The document provides an industrial property report for North County San Diego for Q1 2013. It summarizes key metrics for several cities including Carlsbad, Escondido, Oceanside, San Marcos, and Vista. Vacancy rates decreased across most cities. Net absorption was positive at 77k sf. Average rental rates were $0.68 per sf and average sale prices were $97 per sf. Several industrial property sales and leases were also noted.

1. Q1 2013
INDUSTRIAL PROPERTY REPORT
NORTH COUNTY SAN DIEGO
52M sf CARLSBAD
•
•
13.3% 14.9M SF / 484 BUILDINGS
Vacancy rate continues to inch downward at slow but steady pace with 19,737 SF of net absorption
ViaSat leased a 37,000 SF R&D building at 2290 Cosmos Ct. within walking distance of main campus
MARKET SIZE • Anchor Audio, an owner-user, purchased a 31,000 SF building in the CRC for $131.00/SF
• Last two remaining 10k SF buildings at Spectrum Flex sold for $119 & $123/SF in shell condition
• Sale prices should continue to increase due to limited supply, options remain limited for large users above 75,000 SF
9.8% ESCONDIDO
•
4.8%
Absorption and vacancy were at during Q1 2013
7.2M SF / 636 BUILDINGS
• Lease activity was slow, but rents have improved 25% from their low point
VACANCY RATE
• Sale activity was slow, but sale prices have increased 20% from the lows
• Good mix of building sizes for lease
• Low inventory of For Sale buildings
• Dr. Bronner is relocating to Vista and has put their 33,000 SF Escondido building on the market for sale
• San Diego Classic Cars has vacated their 28,000 SF building at 1155 Industrial
77K sf • Expect an increase in tenant and buyer activity during Q2 2013
OCEANSIDE 14.9% 8M SF / 394 BUILDINGS
NET ABSORPTION (YTD)
77K SF (Q1)
• Oceanside maintained the highest industrial vacancy among the ve North County submarkets
• Activity is picking up in all size ranges
• Several build-to-suit proposals are being negotiated in the market
• North County investors purchased the bank owned property at 2515 Industry Street
$.68nnn •
•
Land is selling again at $11.50 - $12.50 SF
Temporary shut down of Sprinter light rail hurting employees
AVERAGE RENTAL SAN MARCOS 8.6M SF / 490 BUILDINGS
7.4%
RATES / SF
• Under 5,000 SF was the most active segment of the market 16 leases signed during Q1
• Great activity in the 8,000 range with three leases completed and one in progress
• San Marcos posted 40,000 SF of net absorption to reduce its vacancy 50 BPS
$97 • Limited supply and functional obsolesce make it di cult for a company to nd space larger than 20,000 SF
in San Marcos
AVERAGE SALE
PRICES / SF
VISTA 7.0% 13.4M SF / 530 BUILDINGS
• Vista extends its steady decline in vacancy to nish Q1 2013 at 7% (100 BPS lower than Q1 2012)
• Lease rates continue to rm up as sale prices in some size ranges move higher
• Investor purchases far outpace (4 to 1) owner-user purchases as investors bet on near term sale price and lease rate
= VACANCY increases due to lack of supply
• Supply of buildings for sale in the 10-15k range is plentiful (9 options); while other size ranges
are in short supply
www.colliers.com/carlsbad

2. AT A GLANCE | Q1 2013 | INDUSTRIAL | NORTH COUNTY
TRANSACTION ACTIVITY - Q1 2013
SALES ACTIVITY
# PROPERTY NAME/ADDRESS City BUYER TYPE SIZE SF SALE PRICE PRICE/SF
1 5931 Darwin Court Carlsbad Owner-User 31,200 $4,094,545 $131.24
2 2712 Gateway Road Carlsbad Owner-User 10,586 $1,305,750 $123.58
3 2710 Gateway Road Carlsbad Owner-User 10,583 $1,259,377 $119.00
4 1215 Paci c Oak Place Escondido Owner-User 17,503 $1,874,000 $107.00
5 2340 Meyers Avenue Escondido Owner-User 13,767 $1,342,000 $97.50
6 2515 Industry Street Oceanside Investor 40,028 $1,887,500 $47.15
7 3540 Seagate Way Oceanside Investor 14,890 $1,119,200 $75.16
8 2611 Business Park Drive Vista Investor 128,531 $10,145,000 $78.93
9 1390 Engineer Street Vista Investor 41,944 $4,625,000 $110.27
10 2525 Birch Street Vista Investor 32,512 $2,475,000 $76.13
Total 341,544 $30,127,372
Average 34,154 $97
SALE ACTIVITY - LAND
# PROPERTY NAME/ADDRESS City BUYER TYPE SIZE SF SALE PRICE PRICE/SF
11 Rancho Del Oro Business Park Oceanside Owner-User 3.63 Acres $1,951,235 $12.34
12 Paci c Coast Business Park Oceanside Owner-User 9.65 Acres $5,044,248 $12.00
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS City TENANT NAME SIZE SF TERM EFF RATE/SF
1 2290 Cosmos Court Carlsbad ViaSat 37,328 Con dential Con dential
Custom Marking &
2 2081 Las Palmas Drive Carlsbad 14,845 65 $0.740 NNN
Assembly
Dr. Bronner's
3 1335 Park Center Drive Vista 118,597 120 $0.595 NNN
Magic Soap
4 1390 Engineer Street Vista E World Recyclers 41,944 60 $0.693 NNN
5 2525 Birch Street Vista Reser's Fine Foods, Inc 32,512 63 $0.700 NNN
6 1350 Specialty Drive, Ste B-D Vista Athleisure, Inc. 18,724 64 $0.670 GRS
7 975 Poinsettia Avenue Vista Hesham Kamil 14,176 39 $0.450 GRS
8 1216 Liberty Way Ste B Vista Youngdale MFG 12,133 72 $0.770 GRS
Total 290,259 NNN GRS
Average 64,502 70 $0.68 $0.63
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