This document provides an economic overview and forecast for the industrial real estate market in the United States, Canada, and Mexico from 2015-2017. It finds that strengthening U.S. economic fundamentals like GDP growth and job creation are supporting increased demand for industrial space. A key driver is the growth of e-commerce, fueling demand for large distribution centers and smaller infill facilities. Inland markets with intermodal rail access are strong performers. Increased development is occurring in core markets but land availability remains an issue. Vacancy rates are projected to continue declining across major markets.
Mercer Capital's Value Focus: Transportation & Logistics | Q4 2021 | Feature...Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
030401.bgsa article in scmr - logistics consolidationBenjamin Gordon
Logistics consolidation started in 2002. It has accelerated since then. This is a history of how it happened and where it is headed. See attached for the story of how companies like CH Robinson, UTi, and others pioneered the early innings of M&A and growth in the industry.
-U.S. Office Market Was Driven by the Tech
Sector in the Fourth Quarter of 2018
-Absorption exceeds construction completions, vacancy
declines and the pipeline grows
-Tech markets tighten
-Rents rise, but the pace slows:
Mercer Capital's Value Focus: Transportation & Logistics | Q4 2021 | Feature...Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
030401.bgsa article in scmr - logistics consolidationBenjamin Gordon
Logistics consolidation started in 2002. It has accelerated since then. This is a history of how it happened and where it is headed. See attached for the story of how companies like CH Robinson, UTi, and others pioneered the early innings of M&A and growth in the industry.
-U.S. Office Market Was Driven by the Tech
Sector in the Fourth Quarter of 2018
-Absorption exceeds construction completions, vacancy
declines and the pipeline grows
-Tech markets tighten
-Rents rise, but the pace slows:
Loyalty has played a big part in the Tesco success story. Clubcard was the example which other organisations sought to emulate, and rightly so. However, the latest figures from The British Consumer Index seem to show that the formula is no longer as powerful as it was.
Perhaps the focus on price had had the effect of changing the customer mix rather than increasing, or even defending, the share of more affluent consumers.
While a brand that has always positioned itself as ‘cheap and cheerful’ can become acceptable to all, getting a ‘bargain’ is now something to be proud of, even ‘Trendy’ it is far more difficult for an essentially middle class brand to position itself as ‘the cheapest’ without turning off its’ traditional loyal customers.
This short report investigates the decline in Tescos’ market share, how it compares with its competitors and the changing profile of its customers.
Retail Lives
Economic fundamentals continue to strengthen in the
U.S., a trend that is expected to endure through
mid-2019. With continued wage growth acceleration
and consumer confidence near an 18-year high, the
retail marketplace has registered solid spending.
Inflation-adjusted consumer expenditures show a
steady 2.5-3% year-over-year (YOY) growth pattern
since the beginning of 2016. eCommerce sales
accounted for approximately 11.5% of retail sales
(excluding auto sales) in 2017. While we expect that
penetration rate to climb to 14.0% by 2019, physical
stores remain vital to retailer survival in this evolving
retail climate. Despite what the media would lead you
to believe, the overall retail industry is still posting
gains even while it faces secular challenges.
Industrial Distribution Industry Insights - January 2015 Duff & Phelps
The Industrial Distribution market continues to be driven by improving end markets and favorable industry dynamics. Industry consolidation is expected to drive ongoing M&A activity. For more detail on market indices, public market performance and deal activity, read the report.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
Traditional saturation analysis on competitive location decision science focuses on diminishing returns for
incumbents and newcomers in a specific spatial location pertaining to commercial retail potential past a certain point of
market saturation. Methods/Findings: This study looks at this problem but employs a different approach to the subject
altogether, wherein saturation is no longer a variable affecting only retailers but one that affects both: the marginal utility
of consumers and the revenue of retailers albeit differently. A new mathematical model is proposed based on selected
papers, contributing new insight into an already widely discussed subject
U.S. MarketBeats provide an overview of quarterly CRE activity and trends, a snapshot of current economic and capital market conditions as well as market-level statistics on key metrics.
The U.S. economy in 2016 was characterized by steady growth in the face of uncertainty. The year began with steep declines in global equity markets in response to concerns about a slowdown in China, the Europe replaced Asia as the focal point of global anxiety after the Brexit vote. In the fourth quarter, the U.S. unexpectedly elected Donald Trump as President. Despite uncertainty, the economy continued to add an average of 180,000 jobs per month during 2016.
Colliers St. Louis 1Q20 Industrial Market SnapshotColliersSTL
Healthy Start but Impact of COVID-19 Remains to be Seen
The St. Louis industrial market started 2020 strong with positive absorption, a healthy construction pipeline and a historically low vacancy rate. However, it is unclear what impact COVID-19 shutdown will have on the industrial sector. Nevertheless, the supply chain, especially for consumer goods, is working hard to keep up with demand. Until the stay-at-home orders have ceased and governments and companies figure out how to best operate in this environment, commercial real estate experts are working with occupiers and building owners to ensure that they can continue to operate when possible and be able to bounce back when able.
According to the TechSci Research report, “Denmark Tire Market Forecast & Opportunities, 2021’’, tire market in Denmark is projected to surpass $ 435 million by 2021
The work principle of this prosect is really simple . When this device is filled with the trash at the certain distance, then the sensor will work and the blue lamp will trun on inside the dust bin as the sign that the device is work.
and if the dust bin isn’t filled with the trash. Then the sensor will not work. Do not forget to push the switch ON in the back side of this dust bin to operate this device.
Loyalty has played a big part in the Tesco success story. Clubcard was the example which other organisations sought to emulate, and rightly so. However, the latest figures from The British Consumer Index seem to show that the formula is no longer as powerful as it was.
Perhaps the focus on price had had the effect of changing the customer mix rather than increasing, or even defending, the share of more affluent consumers.
While a brand that has always positioned itself as ‘cheap and cheerful’ can become acceptable to all, getting a ‘bargain’ is now something to be proud of, even ‘Trendy’ it is far more difficult for an essentially middle class brand to position itself as ‘the cheapest’ without turning off its’ traditional loyal customers.
This short report investigates the decline in Tescos’ market share, how it compares with its competitors and the changing profile of its customers.
Retail Lives
Economic fundamentals continue to strengthen in the
U.S., a trend that is expected to endure through
mid-2019. With continued wage growth acceleration
and consumer confidence near an 18-year high, the
retail marketplace has registered solid spending.
Inflation-adjusted consumer expenditures show a
steady 2.5-3% year-over-year (YOY) growth pattern
since the beginning of 2016. eCommerce sales
accounted for approximately 11.5% of retail sales
(excluding auto sales) in 2017. While we expect that
penetration rate to climb to 14.0% by 2019, physical
stores remain vital to retailer survival in this evolving
retail climate. Despite what the media would lead you
to believe, the overall retail industry is still posting
gains even while it faces secular challenges.
Industrial Distribution Industry Insights - January 2015 Duff & Phelps
The Industrial Distribution market continues to be driven by improving end markets and favorable industry dynamics. Industry consolidation is expected to drive ongoing M&A activity. For more detail on market indices, public market performance and deal activity, read the report.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
Traditional saturation analysis on competitive location decision science focuses on diminishing returns for
incumbents and newcomers in a specific spatial location pertaining to commercial retail potential past a certain point of
market saturation. Methods/Findings: This study looks at this problem but employs a different approach to the subject
altogether, wherein saturation is no longer a variable affecting only retailers but one that affects both: the marginal utility
of consumers and the revenue of retailers albeit differently. A new mathematical model is proposed based on selected
papers, contributing new insight into an already widely discussed subject
U.S. MarketBeats provide an overview of quarterly CRE activity and trends, a snapshot of current economic and capital market conditions as well as market-level statistics on key metrics.
The U.S. economy in 2016 was characterized by steady growth in the face of uncertainty. The year began with steep declines in global equity markets in response to concerns about a slowdown in China, the Europe replaced Asia as the focal point of global anxiety after the Brexit vote. In the fourth quarter, the U.S. unexpectedly elected Donald Trump as President. Despite uncertainty, the economy continued to add an average of 180,000 jobs per month during 2016.
Colliers St. Louis 1Q20 Industrial Market SnapshotColliersSTL
Healthy Start but Impact of COVID-19 Remains to be Seen
The St. Louis industrial market started 2020 strong with positive absorption, a healthy construction pipeline and a historically low vacancy rate. However, it is unclear what impact COVID-19 shutdown will have on the industrial sector. Nevertheless, the supply chain, especially for consumer goods, is working hard to keep up with demand. Until the stay-at-home orders have ceased and governments and companies figure out how to best operate in this environment, commercial real estate experts are working with occupiers and building owners to ensure that they can continue to operate when possible and be able to bounce back when able.
According to the TechSci Research report, “Denmark Tire Market Forecast & Opportunities, 2021’’, tire market in Denmark is projected to surpass $ 435 million by 2021
The work principle of this prosect is really simple . When this device is filled with the trash at the certain distance, then the sensor will work and the blue lamp will trun on inside the dust bin as the sign that the device is work.
and if the dust bin isn’t filled with the trash. Then the sensor will not work. Do not forget to push the switch ON in the back side of this dust bin to operate this device.
En las siguientes normas se exponen los lineamientos básicos para el manejo de la identidad visual de la marca EasyNube.
A través de su correcta y constante aplicación, se logrará una difusión visual clara y memorable de la marca. Para la elaboración de cualquier pieza publicitaria, activo digital, documento o cualquier elemento que contenga algún elemento de la identidad corporativa, se deben seguir cuidadosamente las normas establecidas en este documento. Cualquier faltante de información para la aplicación de la marca que no se encuentre relacionada en este documento debe publicarse con la previa aprobación de todos las personas o dependencias implicadas en la comunicación corporativa.
Navigating New Channels to Success
As technology, demographics and infrastructure continue to accelerate the speed and efficiency with which goods are produced and moved among world markets—global supply chain strategies are being revisited and new models are emerging.
CEO Newsletter - Logistics Industry Consolidation Continues Into 2016Darryl Judd
There has been unprecedented growth in mergers and acquisitions within the Logistics and Supply Chain industry since 2015. The impact of this is potentially going to change the industry in far-reaching ways if it continues.
March 5, 2021 Transportation Market update ReportSchneider
Outbound tender volumes spike after winter weather.
Current outbound volumes are 59% higher than 2020 and 55% higher than 2019.
There has been a rebound in tender volumes as negative weather impact fades. Outbound tender rejects increased to 27%, also an impact of severe weather – and a 408% increase year-over-year.
Omni-Channel Strategies and Considerations for CPG CompaniesWill Ruiz
Omni-Channel Strategies and Considerations for CPG Companies - Leveraging direct-to-consumer (D2C) to drive cross-channel sales, profits and consumer loyalty in a digital world. Key considerations for companies implementing a consumer-centric value chain in a world of non-linear consumer paths to purchase.
Denver: A Rock Solid Place to Live and WorkHeidi Learner
Denver's favorable workforce demographics and attractive commercial real estate options as just two reasons that an increasing number of start-ups will choose to base their company out of Denver in the months ahead.
Breakfast Forum: The Houston Commercial Real Estate Markets - What's Ahead fo...BoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a panel discussion on the look ahead for Houston's Commercial Real Estate for 2015.
Speakers included: Will Holder with Trendmaker Homes; Allen H. Crosswell, with NewQuest Crosswell; Jonathan Brinsden with Midway; and Welcome Wilson, Jr. with Welcome Group.
Protest the value of your commercial property annually. Yes, protest each and each year. Even if the value didn't change, protest the value. The assessor’s values are based on the cost approach, the least reliable method of appraisal. You can protest both excessive value and unequal value annually. Reach us @ https://www.cutmytaxes.com/
Avrupa Konutlari Yenimahalle - Listing TurkeyListing Turkey
Welcome to Avrupa Konutları Yenimahalle, where luxury living meets unparalleled convenience in the heart of Istanbul. Developed by Artaş Holding, one of Turkey’s leading construction companies, this prestigious residential project offers a contemporary lifestyle experience like no other.
https://listingturkey.com/property/avrupa-konutlari-yenimahalle/
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
MC Heights-Best Construction Company in jhanglaraibfatim009
MC Heights stands as the epitome of excellence in construction within Jhang. With a commitment to unparalleled quality and innovative design, MC Heights redefines urban living in the heart of Jhang. Offering luxurious residential spaces, cutting-edge commercial complexes, and vibrant community areas, MC Heights caters to the diverse needs of modern lifestyles. Our dedication to superior craftsmanship and customer satisfaction ensures that every aspect of MC Heights exceeds expectations, making it the premier choice for those seeking unparalleled sophistication and comfort in Jhang.
Oeiras Tech City, Developed by RE Capital and REIG, Will Become Lisbon's Futu...Newman George Leech
Oeiras Tech City, a historic development in the Oeiras municipality of Lisbon, is acquired by RE Capital and REIG. It is located on a 93,000-square-meter plot of land and combines co-living, business, and residential areas. It highlights ESG principles and is close to Tagus Park, which improves the urban landscape of Lisbon.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
BricknBolt Understanding Load-Bearing Walls and Their Structural Support in H...BrickAndBolt
Load-bearing walls are the backbone of any home construction, providing crucial structural support that carries the weight of the house above. For companies like Brick and Bolt Mysore and Bricknbolt Faridabad, understanding and properly implementing these elements are key to constructing safe and durable buildings.
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Keep Your Home Naturally Cool and Warm Out Change in Seasons
Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
Vinra Construction Tech Enabled Company for Eco-Friendly Home Construction
Contact With Vinra for a Greener Future >>> Call us @ 888 4898 765
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
7766900371
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
3. 2North American Industrial Real Estate Forecast 2015-2017
ECONOMIC OVERVIEW
ECONOMIC OVERVIEW
STRENGTHENING FUNDAMENTALS SUPPORT POSITIVE
INDUSTRIAL FORECAST
U.S. GDP growth has exceeded 3.5% in four
of the last five quarters1
. As businesses have
gone on the offensive, the pick-up has been
accompanied by a long-awaited surge in
hiring. Job growth, which was running at
about 2.0 million per year, reached 2.95
million in 2014 and is poised to exceed 3.0
million in 2015.
Importantly, this stronger job growth is
starting to create labor shortages in some
industries and regions, and we are seeing
early signs of even faster wage growth that
is expected to accelerate in 2015. Higher
wages would naturally lead to stronger
income growth, which will boost household
spending, which will boost demand for
distribution facilities. U.S. GDP growth,
forecast at 2.2% for 2014, is projected to
accelerate to 3.5% in 2015 and 2016.
Not surprisingly, we are already seeing the
impact of this upswing in the U.S. industrial
sector. Measures of industry activity,
including manufacturing production and
shipments of goods, are at or near record
levels. As the economy continues to
expand, increasing activity is expected in all
the sectors that drive demand for industrial
space, from imports and exports, to
manufacturing production and distribution.
With increasing online and mobile
purchasing volumes opening new frontiers
in the way we shop and do business, we see
the demand for distribution services moving
from fourth to fifth gear. As of mid-2014,
the internet portion of retail sales for
General, Apparel, Furniture and Other
(GAFO) was roughly 24%, up from 13.5% a
decade ago.
Tightening labor markets leading to faster
wage and income growth, along with
declining oil prices and rising confidence all
point to consumer spending growth in 2015.
Given these factors, we fully expect that
the economic conditions over the next
three years will support continuing
improvement and growth for the industrial
real estate sector.
1
All but the first quarter of 2014, which saw a weather-induced contraction.
4. 3North American Industrial Real Estate Forecast 2015-2017
ECONOMIC OVERVIEW
U.S. TRADE
Source: BLS, Cushman &Wakefield Research
MANUFACTURING PRODUCTION
Source: BLS, Cushman &Wakefield Research
Source: BLS, Cushman &Wakefield Research
$0.0
$0.5
$1.0
$1.5
$2.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3
ChainedU.S.-$inTrillions
Goods Imports Goods Exports
Source: BLS, Cushman &Wakefield Research
80
90
100
110
2007 2009 2011 2013 2015 2017
Index(2007=100,SA)
VACANCY DECLINE VS. JOB GROWTH
Source: BLS, Cushman &Wakefield Research
-6%
-4%
-2%
0%
2%
4%
2007 2009 2011 2013 2015F 2017F
Yr/Yr % Job Growth Yr-Yr % Pt.Vacancy
F F
5. 4North American Industrial Real Estate Forecast 2015-2017
The continuing economic recovery, ongoing
evolution of e-commerce, and resurgence in
domestic manufacturing have generated
resiliency in the industrial sector. Trends in
industrial real estate supply and demand are
favorable across all major markets in the U.S.
The overall market has already seen a
significant decline in vacancy, with vacant
space at its lowest level in over a decade. We
expect that the shifting demand and service
paradigms, demographic market forces, and
global dynamics will support continuing
growth in industrial real estate.
ONLINE SHOPPING: LEADING DRIVER
The growth of online retail sales as a significant
percentage of total retail sales is showing no
signs of slowing. The shift in how people are
shopping is a leading demand driver that will
increasingly influence real estate decision
makers and markets. Forrester Research
estimated that the online share of the retail
sector will reach the mid-teens during the
coming decade, up from less than 10% today.
As the e-commerce market grows, retailers
are rapidly repositioning distribution centers
to meet projected demand.
E-commerce is fueling new distribution
projects in major regional distribution hubs
like Dallas/Fort Worth, the Inland Empire,
Chicago and Atlanta, which each have in excess
of 10.0 msf in the construction pipeline. Dallas/
Fort Worth, with 16.2 msf of space currently
in development, tops the ranking.
Retailers are moving from using distribution
centers that supply goods to stores using
combined distribution and fulfillment centers
that can supply those goods both to stores and
to consumers placing orders online. Getting
local (GL) is a key trend that will occur even
more in 2015. For many retailers, future sales
— and profits — will be dependent on how
quickly goods can be delivered to customers in
major metro areas. Developing a robust,
flexible, highly-responsive final mile network
will be critical for both retailers and shippers.
While requirements for big-box space are
common among e-commerce tenants, there is
also growing demand for smaller- and mid-size
buildings. Increasing service expectations (i.e.
same-day delivery), elevated transportation
costs and the need to access labor are leading
e-commerce companies to establish locations
around major population centers.
Omni-channel commerce is also behind some
of the most creative logistics solutions the
supply chain field has seen in a generation.
Some of the world’s largest retailers are
turning their stores into mini-distribution
hubs to help them compete better online
against Amazon.
Instead of fulfilling web orders from
warehouses hundreds of miles from shoppers’
homes, companies including Walmart, Best
U.S. MARKET
U.S. MARKET OVERVIEWECONOMIC GROWTH DRIVES STRONG DEMAND
6. 5North American Industrial Real Estate Forecast 2015-2017
Buy and Gap are routing orders to stores
nearby. The trend, known as Ship from Store
(SFS), allows retailers to ship online orders
from a physical store, which may be closer to
the end consumer than the retailer’s
e-commerce fulfillment facility. This speeds
deliveries, avoids costly markdowns and
recoups sales that may have been lost to
Amazon.
Demand around the edge of major cities for
smaller infill facilities is also on the rise, a
response to the increasing trend toward
same-day fulfillment. Not only do companies
covet the proximity to FedEx/UPS ground-
shipping centers these locations often bring,
proximity also enables them to fill and deliver
orders to a large number of customers quickly.
While Business to Consumer (B2C) demand is
often the focus, the rise of online purchasing
for Business to Business (B2B) transactions
should also be noted. A 2014 Forrester
Research study found that 89% of B2B
providers said adding e-commerce to their
business increased annual revenue by 55%;
adding this purchasing channel also resulted in
larger order volumes for those businesses. As
businesses respond to online purchasing
demand, there are new opportunities for them
to revisit their supply chain, and the facilities
they leverage to fulfill B2B orders.
INLAND DISTRIBUTION MARKETS:
STRONG PERFORMERS
Although trucks remain today’s primary
shipping method for domestic distribution, a
nationwide shortage of truck drivers poses a
risk to existing distribution models.
The long-predicted truckload capacity crunch
has everyone exploring new alternatives. Rail
is fast emerging as a top criterion in both
logistics strategy and industrial real estate
development. As transportation costs rise,
more shippers are looking to reduce long-haul
trucking costs by using intermodal rail. U.S.
rail intermodal traffic increased 5.2% in 2014
from the prior year, according to the
Association of American Railroads.
Markets with intermodal facilities boast the
highest rent growth — a trend we expect to
continue as rail regains its prominence.
Although the major hubs — Dallas/Fort
Worth, Atlanta and Chicago — are leading the
way in absorption and construction, activity is
trickling down to other markets as well.
TOP 5 METROS | RENT GROWTH (2013-2017)
Source: Cushman &Wakefield Research
TOP 5 METROS | VACANCY DECLINES (2013-2017)
Source: Cushman &Wakefield Research
U.S. MARKET
0%
10%
20%
30%
Portland SiliconValley Oakland Miami Houston
TOP 5 METROS | RENT GROWTH
(2013-2017)
-4%
-3%
-2%
-1%
0%
PA I-81/I-78 Miami Chicago SiliconValley Boston
TOP
5
METROS
VACANCY
DECLINES
(2012-‐2017)
7. Indianapolis and Kansas City, both key
intermodal and inland distribution markets,
are also strong performers while Denver
ranks in the top 10 U.S. industrial markets for
highest occupancy. Kansas City has the
newest and arguably most modern intermodal
facility with direct access into Mexico via the
Kansas City Southern Railroad.
Land availability, a sizable population and,
perhaps most important, inland ports with
rail connectivity to other major cities are
some of the notable traits of these markets.
For example, Dallas/Fort Worth offers rail
connectivity to both Chicago, which is the
nation’s busiest inland port, and Southern
California, which is North America’s busiest
seaports through which 40% of imports
enter the U.S. The Dallas/Fort Worth
market currently has over 11.7 msf of spec
product under development. This market is
set to add an additional 23 msf of new
inventory in the next three years.
INCREASED DEVELOPMENT IN
CORE MARKETS BUT LAND WILL
REMAIN AN ISSUE
The e-commerce impact on the industrial
sector is reinforcing the need to secure the
best sites that are close to population
centers. This has been a tremendous boon
to owners and developers of entitled land
suitable for development or located adjacent
to urban areas.
Although secondary markets have seen an
increase in development, activity in primary
markets has been stronger, particularly in
core markets like the Inland Empire,
Chicago, Dallas/Fort Worth, Houston, and
Central New Jersey. The Inland Empire
continues to attract its share of large
industrial projects. Looking at what’s being
entitled and what’s planned, there could
possibly be an additional 60-to-70 msf of
new development in the next five years,
provided the economy and leasing activity
stay strong. The Chicago industrial market is
also making great strides with new
developments.
Limited availability and high land prices are
making urban facilities more expensive and
neighboring submarkets are becoming more
and more land-constrained in many top
markets.The nation’s long shift to the South
and the West is continuing as its population
center edges away from the Midwest.
In the Midwest and the Northwest, the
population edged up by less than half a
percent, while in the West and the South the
population grew by nearly 1%. There was
strong growth not just in California, Texas
and Florida, but also in Arizona, Colorado,
Utah and Washington. Land is certainly a big
issue and the challenge is assemblage, not
just ownership. Some markets will likely see
older stock demolished to meet part of the
demand.
U.S. MARKET
2013 2014 2015F 2016F 2017F
Atlanta $3.73 $4.04 $4.10 $4.14 $4.24
Boston $6.32 $6.58 $6.76 $7.01 $7.20
Chicago $4.31 $4.67 $4.81 $4.96 $5.06
Dallas $4.76 $4.83 $4.95 $5.13 $5.27
Denver $6.42 $6.54 $6.27 $6.43 $6.58
Houston $5.39 $5.93 $6.10 $6.28 $6.45
PA 1-81/I-78 $3.80 $3.87 $3.98 $4.06 $4.11
Inland Empire $4.84 $4.82 $4.84 $5.08 $5.39
Los Angeles $7.17 $7.26 $7.53 $7.94 $8.11
Miami $6.21 $6.45 $6.84 $7.22 $7.49
New Jersey $5.98 $6.22 $6.43 $6.53 $6.61
Oakland $6.15 $6.74 $7.14 $7.37 $7.58
Orange County $8.64 $8.97 $9.28 $9.59 $9.64
Phoenix $7.20 $6.51 $7.88 $8.07 $8.17
Portland $5.57 $6.25 $6.46 $6.82 $7.08
SiliconValley $14.54 $15.42 $16.75 $17.99 $18.27
U.S.- C&W Markets $5.92 $6.25 $6.58 $6.91 $7.06
RENT FORECAST
2013 2014 2015F 2016F 2017F
Atlanta 9.3% 7.9% 9.2% 8.0% 7.4%
Boston 13.4% 11.8% 10.9% 9.8% 9.4%
Chicago 7.7% 6.9% 6.8% 6.3% 5.4%
Dallas 8.6% 9.6% 10.5% 10.0% 8.9%
Denver 4.6% 4.9% 6.3% 5.6% 5.1%
Houston 6.4% 5.6% 6.0% 5.5% 6.0%
PA 1-81/I-78 8.5% 6.5% 6.0% 5.9% 6.3%
Inland Empire 6.1% 6.3% 6.2% 5.7% 4.6%
Los Angeles 4.4% 3.4% 3.2% 3.2% 3.3%
Miami 7.0% 6.8% 5.6% 5.0% 4.8%
New Jersey 8.2% 8.9% 9.1% 9.5% 9.2%
Oakland 4.2% 4.5% 3.8% 4.0% 4.3%
Orange County 4.2% 4.0% 4.0% 3.8% 3.7%
Phoenix 9.4% 11.5% 8.8% 10.1% 10.3%
Portland 6.4% 6.0% 5.7% 4.8% 4.3%
SiliconValley 8.3% 8.1% 6.9% 6.3% 6.0%
U.S.- C&W Markets 7.5% 6.8% 6.3% 6.1% 6.6%
VACANCY FORECASTRENT GROWTH RANKING
2013-2017
VACANCY DECLINE RANKING
2013-2017
6North American Industrial Real Estate Forecast 2015-2017
-20.0% 0.0% 20.0% 40.0%
Denver
I78/I83,PA
New Jersey
Dallas
Inland Empire
Orange County
Los Angeles
Phoenix
Atlanta
Boston
Chicago
U.S.- C&W Markets
Houston
Miami
Oakland
SiliconValley
Portland
RENT GROWTH RANKING
2012-2017
-5.0% 5.0% 15.0% 25.0%
Denver
PA I-81/I-78
New Jersey
Dallas
Inland Empire
Orange County
Los Angeles
Phoenix
Atlanta
Boston
Chicago
U.S.- C&W Markets
Houston
Miami
Oakland
SiliconValley
Portland
RENT GROWTH RANKING
2013-2017
-6% -4% -2% 0% 2%
New Jersey
Phoenix
Denver
Dallas
Oakland
Orange County
Houston
U.S.- C&W Markets
Los Angeles
Inland Empire
Atlanta
Portland
PA I-81/I-78
Miami
Chicago
SiliconValley
Boston
VACANCY DECLINE RANKING
2013-2017
8. 7North American Industrial Real Estate Forecast 2015-2017
Historically, the main benefactor of robust
economic fundamentals were brick-and-mortar
retail locations, which then filtered to the
warehouse market, where inventory was stored
and distributed. Although this remains the
prevalent use of warehouse space in the U.S.,
e-commerce is transforming warehouses into
the retail stores of the future as more and more
consumers use the internet for purchasing
merchandise. The increase in demand for
e-commerce facilities is the major driver in the
resurgence of new development throughout the
country. These new buildings require build-outs
not found in many existing facilities.
One of the most significant trends in industrial
real estate is the growing dominance of
large,“big box” space in new construction.
These massive structures are generally
state-of-the-art distribution facilities equipped
with features that many clients desire, such as
excess clear heights, larger bays, more
surrounding land for additional parking, and
more power for fulfillment equipment.
The warehouse of today requires features
such as clear heights of 36-to-40 feet to
accommodate modern conveyor systems,
which need greater temperature control and
require more power than many existing
locations offer. Other factors pushing
distribution centers from 30’-32’ to 36’-40’
are mezzanines that support high velocity
order picking.
Amazon is clearly making the largest
e-commerce impact in the U.S. today. In the
Inland Empire region of Southern California,
Amazon occupied an additional 4.2 msf in the
past 24 months. In a move to compete with
Amazon, Walmart is building a 1.2-msf
e-commerce facility in Chino, CA, and another
1.2-msf facility in the Atlanta submarket of
SUPPLY & DEMAND TRENDS RENT VS. VACANCY
WAREHOUSE DISTRIBUTION
Source: Cushman &Wakefield Research Source: Cushman &Wakefield Research
WAREHOUSE-DISTRIBUTIONNEW SUPPLY CHAIN SOLUTIONS CHANGE LANDSCAPE
-‐100.000
-‐50.000
0.000
50.000
100.000
150.000
2007
2009
2011
2013
2015
2017
Comp
(msf)
(L)
Net
Abs
(msf)
(L)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Rent
Level
(L)
Vacancy
(R)
Completions (msf) (L) Net Absorption (msf) (L)
9. 8North American Industrial Real Estate Forecast 2015-2017
Union City. Home Depot, Target, and Kohl’s
are also making major investments in
e-commerce related facilities throughout the
U.S. With projected occupancy gains of 380
msf in warehouse/distribution space from
2014-2017, this demand will remain strong.
LAND AVAILABILITY KEY TOVACANCY
With a 6.7% vacancy rate, the warehouse
sector has now posted 19 consecutive quarters
of declining vacancies. Strong market demand
for high-quality class A space has led to tight
supply. New inventory will be added to the U.S.
warehouse market at a brisk pace over the next
three years as an additional 290 msf will be
completed, with much of it over 100,000 sf per
building. As the overall economy improves,
however, the small building market will further
tighten, which will then spur speculative
development in this size range.
Even with the influx of new construction,
increased demand should further decrease this
sector’s vacancy rate to 6.3% in 2015. Markets
with land available to develop, including the
Inland Empire, Chicago, Atlanta, Dallas, New
Jersey, Phoenix, Houston, and the PA I-81/I-78
Corridor will continue building to satisfy the
changing requirements for warehouses due to
e-commerce.
As interest grows in new state-of-the-art
facilities, the largest distribution hubs such as
Inland Empire, Chicago, and Atlanta will
recognize significant construction through
2017, and vacancy rates are expected to fall
substantially over the next five years even with
the addition of new supply. Mature markets
including Los Angeles, Orange County and
Silicon Valley, with diminished land to develop,
will continue to tighten.
RENTAL RATE GROWTH ACCELERATES
Significant space absorption, coupled with
historically low supply is driving strong rent
growth in most major industrial hubs. U.S.
warehouse rents are projected to grow by
more than 5% in 2015 and by more than 10%
over the next three years. The largest gains are
expected to be in supply-constrained markets
such as the Los Angeles Metro Area and
Silicon Valley. Rents in both markets are
expected to rise nearly $0.50 psf/yr and finish
significantly higher than the national average.
Although the rate of growth will slow in 2017,
asking rents for warehouse space in Los
Angeles Metro will finish 2017 at $8.12 psf/yr,
significantly higher than the U.S. average of
$5.79 psf/yr. Strong rent growth in Silicon
Valley will make the market the most
expensive for warehouse space in the country
by 2017, with an asking rate of $9.03 psf/yr.
As the Gulf and East Coast port markets
continue to capture modest market share from
West Coast port markets, Houston has been a
stand-out, chalking up one of its best years on
record in 2014. In response, rental rates have
increased by more than 13% in the last year
and are projected to reach $6.17 psf/year in
2017. However, the recent drop in oil prices
– while largely positive for the U.S. economy-
is a concern and is prompting market watchers
to focus on this strong performing market. The
outlook for Houston in 2015 remains highly
contingent on energy pricing. Demand for new
space should abate along with the slowing in
the energy sector, and 2015 is likely to see a
slight correction in real estate fundamentals.
Newly added port customers and shifting
cargo from U.S. West to East Coast are all
fueling the growing cargo volumes at
Georgia’s ports. In addition to Savannah,
Atlanta has also benefitted significantly from
the increased trade volume with a 51.5%
annual increase in leasing activity in 2014 and
strong development pipeline.
Markets with significant construction activity,
including the Inland Empire, PA I-81/I-78
Corridor, Chicago, and Dallas, offer the most
affordable rates, which are projected to remain
below the national average for the next three
years. New supply will keep landlords from
significantly raising asking rates.
2013 2014 2015F 2016F 2017F
Atlanta $3.34 $3.50 $3.57 $3.64 $3.68
Boston $5.50 $5.70 $5.88 $6.07 $6.18
Chicago $4.17 $4.60 $4.74 $4.86 $4.95
Dallas $3.61 $4.20 $4.36 $4.49 $4.56
Denver $4.80 $5.03 $5.10 $5.19 $5.21
Houston $5.02 $5.72 $5.89 $6.01 $6.17
PA 1-81/I-78 $3.82 $3.87 $3.98 $4.07 $4.11
Inland Empire $4.26 $4.45 $4.50 $4.74 $4.97
Los Angeles $6.75 $7.00 $7.49 $7.93 $8.12
Miami $6.20 $6.31 $6.73 $7.13 $7.39
New Jersey $5.20 $5.36 $5.48 $5.56 $5.60
Oakland $5.11 $6.12 $6.51 $6.77 $7.01
Orange County $7.32 $7.55 $7.84 $8.35 $8.62
Phoenix $5.76 $5.68 $5.92 $6.15 $6.25
Portland $5.11 $5.33 $5.57 $5.79 $5.94
SiliconValley $6.37 $7.00 $7.45 $8.23 $9.03
U.S.- C&W Markets $4.85 $5.06 $5.34 $5.62 $5.79
2013 2014 2015F 2016F 2017F
Atlanta 9.2% 8.8% 9.2% 7.9% 7.2%
Boston 13.1% 12.1% 11.1% 10.0% 9.7%
Chicago 9.9% 8.6% 8.6% 8.0% 6.6%
Dallas 7.6% 9.1% 10.3% 9.8% 8.6%
Denver 3.7% 4.0% 6.5% 5.8% 5.1%
Houston 6.6% 6.1% 6.1% 5.5% 6.1%
PA 1-81/I-78 8.6% 6.5% 5.9% 5.8% 6.3%
Inland Empire 5.9% 6.2% 6.3% 5.8% 4.5%
Los Angeles 4.3% 3.2% 3.0% 3.1% 3.3%
Miami 7.2% 6.9% 5.6% 5.1% 4.9%
New Jersey 8.3% 9.3% 9.6% 10.3% 10.0%
Oakland 3.3% 4.3% 3.4% 4.3% 5.0%
Orange County 4.7% 3.7% 4.0% 3.4% 3.2%
Phoenix 9.6% 10.0% 8.4% 10.6% 11.0%
Portland 6.5% 6.0% 6.0% 5.1% 4.5%
SiliconValley 5.8% 5.7% 4.9% 4.2% 4.1%
U.S.- C&W Markets 7.5% 6.7% 6.3% 6.3% 6.9%
RENT FORECAST VACANCY FORECASTRENT GROWTH RANKING
2013-2017
VACANCY DECLINE RANKING
2013-2017
WAREHOUSE DISTRIBUTION
-4% -2% 0% 2%
New Jersey
Oakland
Denver
Phoenix
Dallas
Houston
U.S.- C&W Markets
Los Angeles
Inland Empire
Orange County
SiliconValley
Portland
Atlanta
Miami
PA I-81/I-78
Chicago
Boston
VACANCY DECLINE RANKING
2013-2017
-25% 0% 25% 50%
PA I-81/I-78
New Jersey
Denver
Phoenix
Atlanta
Boston
Portland
Inland Empire
Orange County
Chicago
Miami
U.S.- C&W Markets
Los Angeles
Houston
Dallas
Oakland
SiliconValley
RENT GROWTH RANKING
2013-2017
10. 9North American Industrial Real Estate Forecast 2015-2017
Manufacturing activity plays a vital role in the
U.S. economy, generating jobs for millions of
workers, providing incomes for households
across the economic spectrum, and producing
necessary and innovative products for
domestic consumption and export.
U.S. manufacturing activity has picked up in
recent years and this sector is expected to
continue to post steady increases in both
output and employment. Since 2009,
manufacturing has accounted for 12.5% of the
U.S. GDP. Year-over-year job growth has been
reported in many sectors, including primary
metals, fabricated metal products, apparel,
leather and allied products, furniture, food,
beverage and tobacco products, transportation
equipment, appliances and components, paper
products and wood products.
SUPPLY & DEMAND TRENDS RENT VS. VACANCY
MANUFACTURING
Source: Cushman &Wakefield Research Source: Cushman &Wakefield Research
MANUFACTURINGSTEADY GROWTH REVITALIZES REAL ESTATE DEMAND
-‐30.000
-‐20.000
-‐10.000
0.000
10.000
20.000
30.000
2007
2009
2011
2013
2015
2017
Comp
(msf)
(L)
Net
Abs
(msf)
(L)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Rent
Level
(L)
Vacancy
(R)
Completions (msf) (L) Net Absorption (msf) (L)
11. 10North American Industrial Real Estate Forecast 2015-2017
U.S. manufacturing employment has shifted
significantly since its peak in 1979 at 19.6
million. After decreasing for more than two
decades, employment has increased for the
fourth consecutive year, now hovering near the
12.1 million mark.
MANUFACTURING MAKES
A COMEBACK
U.S. manufacturing is making a highly anticipated
comeback. The promise of cheaper domestic
energy sources and rising labor costs around
the world are prompting more manufacturers
to set up shop locally. This phenomenon, known
as reshoring or in-sourcing, is being adopted by
a number of major companies now expanding
operations stateside.
A major factor in determining where to house
production is labor costs. In the last few years,
labor costs in China have increased year-over-
year by nearly 20% and by 5.0% in Mexico.
Meanwhile, in the United States, labor costs
have risen year-over-year by only 3% — making
the decision to operate in the U.S. marginally
more cost-effective. Currently, the average
manufacturing wage in China is $3.50 per hour
— roughly half of the U.S. minimum wage of
$7.25, and is expected to grow by another 10%
per year over the next several years.
Baxter International, for instance, is
constructing a new 1.0-msf state-of-the-art
manufacturing facility in Atlanta to support the
growth of its plasma-based treatments. The
new facility is scheduled to be fully-operational
in 2018. Other companies that are favoring
U.S. facilities include General Electric,
Whirlpool, Caterpillar, and DuPont. All have
reported expanding or building new U.S.
facilities in the last few years. Some of the
major advantages of having U.S.-based
production facilities are the ability to meet
customer demand with production centers
nearby, increased exports from the U.S., a
reduction of imports to the U.S., and reduced
transportation costs.
LEASING ACTIVITY PICKS UP SPEED
Increased demand for manufacturing space led
to a total of 38.8 msf being leased in 2014.
Greater Los Angeles led the pack at 6.2 msf,
followed by San Diego at 4.0 msf and Chicago
at 3.9 msf.
A lack of quality space remains one of the
biggest challenges facing manufacturers in the
U.S. Emerging technological advances, such
as improved measuring/process control,
advanced digital technologies and sustainable
manufacturing, have made many older
facilities functionally obsolete, opening the
door for more speculative construction to
take place within the next few years. Large
build-to-suit projects are currently underway
in Atlanta, Denver, and Chicago, with more
facilities scheduled to break ground in the
next few years. With manufacturers aiming
to respond faster to local-market demands,
regional manufacturing will increasingly be
seen as cost effective.
RENTAL RATES RISING
Rental rate recovery continues to be a bright
spot for building owners in the U.S.
manufacturing industry. National asking rental
rates reached $5.34 psf in 2014 and are
expected to appreciate at an annual average rate
of approximately 2.0% over the next few years.
Jacksonville and Atlanta have the lowest
asking rental rates at $3.12 and $3.36,
respectively, while the highest can be found in
Greater Los Angeles and Ft. Lauderdale at
$6.81 and $6.73, respectively. Major
manufacturing hubs like Chicago, Phoenix and
Jacksonville have all seen year-over-year
rental increases of more than 6%.
About 35% of the manufacturing markets
tracked by Cushman & Wakefield reported
direct net asking rental rates above the
national average. We see rental rates
increasing for most manufacturing markets
through 2018 in step with strengthening
consumer demand.
2013 2014 2015F 2016F 2017F
Atlanta $3.42 $3.36 $3.41 $3.49 $3.54
Boston $6.47 $6.54 $6.54 $6.66 $6.80
Chicago $3.97 $4.19 $4.34 $4.49 $4.58
Dallas $3.29 $4.16 $4.36 $4.62 $4.75
Denver $4.68 $5.51 $5.66 $5.85 $5.89
Houston $5.67 $5.63 $5.69 $5.72 $5.85
PA 1-81/I-78 $3.04 $3.34 $3.45 $3.54 $3.55
Inland Empire $5.02 $5.29 $5.34 $5.61 $5.89
Los Angeles $7.40 $6.81 $6.88 $7.06 $7.05
Miami $5.39 $5.98 $6.24 $6.57 $6.80
New Jersey $4.43 $4.95 $5.34 $5.71 $5.93
Oakland $5.99 $6.50 $6.75 $7.07 $7.33
Orange County $8.28 $9.02 $9.96 $10.67 $10.83
Phoenix $5.88 $6.12 $6.14 $6.30 $6.44
Portland $4.58 $5.38 $5.57 $5.74 $5.85
SiliconValley $10.50 $9.53 $10.36 $11.44 $12.15
U.S.- C&W Markets $5.28 $5.34 $5.50 $5.77 $5.98
2013 2014 2015F 2016F 2017F
Atlanta 6.7% 6.4% 5.5% 5.0% 4.6%
Boston 14.6% 11.4% 11.1% 10.0% 9.1%
Chicago 4.9% 4.7% 4.3% 3.9% 3.8%
Dallas 11.9% 14.9% 13.4% 12.3% 12.8%
Denver 3.8% 4.8% 4.5% 4.2% 4.2%
Houston 4.5% 3.7% 3.9% 3.7% 3.6%
PA 1-81/I-78 6.0% 5.6% 5.3% 6.3% 6.1%
Inland Empire 6.5% 6.0% 5.5% 4.9% 4.7%
Los Angeles 4.9% 4.4% 4.2% 3.7% 3.6%
Miami 6.8% 6.5% 5.6% 4.8% 4.3%
New Jersey 6.8% 5.3% 5.5% 4.7% 4.3%
Oakland 4.3% 4.0% 3.4% 2.8% 2.5%
Orange County 3.0% 3.5% 3.5% 3.4% 3.5%
Phoenix 6.8% 5.7% 5.4% 4.7% 4.2%
Portland 5.1% 3.2% 2.3% 1.5% 1.3%
SiliconValley 4.6% 4.3% 4.1% 4.1% 4.1%
U.S.- C&W Markets 5.9% 5.2% 4.4% 4.1% 4.3%
RENT FORECAST VACANCY FORECASTRENT GROWTH RANKING
2013-2017
VACANCY DECLINE RANKING
2013-2017
MANUFACTURING
-30% 0% 30% 60%
Los Angeles
Houston
Atlanta
Boston
Phoenix
U.S.- C&W Markets
Chicago
SiliconValley
PA I-81/I-78
Inland Empire
Oakland
Denver
Miami
Portland
Orange County
New Jersey
Dallas
RENT GROWTH RANKING
2013-2017
-6% -4% -2% 0% 2%
Dallas
Orange County
Denver
PA I-81/I-78
SiliconValley
Houston
Chicago
Los Angeles
U.S.- C&W Markets
Inland Empire
Oakland
Atlanta
Miami
New Jersey
Phoenix
Portland
Boston
VACANCY DECLINE RANKING
2013-2017
12. 11North American Industrial Real Estate Forecast 2015-2017
FLEX SPACE
ACCELERATING JOB GROWTH WILL
STRENGTHEN FUNDAMENTALS
While national new supply of flex space
ramped up in 2014 to its highest level since
2008, it was outpaced by steady absorption.
Bolstered by the technology sector, Silicon
Valley outperformed all of its peers in terms of
space absorbed over the past three years and
is expected to remain the leader, accounting
for 18% of absorption from 2015-2017.
Rounding out the anticipated top performers
going forward are three metros with highly
skilled labor forces: Boston (tech,
pharmaceuticals, and life sciences), Denver
(energy and aerospace), and Dallas (energy and
tech). Together, these dynamic metros will
absorb a combined total of 4.8 msf over the
forecast period.
Atlanta and Portland, two markets recently
hampered by negative absorption, are expected
to experience positive momentum in the near
term, owing to tame supply pipelines and
economic expansion. Improving employment
conditions nationwide should continue to drive
demand for flex product over the next few
years and keep fundamentals strong.
VACANCY RATES WILL CONTINUE
TO FALL
With employment gains driving demand and
new supply remaining constrained in most
markets, vacancy is forecast to decline in 2015.
The lowest rates are anticipated in LA Metro,
Orange County, and Miami at 3.6%, 5.3%, and
5.4% respectively. Vacancy rates across most
metros are expected to fall further over the
forecast period.
Phoenix, which added 2.5 msf of new product in
2014, is likely to struggle with elevated vacancy
relative to its peers. The market is expected to
see vacancy settle just south of 16% by 2017,
virtually unchanged from today. In the PA
I-81/I-78 Corridor, where vacancy has held near
20% since 2009, the rate is expected to fall
more than 500 basis points to 14.9% over the
next three years due to steady demand and an
absence of new deliveries. Nationwide, vacancy
is forecast to close 2017 at 8.8%.
CONSTRUCTION SET TO ACCELERATE
Construction remained in check from
2011-2013 as the economy emerged from the
recession with just 4.9 msf of new supply
delivered, but 2014 marked a turning point
with 4.3 msf added in one year. Phoenix
accounted for more than half of new deliveries,
FLEX SPACESTAGE SET FOR INCREASING DEMAND
13. 12North American Industrial Real Estate Forecast 2015-2017
2013 2014 2015F 2016F 2017F
Atlanta $7.16 $7.48 $7.83 $8.15 $8.48
Boston $8.72 $8.38 $8.83 $9.38 $9.68
Chicago $8.64 $8.65 $8.84 $9.06 $9.13
Dallas $8.16 $7.84 $8.30 $8.80 $9.06
Denver $8.95 $9.51 $10.03 $10.52 $10.80
Houston $7.20 $7.08 $7.62 $8.12 $8.48
PA 1-81/I-78 $5.31 $5.58 $5.75 $6.25 $6.60
Inland Empire $8.94 $9.75 $10.12 $10.63 $11.16
Los Angeles $10.81 $10.18 $11.07 $11.90 $12.37
Miami $8.67 $9.41 $9.35 $9.51 $10.04
New Jersey $10.82 $11.21 $11.99 $12.75 $13.04
Oakland $8.61 $9.01 $9.23 $9.70 $10.07
Orange County $11.63 $11.78 $12.40 $13.38 $13.67
Phoenix $11.68 $12.14 $12.77 $13.39 $13.76
Portland $9.94 $10.40 $11.06 $11.63 $11.99
SiliconValley $16.37 $17.57 $19.30 $20.64 $20.94
U.S.- C&W Markets $10.90 $11.26 $11.91 $12.73 $13.09
2013 2014 2015F 2016F 2017F
Atlanta 11.9% 12.4% 12.1% 11.7% 11.4%
Boston 13.0% 11.7% 10.2% 9.0% 9.0%
Chicago 9.4% 9.0% 8.7% 8.4% 8.2%
Dallas 13.2% 11.6% 11.2% 10.7% 10.1%
Denver 8.4% 7.9% 7.2% 6.2% 5.9%
Houston 8.5% 8.6% 8.2% 8.1% 8.5%
PA 1-81/I-78 21.9% 20.1% 18.0% 16.0% 14.9%
Inland Empire 7.8% 7.7% 6.9% 6.3% 5.9%
Los Angeles 5.2% 5.2% 3.6% 3.3% 3.0%
Miami 4.8% 6.1% 5.4% 5.2% 4.5%
New Jersey 9.9% 10.7% 10.6% 10.1% 9.6%
Oakland 8.2% 7.8% 7.8% 7.2% 7.1%
Orange County 5.6% 5.9% 5.3% 5.6% 5.8%
Phoenix 12.3% 16.0% 14.8% 16.1% 15.9%
Portland 8.2% 12.5% 10.6% 9.9% 9.2%
SiliconValley 10.2% 10.0% 8.4% 7.6% 7.1%
U.S.- C&W Markets 10.2% 9.6% 9.0% 8.4% 8.8%
RENT FORECAST VACANCY FORECASTRENT GROWTH RANKING
2013-2017
VACANCY DECLINE RANKING
2013-2017
FLEX SPACE
with Silicon Valley adding 600,000 sf and
Denver and the New Jersey Metro each adding
460,000 sf of new inventory.
Over the next three years, Silicon Valley and
the New Jersey Metro are each expected to
add 840,000 sf and 700,000 sf of new product,
respectively. Several markets have no new
supply in the pipeline: the PA I-81/I-78
Corridor, Atlanta, Phoenix, Orange County,
and the Inland Empire. While new deliveries
are expected to increase nationwide, demand
will continue to outpace supply with 29.7 msf
of projected absorption from 2015-2017.
DEMAND WILL DRIVE RENTS
While certain markets will clearly outperform
others, flex rents are projected to grow about
6.9% in 2015 and annual growth will average
about 5.2% through 2017, The supply-
constrained LA Metro is forecast to post 6.7%
average annual rent growth through 2017,
pushing asking rates to $12.37 psf.
Houston, where rents are among the lowest
across markets, is expected to see average
annual rate increases of 6.2% over the
three-year forecast period, but rents will
remain below $8.50 psf. Silicon Valley, where
asking rents remain the highest across
markets, is anticipating rates of $20.94 by 2017,
an average of 6.1% annual growth over the
forecast period. Nationwide, rents are forecast
to close 2017 at $13.09 psf.
RENT VS. VACANCY
Source: Cushman &Wakefield Research
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Rent
Level
(L)
Vacancy
(R)
SUPPLY & DEMAND TRENDS
-‐25.000
-‐20.000
-‐15.000
-‐10.000
-‐5.000
0.000
5.000
10.000
15.000
20.000
2007
2009
2011
2013
2015
2017
Comp
(msf)
(L)
Net
Abs
(msf)
(L)
Source: Cushman &Wakefield Research
-15% 0% 15% 30% 45%
Boston
Dallas
Chicago
Los Angeles
Houston
Orange County
Oakland
Miami
PA I-81/I-78
U.S.- C&W Markets
Phoenix
Atlanta
New Jersey
Portland
Denver
Inland Empire
SiliconValley
RENT GROWTH RANKING
2013-2017
-5.0% -2.5% 0.0% 2.5%
Phoenix
Portland
Orange County
Houston
Miami
New Jersey
Atlanta
Oakland
Chicago
U.S.- C&W Markets
Inland Empire
Los Angeles
Denver
Dallas
SiliconValley
Boston
PA I-81/I-78
FLEXVACANCY DECLINE
RANKING
2013-2017
Completions (msf) (L) Net Absorption (msf) (L)
14. 13North American Industrial Real Estate Forecast 2015-2017
Increased U.S. demand for Canadian goods and
services was a key story in late 2014, enhanced
by a low-value loonie, and strengthening
non-energy export activity. A more
competitive dollar was good news for
manufacturing activity, where profits were up
by 40% year-over-year as of Q3 2014 (TD
Economics). Lower oil prices will further spur
manufacturing activity in Ontario and Quebec,
which are both expected to see accelerated
GDP growth in 2015.
However, it is a different story for oil-rich
economies such as Alberta, Newfoundland and
Labrador, and Saskatchewan, which are
recalibrating outlooks based on dramatically
lower oil prices. As well, the widely publicized
retreat of Target from Canada, announced in
January 2015, had a major impact on both retail
and industrial sectors. The retailer, which
operated in Canada for less than two years,
pulled out of 133 locations and put 17,600
employees out of work. Of Target’s 20 msf
footprint, 5 msf of industrial space, which is
mostly located in Calgary and Toronto.
While the changing energy landscape is shifting
momentum in favor of central Canada in 2015,
western markets experienced the lion’s share
of expansionary demand in 2014. National
industrial absorption rose to 3.7 msf during the
third quarter of 2014, driving vacancy down to
6.1% — the lowest level since Q3 2012. Tenant
growth in Calgary and Vancouver accounted
for a combined 6.7 msf of positive absorption
in the first three quarters of 2014.
The key driver in the Calgary market in 2014
was not the energy industry, but the
distribution and logistics sector, which has
been expanding to meet growing online retail
demand. While the drop in oil prices
generated uncertainty, the last quarter of 2014
was marked by strong growth and, at the time
of publication, remained at a healthy moderate
level. Edmonton’s industrial market, which saw
strong demand in 2014 from both oil and gas
support services, has started to see some
softening in leasing activity, but still anticipates
a positive 2015 given the long-term nature of
major energy-related projects underway.
Central Canadian markets, including Toronto,
Montreal and Ottawa, which saw weak
demand for industrial space in the first half of
2014, experienced a notable rebound with
positive absorption rising to 2.0 msf over the
third quarter. Again, this is being driven by the
growing U.S. demand for Canadian goods and
services, a more competitive dollar, and lower
energy costs.
DEVELOPMENT TRACTION IN
CALGARY AND TORONTO
On the development side, Western and
Central Canadian markets have been most
active, with Calgary and Toronto seeing a
significant amount of speculative development.
In Calgary, only 250,000 sf of the 1.7 msf under
CANADA
CANADAMOMENTUM SHIFTS TO CENTRAL MARKETS
15. 14North American Industrial Real Estate Forecast 2015-2017
construction was preleased as of the third
quarter of 2014. This indicated optimism in the
market’s potential before sustained low oil
prices started to take a toll. Development of
big box industrial facilities ballooned in the
Greater Toronto Area (GTA) in 2014; of the
7.3 msf under construction at the end of the
third quarter, almost 5 msf was being built on a
speculative basis.
VANCOUVER INFRASTRUCTURE
IMPROVEMENTS
This west coast port city — consistently one
of the tightest industrial markets in the
Americas — currently has a vacancy rate of
4.2%. Acquisition fever and cap rate
compression were key stories in 2014, with
strong demand for ownership from both
foreign buyers and local owner/operators.
Leasing activity has seen modest demand in
recent quarters, which has held rental rate
rises in check.
Additionally, with the U.S. economy gaining
strength and the value of the Canadian dollar
falling alongside low oil prices, Vancouver’s
manufacturing sector is gaining traction.
Exports increased 8.3% year-over-year in
August, highlighting rising U.S. demand for
non-energy exports.
Major improvements made to the province’s
transportation infrastructure will also
support improved trade and open new
markets. The completion of the South Fraser
Perimeter Road, for example, is spurring
demand in the Tilbury and North Surrey
markets. The ongoing expansions at various
ports around Vancouver, including the Fraser
River Port, Deltaport, and the Port of
Vancouver, are also playing a vital role in
opening new trade potential.
Over 2 msf of new supply came to market in
Vancouver in 2014 with more than half of this
product built on a speculative basis. This level
of development activity, which is down from
historic norms, is expected to pick up over
the near term. Leasing demand is targeted to
strengthen in 2015 and into 2016, driven by
the U.S.
However, weaker Asia-Pacific demand for
resources and an expected drop in non-gas
capital spending will offset some of these gains.
Given the anticipated new supply, the vacancy
rate is expected to decline slowly to 3.3% by
Q4 2016.
CALGARY FEELS THE STRAIN OF LOW
OIL PRICES
Consumer-based demand was the primary
driver of growth in Calgary’s industrial market
in 2014 and this trend will help offset the
negative impact of low oil prices in 2015 and
beyond. A number of significant transactions in
the distribution and logistics sector were
completed by tenants such as Canadian Tire
and Pet Valu.
Demand has been strong for small- to
medium-sized bay product and diminishing
availability exerted upward pressure on rental
rates in 2014. The strength of the market
gained the attention of Texas-based Hillwood
Investment Properties, a “top-five” U.S.
developer. It purchased land in the Balzac area
of Calgary, where it is building a 500,000-sf
facility on spec with an additional 3.0 msf of
planned developments.
A shortage of quality product and low vacancy,
along with strong absorption and leasing
activity in speculative developments, triggered
another major development cycle in Calgary
last year. Approximately 3.6 msf of new
product will be delivered over the coming year.
The impact of lower oil prices and the return
of Target’s distribution space to market (1.6
msf), will mean softening demand and rising
vacancy in 2015. Vacancy is projected to rise
to approximately 8.0% by the end of 2015, but
a positive shift in expansionary momentum is
expected to lower vacancy in 2016 and beyond.
GTA POISED FOR GROWTH
The GTA industrial market, which ranks as the
third largest in North America, saw long-
awaited expansionary demand in Q3 2014,
spurred by U.S. demand and a competitive
Canadian dollar. After enduring a year-and-a
half of weak demand and negative absorption,
this rebound was a welcome relief. Lower
energy prices and record automotive sales
fueled demand for automobile parts,
machinery, equipment and other products,
reviving the export sector. The auto sector,
which accounted for 35% of Ontario exports
MONTREAL RENT AND VACANCY PROJECTIONSOTTAWA RENT AND VACANCY PROJECTIONS
CANADA
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
$0.00
$3.00
$6.00
$9.00
$12.00
$15.00
2013 2014 2015 2016 2017
Ottawa
Rent andVacancy Projections
Gross Rent Vacancy
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
$0.00
$3.00
$6.00
$9.00
$12.00
$15.00
2013 2014 2015 2016 2017
Montreal
Rent andVacancy Projections
Gross Rent Vacancy
16. 15North American Industrial Real Estate Forecast 2015-2017
in 2013, was expected to grow by 8% in 2014
(Export Development Canada). Thanks to this
and other factors, positive absorption reached
1.5 msf in the third quarter of 2014 from an
average quarterly absorption of negative
575,000 sf in 2013.
Against this brighter backdrop, a significant
development cycle was triggered with the focus
on big box speculative construction. Currently,
7.3 msf is under construction in the GTA, with
4.6 msf expected to arrive by the second
quarter of 2015. Developers are banking on
growing business confidence to support
expansion decisions. As of the third quarter of
2014, the GTA industrial vacancy rate was
5.4%, down from 5.8% one year ago. While
construction completions may push vacancy to
5.6% by mid-2015, stronger positive demand
should absorb much of the new product,
causing vacancy to tighten to 5.4% by Q4 2016.
MONTREAL SEES DATA CENTER
GROWTH
Montreal is the second largest industrial
market in Canada, and like the GTA, has seen
muted demand in recent quarters. However,
the third quarter marked a turning point, with
a positive shift in absorption to about 565,000
sf. Montreal has been a strong beneficiary of
increased demand supported by a lower dollar
and oil prices. As well, the data center sector is
growing due to the region’s lower natural
disaster risk and low electricity costs thanks to
the province’s abundant supply and subsidies.
While the Montreal market will see little rental
rate growth, demand is expected to gain
momentum over 2015 and beyond. Vacancy,
which sits at 9.5% is expected to drop to 8.6%
by the end of 2015, and, depending on the
supply response, will continue this decline.
CANADA
OTTAWA SEES ICT GROWTH
Ottawa’s industrial market is small and
dominated by the distribution sector. As
Canada’s capital, the regional economy is
driven by federal government and tight
federal budgets have led to non-existent
expansionary demand since about 2012. A
bright spot has been the information and
communication technology (ICT) services
sector, which is driving new demand.
Generally, the strengthening U.S. economy,
weaker dollar and a federal election in 2015
should support positive growth into 2015
and 2016. With the arrival of new supply,
the vacancy rate will crest at 6.9% by the
end of 2015, and then begin to tighten.
ATLANTIC CANADA:TIDES TURN
Industrial markets in Nova Scotia and New
Brunswick will remain subdued due to
overall lackluster economic conditions.
However, in Nova Scotia, increased energy
and merchandise exports spurred GDP
growth, which is expected to reach 2.2% in
2014 (RBC Economics).
While expansionary demand remains weak,
the tides may turn in 2015, as U.S. demand
for goods improves. In Halifax and Moncton,
absorption is down as some larger occupiers
have relocated into owned facilities.
In Newfoundland and Labrador, the oil
industry continues to drive demand and new
construction, with more land being made
available for development and vacancies
increasing in older warehouse facilities.
However, if sustained, low oil prices are
expected to slow new development and
growth over 2015.
18. 17North American Industrial Real Estate Forecast 2015-2017
MAJOR FORCE IN GLOBAL
AUTOMOTIVE INDUSTRY
Mexico is becoming one of the world’s most
dynamic automotive manufacturing industry
locations. In 2009, it was the world’s 10th
largest auto producer. By early 2014, it had
soared past Spain, France, and Brazil to
become the world’s No. 7 automaker and the
fourth largest exporter. Once a sleepy railway
crossroads, Aguascalientes now has two
massive auto plants and a third on the way.
Later this decade, new plants will be producing
premium vehicles, BMWs and Mercedes,
Infinitis and Audis. Many Nissan vehicles that
roll out of the existing plants in Aguascalientes
are bound not for domestic showrooms or to
auto dealers in the United States but for Brazil,
Colombia, the United Arab Emirates, and
dozens of other markets.
In Monterrey, the automotive industry is
playing an increasingly important role, having
an ever-growing number of companies
engaging in the manufacturing of auto parts
and vehicles. Recently, KIA Motors selected
Pesqueria on the outskirts of Monterrey as the
location for its first plant in Mexico.
MEXICO CITY AND MONTERREY
SUSTAIN DYNAMIC GROWTH
The two largest industrial real estate markets,
Mexico City and Monterrey, are experiencing
sustained dynamic growth, while the cities of
Tijuana and Ciudad Juarez remain in clear
recovery and the central estates (Bajio region)
are experiencing significant growth.
As one of the largest cities in the world,
Mexico City’s industrial real estate is focused
on logistics activity to support increasing
e-commerce demands. More sophisticated
intermodal logistics platforms are becoming
common, propelling demand. On the supply
side, real estate developers are bringing
increasingly specialized buildings to market,
with different layouts particularly adapted for
logistics; these may include large cross-dock
areas or 60-foot clearance for robotic racks.
In Mexico City, year-end overall vacancy is
expected to stabilize at its historical level of
close to 5%, in spite of almost 3 msf of new
buildings to be completed in the year. Overall
class A asking rent, at US$5.80 psf, will sustain
a moderate year-over-year decrease.
Major drivers of industrial real estate activity
continue to reflect the prominent role of
distribution and logistics sectors. They include
large renovations, like Kuehne+Nagel’s
341,000 sf at O’Donnell Logistics Park, or
expansions, like Walmart’s 132,000 sf at
Parque Industrial El Convento.
Mexico City’s industrial submarkets have
maintained low vacancy rates, and large
speculative buildings are under development,
such as the 400,000-sf W3 at El Peral in
Cuautitlán. Notably, preleasing remains strong,
MEXICO
MEXICOPOSITIONED FOR INCREASED MANUFACTURING AND EXPORT SUCCESS
19. 18North American Industrial Real Estate Forecast 2015-2017
helping to drive healthy build-to-suit activity.
One example is O’Donnell Logistics Park W.
VI, a 100% preleased building.
Increasingly large sales, like that of Átomo 3
— the former Gillette plant in Naucalpan—
showcase the expanded investment activity.
Also, many redevelopment projects are strong
indicators of more robust investor confidence.
Monterrey’s leasing activity in the third
quarter, at approximately 2.9 msf, forecasts an
extremely healthy market expected to grow by
more than 90% year-over-year.
HIGH QUALITY GREEN
DEVELOPMENTS IN DEMAND
The development of high-quality and
environmentally friendly industrial parks is a
growing trend in Monterrey. In terms of the
current construction activity, 52% of new
facilities are being built on a speculative basis
and 46% are build-to-suits.
The OMA-Vynmsa Aero Industrial Park in the
Apodaca submarket will be the first in Mexico
to be located within an airport. To be
delivered in the first quarter of 2015, the park
will have its first speculative building
completed, a 53,000 sf facility.
QUERETARO:AEROSPACE
MANUFACTURING CENTER
The most prominent hot spot in the Bajio,
central Mexico, is the city of Queretaro. More
than 36% of Mexico’s aerospace manufacturing
is done in this city. Aerospace is experiencing
double-digit annual growth rates and its success
is extending to aeronautical industry services.
For example, the largest aircraft repair and
overhaul facility in Latin America, Aeromexico-
Delta, is located next to the city’s airport.
Beyond the aerospace industry, a varied set of
industries, including home appliances, auto
parts, food and beverage, Information
Technology and Communications, along with
agro-industries, continue expanding
Queretaro’s industrial landscape. Companies
are taking advantage of the very competitive
land prices. Average industrial land costs range
from $638.08 psf to $231.85 psf for private
industrial parks sites and raw land respectively.
Generally, Mexico is increasingly developing a
pool of high-skilled workers and rapidly
integrating its manufacturing industries with
global production lines. Also, in addition to a
successful macroeconomic reform agenda, an
ambitious investment program by the federal
government is expected to bring further
improvements to Mexico’s transport and
logistics infrastructure.
The energy reform bill approved by Congress
in 2013 set limits on the longstanding
monopoly on the extraction, production and
distribution of oil, gas and electricity by
permitting private investment. The reform
not only marks a paradigm shift in Mexican
thinking about oil and gas, but offers the very
real prospect that major investment will result
in rising production, strengthened reserves
and the direct and indirect creation of
hundreds of thousands of high quality jobs for
Mexican citizens.
Given such factors, Mexico’s industrial real
estate market is forecast to continue growing
and benefiting from increased demand from a
diversified range of industries.
VACANCY RATE IN RELATION TO WEIGHTED AVERAGE RENTAL RATE (U.S.$/SF/YR)
ing Price
4.08
4.16
5.60
4.34
4.64
5.02
4.43
4.61
3.18
10.78%
7.12%
4.77%
6.44%
1.38%
4.70%
7.95%
4.05%
1.40%
0%
2%
4%
6%
8%
10%
12%
14%
$3 $4 $5 $6
Vacancy
Cd.Juarez Mexico City A Queretaro Reynosa Puebla Chihuahua Monterrey Saltillo - Ramos Arizpe San Luis Potosí
MEXICO