, a significant imp 7.4 provement fromm sector, coupled by an uptick in consumer d a year ago when only 14.1 msf of vaca space was ab ant bsorbed. With spending, mana aged to offset de eclines in improv leasing veloc and gains in occupancy, the national overall ved cityspending from all leve of governmen and the U.S. economy els nt e vacanc rate declined to 10.0% at year-end, an 80-bas point (bp) cy sisexpanded by 1.7% in 2011. Retail sale totaled a reco $4.7 trillion 2 es ord decrea from last yea As users and investors shake off lingering ase ar. ein 2011, a gain of 7.9% over 2010 and the largest perc % centage increase e doubts regarding the v s validity of the ec conomic recover demand is ry,since 1999. The manu ufacturing sector expanded for the 29th r expect to continue in 2012. tedconseccutive month an industrial production rose at an annual rate of nd o In Cannada, there is a c clear understand at the street level that ding t3.1% in the fourth qua arter, its tenth consecutive quar c rterly gain. occupiier activity is on the rise. The ovverall industrial vacancy rate fell lEven t though Canada’s overall GDP gr s rowth slowed in the fourth to 6.2% in 2011 from 6.7% in 2010. A % Absorption in mo markets, ostquarte of 2011 after expanding by 3.5% in the third quarter, this was er q s which has been gaining traction since early 2010, aver g raged about 4.4viewed as a pause, not a halt to anticipated growth. Canadian public d C msf pe quarter in the latter half of 20 er e 011. About 65% of theand pr rivate organizatio reported that they intend to invest $394.1 ons o absorpption in 2011 -- ttotaling 13.6 ms -- occurred in the second half sfbillion in construction and machinery and equipment in 2012, up 6.2% n % of the year and this momentum should carry into 201 12.from i investment in 20011. Conso olidations of multi-premise oper rations are displaacing space in many m markets, which is partially offsettting absorption gains fromNORT AMERICA – GDP GROW TH WTH compa anies that are exxpanding. Cost savings remain a high priority for r 6.0% % tenant In western Ca ts. anadian markets such as Vancouver, occupiers s, tend to favor ownersh as a means to control long-r costs. Land o hip o run 5.0% % and bu uilding sales are buoyant, with pr roduct shortage pushing up es 4.0% % selling prices. Tenants on the leasing s are finding v side value in reduced lease tterms and, wher possible, cont re traction or expansion flexibility. 3.0% % For the Mexican indus e strial real estate markets, the exxpanded 2.0% % presen of internatio developers, offering high-specification nce onal 1.0% % buildin has resulted in a larger grow in activity fo those ngs, wth or 2010 201 11 2012F 2 subma arkets where the new supply is l e located. By year--end, total class U.S. Canada a Mexico A dire ct industrial vacancy rate in Mex xico City had a 2 290-bp year-During 2011, the Mex g xican economy continued its rec c covery process, over-yyear improvemen decreasing to 7.6%. Overall vacancy for all nt, osurpasssing the maximu levels of eco um onomic activity observed before o classes showed a 210- annual decre s -bp ease and ended 2 2011 at 7.0%.the glo financial crisis. By the end of the fourth qua obal o arter, industrialoutput had increased 3.2% over the same period in th previous year t he r. TO FIVE NORT AMERICAN PORTS OP TH N ( % C H A N GE I N TE U T O T AL S)New f foreign direct inv vestment in Mex went up and overall fixed xico 25.0 0%investment showed an 8.0% increase. Export oriente industries n eddrove the growth of industrial employ yment, with the overall 15.0 0%unemp ployment rate st tanding at 5.0%. 5.0 0%The la ends in economic indicators support a growing atest positive tre -5.0 0%feeling of cautious opt g timism that the North American economy will npush tthrough the head dwinds caused by the European debt crisis. b -15.0 0%IMPROVING MARK FUNDAM KET MENTALS -25.0 0% LA/Long Beach, N New York/New Savan nnah, GA Vancouver (B BC) Oakland, CAThe U industrial ma U.S. arket has clearly transitioned int recovery in to CA Jersey 2009 2010 20112011 a demand accelerated significa and antly as market fundamentalscontin to fall more in-line with leve seen prior to the recession. nue elsThe U industrial ma U.S. arket continued to post strong leasing activity
  2. 2. U.S. – WESTERN REGION R OAKL LAND, CA Over vacancy rate declined slight to 9.2% at the rall es tly end of 2011. Small bu f usinesses are gain confidence in the economy ning y,GREA ATER LOS ANGELES, CA Great Los Angeles’ overall vacancy ter increas demand for smaller leases. This trend is particularly eviden sing r ntremain unchanged at 4.9% in 2011 and there are many indicators ned a m in the Oakland/Alamed and San Lean da ndro submarkets which s,that th region’s indus he strial market botttomed out in 2010. Four of the 2 e combin ctivity based on number of ned, saw 48.1% of the leasing acfive major markets recorded occupan gains and a slight uptick in ncy leases signed but only 39.3% of the to square feet leased. Strong otalrental rates. Investme activity continued to gain mo ent omentum and deman for quality spa has allowed landlords to push rents in some nd ace esales vvolume increased a whopping 41.2% from last year, totaling $1.66 subma arkets. While us sales activity remains slow, investor sales in ser ybillion in 2011. Although net absorpttion was positive in 2011, there e 2011 aalmost equaled t previous three years combin the ned. Slowwas a slight slowdown in market activ In the past twelve months, n vity. t market recovery is ex t xpected for the nnext two years, with growthrental rates showed some improveme and increase 2.0% year- ent ed accelerration expected in 2014 and 2015.over-y year. Vacancy ra are expecte to decline fur ates ed rther while rents swill co ontinue to trend upward, especially for class A product. d p PORT LAND, OR Ore egon’s economic recovery has a c allowed the industr market to ho steady, ready for expansion. The overall rial old .INLAN EMPIRE, CA The Inland Empire’s significant gains in leasing ND A t vacanc rate in Portlan decreased to 6.2% in fourth quarter 2011, cy nd oactivit and overall ne absorption in 2011 further str ty et 2 rengthened the from 77.0% last year. AAsking rental rate have leveled o a trend that es off,marke Demand in th ‘big box’ mark led to 28.1 msf of leasing et. he ket m is expe ected to continu until the mark tightens furt ue ket ther. In general,activit a 13.7% increase from last year and the largest amount of ty, the acttivity in the mar rket in 2011 has been steady wit much of it thleasing since 2007. Inc g creased demand, along with fewer move-outs, , coming from companie moving from one part of tow to another, g es wnled to a significant deccline in the overall vacancy rate, finishing 2011 at a expand and contrac ding cting, or choosin to renew. Bas on the ng sed8.0%, 300 bps lower than last year an the first time the vacancy rate nd tenant in the market,, the 100,000 sf plus market sho ts ould pick up infinishe a year in the single digits since 2007. Despite lower amounts ed s e 2012.of exissting available sp pace to choose from, healthy de f emand for all sizeeranges will keep overa vacancy rates low and absorp s all ption positive in SEATT TLE, WA An inc creased demand for warehouse space improvedthe cooming year. Seattle industrial mar e’s rket in 2011. Po activity, a dire driver for ort ect wareho ouse demand, is showing some improvements i container s inORAN NGE COUNTY CA At mid-year 2011, Orange County’s r flow, p particularly for o outbound traffic. Absorption rea . ached its highest tabsorp ption totaled poositive 1.4 msf, but instability in the global and t level siince 2007 and le easing by big box tenants is up 7 over the x 77%nation economy dro down industrial demand in the second half of nal ove o year. D Despite some se etbacks to the naational economy earlier in the ythe ye Net absorpt ear. tion totaled negaative 952,029 sf in the second year, G GDP growth in 2 2012 and 2013 s should continue to strengthenhalf, le eaving Orange County with an overall occupanc gain of 450,13 C o cy 30 export activity and wa t arehouse deman over the next 24 months. nd tsf for t year. While the shift at mid- the -year was a disappointment,2011 r remains the first year with occupancy gains sinc 2006. t ce LAS V EGAS, NV After witnessing a ve flat year in m r ery market activity,Conse equently, the cou unty’s average re ental showed a slight uptick s we exp pect lower vacancy rates over t next few yea This market’ the ars. ’sfrom a year ago for an annual growth rate of 3.3%, th first positive n he improv vement is depen ndent on continu job growth and an improved ued dannual growth since 2007. 2 econo my. Throughout 2011, vacancy and lease rates have remained t stable and the year ended on a more positive note for the first timeSAN D DIEGO, CA Lea asing in the San Diego industrial market reached D d since 2 2008. We are op ptimistic that the 2012 economi outlook for e ica total of 11.6 msf in 2011, the highes annual total sin 2006. Fourth 2 st nce the Las Vegas area willl show more po s ositive growth an stability in the nd equarte direct net abs er sorption of 187,0 sf dropped the direct 027 t market Year-to-date a t. analysis of net absorption, by su ubmarket andvacanc rate back belo the 10% mar and pushed an cy ow rk nnual net proper type, shows signs that distrib rty bution tenants a still moving areabsorpption to 467,072 sf, ahead of the 2010 total yet significantly 2 e out, w while manufacturing, light industr and flex spac show a rial cebehind pre-recession absorption level User sale acti d ls. ivity of 2.7 msf in positiv movement. ve2011 nnearly equaled that of 2010. Current asking rental rates of$10.32 psf/mo will like remain stable until overall va 2 ely e acancy returns to osingle- -digit levels. U.S. REGIONAL O OVERALL VAC CANCY RATES SSILICO VALLEY, CA Resurgence in the region’s economy was ON A n 14.0 %driven by social media cloud computi and software technology. As n a, ing e s 12.0 %the tech market rema ained stable in 20 there was an accelerated 010 10.0 %pace in leasing activity in 2011, resulti in positive ab y ing bsorption of 4.6msf. In the last year, the high-tech ov t verall vacancy rat declined by te 8.0 %270 bp from 16.4% to 13.7%. The te sector repre ps, t ech esented 71.8% ofo 6.0 %total 2 2011 industrial le easing activity. Venture capital will continue to V w 4.0 % 10.1% 10.2% 10.2% 11.4% 10.0% 7.3%nouris this steady gro sh owth. As quality space continue to tighten in y es 2.0 %the hig sought after Mountain View and Sunnyvale submarkets, ghly r w 0.0 % WESTERN NO ORTHEAST MIDWEST SOUTHWEST SOUTHHEAST NATIONALtech eexpansion will move into the San Clara and No nta orth San Jose REGION R REGION REGION REGION REGIO ONsubma arkets, which sho fuel modest rental rate increases. ouldCushm & 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,
  3. 3. U.S. – MIDWEST R EGION INDIA ANAPOLIS, IN L Leasing activity fo the Indianapo industrial or olis market totaled just ov 9.6 msf lease in 2011, up from the 2010 t ver edCHICA AGO, IL The Chicago industrial market’s overa vacancy rate l all total o 7.6 msf. Mode bulk facilities continued to drive not only the of ern s ereache the lowest level in three year measuring 9.8 at year-end, a ed rs, 8% healthy leasing activity but also the im y y, mpressive gains sseen in120-bp decrease from this time last year. New leasin activity p m ng investm ment sales, whic ended 2011 w 7.8 msf sold to investors. ch with d ased 10.8% over 2010 and 30.3 msf were leased, compared toincrea m High ddemand and min imal availability o these facilities combined with of s, h27.4 m last year. Lar blocks of ava msf rge ailable class A sp pace are quickly Indiana stable economic climate, sug a’s ggest the industr market will rialdwindling in the area. Investment transactions reache 24.9 msf in ed contin ue to thrive, tho ough ongoing int ternational insta ability is likely to2011, the highest recoording since the end of 2008, an nearly tripled nd prolon the slightly slo ng ower pace of gro owth. Overall, leeasing activity isthe 9.2 msf recorded this time last year. Demand is expected to 2 e expect to continue at its current level, maintaining a moderate tedremain high for institu n utional investors looking for high quality assets h decline in vacancy, and rise in rental r e d rates, over the next year.and th hose spaces will come at a premium. Investmment sales in 20 are likely to maintain their a 012 accelerated pace of grow barring any major blows to Indiana’s econo wth, y o omy, or globalCLEVE ELAND, OH Th Greater Cleveland industrial market ended he capital markets.2011 w a significant increase in the overall vacancy rate, adjusting with t yto 9.6% as compared to 9.2% for the third quarter an 9.4% at the nd WAUKEE, WI The industrial mark in Milwaukee finished the MILWA e ketend of the fourth quar 2010. Activ on the sales side will have th f rter vity he year o a strong note.. Absorption rat remained positive for the on temost t traction heading into the first qu g uarter 2012 with the h sixth s straight quarter a the year end with occupa and ded ancy gains of 2.0 0manuf facturing sector leading the way. The oil and ga industry will be . as b msf an overall vacanc rate of 7.9%. Increased absor nd cy rption andthe pr rimary force beh this activity. Quality produc is becoming a hind ct produc ctivity were cert tainly positive in ndicators for the future of the epremium as prices wil continue to inc ll crease slowly. Although the A Milwauukee industrial m market, yet chall lenges and uncerrtainty remaindeman exists for new construction, activity will rem slow because nd w main concer rning Wisconsin overall busine climate. Polit n’s ess tical instabilityof the cost. has pla agued the state oover the past ye and experts b ear believe that potent investors ma be hesitant to sink capital into the market. tial ay o oDETR ROIT, MI Activity within the indu y ustrial market re emained steadythroug 2011. The ov gh verall vacancy closed at 16.5%, a decrease of KANSA CITY, MO F the Kansas C metropolita area, industria AS For City an al1.6% f from the fourth quarter 2010. Foreclosure activ remained F vity sales a leasing activity have continue to gain mome and ed entum andprevalent, which contributed to prope values rema erty aining close to highlig ht the demand f quality distrib for bution and flex s space from localall-tim lows. For 2012, we expect to see more bank me o k-owned and naational prospects The industrial market continu to suffer s. uesproperties hitting the market, howeve the mentality of some of er, y from a lack of available class A distribu e ution space. As more companiesthose banks will most likely toughen up. Many have come closer to t u c look to integrate Kans City into the distribution c o sas eir channels, theshorin up their financ and are expe ng ces ected to hold ou for better ut deman for such space continues to g nd e grow. With the o overall vacancyvalues on future forec s closures. The typpical buyer and tenant mentality t y rate at a respectable 7 t 7.6%, Kansas Cit is poised to ta advantage of ty ake fwill sh as many pros hift spects are comin to the unplea ng asant conclusion pent-u demand follow the recession. The struggling overall up wingthat th may have “m hey missed out” on all-time lows on certain types of a f econo my has kept dev velopers and owwners from any k kind oftransaactions. We exp pect that landlor and sellers will hold their rds w specula ative constructio but demand should encoura new on, ageground on sale/lease rates, and in turn tenants and buyers will come r n, constrruction in the cooming year and s several speculativ projects are veto grip with the fact that they may ne to pay more per square foo ps t eed e ot nearing the beginning phases of constr g ruction. With mmore prospectscompa ared to deals in previous years. vying f fewer buildin the transactions are becomi more for ngs, ing compe etitive and the need for new dev velopment incre eases daily.COLU UMBUS, OH The overall vacancy rate in Columbus’ industrial esector decreased from 11.0% to 10.8% at the close of the fourth r m % oquarte with overall absorption for th year of 3.8 ms However, er a he sf.fourth quarter leasing activity in the class A segment was reminiscent h g c t U.S. REGIONAL D DIRECT WARE EHOUSE NET RENTof the sluggish activity for the year, with a few large deals holding up y w d $7.0 00the maarket. At the close of the fourt quarter, there are no pending th e g $6.0 00specullative buildings scheduled to com on-line. Ren rates and deal s me ntalvelocit still have a wa to climb before dirt starts tur ty ay rning for the $5.0 00next s speculative wave e. $4.0 00ST. LOOUIS, MO A rec covery has begun to take place in the St. Louis n $3.0 00 $5.42 $4.83 $4.13 $3.75 $3.48 $4.25industtrial market. For the first time si r ince 2008, the market has mrecord positive ann absorption and the year end with an ded nual a ded $2.0 00 WESTERN NO ORTHEAST SOUTHWESTT MIDWEST SOUTHHEAST NATIONALoveral net absorption of 394,301 sf. The overall industrial vacancy ll n T REGION R REGION REGION REGION REGIO ONrate decreased for the first time since 2006, ending th year at 9.8%, e e hecompa ared to 10.0% in 2010. Althoug the decrease is a good sign n ghthat th market is gett back on track, the rate is st higher than he ting tillthe fiv ve-year average vacancy rate of 8.0%. v 8Cushm & 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,
  4. 4. U.S. – SOUTHEAST REGION T NASH HVILLE, TN Whiile the overall va acancy has declinned, manufa acturing and flex sectors report minor increa x ted ases in vacancy.ATLA ANTA, GA Atlan saw a net increase in jobs in 2011, its first nta The wwarehousing/distr ribution sector h carried the o has other industrialsince 22007, bringing th unemployment rate down to 9.2% in he o sector reporting a de rs, ecline in vacancy and absorbing more than y, gNovem mber. Employme in Atlanta’s manufacturing se ent m ector has seen a 370,00 sf of industria space in the fo 00 al ourth quarter. CCorporations2.5% ppercent increase in jobs compar to one year ago while e red a have taaken advantage of favorable leas conditions. A sing Amazon.com ha astranspportation, wareh house & utilities has seen 1.3% in ncrease in jobs. comm itted to a $135 million investme into the Nas ent shville market.Industtrial leasing activ totaled 13.2 msf by year-end which is slightly vity d y Their ddistribution centters will occupy two fulfillment centers that ylagging total activity re g eported in 2010, while user sale activity es approximately 1.8 msf and will provide 1,300 new jobs by early total aincreaased by 26.0% ye ear-over-year. The overall vacan declined by ncy 2012. Griffin Technollogies, CEVA Lo ogistics, WMH, F FedEx and LKQ90 bps over the past twelve months, ending the year at 10.7%. s t absorb more than 1.5 msf of leasing activity over th last twelve bed g heMIAM FL The Miami-Dade industrial market closed the year with MI, l month albeit on shor hs, rter lease termss.optimism looking ahea to 2012. Leas activity incre ad sing eased 97.8% MEMP PHIS, TN After a sluggish start, aactivity in the seecond half of thefrom 3 msf at the en of 2010 to 7.3 msf at the clos of 2011, a 3.6 nd se year reebounded, and t year ended u with a healthy performance the up y cant improveme which bodes well for the return to marketsignific ent overal l. The market sa a 160-bp ann drop in vaca aw nual ancy, from 15.3%%fundam arket also enjoye healthy sales activity as South mentals. The ma ed h in 2010 to 13.7%. In 2011, rents have remained flat an low at an 0 ndFlorida continued to attract investors and tenants alik Sales activity a a s ke. averag rate of $2.50 psf. There is ant ge ticipation for a s strong 2012 withhincreaased 43.5% from 1.9 msf at the end 2010 to 2.7 msf at year-end. e good aactivity already uunderway and nu umerous inquirie from users esORLA ANDO, FL The Orlando industrial market closed 2011 ready to O o with la arge requiremen With an imp nts. proved economy Memphis will y,transittion into the nex phase of reco xt overy. While leas velocity in sing contin ue to attract ne tenants to the market becaus of its ew e sethe fin quarter fell sh nal hort of the volume set in the pr receding three compe etitive rents, locaation and abund dant quadramoda transportation al nquarte overall vacan extended th downward tra ers, ncy he ajectory capabi lities.prevalent throughout 2011 and absor rption remained markedly LOUIS SVILLE, KY As w predicted, st we trong fourth quaarter leasingpositiv for the third consecutive qua ve c arter. Although headwinds – and h d activity of 911,385 sf p y pushed total leas activity for t year to 4.1 sing thea 13.1% vacancy rate – persist, overall absorption of 1.5 msf in 2011 msf, abbove 4.0 msf for the first time si r ince 2008. As ussual, over two-saw th market reclaim 45.2% of the occupancy surre he endered betweeen thirds of the leasing acctivity for the qu uarter occurred in the2008 a 2010. Expec continued dec and ct clines in vacancy through 2012 as a wareho ouse/distribution sector. Indust trial absorption o over the past tencompa anies shake off li ingering doubts regarding the vaalidity of years h averaged jus over 2.0 msf p year, suggest that the has st per tingecono omic recovery an move to activ consider new space nd vely improv economy ha allowed the L ving as Louisville market to claw its way t yrequirrements. back to equilibrium. oJACKS SONVILLE, FL The Jacksonville industrial marke closed 2011 by T et b HAMP PTON ROADS, VA Industrial leasing activity on Hampton nextend the holding pattern establis ding shed in the previ ious quarter. Roads’’ Southside fared well, showing growth in absor d rption, but notOvera vacancy remained unchanged at 11.0% on the back of all e enough to offset the n h negative absorption on the Penin nsula. Thenominnally positive abs sorption, as market activity prov limited for ved overal l economy of th area is still gro he owing, although at a sluggishthe se econd consecutiv quarter. The year consequen proved a ve ntly pace. Profits have conntinued to slowly climb, but it has yet to affectyear o conflicting sign for the mark with heavily positive annual of nals ket, y the un employment rat which continues at 7.3%, the same as one te, eabsorpption of 1.2 msf and evidence of new tenant dem f mand early in the year ag Demand for distribution and warehouse spa should go. d aceyear te empered by lack kluster demand in the latter half Despite the f. increas as consumers continue to spend and the hou se s using marketslowdown in moment tum, cautious op ptimism remains the watch creeps back to norma s al.phrase entering 2012. Expect overall vacancy to approach 10.0% by e vyear-e as business confidence solidifies and market hesitation gives end c t s RICHM MOND, VA In the Richmond industrial market tenants leased t, dway to a steady increa in leasing vel o ase locity. more sspace for the ye than they vac ear cated for the firs time in severa st al years. Richmond com mpanies are now expanding their existing space. rCHAR RLOTTE, NC North Carolina was ranked the th best state w hird Next yyear will see a coontinuation of th positive abso he orption trend.for bu usiness by Forbes. The foreign in nvestment and headquarter With aalmost no new c construction, users will look for bargains. And rannouuncements contin to outpace most of the cou nue untry following when ffire-sale prices d don’t materialize —not nearly as many industria e s althe low cost of operation and availabi of quality lab As a result w ility bor. properrties ended up in foreclosure as expected in the dark days of n s eof the low cost of opeerations and access to the grow consumer wing 2008 — we should see some stabilizat e tion in the mark Something to ket.base in the greater Ch n harlotte metro area, we continu to see healthy a ue y watch will be the inter rest around the new interstate I-295interest from users an investors in the market and the surrounding nd t interch hange for the Me eadowville Techhnology Park in C Chesterfield.counti Of particular interest is the increase in dem ies. mand for 100,000 0 Couple with the construction of the new Amazon fu ed ulfillment centersf and larger propertie which is driving many compa es, anies to considerr there, robust activity iis expected.the co ounties immediat surrounding Charlotte, NC including the tely gnorthe counties of South Carolina. We expect to see build-to-suit ern S sdiscussions pick up in 2012 as cap rates compress, pu ushing values ofmoder distribution fa rn acilities closer to replacement value. o vCushm & 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,

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