09 2nd Quarter Industrial Review

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Las Vegas Commerce CRG Industrial 2nd Qtr 2009 Market Report

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09 2nd Quarter Industrial Review

  1. 1. Industrial 2ND QUARTER LAS VEGAS 2009 MARKET REVIEW 3800 Howard Hughes Parkway, Suite 1200 • Las Vegas, Nevada 89169 Tel 702.796.7900 • Fax 702.796.7920 • commercecrg.com
  2. 2. COMMERCE CRG is a regional real estate firm dedicated first and foremost to our clients. With the industry’s premier professionals, and industry leading technology, our mission is to exceed our clients’ expectations through service excellence. C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  3. 3. INDUSTRIAL MARKET INDICATORS Change Since Current 2Q08 2Q09 LAS VEGAS MARKET OVERVIEW Vacancy 12.92% Lease Rates $0.70 NNN Net Absorption * -2,033,766 Construction 720,913 *The arrows are trend indicators over the specified time period and do not represent a positive or negative value. (e.g., absorption could be negative but still represent a positive trend over a specified period.) LAS VEGAS INDUSTRIAL MARKET AT A GLANCE OVERVIEW Vacancy rates in the Las Vegas area have almost doubled in one year from the 7.7% rate we saw a year ago to the current vacancy rate of 12.92%. An article, produced a year ago, in the Nevada Business The cause of the rise in vacancy is mostly due to the new product that Journal stated that “while several factors have contributed came online in 2008 and 2009. Over 50% of the product that came online to rising vacancy rates and lower effective rents, real estate had little or no preleasing activity and continue to remain vacant. With experts in southern Nevada agree that the industrial new development at a stand still, vacancy should start to be absorbed and slump is part of a normal business cycle.” They also stated vacancy rates should start to stabilize. that the market would return to normal by mid-2009. We By the end of 2nd quarter, the market showed a drop in rates once again have now reached the middle of 2009 and have yet to see to the current average rate of $0.70 per square foot (psf), a $0.02 change a rebound in the industrial market. In fact, the Las Vegas from the beginning of the year rate of $0.72 per square foot (psf) and a Industrial market continues to see rising vacancy rates $0.09 change from a year ago. and negative absorption. So when does the market look like it will finally rebound and was this really a “normal” Going forward, new supply numbers are expected to change dramatically business cycle. Let’s look at the facts to understand where in the next year with only 720,000 sf of current under construction the Las Vegas industrial market really is today. product in the pipeline. With the continued hesitation of developers to build product in the current economic conditions, we don’t expect much of the planned product to come online any time soon. A year ago we were hoping to see the housing market start showing improvements by now, which would help increase stability in the market. Currently the housing market continues to see foreclosure gains and even more homeowners walking away from their homes due to the lost of hope of ever recovering or rebuilding capital in their homes. Not only has the residential real estate not rebounded, but we are now getting ready for a wave of commercial defaults and foreclosures. Real Capital Analytics reported that “June saw the largest rise yet for (commercial) properties that are reported to be in default, foreclosure or involved in bankruptcy.” The Las Vegas area currently has $9.2 billion worth of commercial properties in distress, around 164 properties, with industrial buildings showing $48.6 million worth, roughly 258,819 square feet of distressed space. Tight credit, falling property values and lenders unwilling to refinance projects are causing landlords to fear that they will no longer be able to hang on to their properties. We expect this trend to continue for the foreseeable future as we work our way thru this deleverage cycle. Las Vegas industrial market posted additional upward movement in vacancy rising to 12.92% during 2nd quarter 2009. This is the highest the industrial vacancy rate has been in the last 15 years. When analyzing the data to see if the rise in vacancy is part of a “normal” business cycle, the only time period that has shown a rate over 10%, with the exception of the last year, is in 2003 when the rate was at 11.95%. In 2003, the major factors in the rise of vacancy were the reluctance of tenants to lease space in older buildings, the rise in land prices, and the assumption of dimensioning commercial land availability. During that time the average industrial building in Las Vegas had been built in the 1970s and early 1980s. Tenants wanted to be in newer properties and the developers were listening. Developers were scared into thinking that land would soon not be available for commercial development and they knew that tenants would be willing to pay higher lease rates in newer buildings. This was part of the cause in the rise in vacancy and lease rates during 2003, and could be part of the cause of the overbuilt market we have today. C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  4. 4. INDUSTRIAL MARKET | OVERVIEW For years the Las Vegas industrial market had been well below the national vacancy average, but now it is well above the national average LAS VEGAS of the 9.9% vacancy rate. “The national average is the highest it has MARKET OVERVIEW been in five years,” Cushman and Wakefield national report stated, “in fact, each of the 39 industrial markets tracked by Cushman & Wakefield reported an increase in the overall vacancy rate from first to second quarter.” The markets with the highest vacancy rates include; Austin, TX, Birmingham, AL, Detroit, MI, Fredericksburg, VA and Stockton, CA all with vacancy rates over 18%. The lowest industrial vacancy rates are found in; Denver, CO, Kansas City, MO, Lakeland FL, Los Angeles, CA, Orange County, CA all with vacancies under 7%. The Las Vegas industrial market is right in the middle with a 12.92% vacancy rate. INDUSTRIAL MARKET | NEW SUPPLY (COMPLETIONS) AND MARKET DEMAND Future new supply levels also continue to shrink as market corrections are underway. The market expanded by only 301,400 square feet during the 2nd quarter of 2009, which shows the slowing of new development, since last year at this time we had 1.5 million square feet of new inventory come online. Completions were located in the southwest and North Las Vegas portions of the valley. In the area of under construction analysis, we do see more steady movements or “normal” business cycles accruing every five years. We saw a rise in construction during the real estate boom up until 1997 when a sudden drop of construction occurred. After a five year recovery another sudden crash in 2001 happened after the September 11th events and then another five year recovery started. A need for newer space and the construction boom steadily rose the under construction numbers for five years until the current recession. It may take another five years for the housing market to become stable, credit to start flowing and employment to become active again before any rise in construction numbers. For a smart recovery, the industrial market needs to solve the imbalance of supply and demand by allowing existing vacant space to be absorbed and wait out this business cycle before any major growth should happen. Historically an industrial boom, in the Las Vegas market, is usually impacted by the growth of the gaming industry. After this recession, growth may not happen for a while as many developers hold their breath and watch to see how CityCenter, an $11 billion mixed use project set to open by the end of 2009, tries to survive in a down economy and a new Las Vegas era. An era of canceled conventions, discounted rooms and a glimpse of “old Vegas” making a come back, when buffets only cost $1.99 and tourist saw $2.00 blackjack tables. Las Vegas was currently featured in Time magazine showing that if anyone can make a comeback Las Vegas can. The reporter experienced the world class marketing that Vegas is famous for. Knowing that the city must be slow and like a ghost town, due to people staying home during the current economy, the reporter jumped on a plane. The reporter wanted to take advantage of the discounted rooms found on various websites, which included cheap entertainment and lowered food prices that many Las Vegas hotels are marketing. What he found was Vegas “surviving”. “Hotel rooms were booked, the pool was busy and the parking lots were full,” the reporter stated. In his words “all the price-cutting has succeeded.” This can give us hope that people still love Las Vegas and they still want to experience our world class hotels. C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  5. 5. INDUSTRIAL MARKET | PRICING (AVERAGE ASKING RATE) Pricing within the industrial sector continues to drop as landlords work with Tenants, offering better tenant improvement allowances, LAS VEGAS greater concessions and even negotiating new lease terms. Short MARKET OVERVIEW term leases seem to be a trend in the market where tenants have a controlling position. The effect of extended lease up periods, slow economic conditions and growing commercial defaults will contribute to increased repossession activity by lenders that will result in further price adjustments. The market wide industrial average asking rental rate has dropped to $0.70 per square foot, the lowest rate we have seen since 2005, when it was at $0.67 per square foot. By product type, average distribution lease rates were $0.54 per square foot at the middle of the year. Freestanding units reported rents of $0.78 per square foot for those seeking to rent, rather than sell, while flex space averaged $0.78 per square foot. Pricing for midbay and incubator space came in at $0.62 and $0.79 per square foot, respectively. Not only has the recession forced lease rates to drop it has also affected the sales price on industrial property. “About $2.2 trillion of U.S. commercial properties bought or refinanced since early 2004 have fallen below the price at which they changed hands,” according to a report by Real Capital Analytics, a research firm based in New York. They go on to report “due to lack of financing, owners are going to have to rely on cash deals, which in turn push down sale prices in order for buildings to be sellable.” INDUSTRIAL MARKET | OUTLOOK While current conditions have resulted in little market demand, we expect pricing adjustments to be favorable as regional and national distributors seek out more efficient and cost-effective alternatives once economic conditions improve. The current corrections are also expected to provide additional development opportunities as land prices are well into a correction cycle. Previous concerns about land availability at financially feasible price points have started to subside. It is likely that joint venture opportunities will present themselves as limited capital availability will have land owners and developers identifying creative measures to meet the changing demands of the market. Vacancies are expected to stabilize as future supply additions will remain limited. Our primary concerns lie with lease expirations and the motivations of business owners and management. We expect businesses to seek out more cost-effective alternatives while downsizing operations in response to shifts in their business models. Second generation space will likely compete on price and create attractive opportunities for those with businesses that remain active and have been impacted less by broader market fundamentals. Net absorption still reported in the red with a -2,033,766 sf of net absorption during 2nd quarter 2009. Absorption did recover a little since first quarter and is expected to increase by the end of the year, as development comes to a stand still. We believe that while it may take longer than people would like, Las Vegas will turn around, not this year, but it will make a comeback. Unlike the other economic downturns of 1981, 1990 and 2001, this time around will be a slow recovery. According to the National Association of Realtors “a forward-looking indicator shows commercial real estate will remain weak into 2010, but recent actions by the Federal Reserve should improve some flow of capital into commercial lending,” which should slow down the decline. The NAR report goes on to say ”with the economic recession likely coming to an end within six months, a recovery in commercial real estate may soon follow.” When Time magazine asked a Las Vegas local, Neal Smatresk, why he was so optimistic that Las Vegas would make a comeback he stated “This is a town built on hopes and dreams, and people don’t give up hopes and dreams when there’s a recession.” If we follow the Steve Wynn’s Vegas development style of “believing”, such as, believing that themed casinos with free shows bring in tourist, not falling for the “family style” Vegas that quickly went south, bringing world class shopping and fine art to the city, once known only for its cheap buffets and opening an $2 billion, 2,034 room Hotel in the middle of a recession when everyone thinks you’re crazy. If more developers start to believe in this city, then this city will continue to grow. The Times reporter ends his story stating that “this recession, it (Las Vegas) clearly believes, is just another business cycle. It will end, sooner rather than later, and the world will go right back to gambling on slot machines and real estate.” So maybe this is just another business cycle, we will have to wait and see. C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  6. 6. Commerce CRG Las Vegas Industrial Market Report Q2 2009 Inventory Vacancy Demand & Supply Pricing No. of Existing Under Const. Planned Vacancy Net New Gross Space Asking Rates * Weighted Bldgs. SF SF SF SF Rate Absorption Supply Leased Low High Avg. Avg. Airport Distribution 48 3,771,122 - - 656,280 17.40% (194,949) - 15,708 $0.35 $0.80 $0.62 $0.60 Flex 65 1,821,953 - 87,385 599,541 32.91% (204,352) 15,696 $0.49 $1.45 $0.93 $0.92 Freestanding 181 2,894,952 60,064 12,353 275,618 9.52% (30,851) - 71,214 $0.40 $1.40 $0.78 $0.77 Incubator 79 1,867,406 - - 438,505 23.48% (105,684) - 59,065 $0.45 $1.75 $0.96 $0.94 Midbay 54 2,497,689 25,200 - 461,882 18.49% (97,211) - 72,822 $0.35 $1.35 $0.71 $0.70 Airport Total 427 12,853,122 85,264 99,738 2,431,826 18.92% (633,047) - 234,505 $0.35 $1.75 $0.80 $0.79 Central Distribution 14 910,521 51,022 5.60% (30,224) - - $0.31 $0.43 $0.37 $0.37 Flex 10 112,213 - - 19,800 17.65% (19,800) - - $0.55 $0.65 $0.59 $0.59 Freestanding 303 4,708,235 - 210,060 4.46% (69,867) 73,528 $0.18 $0.95 $0.57 $0.54 Incubator 101 2,099,325 - - 202,129 9.63% 36,879 - 74,616 $0.45 $1.58 $0.71 $0.71 Midbay 21 495,188 - 89,921 18.16% (73,289) - - $0.39 $0.56 $0.47 $0.47 Central Total 449 8,325,482 - - 572,932 6.88% (156,301) - 148,144 $0.18 $1.58 $0.54 $0.54 Southeast Distribution 48 5,930,442 - - 952,224 16.06% (225,075) - 20,559 $0.29 $1.35 $0.54 $0.54 Flex 29 476,294 - - 62,130 13.04% (11,137) - 9,775 $0.39 $1.35 $0.78 $0.78 Freestanding 232 3,218,458 - 98,400 342,322 10.64% (4,718) - 89,914 $0.40 $1.67 $0.72 $0.73 Incubator 49 867,235 - - 131,121 15.12% (49,230) - 18,537 $0.50 $1.35 $0.89 $0.89 Midbay 34 1,570,350 - - 443,185 28.22% (78,478) - 56,187 $0.39 $1.12 $0.71 $0.71 Southeast Total 392 12,062,779 - 98,400 1,930,982 16.01% (368,638) - 194,972 $0.29 $1.67 $0.73 $0.73 North Las Vegas Distribution 115 16,671,729 - 1,034,900 1,658,369 9.95% (370,256) 95,000 132,225 $0.15 $0.50 $0.40 $0.40 Flex 38 1,000,813 - 176,520 216,603 21.64% (21,592) - 23,186 $0.30 $1.75 $0.78 $0.78 Freestanding 478 6,519,170 166,420 153,888 623,386 9.56% 166,731 - 264,913 $0.20 $1.25 $0.64 $0.65 Incubator 51 1,123,616 - 15,000 498,507 44.37% (27,821) - 20,301 $0.20 $1.00 $0.65 $0.65 Midbay 50 2,281,955 194,712 276,525 393,846 17.26% (36,143) 90,400 36,665 $0.35 $0.85 $0.56 $0.56 NLV Total 732 27,597,283 361,132 1,656,833 3,390,711 12.29% (289,081) 185,400 477,290 $0.15 $1.75 $0.61 $0.61 Speedway Distribution 9 889,091 - - 79,630 8.96% - - - $0.36 $0.49 $0.42 $0.42 Flex 7 346,350 - - 83,184 24.02% 12,318 - 13,601 $0.45 $0.55 $0.53 $0.53 Freestanding - - - - 0.00% - - - Incubator 2 26,887 - - 5,066 18.84% - - - $0.45 $0.55 $0.50 $0.50 Midbay 20 1,314,491 - - 339,749 25.85% 18,045 - 25,595 $0.38 $0.66 $0.54 $0.54 Speedway Total 38 2,576,819 - - 507,629 19.70% 30,363 - 39,196 $0.36 $0.66 $0.50 $0.50 Northwest Distribution 3 257,510 - - 158,069 61.38% - - - $0.49 $0.97 $0.73 $0.73 Flex 33 366,164 - 47,252 84,393 23.05% (24,692) - 8,468 $0.40 $1.40 $0.89 $0.87 Freestanding 8 194,587 - 39,008 13,810 7.10% - - - $1.13 $1.55 $1.28 $1.28 Incubator 10 232,073 - - 63,147 27.21% (10,699) - 1,772 $0.55 $1.10 $0.93 $0.93 Midbay 1 130,000 - - - 0.00% - - - Northwest Total 55 1,180,334 - 86,260 319,419 27.06% (35,391) - 10,240 $0.40 $1.55 $0.96 $0.95 Southwest Distribution 73 8,491,811 121,875 250,000 838,664 9.88% 32,430 - 209,373 $0.39 $1.19 $0.67 $0.66 Flex 93 2,447,785 - - 515,819 21.07% (86,271) - 73,306 $0.35 $1.80 $0.92 $0.92 Freestanding 394 5,457,760 - 340,011 6.23% (103,800) - 86,240 $0.35 $1.70 $0.69 $0.78 Incubator 128 2,704,171 - - 266,937 9.87% (146,659) - 66,649 $0.25 $1.95 $0.85 $0.84 Midbay 119 4,682,773 152,642 220,400 663,087 14.16% 83,199 116,000 262,921 $0.36 $1.15 $0.72 $0.72 Southwest Total 807 23,784,300 274,517 470,400 2,624,518 11.03% (221,101) 116,000 698,489 $0.25 $1.95 $0.77 $0.78 West Distribution 24 1,773,217 - - 252,785 14.26% (37,714) - 38,486 $0.48 $0.65 $0.54 $0.54 Flex 35 915,396 - - 67,935 7.42% (15,785) - 35,661 $0.44 $1.30 $0.82 $0.82 Freestanding 266 3,330,993 - 243,440 7.31% (105,872) - 102,649 $0.25 $1.30 $0.71 $0.69 Incubator 146 3,789,216 - - 349,607 9.23% (97,355) - 92,198 $0.39 $1.50 $0.82 $0.82 Midbay 32 1,616,824 - - 203,009 12.56% (103,844) - 17,237 $0.40 $1.00 $0.65 $0.63 West Total 503 11,425,646 - - 1,116,776 9.77% (360,570) - 286,231 $0.25 $1.50 $0.71 $0.70 Distribution 334 38,695,443 121,875 1,284,900 4,647,043 12.01% (825,788) 95,000 416,351 $0.15 $1.35 $0.54 $0.53 Flex 310 7,486,968 - 311,157 1,649,405 22.03% (371,311) - 179,693 $0.30 $1.80 $0.78 $0.78 Freestanding 1,862 26,324,155 226,484 303,649 2,048,647 7.78% (148,377) - 688,458 $0.18 $1.70 $0.77 $0.78 Incubator 566 12,709,929 - 15,000 1,955,019 15.38% (400,569) - 333,138 $0.20 $1.95 $0.79 $0.79 Midbay 331 14,589,270 372,554 496,925 2,594,679 17.78% (287,721) 206,400 471,427 $0.35 $1.35 $0.62 $0.62 Las Vegas Total 3,403 99,805,765 720,913 2,411,631 12,894,793 12.92% (2,033,766) 301,400 2,089,067 $0.15 $1.95 $0.70 $0.70 * All rates are asking, published prices. Actual (negotiated) rates may vary due to market conditions. Weighted average rates include sublease pricing. C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  7. 7. LAS VEGAS | INDUSTRIAL GRAPHS Las Vegas, Nevada | Commerce CRG Las Vegas, Nevada | Commerce CRG Second Quarter 2009 Second Quarter 2009 Industrial: Quarterly Vacancy Industrial: Quarterly Vacancy 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 5 55 55 56 66 66 66 67 77 77 77 78 88 20 08 88 89 10 09 1 0 20 30 0 40 0 20 20 0 30 0 40 0 10 0 20 0 30 0 40 0 10 0 20 0 30 0 40 0 Q 3 Q Q4 Q Q1 Q Q2 8 9 9 Q Q3 Q Q4 Q Q1 Q Q2 Q Q3 Q Q4 Q Q1 Q Q2 Q Q3 Q Q4 Q Q1 20 QQ Q Q Q Industrial: Quarterly Absorption (SF) Industrial: Quarterly Absorption (SF) 2,500,000 2,500,000 2,000,000 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 500,000 - - Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q308 Q408 Q109 Q209 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q308 Q408 Q109 Q209 (500,000) (500,000) (1,000,000) (1,000,000) (1,500,000) (1,500,000) (2,000,000) (2,000,000) (2,500,000) (2,500,000) (3,000,000) (3,000,000) C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  8. 8. LAS VEGAS | INDUSTRIAL GRAPHS Las Vegas, Nevada | Commerce CRG Second Quarter 2009 Industrial: Inventory (SF) and Vacancy Rate (%) 110,000,000 14% 12.92% 12% 100,000,000 10% 90,000,000 8% 80,000,000 6% 4% 70,000,000 2% 60,000,000 0% 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 30 40 10 20 20 30 40 10 20 30 40 10 20 30 40 10 20 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Industrial: Industrial Employment vs Vacacny Rate (%) 200,000 14% 12.92% 12% 175,000 10% 8.90% 8% 150,000 6% 6.17% 4% 125,000 3.28% 3.48% 2% 100,000 0% 5 6 7 8 9 40 20 40 40 40 Q Q Q Q Q C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  9. 9. LAS VEGAS | INDUSTRIAL GRAPHS Las Vegas, Nevada | Commerce CRG Second Quarter 2009 Las Vegas, Nevada | Commerce CRG Second Quarter 2009 Industrial Type Vacancy Rates Industrial Type Vacancy Rates Distribution, 12.01% Distribution, Midbay, 17.78% 12.01% Midbay, 17.78% Flex, 22.03% Incubator, 15.38% Flex, 22.03% Incubator, 15.38% Freestanding, 7.78% Freestanding, 7.78% Industrial Type Average Lease Rates Industrial Type AverageDistribution, Lease Rates Midbay, $0.62 $0.53 Distribution, Midbay, $0.62 $0.53 Flex, $0.78 Incubator, $0.79 Flex, $0.78 Incubator, $0.79 Freestanding, $0.78 Freestanding, $0.78 C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  10. 10. LAS VEGAS | INDUSTRIAL GRAPHS Las Vegas, Nevada | Commerce CRG Second Quarter 2009 Industrial: Inventory Vacancy Rate vs Average Lease Rate 14.00% $0.90 13.00% $0.80 12.00% 11.00% $0.70 10.00% $0.60 9.00% $0.50 8.00% 7.00% $0.40 6.00% $0.30 5.00% 4.00% $0.20 3.00% $0.10 2.00% 1.00% $0.00 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 20 30 40 10 20 20 30 40 10 20 30 40 10 20 30 40 10 20 30 40 10 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Las Vegas Industrial Construction Overview 1998-2009 9,000,000 14.00% 12.92% 13.00% 8,000,000 11.11% 12.00% 7,000,000 11.00% 6,000,000 8.90% 10.00% 8.59% 9.00% Square Feet 9.19% 9.14% Square Feet 5,000,000 8.00% 8.22% 7.03% 4,000,000 7.00% 5.12% 6.00% 3,000,000 5.00% 4.84% 4.95% 2,000,000 4.00% 3.43% 3.00% 1,000,000 2.00% - 1.00% 98 99 00 01 02 03 04 05 06 07 08 09 19 19 20 20 20 20 20 20 20 20 20 20 Planned Under Construction Total Space Completed Net Absorption Vacancy Rate C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  11. 11. LAS VEGAS | INDUSTRIAL SUBMARKET MAP C o m m e r C e C r G | S e C o N D Q ua r t e r - 2 0 0 9 | I N D U S T R I A L m A R k e T R e v I e w
  12. 12. COMMERCE CRG | fULL SERVICE COMMERCIAL REAL ESTATE SOLUTIONS Commerce CRG has been among the top commercial real estate brokerage firms in the Intermountain West for 30 years. From our headquarters in Salt Lake City and offices in Provo/Orem, Park City, Clearfield and St. George, Utah and Las Vegas, Nevada we offer a full range of brokerage services, valuation and consulting, client representation and property/facility management. Our alliance with Cushman & Wakefield extends our reach worldwide. CUShMAN & WAKEfIELD ALLIANCE A number of Cushman & Wakefield offices, including Commerce CRG, are independently owned and connected with the company by way of an international alliance. Cushman & Wakefield concentrates on larger markets like Los Angeles and New York, and alliance members like Commerce CRG concentrate on developing secondary markets. Together the geographic coverage is nearly universal. This enables Cushman & Wakefield to provide comprehensive services for clients with local requirements as well as for those with more expansive national or international portfolios. In either case, Cushman & Wakefield’s services are supported by the full integrated resources of the entire alliance. Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 58 countries and more than 15,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within four primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, valuation services, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, and Consulting Services, including business and real estate consulting. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com. 230 Offices in 58 Countries Europe Austria Bulgaria Channel Islands France Ireland Norway Russia Vienna* Pleven* Jersey* Lyon Cork* Drammen* Moscow Canada Belgium Plovdiv* Sofia* Czech Republic Paris Dublin* Oslo* Stavanger* Scotland Brussels Prague Germany Italy Edinburgh Alberta Manitoba Newfoundland Berlin Bologna Poland Glasgow Calgary Winnipeg* St. John's* Denmark Dusseldorf Milan Warsaw Edmonton* Copenhagen* Serbia New Brunswick Nova Scotia Frankfurt Rome Portugal Belgrade* British Columbia Fredericton* Halifax* England Hamburg Luxembourg Lisbon Vancouver Moncton* Birmingham Munich Slovakia Ontario Luxembourg* Saint John* London-City Romania Bratislava Greece United States London Newmarket London-West End Athens Macedonia Bucharest Spain Manchester Skopje* Timisoara Ottawa Barcelona Thames Valley Hungary Toronto Central Budapest The Netherlands Madrid Toronto East Amsterdam Alabama Sweden Maine Toronto West Birmingham* Northern Ireland Stockholm Portland Quebec Belfast* Mobile Switzerland Maryland Montreal Central Basel* Arizona Montreal Suburban Phoenix Baltimore Geneva* Tempe Bethesda Zurich* Tucson* Massachusetts Turkey California Boston Istanbul Carlsbad Michigan Inland Empire Ohio L.A. 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