Our Vision
We are the firm of choice - a real estate advisor and principal - the global standard for knowledge, service, a...
1ST QTR INDUSTRIAL MARKET REPORT


AT A GLANCE                                              Industrial Market Indicators
•...
1ST QTR INDUSTRIAL MARKET REPORT



LAS VEGAS MARKET OVERVIEW

                          As we start the New Year, the    ...
1ST QTR INDUSTRIAL MARKET REPORT




                                                                                     ...
1ST QTR INDUSTRIAL MARKET REPORT



                                       Industrial Submarket - Direct vs Sublease Vacan...
1ST QTR INDUSTRIAL MARKET REPORT




                                                                                  Com...
1ST QTR INDUSTRIAL MARKET REPORT




                                                          Las Vegas Industrial Overvi...
1ST QTR INDUSTRIAL MARKET REPORT




INDUSTRIAL SUBMARKET MAP | LAS VEGAS
Commerce 1Q10 Industrial Market Report
Upcoming SlideShare
Loading in …5
×

Commerce 1Q10 Industrial Market Report

523 views

Published on

Las Vegas Commerce Real Estate Solutions 1Q10 Industrial Market Report

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
523
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Commerce 1Q10 Industrial Market Report

  1. 1. Our Vision We are the firm of choice - a real estate advisor and principal - the global standard for knowledge, service, and execution. Our Values These values govern all that we do: Our CLIENTS come first Our foremost standard of conduct is INTEGRITY Every employee is a TEAM member and contributes to our success Individually and collectively striving to achieve EXCELLENCE in everything we do Treating each other and our clients with RESPECT and DIGNITY CITIZENSHIP - A commitment to the communities in which we live and work Realize the value in actively recruiting, developing, and mentoring talented individuals of DIVERSE cultures and backgrounds PROFITABILITY - Drives our ability to invest, improve, and succeed LAS VEGAS 1ST QTR 2010 INDUSTRIAL MARKET REPORT 3800 Howard Hughes, Pkwy, Suite 1200 | Las Vegas, NV 89169 Tel: 702.796.7900 | Fax: 702.796.7920 | www.comre.com
  2. 2. 1ST QTR INDUSTRIAL MARKET REPORT AT A GLANCE Industrial Market Indicators • Industrial vacancy rates in the Las Vegas area Current Change Since once again rose this quarter, this time by 98 basis 1Q10 1Q09 points, to 15.0% in comparison to 14.0% in the Vacancy 15.01% fourth quarter. The current vacancy rate is up 3.2% Lease Rates (NNN) $0.60 NNN from a year ago when rates averaged 11.7%. With new development at a stand still, vacancy should Net Absorption* (1,038,635) begin to stabilize as space is absorbed. Construction N/A • Average asking lease rates showed a slight *The arrows are trend indicators over the specified time period and do not decrease throughout the past quarter. By the end represent a positive or negative value. (e.g., absorption could be negative, of 2009, the market showed an average rate of but still represent a positive trend over a specified period.) $0.64 per square foot (psf), however by the end of first quarter the rate dropped to $0.60 psf. • Developers have halted many projects resulting 15% in no new construction completions during first 13% quarter. Going forward, only 967,973 sf of under 11% Las Vegas – 13.9% Nevada – 13.2% construction product is still in the pipeline. With 9% US – 9.7% the continued hesitation of developers to build 7% product in the current economic conditions, we 5% Unemployment rates 1Q10 don’t expect much of the planned product to 3% come online any time soon. 1% • The economic outlook continues to be a -1% 1Q07 3Q07 1Q08 4Q08 2Q09 4Q09 2Q07 4Q07 2Q08 3Q08 1Q09 3Q09 1Q10 growing concern for both landlords and tenants as tighter credit terms; rising inflation and rising unemployment continue to affect the Las Vegas area. • On the bright side, activity has picked up in ECONOMIC INDICATORS comparison to 2009. National 2009 2010F 2011F NATIONAL AND STATE EMPLOYMENT AND GDP Growth -2.4% 2.8% 3.7% UNEMPLOYMENT OVERVIEW CPI Growth -0.3% 1.9% 2.1% Regional National unemployment Unemployment 12.1% 13.9% 13.5% rates reached a 28 year Employment Growth -6.2% -1.8% 0.4% high at 10.4% with roughly 11 Source: Moody’s | Economy.com million unemployed workers that are now drawing unemployment insurance SIGNIFICANT 1Q10 NEW LEASE TRANSACTIONS benefits. In February alone, 27 states recorded BUILDING TENANT SF PROPERTY TYPE unemployment rate increases. The highest 4335 Arcata Way Moen Inc 219,068 Warehouse regional jobless rates were in the Western part of the country, while the Northeast recorded Traverse Point Ocean Spray 100,693 Warehouse Cranberries the lowest rates. Michigan again recorded the highest unemployment rate among the states at 840 Pilot Rd Vitacost.com 90,000 Warehouse 14.1% in February. The states with the next highest SIGNIFICANT 1Q10 SALE TRANSACTIONS rates were Nevada, 13.2%; Rhode Island, 12.7%; BUILDING BUYER SF PURCHASE California and South Carolina, 12.5% each; and PRICE Florida, 12.2%. The Las Vegas economy continues Decatur Crossing York Decatur 140,594 $17,750,000 to be impacted by downturns and a high Crossing employment rate, currently 13.9%, in all major Park West Business Ctr Edward Kuchar 23,517 $2,000,000 sectors, including gaming, construction, financial Coleman Airpark Moca LLC 12,439 $750,000 and real estate. The recession will most likely be a SIGNIFICANT 1Q10 CONSTRUCTION COMPLETIONS “jobless recovery.” Since World War II there have been a total of 11 recessions and in the most BUILDING MAJOR TENANT SF COMPLETION DATE recent recessions before the 2007 recession, job growth lagged long after the recession. In fact it N/A took several years for the unemployment rate to SIGNIFICANT PROJECTS UNDER CONSTRUCTION return back to prerecession levels. Employment BUILDING MAJOR TENANT SF COMPLETION growth is critical to future economic growth DATE and the return to a healthy commercial market Civic Center N/A 124,135 2/10 which may take several years to accomplish. Blue Diamond Business N/A 250,000 3/10
  3. 3. 1ST QTR INDUSTRIAL MARKET REPORT LAS VEGAS MARKET OVERVIEW As we start the New Year, the could be hit, much like the housing bust has caused. big question on everyone’s Troubled commercial real estate loans could be the minds is what is going to primary force behind bank failures this year. Elizabeth happen next and will the signs Warren, chair of the TARP Congressional Oversight of recovery start to show and panel stated “Around half of all commercial mortgages what will it look like for the Las will be underwater by the end of 2010, posing a very Vegas market. Experts around serious problem for the economy over the next three the nation believe that recovery will start to show by years.” early 2011 and in some areas may have already hit rock bottom. UNLV Economics Department Chairman Dr. Stephen Miller says “Improvements in taxable sales, LAS VEGAS INDUSTRIAL MARKET gaming revenue and McCarran Airport passenger counts are good indicators of an improving economy The Las Vegas industrial market posted additional (for the Las Vegas market).” Miller goes on to state upward movement in vacancy rising to 15.01% during that “a lot of things are happening locally that are 1st quarter 2010. The Central submarket continues to suggestions that the economy is trying to reach show the lowest vacancy rate at 8.55% along with bottom and turn around.” While Southern Nevada’s Speedway at 11.09% and the Southwest submarket local economy may be starting to see the bottom at 13.81%. The highest vacancy submarkets are the of the commercial recession period, some experts Northwest at 26.57%, Airport at 21.25% and West are still analyzing declining property values, maturing submarket at 15.84%. Vacancy rates for all product commercial loans, ownership vs. leasing, the benefit of types in the industrial market have increased during receiverships and the local business activity. the 1st quarter with Distribution increasing to 15.00% from 14.14%, Flex increasing to 23.29% from 21.64%, According to Kenneth P. Riggs, President and CEO of Freestanding increasing to 9.62% from 8.36%, Incubator RERC, “The past decade has served up some tough increasing to 16.34% from 16.30%, and Midbay lessons about acting on our gut instincts and about increasing to 19.38% from 18.01%. The high vacancy what makes sense and what simply does not fit with rates are a result of newer buildings that have come on sustainable practices. But for investors seeking to seize line with little or no pre-leasing activity, combined with market opportunities, 2010 is time to gear up for a lease concessions, defaults and downsizing which is possible once-in-a-lifetime opportunity to snag key causing vacancy to rise. Sublease space in 1st quarter long-term investments in commercial real estate.” showed current availability at 1,589,497 sf (1.57% of In 2010, with leasing activity lagging, we are seeing the total market). Net absorption for the 1st quarter more landlords willing to hang “For Lease” and “For showed in the negatives again at -1,038,635 SF. The Sale” signs on their buildings. John Kulper, President of Speedway submarket showed the greatest amount of Commercial Alliance of Realtors, wrote, “While lenders positive absorption with over 79,282 sf for 1st quarter generally are avoiding investment real estate, owner- while the North Las Vegas submarket posted the least occupied commercial real estate is beginning to look amount with -424,311 sf of negative absorption. attractive again.” Real Capital Analytics also agrees stating that “owner-occupied purchase now represent almost 10% of global transactions and will be involved in a greater share of property deals.” In a recent study, most commercial brokerage firm’s executives believe that “real estate prices now make it more financially advantageous to buy rather than lease.” In the Las Vegas market, commercial property values and asking rates continued to fall this quarter which may help with the decision to either buy or lease. The Federal Government is also monitoring the weakness of the commercial real estate market. The Feds believe that the weakness of commercial loans is a very serious problem because the whole economy
  4. 4. 1ST QTR INDUSTRIAL MARKET REPORT Industrial: Inventory (SF) and Vacancy Rate (%) Industrial: Quarterly Vacancy 110,000,000 Industrial: Inventory (SF) and Vacancy Rate (%) 16% 16% 14.03% 110,000,000 16% 14% 14% 14.03% 100,000,000 14% 12% 12% 100,000,000 12% 90,000,000 10% 10% 90,000,000 10% 8% 8% 80,000,000 8% 6% 6% 80,000,000 6% 4% 4% 70,000,000 4% 70,000,000 2% 2% 2% 0% 60,000,000 0% 60,000,000 0% 6 6 6 6 7 7 7 7 8 9 0 8 8 8 9 9 9 Q 3 07 10 7 20 8 30 8 60 6 6 6 Q 06 Q 07 Q 07 40 8 10 08 99 99 99 009 0 20 30 40 10 20 30 40 11 10 20 30 40 10 20 30 40 10 Q Q 30 20 0 3020 4030 11 Q 40 Q 10 Q 20 260 360 Q Q4 Q Q1 114 46 Q7 Q7 Q7 Q7 Q8 Q8 8 8 9 1 2 1 01 Q Q Q Q Q Q Q Q QQ QQ QQ Q 40 Q Q 20 30 40 10 20 30 Q Q Q Q Q Q Q QQ Q Q Q Q Q Q Industrial: Quarterly Absorption (SF) Industrial: Industrial Employment vs Vacancy RateRate (%) Industrial: Industrial Employment vs Vacancy (%) 2,500,000 250,000 18% 250,000 18% 2,000,000 16% 16% 1,500,000 225,000 225,000 15.01% 15.01% 14% 14% 1,000,000 14.03% 14.03% 200,000 200,000 11.77% 11.77% 12.92% 12.92% 13.35% 13.35% 12% 12% 500,000 10% 10% - 175,000 175,000 8% 8% Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q308 Q408 Q109 Q209 Q309 Q409 Q110 (500,000) 150,000 6% 150,000 6% (1,000,000) 4% 125,000 4% (1,500,000) 125,000 2% 2% (2,000,000) 100,000 0% 100,000 0% (2,500,000) 10 9 Q 209 9 9 0 Q Q10 30 40 11 9 9 9 9 0 Q Q Q Q (3,000,000) 20 30 40 11 Q Q Q Industrial Type Vacancy Rates Industrial Type Vacancy Rates NEW SUPPLY (COMPLETIONS) AND MARKET Distribution, 15.00% Distribution, Midbay, 19.38% DEMANDS 15.00% Midbay, 19.38% Developers have halted many projects resulting in no new construction completions during 1st quarter. Going forward, only 967,973 sf of under construction Incubator, 16.34% Flex, 23.29% product is still in the pipeline. With the continued Incubator, 16.34% Flex, 23.29% hesitation of developers to build product, due to scarce Freestanding, construction financing and weak rents, we also don’t 9.62% Freestanding, expect much of the planned product to come online 9.62% any time soon. Future new supply levels will continue to shrink as market corrections are underway. 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 up periods, slow economic conditions and growing numbers. For a smart recovery, the industrial market commercial defaults will contribute to increased needs to solve the imbalance of supply and demand repossession activity by lenders that will result in further by allowing existing vacant space to be absorbed and price adjustments. wait out this business cycle before any major growth should happen. The market wide industrial average asking rental rate has dropped to $0.60 PSF, the lowest rate we have PRICING (AVERAGE ASKING RENTS) seen since 1st quarter 2006 when it was at $0.50 PSF. By product type, average Distribution lease rates were Pricing within the industrial sector continues to drop $0.50 PSF at the end of 1st quarter. Freestanding units as landlords work with tenants and offer better tenant reported rents of $0.64 PSF, while Flex space averaged improvement allowances, greater concessions and $0.68 PSF. Pricing for Midbay and Incubator space even negotiate new lease terms. Short term leases came in at $0.54 and $0.72 PSF, respectively. seem to be a trend in the market where tenants have a controlling position. The effect of extended lease
  5. 5. 1ST QTR INDUSTRIAL MARKET REPORT Industrial Submarket - Direct vs Sublease Vacancy US since the Great Depression. To date, Southern Nevada has not enjoyed the same level of increase 35.00% in business activity as the rest of the US.” The local 30.00% 26.57% economy will not pick up until we see robust growth 25.00% 21.25% in hiring. According to the survey with only 10 % 20.00% of business anticipated to hire more workers, the recovery will be very slow for the Las Vegas area. 15.53% 15.84% 14.44% 1 % 5.01 15.00% 1 % 3.81 We are optimistic going into 2010 that the bottom 1 .09% 1 10.00% 8.55% 5.00% 2.05% 2.90% 1.57% is near and compared to last year, vacancy is not rising and lease rates are not falling as fast or as far 1.03% 0.39% 0.59% 0.63% 0.00% 0.00% 0.00% North Las Las Vegas Airport Central Southeast Vegas Speedway Northwest Southwest West Area Total as we were witnessing. Vacacny % 21.25% 8.55% 15.53% 14.44% 11.09% 26.57% 13.81% 15.84% 15.01% Sublease % 1.03% 0.39% 0.59% 2.05% 0.00% 0.00% 2.90% 0.63% 1.57% Some early signs of stabilization may come from the growth of energy and clean technology companies and the growing strength of data Industrial Type Average Lease Lease Rates Industrial Type Average Rates centers. According to a recent survey conducted Distribution, Distribution, by Campos Research, 83% of senior decision Midbay, $0.54 $0.54 Midbay, $0.50 $0.50 markers at large corporations in North America “are planning data center expansions in the next 12 to 24 months.” The report goes on to state that, “most of the existing data centers are not able to handle the new advanced power and cooling capabilities that Flex, $0.68 $0.68 Flex, the data center equipment warrants.” The Digital Incubator, $0.72 $0.72 Incubator, Realty Trust’s survey agrees that data centers are growing due to the “need for additional power..70% of planned data centers are 15,000 sf or larger and at least 2 megawatts or greater of power.” In fact Freestanding, Freestanding, $0.64 $0.64 the survey states that “the cost and availability of power is more important than the square feet leased or owned.” Many states around the nation 18.00% 18.00% Industrial: Inventory Vacancy Rate vs Average Lease Rate Industrial: Inventory Vacancy Rate vs Average Lease Rate $0.90 $0.90 are looking at how to move data center locations 17.00% 17.00% to their market and Las Vegas could be a great 16.00% 16.00% $0.80 $0.80 market to see these types of industrial expansions 15.00% 15.00% $0.70 $0.70 due to our low energy rates compared to most of 14.00% 14.00% 13.00% 13.00% the western states. $0.60 $0.60 12.00% 12.00% 11.00% 11.00% $0.50 $0.50 10.00% 10.00% 9.00% 9.00% $0.40 $0.40 8.00% 8.00% 7.00% 7.00% $0.30 $0.30 6.00% 6.00% 5.00% 5.00% $0.20 $0.20 4.00% 4.00% 3.00% 3.00% $0.10 $0.10 2.00% 2.00% 1.00% 1.00% $0.00 $0.00 30 7 40 7 10 7 20 7 30 8 30 5 40 5 10 5 20 5 30 6 40 6 10 6 20 6 0 30 9 40 9 11 9 9 40 8 10 8 20 8 7 7 7 8 5 5 5 5 6 6 6 6 7 9 9 9 0 8 8 8 9 11 Q 10 Q 20 Q 30 40 Q 20 Q 30 Q 40 0 0 0 Q4 0 Q1 0 Q10 Q20 Q30 Q40 Q10 0 Q30 Q40 10 20 Q2 Q1 Q2 Q3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q OUTLOOK In the coming months we expect commercial real estate prices to decline further and we won’t see any true recovery until the end of the year to early next year. The market will continue to be impacted by cautious consumer and companies activity, causing vacancies to remain elevated and most likely continue to increase. Rents will also continue to be impacted by the current economy and will continue to fall. According to a report produced by UNLV’s CBER “Southern Nevada business will continue to struggle with the after effects of the deepest recession in the
  6. 6. 1ST QTR INDUSTRIAL MARKET REPORT Commerce Las Vegas Industrial Market Report Q1 2010 Inventory Vacancy Demand & Supply Pricing No. o f Existing Under Const. Planned Vacancy Net New Gross Space Asking Rates * Weighted Bldgs. SF SF SF SF Rate Absorption Supply Leased Low Avg. Airport Distribution 47 3,771,122 - - 871,209 23.10% 34,741 - 144,402 $0.35 $0.54 Flex 65 1,821,953 - 87,385 578,631 31.76% (52,319) 17,709 $0.29 $0.80 Freestanding 181 2,902,669 60,064 12,353 302,025 10.41% (39,014) - 37,466 $0.35 $0.70 Incubator 79 1,867,406 - - 368,209 19.72% 17,888 - 59,928 $0.32 $0.88 Midbay 55 2,522,357 - - 618,169 24.51% (61,105) - 63,630 $0.29 $0.63 Airport Total 427 12,885,507 60,064 99,738 2,738,243 21.25% (99,809) - 323,135 $0.29 $0.71 Central Distribution 14 910,521 - 0.00% 51,022 - 51,022 Flex 10 112,213 - - 25,900 23.08% (6,100) - - $0.44 $0.54 Freestanding 307 4,756,306 - 380,378 8.00% (97,241) 83,878 $0.25 $0.57 Incubator 101 2,097,325 - - 237,945 11.35% (12,106) - 42,363 $0.25 $0.62 Midbay 21 505,236 - 72,480 14.35% (19,621) - 5,612 $0.42 $0.46 Central Total 453 8,381,601 - - 716,703 8.55% (84,046) - 182,875 $0.25 $0.55 Southeast Distribution 51 6,066,309 - - 968,555 15.97% (17,361) - 117,524 $0.29 $0.52 Flex 29 476,294 - - 54,701 11.48% 7,008 - 9,408 $0.39 $0.74 Freestanding 232 3,224,665 - 98,400 348,691 10.81% 38,986 - 70,352 $0.25 $0.63 Incubator 49 867,035 - - 100,007 11.53% 5,593 - 21,843 $0.30 $0.80 Midbay 34 1,570,350 - - 423,126 26.94% (13,199) - 41,561 $0.39 $0.63 Southeast Total 395 12,204,653 - 98,400 1,895,080 15.53% 21,027 - 260,688 $0.25 $0.66 North Las Vegas Distribution 117 16,747,789 124,135 1,034,900 2,196,524 13.12% (230,235) 357,865 $0.27 $0.37 Flex 37 967,913 - 176,520 226,045 23.35% (24,477) - 8,854 $0.25 $0.54 Freestanding 476 6,509,760 166,420 153,888 645,825 9.92% (71,081) - 97,851 $0.25 $0.56 Incubator 51 1,118,421 - 15,000 483,939 43.27% 19,967 - 3,907 $0.30 $0.53 Midbay 53 2,352,257 194,712 276,525 446,695 18.99% (118,485) - 122,700 $0.24 $0.41 NLV Total 734 27,696,140 485,267 1,656,833 3,999,028 14.44% (424,311) - 591,177 $0.24 $0.48 Speedway Distribution 9 889,091 - - 127,349 14.32% 5,938 - 52,126 $0.25 $0.25 Flex 7 346,350 - - 12,667 3.66% 10,142 - 15,209 $0.27 $0.27 Freestanding - - - - 0.00% - - - Incubator 2 26,887 - - - 0.00% 5,066 - 5,066 Midbay 20 1,314,491 - - 145,738 11.09% 58,136 - 68,310 $0.23 $0.36 Speedway Total 38 2,576,819 - - 285,754 11.09% 79,282 - 140,711 $0.23 $0.29 Northwest Distribution 3 257,510 - - 113,069 43.91% - - - $0.49 $0.73 Flex 16 296,029 - 47,252 95,874 32.39% (27,192) - 12,389 $0.50 $0.90 Freestanding 7 257,171 - 39,008 77,324 30.07% - - - $0.65 $0.65 Incubator 10 232,073 - - 15,417 6.64% 43,738 - 44,434 $0.40 $0.70 Midbay 1 130,000 - - 9,920 7.63% (6,295) - - $0.65 $0.65 Northwest Total 37 1,172,783 - 86,260 311,604 26.57% 10,251 - 56,823 $0.40 $0.73 Southwest Distribution 77 9,228,918 250,000 - 1,217,078 13.19% (139,370) - 198,492 $0.39 $0.63 Flex 95 2,494,052 - - 616,976 24.74% 15,088 - 92,270 $0.29 $0.83 Freestanding 394 5,469,935 - 409,477 7.49% (19,156) - 137,267 $0.25 $0.65 Incubator 129 2,717,761 - - 304,572 11.21% 8,827 - 67,966 $0.25 $0.76 Midbay 119 4,680,777 172,642 220,400 848,094 18.12% (10,276) - 221,754 $0.35 $0.64 Southwest Total 814 24,591,443 422,642 220,400 3,396,197 13.81% (144,887) - 717,749 $0.25 $0.71 West Distribution 24 1,770,309 - - 450,722 25.46% (78,298) - 33,022 $0.39 $0.49 Flex 40 1,014,150 - - 142,679 14.07% (67,347) - 20,121 $0.30 $0.83 Freestanding 266 3,350,222 - 382,781 11.43% (156,888) - 50,866 $0.35 $0.74 Incubator 141 3,764,926 - - 564,157 14.98% (73,624) - 45,849 $0.38 $0.74 Midbay 32 1,616,424 - - 283,334 17.53% (19,985) - 55,089 $0.35 $0.50 West Total 503 11,516,031 - - 1,823,673 15.84% (396,142) - 204,947 $0.30 $0.66 Distribution 342 39,641,569 374,135 1,034,900 5,944,506 15.00% (373,563) - 954,453 $0.25 $0.50 Flex 299 7,528,954 - 311,157 1,753,473 23.29% (145,197) - 175,960 $0.25 $0.68 Freestanding 1,863 26,470,728 226,484 303,649 2,546,501 9.62% (344,394) - 477,680 $0.25 $0.64 Incubator 562 12,691,834 - 15,000 2,074,246 16.34% 15,349 - 291,356 $0.25 $0.72 Midbay 335 14,691,892 367,354 496,925 2,847,556 19.38% (190,830) - 578,656 $0.23 $0.54 Las Vegas Total 3,401 101,024,977 967,973 2,161,631 15,166,282 15.01% (1,038,635) - 2,478,105 $0.23 $0.60 * All rates are asking, published prices. Actual (negotiated) rates may vary due to market conditions. Weighted average rates include sublease pricing.
  7. 7. 1ST QTR INDUSTRIAL MARKET REPORT Las Vegas Industrial Overview 2003-2010 9,000,000 8,000,000 15.01% 16.00% 14.03% 7,000,000 6,000,000 Square Feet Vacancy 5,000,000 8.90% 11.00% 11.11% 4,000,000 7.03% 3,000,000 4.84% 6.00% 2,000,000 4.95% 1,000,000 3.43% 0 1.00% 0 6 5 7 7 3 4 7 22 95 66 46 94 43 76 97 4, 1, 8, 2, 3, 21 , 03 , 24 , ,96 ,00 ,15 ,20 ,57 2,4 0,9 1,0 73 78 81 87 89 10 10 10 $0.52 $0.56 $0.67 $0.75 $0.79 $0.78 $0.64 $0.60 2003 2004 2005 2006 2007 2008 2009 2010 Planned Under Construction Total Space Completed Net Absorption Vacancy Rate Industrial Buildings Can Be Classified as Follows: • Manufacturing Building (Incubator / Midbay): Buildings with heavy power or the ability to accommodate heavy equipment. Generally has thick-flooring, some grade-level doors and less than 20% office. Usually very specialized. Incubator – 500-1500 sf divisibility, minimal office, on roll-up door / Midbay – 5,000-15,000 sf divisibility, 10-15% office build- out, dock high and grade level loading.) • Warehouse/Distribution Building: 1-story industrial buildings designed primarily for distribution, 0-30% office, clear ceiling heights ranging 16’-28’, dock level truck loading and easy accessibility to transportation routes. Over 15,000sf divisibility, 3-5% office build-out, multiple docks and grade level loading.) • High-Tech Building (Freestanding): Flexible use space designed for office, research and development, light assembly, laboratory and other tech-oriented uses. Typically 1 or 2 story, 80-100% office finish, ceiling heights between 12’-15’. Freestanding – Single or Dual user • Office Service/Flex Building: 1-story buildings designed for 20-100% office spaces that have ceiling heights between 12’-15’. 1,500-3,000 sf divisibility, 40% or more office build- out, one roll-up door, high visibility.
  8. 8. 1ST QTR INDUSTRIAL MARKET REPORT INDUSTRIAL SUBMARKET MAP | LAS VEGAS

×