1. MARKETBE
EAT
INDUSTR
RIAL SN
NAPSHO
OT
NO
ORTH AM
MERICA MID-YE
EAR 2012
2
A Cu
ushman & Wak
kefield Researc Publication
ch
ECONOMIC OVERVIEW healthy level of deman and general la of new product, the
y nd ack
The deepening of the European economic
n industr sector shoulld be entering a period of sustai
rial ined rental
slump, the poteential so-called "fiscal cliff" and
" apprecciation.
the risk of a hard landing for China's economy
C
have added gre eater uncertainty to U.S.
y NOR
RTH AMERICA – GDP GRO
A OWTH ( SO U RC E : M O O DY ’ S AN AL Y T I CS)
economic prospects. For the first time in
f 6.0%
%
nearly three years, the U.S. manufactu
y e uring sector shra in June. The
ank e
5.0%
%
ISM’s ggauge of new or rders, a measure of future activity, plunged from
e m
60.1 to 47.8, the first time since the recession ended that this index
o r 4.0%
%
has fal below 50.
llen
3.0%
%
Manuf facturing activity in Canada was revived during the first half of
y t
2.0%
%
2012, although its con ntinued growth will depend on the speed and
w t
depth of the U.S. reco overy. However factory jobs in
r, ncreased for the 1.0%
%
sixth c
consecutive mon in May. This is surprising, giv that
nth ven 2010 20
011 2012F
international shipment of machinery and equipment were largely
ts U
U.S. Canad
da Mexico
unchanged. Even with higher labor co and an eleva
osts ated Canadian
Overa demand streng across most Canadian indus
all gth t strial real estate
dollar, over 115,000 manufacturing jo were created in the six
, m obs d
market remains expa
ts ansionary. Howe ever, challenging global economic
month ending May 20 the most in any similar period on record.
hs 012, n
condittions is translatin into a more c
ng cautious approac to occupancy
ch
As of May 2012, the sector accounted for 10.4% of th country’s total
s d he
decisio Demand mo
ons. omentum is clea stronger wit
arly thin western
emplooyment.
Canad ian markets, par rticularly in Albeerta, where tena demand in
ant
Mexico’s industrial GD grew 3.6% in the first half of the year and th
DP n f he Calgar and Edmonton have been buo
ry n oyed of late by in
ncreasing oil
consensus is that econ nomic growth will continue outp
w performing prices and needs creat by huge meg projects relat to oil sands
ted ga ted
expect tations in 2012. In its mid-year world economy report, the IMF
y F develoopment. The con ntinued evolution of the Canadia retail sector is
an
has inccreased the grow projection for Mexico in 20 to 3.9%,
wth f 012 also co
ontributing to gr rowth across ind dustrial markets as companies
above the average for Latin America and for the Wor (which were
r a rld like W
Wal-Mart expand their distributio facilities and n entrants,
on new
revised downward). The degree of this upturn will, ho
T owever still be such a s Target, establiish major facilitie to support a network of
es
subjec to a sustained recovery in the international ec
ct e conomy and a stores across Canada, scheduled to open in 2013. Canadian markets
more emphatic promo otion of local de
emand. are als seeing expans
so sion within the fo distribution sector, as a
ood n
growin number of re
ng etailers add groce operations t their service
ery to
CON
NTINUED IMPR
ROVEMENT
offerin
ng.
By mid d-year, the U.S. industrial marke continued to post healthy
et
deman and declining vacancies. The overall vacancy rate fell to 9.3%
nd %
TO FIVE NORT AMERICAN PORTS
OP TH N ( % C H A N GE I N TE U T O T AL S)
at midd-year 2012, the lowest vacancy level since the fourth quarter of
f o
2008, when the vacancy rate was 8.6% Reflecting a continuation of a
%. 25.0
0%
robust uptrend that began in 2011, th U.S industrial sector absorbed
t b he d 15.0
0%
65.1 m
million square fee (msf) of space at mid-year, up from the 53.5
et e p
msf reecorded at mid-y year 2011. Leasing activity durin the first six
ng 5.0
0%
month of the year to
hs otaled 199.2 msf. If activity cont
. tinues at this -5.0
0%
pace f the remainde of 2012, the U.S. industrial ma
for er U arket is on track
k
to end the year with leasing velocity just below 2011’ level of 417.1
d ’s -15.0
0%
msf. W
While overall vac cancy and absorp ption completely turned the
y -25.0
0% LA/Long Beach, N
New York/New Savan
nnah, GA Vancouver (B
BC) Oakland, CA
corner in 2011, the st teady stream of demand had virt tually no impact CA Jersey
on ren growth and re
nt ental rates have yet to reach pree-recession 2010 2011 MID-YEAR 2
2012
levels. Although there has been a sligh uptick in rent since year-end
e ht ts d
2011, it is still down fr
rom the same period a year ago However with
o. h
Cushm & Wakefield World Headquarters
man W The market terms and definit
T tions in this report are based on NAIOP standards.
d
1290 A
Avenue of the Am
mericas No warranty or representatio express or implied, is ma to the accuracy or comp
N
in
on, ade
nformation contained herein, and same is submitted subje to errors, omissions, cha
ect
pleteness of the
ange of price, rental or
New YYork, NY 10104-6
6178 other conditions, withdrawal without notice, and to any s
o special listing conditions impo
osed by our principals.
www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved.
ld,

2. U.S. – WESTERN REGION
R OAKL LAND, CA Over vacancy drop
rall pped 60 bps to 7.9% from 8.5%
as of th end of last qu
he uarter, reaching its lowest point in nearly four
t
GREA ATER LOS ANGELES, CA Marke fundamentals for the region
et years. The squeeze on quality space continues to spur tenant
n r
contin to improve with occupancy gains of 1.3 msf at mid-year,
nue w renewwals, which repre esented over 35% of leasing activ this quarter
% vity r.
dropp the overall vacancy rate to 4.6% - the lowes since 2009.
ping v 4 st Lack o quality space h allowed landlords to push up rents, and
of has p
The reegion also remai the tightest industrial market in the country
ins t overal l asking rents ro 2.6% during the quarter, wit warehouse
ose th
and leads the nation in leasing activity with 18.9 msf so far this year.
n y s rents iincreasing by as much as 7.0% in some submark
n kets. User sales
Howe ever, leasing activ is down 5.4% from last year Although users
vity % r. contin ued to pick up ppace during the second quarter. Oakland should d
contin to be cautiou in this economic environmen this is also a
nue us nt, expect a slow recover in response to uncertainty in the national
t ry o
by-prooduct of lack of quality space tha users demand Totaling 8.4
at d. econo my. Through 20 013, vacancy rate are expected to tick slowly
es
msf at mid-year, investment activity co
t ontinued to gain momentum and
n downw wards and rental rates slowly up pwards, followed by faster
d
is up 7
74.8% from a year ago. With so few quality prop perties coming growth in 2014 and 20
h 015.
online for sale, investo are bidding more aggressively for prime
e ors m
assets. PORT LAND, OR Mar rket fundamenta are gaining po
als ositive
mome entum in Portland. Overall vacan continued its gradual
ncy s
INLAN EMPIRE, CA Overall vacancy rates declined to 7.6%, 10 bp
ND A d ps downw ward trend endin second quart 2012 at 7.4% down 120 bps
ng ter %,
lower than the previo quarter, and an impressive 140 basis points
ous from ssecond quarter 2
2011. Rental rat have stabilize in almost all
tes ed
(bps) llower than this time last year. The continued de
t T emand for big submaarkets and produ types. There is very little construction
uct
box sp pace resulted in another quarter of positive net absorption,
r underw and most of what is being d
way f developed is buil
ld-to-suit. As
finishin second quart at just over 2.5 msf, which is on par with the
ng ter 2 e the ecoonomy improve increasing dem
es, mand will tip the scale, boosting
e g
previo quarter. Thi represents an astounding twelve straight
ous is rents a spurring con
and nstruction.
quarte of positive ab
ers bsorption in the IE industrial ma arket. Leasing
activit improved significantly during second quarter to just under 7.9
ty s t 9 SEATT TLE, WA Seattle continued on it path towards recovery.
e ts
msf, nearly double the 4.9 msf leased in the previous quarter and
e Overa vacancy is dow 130 bps from year-end 2011 to 7.8%. The
all wn m
marks the highest qua
s arterly leasing ac
ctivity since the first quarter of
f 1.5 ms of positive ove
sf erall absorption has nearly surpa
assed the 1.7 ms
sf
2011. record in 2011 and leasing activity r
ded remained strong with 3.4 msf
g
logged so far this year Solid leasing co
d r. ontinues to attra investors to
act
ORAN NGE COUNTY CA While the recovery of the Orange County
r the Sea attle industrial m
market, which ha been one of t most active
as the
industtrial market was interrupted by the general market slowdown
t investm ment markets in the region. The 2.1 msf in transactions nearly
n e
during the second half of 2011, the fir half of 2012 demonstrated a
g f rst d reache the 2.8 msf in all of 2011 and the average sale price of $83
ed n e
return to levels more consistent with recent recover trend and was
n ry s psf is u 43% over the $58-psf average last year.
up e e
the six quarter of po
xth ositive absorptio out of the las eight
on st
consec cutive quarters. At mid-year, to overall abso
otal orption stands at
t LAS V EGAS, NV The overall vacancy decreased durin the second
ng
865,07 sf. Overall vacancy declined by 40 bps to 5.6% during second
70 b d quarte 2012 to 14.9% compared to 15.6% in first qu
er %, uarter 2012. Even
quarte with all produ types recording declines in vacancy. Demand
er uct v d with th jump in vacan last quarter, the current market has
he ncy
for neewer class A warrehouse space ex xceeds Orange County’s return to the 15.0% vacancy rate w witnessed at t end of
ned % we the
availab inventory and landlords are no longer offerin the generous
ble d n ng second quarter 2011. Despite an uptic in activity in t market,
d ck the
concessions that were available in pre
e evious years. there h not been mu pressure on rent growth as asking rents
has uch n
have reemained flat sinc second quart 2010. Howev as the
ce ter ver,
SAN D DIEGO, CA Rec covery in the San Diego industrial market gained
n d market continues to im
t mprove and vaca space starts to become
ant
mome entum in the seccond quarter wit leasing activity of 3.8 msf
th y harder to come acros s, expect to see slightly higher a
r e asking lease rates
resulti in positive ne absorption of 1.1 msf. This is the first time
ing et f over th next few yea This market improvement w be dependent
he ars. will t
that quarterly net absorption surpasse the one millio square foot
ed on on conntinued job grow and an improved economy.
wth
threshhold since the fo
ourth quarter of 2007. The coun ntywide average
asking rent remains st
g table, but as quality spaces are becoming harder
b r
to find in certain mark areas, rents will begin to increase. The lack
d ket U.S. REGIONAL O
OVERALL VAC
CANCY RATES
S
of goo options for la
od arge space requir rements in the Mid-to-North
M
14.0 %
Count markets will increase constru
ty uction activity as tenants look to
o
12.0 %
build-tto-suit opportun
nities to fit their size needs.
10.0 %
SILICO VALLEY, CA Demand is healthy for Silicon Valley’s
ON A 8.0 %
industtrial market thro
ough the first hal of 2012 as leas activity
lf sing 6.0 %
increaased 10.8% to 7.7 msf. The high-
7 -tech overall vac
cancy rate tickedd 4.0 %
down 240 bps to 12.5 from one year ago and healt warehouse
5% thy
10.8%
6.9%
9.4%
9.7%
9.9%
9.3%
2.0 %
activit caused vacanc to drop 150 bps to 5.6%. Inve
ty cy b estment activity
0.0 %
acceleerated with 1.4 msf sold, bringing year-to-date to 2.4 msf. Tech
m g o WESTERN M
MIDWEST SOUTHWESTT NORTHEAST SOUTHHEAST NATIONAL
REGION RREGION REGION REGION REGIO
ON
expansion and require ements are expe ected to sustain activity in the
foreca horizon.
ast
Cushm & Wakefield World Headquarters
man W The market terms and definit
T tions in this report are based on NAIOP standards.
d
1290 A
Avenue of the Am
mericas No warranty or representatio express or implied, is ma to the accuracy or comp
N
in
on, ade
nformation contained herein, and same is submitted subje to errors, omissions, cha
ect
pleteness of the
ange of price, rental or
New YYork, NY 10104-6
6178 other conditions, withdrawal without notice, and to any s
o special listing conditions impo
osed by our principals.
www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved.
ld,

3. U.S. – MIDWEST R EGION INDIA ANAPOLIS, IN T Indianapolis Industrial marke continued to
The et
make iimpressive gains in the second q
s quarter as the ov verall vacancy
CHICA AGO, IL Overall vacancy contin nues to improve and measured rate fe to 6.8% from 7.5% in the first quarter. With y
ell t year-to-date
9.4% a the end of sec
at cond quarter, a decline of 110 bps from this tim
d b me leasing activity outpaciing that of the p
g previous four yea this trend of
ars, f
last ye Chicago’s do
ear. ominance as an inland hub remained
i positiv absorption an steadily declin vacancy rate is expected to
ve nd ning es o
unchallenged and new leasing activity grew significantly with mid-year
w r contin ue. The continuing decline in va acancy has led to an increase in
o
total o 18.2 msf, for a 30.5% year-ove
of er-year increase Large lease
e. investm ment sale activit and spurred a new wave of sp
ty peculative
transaactions in excess of 200,000 sf have fueled the le
s easing recovery, constr ruction. Ongoing interest in the favorable econo
g omic climate of
accounting for 7.3 msf, or 40.2% of tr ransactions signe mid-year.
ed the Ind dianapolis marke continues to a
et attract both inve
estors and
Most n notably, Home Depot, Inc. committed to lease a 1.6-msf
D busine owners lookiing for best and most fiscally sou environmen
ess und nt
wareh house that will be built adjacent to its 657,600-sf rapid
f to run their businesses. As net rents c continue to incrrease, and with
deploy yment facility bu in Joliet earlie this year. The Chicago marke
uilt er e et no for reseeable let up in demand for la arge contiguous warehouse/
has ma huge strides in absorbing th heavy supply of vacant space
ade s he o distrib ution space, it is anticipated tha more speculat construction
s at tive n
with a total of 6.1 msf of overall supply absorbed mid
f d-year. is in th pipeline, and t
he that it will likely break ground b
y before the end of
o
2012.
CLEVE ELAND, OH Th Greater Cleveland industrial market ended
he
the seecond quarter 20 with another decrease in va
012 acancy, adjusting MILWA
WAUKEE, WI The Milwaukee are industrial mar
e ea rket continued to
to 8.3% as compared to 8.5% at the end of the first quarter 2012 and
e d gain st
trength in with t
total absorption of 528,181sf in t second
the
9.6% a year ago. The main factor to th decrease in vacancy rate is
m he v quarte making it the eighth consecut quarter of p
er, tive positive growth.
attribu
utable to steady activity in the market and the li
m imited amount of
o Furthe positive indica
er ator includes a second quarter v
vacancy rate of
inventtory on market at this time. Sale activity will co
a es ontinue to remai in 7.9% wwhich is down frrom 8.6% a year ago. Industrial d
demand is on the e
strong than leasing activity, as comp
ger a panies that have been waiting on n rise wiith expectations to have anothe positive absor
s er rption quarter in
n
the sid
delines are ready to make decisi
y ions. However, they maybe late
t the thiird quarter as w as a potentia for announcem
well al ments of
to the party as vacanc rates continue to decline and the limited
e cy e speculaative developme in the area. I
ent Investment sales made
s
amoun of quality pro
nt oduct available will lead to a prem
w mium in prices. impresssive gains with Centerpoint Pro operties Trust and Zilber
Althou demand exis for new cons
ugh sts struction, activit will remain
ty Proper Group both completing large portfolio acqu
rty uisitions.
slow bbecause of the cost.
KANSA CITY, MO R
AS Rents and sale pr rices in the Kans City market
sas
DETR ROIT, MI Activity within the indu
y ustrial market re
emains steady. have bbegun to stabilize after declining through the rec
e cession. Overall
The overall vacancy ra closed the quarter at 14.7%, a decrease of
ate , activity for the industr sector is pos
y rial ggest challenge is
sitive, but the big
300 bp compared to one year ago. Economic condit
ps E tions continue to supply the increasin demand in a m
ying ng market where fin nancing for new
impro as the autom
ove motive companies drive the mark with their
ket constr ruction and deve elopment is still lagging. Two inddustrial spec
new teechnology and innnovations, whic in turn fuels the expansion
ch t buildin are under co
ngs onstruction and w provide goo measure for
will od
and grrowth of other market area. Ba
m attery maker A12 Systems plans
23 the heealth of the local market. A 821,663-sf class A di istribution facilit
ty
to add 400 jobs, while GE announced they plan to hir 300
d e re will be available in early 2013 and a se
e eparate 155,000- speculative
-sf
emplooyees at their res
search center. Brose North Am
B merica purchasedd distrib ution project is expected to deliver this October. With a
a 381,708-sf building this quarter and they plan to add 450 jobs and
t d vacanc rate around 3 for institution grade spaces above 100,000
cy 3% nal
invest $60 million into the facility. Ge
o eneral Motors also announced sf, thes buildings prov
se vide much-needed options for u users looking to
that th will hire an additional 600 employees to bui the Cadillac
hey a ild benefit from Kansas C
t City’s attractive d
distribution infra
astructure. If thee
ATS. nationa economy can avoid dipping in another rece
al nto essionary period d,
Kansas City should co
s ontinue to exper rience positive growth across its s
COLU UMBUS, OH Ov verall, the Colum
mbus Industrial market showed
m
industr submarkets.
rial
increa
ased activity from fourth 2011 th
m hrough second quarter 2012, bu
q ut
many sale prices were discounted for all cash buyers. One of the
e r
largest transactions th occurred wit the last four quarters was
t hat thin r
the sale of Centerpoin Business Park - CP#1 in Grov
nt k veport. This 1.2-- U.S. REGIONAL D
DIRECT WARE
EHOUSE NET RENT
msf industrial building sold for $40.9 million or $35.12 psf. Total year
m r- $7.0
00
to-dat industrial build sales activit in 2012 is up compared to the
te ding ty c e $6.0
00
previo year.
ous
$5.0
00
ST. LO
OUIS, MO The St. Louis industrial market exper
S rienced modest
growt for the second quarter of 2012. Positive abso
th d orption was $4.0
00
record in both quar
ded rters of the year resulting in yea
r, ar-to-date total $3.0
00
$5.54
$4.95
$4.20
$3.84
$3.48
$4.30
of 605
5,580 sf. The vacancy rate for th St. Louis mar
he rket dropped to
9.5%, 100 bps lower than a year before. The decreas in vacancy has
t se s $2.0
00
WESTERN NO
ORTHEAST SOUTHWESTT MIDWEST SOUTHHEAST NATIONAL
added to the hope tha this will be the year that stead growth will
at dy REGION R
REGION REGION REGION REGIO
ON
occur and alleviate fea that the econ
ars nomy will fall back into
recess
sion.
Cushm & Wakefield World Headquarters
man W The market terms and definit
T tions in this report are based on NAIOP standards.
d
1290 A
Avenue of the Am
mericas No warranty or representatio express or implied, is ma to the accuracy or comp
N
in
on, ade
nformation contained herein, and same is submitted subje to errors, omissions, cha
ect
pleteness of the
ange of price, rental or
New YYork, NY 10104-6
6178 other conditions, withdrawal without notice, and to any s
o special listing conditions impo
osed by our principals.
www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved.
ld,

4. U.S. – SOUTHEAST REGION
T NASH HVILLE, TN The industrial marke in Nashville continued to take
et e
small ssteps to recover The quarter ended with an o
ry. overall vacancy
ATLA ANTA, GA Atlan nta’s industrial market continued to show signs
m d
rate of 10.2%. Net re
f ental rates were $3.66 psf and overall net
of impprovement throu ughout the second quarter of 20 Overall
012.
absorpption totaled 276 6,878 sf. Amazo on.com is set to deliver two new w
vacanc continued to decrease ending the second qua
cy g arter at 9.8%.
distrib ution buildings iin the Nashville market. Additio onally, GM is
This is a 150-bp decre
s ease year-over-y year from the 11.3% rate
upgrad its engine pr
ding roduction capab bilities at their Sp
pring Hill plant, a
report for the seco quarter of 20 As vacancy rates continued
ted ond 011. d
move t that should crea up to 500 ne jobs this year Nissan is also
ate ew r.
to deccrease, the Atlan market poste 1.7 msf of po
nta ed ositive overall
making huge investments in Smyrna, c
g constructing a billion dollar
absorpption which brought the year-to o-date total to 3.0 msf of
lithium
m-ion battery pla of 1.3 msf. Sa volume pick up in the
ant ales ked
occupancy gains. Wit 9.1 msf of leas activity at mid-year, the pac
th sing m ce
second quarter with L
d LNR Property Corporation’s purchase of a
of leas activity has exceeded total activity reported during the
sing a d
305,0000-sf building at 7355 Cockrill Bend Boulevard f $5.2 million
for
same p period in 2011 by 29%.
b
and Cr ross Point Community Church acquiring 114,39 sf at 291-299
99
MIAM FL. The Miami-Dade County overall vacancy rate at mid-year
MI, o r Cowan Street for $5.0 million.
n 0
climbe half a percent
ed tage point to 7.4 from 6.9% at mid-year 2011.
4%
MEMP PHIS, TN The Me emphis economy fared well in t first half of
the
The overall direct ask rental rate at mid-year dippe to $5.24 per
king a ed
2012, o outpacing the na
ation with a 1.6% increase in job growth,
% b
rentab square foot from $5.45 psf at mid-year 2011, resulting in a
ble f a
compa ared to the natio growth of 1.3%. Activity in the Memphis
onal n
3.9% ddecrease. Miami- -Dade County will continue to be one of the
w b
industr market is str
rial rengthening on s several fronts in
ncluding leasing,
most hhighly coveted markets amongst institutional ow
m t wners and
investm ment sales and n
new construction. Direct vacan fell 50 bps
ncy
investo The forecas for the remain
ors. st nder of 2012 rem mains cautiouslyy
from 1 13.9% to 13.4%. A central U.S. loocation coupled with attractive
d
optimistic as rent grow and absorpt
wth tion did not incr
rease at the pace
e
rents a local incentives keeps Memp on the top of many tenants
and phis s’
anticip
pated at the beginning of the yea
ar.
list. Deemand remains s strong, and for t first time sin 2008 the
the nce
ORLA ANDO, FL The Orlando industrial market continued its steady
O market is seeing specu
t ulative constructtion.
evolut tion in the secon quarter of 20 Overall vaca
nd 012. ancy declined for
LOUIS SVILLE, KY Desp considerable leasing activity industrial
pite e y,
the fift consecutive quarter – falling three-tenths of a percentage
th q t
vacanc increased in the second quart due in part to 182,000 sf of
cy ter t
point t 12.4% - as the market converted small pocke of new
to ets
negativ absorption co
ve oupled with 232 2,600 sf of new c
construction
deman into continue positive absor
nd ed rption. While mo robust job
ore
comple etions. Two sig
gnificant build-to-suits for Amazoon.com have
growt is needed for the market’s lon
th ng-term recover the second
ry,
buoyed the industrial market in both t Louisville me
d the etro and
half of 2012 should ge
f enerally extend and expand the progress of the
a p
southe Indiana mark
ern kets. Financing f speculative in
for ndustrial
Expect rental rat to remain fla through 2012 and into 2013 as
first. E tes at
develo
opment may be o the horizon i absorption con
on if ntinues to
the ma arket continues to work off exccess inventory.
increas Key manufac
se. cturing growth h reduced the local
has e
JACKS SONVILLE, FL Future growth prospects for the Jacksonville
F e unemp ployment level to at or below th national avera
o he age.
indust
trial market conttinue to exceed current conditio The second
ons. d
HAMP PTON ROADS, VA Regional ind dustrial absorptio for the
on
quarte again failed to produce any no
er o otable new dema and, leaving
second quarter of 2012 has slowed sig
d gnificantly. Year-
-to-date
vacanc unchanged at 11.1% and abso
cy orption only moddestly positive.
absorpption stands at 177,024 sf. Eleve out of 20 Ham
en mpton Roads
The coompletion of sevveral transaction pending at mid-year should
ns
subma arket have shown negative absor rption year-to-date. Vacancy has s
provid at least a part spark in the second half of 2012, causing
de tial
held stteady at close to 8.0% over the past few years. Lease rates are
o
vacanc to resume its downward traje
cy ectory; however greater
r,
declini ng slowly, as are industrial build prices. Finan
e ding ncing is the one
econoomic gains – and perhaps politica clarity - are ne
al eeded to truly
bright spot, with rates for industrial purchases under 5% for qualifying
s
vate the market’s recovery. Ask rents have proven largely
reactiv king
buyers Since 2008, the industrial sales market in Ham
s. s mpton Roads has s
stagna over the last twelve months and should remain so for the
ant
strugglled. In 2008 ther were over 60 properties sold at a median
re 0 d
remainnder of 2012.
price o $80 psf. This iis compared to less than ten pro
of operties sold in
CHAR RLOTTE, NC Le easing activity to
otaled 1.9 msf at mid-year with 2012 s far at a media price of $50 p
so an psf.
overal vacancy rate of 16.9%. With rising energy cost the region
ll o ts,
RICHM MOND, VA Leasing activity slow to 894,698 sf year-to-date
wed
should see increased demand for qual distribution and
d d lity
from 2 msf through the second quar of 2011. De
2.4 rter espite the rough
manuf facturing facilities in an attempt to shorten supp chains and
t ply
quarte the industrial market is slowly getting stronger. Tenants are
er,
locate closer to the end user. The firs speculative de
e st evelopment in
startin g to renew lease for longer ter
es rms, opting for f years instead
five d
five ye occurred th quarter with Childress Klein Properties
ears his
of one or three-year leases in some cases. Brokers also report an
e
breaki ground on Ridge C reek IV, a 270,000-sf building which is
ing R
uptick in interest from contracting and construction f
m d firms, a welcome e
25% p pre-leased to Averitt Express. Ke Corporation also
eith
sign aft almost four years of contrac
fter ction in that indu
ustry. Net
annou unced a built-to-s project for Britax, which wi consolidate
suit ill
absorpption was 375,35 sf through the second quarte up from
56 er,
their ooperations from three locations into one 500,00 00-sf facility. We
e
193,85 sf through the second quarte of 2011. That drove vacancy
50 e er
expect to see addition build-to-suits announced in the second half of
t nal s t o
down t 10.5% from 1
to 11.1% in the sec
cond quarter of 2 2011.
2012 a cap rates com
as mpress, pushing values of moder distribution
v rn
Absorp ption should rem in positive territory for the rest of 2012.
main e
facilitie closer to replacement value.
es
Amazo is on schedule to open a mas
on ssive 1.0-msf dist tribution facility
in Cheesterfield by the end of 2012.
Cushm & Wakefield World Headquarters
man W The market terms and definit
T tions in this report are based on NAIOP standards.
d
1290 A
Avenue of the Am
mericas No warranty or representatio express or implied, is ma to the accuracy or comp
N
in
on, ade
nformation contained herein, and same is submitted subje to errors, omissions, cha
ect
pleteness of the
ange of price, rental or
New YYork, NY 10104-6
6178 other conditions, withdrawal without notice, and to any s
o special listing conditions impo
osed by our principals.
www.cushmanwakefieldd.com/knowledge © 2012 Cushman & Wakefiel Inc. All rights reserved.
ld,