1. MARKETBE
EAT
INDUSTR
RIAL SN
NAPSHO
OT
NO
ORTH AM
MERICA YEAR-EN 2011
ND
A Cu
ushman & Wak
kefield Researc Publication
ch
ECONOMIC OVERVIEW and deeclining vacancies. Leasing activit of 417.1 millio square feet
ty on
The North Am merican economy is weathering
y (msf) i n 2011 is 20.5% higher than the 345.8 msf lease in 2010 and
% e ed
the storm desp the economic turmoil in
pite the hig
ghest level of act
tivity since 2007 Increased dem
7. mand led to
Europe. Business investment fr rom the private occupa ancy gains of 137 msf in 2011, a significant imp
7.4 provement fromm
sector, coupled by an uptick in consumer
d a year ago when only 14.1 msf of vaca space was ab
ant bsorbed. With
spending, mana aged to offset de
eclines in improv leasing veloc and gains in occupancy, the national overall
ved city
spending from all leve of governmen and the U.S. economy
els nt e vacanc rate declined to 10.0% at year-end, an 80-bas point (bp)
cy sis
expanded by 1.7% in 2011. Retail sale totaled a reco $4.7 trillion
2 es ord decrea from last yea As users and investors shake off lingering
ase ar. e
in 2011, a gain of 7.9% over 2010 and the largest perc
% centage increase
e doubts regarding the v
s validity of the ec
conomic recover demand is
ry,
since 1999. The manu ufacturing sector expanded for the 29th
r expect to continue in 2012.
ted
conseccutive month an industrial production rose at an annual rate of
nd o
In Cannada, there is a c
clear understand at the street level that
ding t
3.1% in the fourth qua arter, its tenth consecutive quar
c rterly gain.
occupiier activity is on the rise. The ovverall industrial vacancy rate fell
l
Even t though Canada’s overall GDP gr
s rowth slowed in the fourth to 6.2% in 2011 from 6.7% in 2010. A
% Absorption in mo markets,
ost
quarte of 2011 after expanding by 3.5% in the third quarter, this was
er q s which has been gaining traction since early 2010, aver
g raged about 4.4
viewed as a pause, not a halt to anticipated growth. Canadian public
d C msf pe quarter in the latter half of 20
er e 011. About 65% of the
and pr rivate organizatio reported that they intend to invest $394.1
ons o absorpption in 2011 -- ttotaling 13.6 ms -- occurred in the second half
sf
billion in construction and machinery and equipment in 2012, up 6.2%
n % of the year and this momentum should carry into 201 12.
from i investment in 20011.
Conso olidations of multi-premise oper rations are displaacing space in
many m markets, which is partially offsettting absorption gains from
NORT AMERICA – GDP GROW
TH WTH compa anies that are exxpanding. Cost savings remain a high priority for r
6.0%
% tenant In western Ca
ts. anadian markets such as Vancouver, occupiers
s,
tend to favor ownersh as a means to control long-r costs. Land
o hip o run
5.0%
%
and bu uilding sales are buoyant, with pr roduct shortage pushing up
es
4.0%
% selling prices. Tenants on the leasing s are finding v
side value in reduced
lease tterms and, wher possible, cont
re traction or expansion flexibility.
3.0%
%
For the Mexican indus
e strial real estate markets, the exxpanded
2.0%
%
presen of internatio developers, offering high-specification
nce onal
1.0%
% buildin has resulted in a larger grow in activity fo those
ngs, wth or
2010 201
11 2012F
2 subma arkets where the new supply is l
e located. By year--end, total class
U.S. Canada
a Mexico A dire ct industrial vacancy rate in Mex xico City had a 2
290-bp year-
During 2011, the Mex
g xican economy continued its rec
c covery process, over-yyear improvemen decreasing to 7.6%. Overall vacancy for all
nt, o
surpasssing the maximu levels of eco
um onomic activity observed before
o classes showed a 210- annual decre
s -bp ease and ended 2 2011 at 7.0%.
the glo financial crisis. By the end of the fourth qua
obal o arter, industrial
output had increased 3.2% over the same period in th previous year
t he r. TO FIVE NORT AMERICAN PORTS
OP TH N ( % C H A N GE I N TE U T O T AL S)
New f foreign direct inv
vestment in Mex went up and overall fixed
xico 25.0
0%
investment showed an 8.0% increase. Export oriente industries
n ed
drove the growth of industrial employ yment, with the overall 15.0
0%
unemp ployment rate st tanding at 5.0%. 5.0
0%
The la ends in economic indicators support a growing
atest positive tre -5.0
0%
feeling of cautious opt
g timism that the North American economy will
n
push tthrough the head dwinds caused by the European debt crisis.
b -15.0
0%
IMPROVING MARK FUNDAM
KET MENTALS -25.0
0%
LA/Long Beach, N
New York/New Savan
nnah, GA Vancouver (B
BC) Oakland, CA
The U industrial ma
U.S. arket has clearly transitioned int recovery in
to CA Jersey
2009 2010 2011
2011 a demand accelerated significa
and antly as market fundamentals
contin to fall more in-line with leve seen prior to the recession.
nue els
The U industrial ma
U.S. arket continued to post strong leasing activity

2. U.S. – WESTERN REGION
R OAKL LAND, CA Over vacancy rate declined slight to 9.2% at the
rall es tly
end of 2011. Small bu
f usinesses are gain confidence in the economy
ning y,
GREA ATER LOS ANGELES, CA Great Los Angeles’ overall vacancy
ter increas demand for smaller leases. This trend is particularly eviden
sing r nt
remain unchanged at 4.9% in 2011 and there are many indicators
ned a m in the Oakland/Alamed and San Lean
da ndro submarkets which
s,
that th region’s indus
he strial market botttomed out in 2010. Four of the
2 e combin ctivity based on number of
ned, saw 48.1% of the leasing ac
five major markets recorded occupan gains and a slight uptick in
ncy leases signed but only 39.3% of the to square feet leased. Strong
otal
rental rates. Investme activity continued to gain mo
ent omentum and deman for quality spa has allowed landlords to push rents in some
nd ace e
sales vvolume increased a whopping 41.2% from last year, totaling $1.66 subma arkets. While us sales activity remains slow, investor sales in
ser y
billion in 2011. Although net absorpttion was positive in 2011, there
e 2011 aalmost equaled t previous three years combin
the ned. Slow
was a slight slowdown in market activ In the past twelve months,
n vity. t market recovery is ex
t xpected for the nnext two years, with growth
rental rates showed some improveme and increase 2.0% year-
ent ed accelerration expected in 2014 and 2015.
over-y year. Vacancy ra are expecte to decline fur
ates ed rther while rents
s
will co
ontinue to trend upward, especially for class A product.
d p PORT LAND, OR Ore egon’s economic recovery has a
c allowed the
industr market to ho steady, ready for expansion. The overall
rial old .
INLAN EMPIRE, CA The Inland Empire’s significant gains in leasing
ND A t vacanc rate in Portlan decreased to 6.2% in fourth quarter 2011,
cy nd o
activit and overall ne absorption in 2011 further str
ty et 2 rengthened the from 77.0% last year. AAsking rental rate have leveled o a trend that
es off,
marke Demand in th ‘big box’ mark led to 28.1 msf of leasing
et. he ket m is expe
ected to continu until the mark tightens furt
ue ket ther. In general,
activit a 13.7% increase from last year and the largest amount of
ty, the acttivity in the mar
rket in 2011 has been steady wit much of it
th
leasing since 2007. Inc
g creased demand, along with fewer move-outs,
, coming from companie moving from one part of tow to another,
g es wn
led to a significant deccline in the overall vacancy rate, finishing 2011 at
a expand and contrac
ding cting, or choosin to renew. Bas on the
ng sed
8.0%, 300 bps lower than last year an the first time the vacancy rate
nd tenant in the market,, the 100,000 sf plus market sho
ts ould pick up in
finishe a year in the single digits since 2007. Despite lower amounts
ed s e 2012.
of exissting available sp
pace to choose from, healthy de
f emand for all sizee
ranges will keep overa vacancy rates low and absorp
s all ption positive in SEATT TLE, WA An inc creased demand for warehouse space improved
the cooming year. Seattle industrial mar
e’s rket in 2011. Po activity, a dire driver for
ort ect
wareho ouse demand, is showing some improvements i container
s in
ORAN NGE COUNTY CA At mid-year 2011, Orange County’s
r flow, p
particularly for o
outbound traffic. Absorption rea
. ached its highest
t
absorp ption totaled poositive 1.4 msf, but instability in the global and
t level siince 2007 and le
easing by big box tenants is up 7 over the
x 77%
nation economy dro down industrial demand in the second half of
nal ove o year. D
Despite some se etbacks to the naational economy earlier in the
y
the ye Net absorpt
ear. tion totaled negaative 952,029 sf in the second year, G
GDP growth in 2 2012 and 2013 s should continue to strengthen
half, le
eaving Orange County with an overall occupanc gain of 450,13
C o cy 30 export activity and wa
t arehouse deman over the next 24 months.
nd t
sf for t year. While the shift at mid-
the -year was a disappointment,
2011 r remains the first year with occupancy gains sinc 2006.
t ce LAS V EGAS, NV After witnessing a ve flat year in m
r ery market activity,
Conse equently, the cou unty’s average re
ental showed a slight uptick
s we exp pect lower vacancy rates over t next few yea This market’
the ars. ’s
from a year ago for an annual growth rate of 3.3%, th first positive
n he improv vement is depen
ndent on continu job growth and an improved
ued d
annual growth since 2007.
2 econo my. Throughout 2011, vacancy and lease rates have remained
t
stable and the year ended on a more positive note for the first time
SAN D DIEGO, CA Lea asing in the San Diego industrial market reached
D d since 2
2008. We are op ptimistic that the 2012 economi outlook for
e ic
a total of 11.6 msf in 2011, the highes annual total sin 2006. Fourth
2 st nce the Las Vegas area willl show more po
s ositive growth an stability in the
nd e
quarte direct net abs
er sorption of 187,0 sf dropped the direct
027 t market Year-to-date a
t. analysis of net absorption, by su
ubmarket and
vacanc rate back belo the 10% mar and pushed an
cy ow rk nnual net proper type, shows signs that distrib
rty bution tenants a still moving
are
absorpption to 467,072 sf, ahead of the 2010 total yet significantly
2 e out, w
while manufacturing, light industr and flex spac show a
rial ce
behind pre-recession absorption level User sale acti
d ls. ivity of 2.7 msf in positiv movement.
ve
2011 nnearly equaled that of 2010. Current asking rental rates of
$10.32 psf/mo will like remain stable until overall va
2 ely e acancy returns to o
single-
-digit levels.
U.S. REGIONAL O
OVERALL VAC
CANCY RATES
S
SILICO VALLEY, CA Resurgence in the region’s economy was
ON A n
14.0 %
driven by social media cloud computi and software technology. As
n a, ing e s
12.0 %
the tech market rema ained stable in 20 there was an accelerated
010
10.0 %
pace in leasing activity in 2011, resulti in positive ab
y ing bsorption of 4.6
msf. In the last year, the high-tech ov
t verall vacancy rat declined by
te 8.0 %
270 bp from 16.4% to 13.7%. The te sector repre
ps, t ech esented 71.8% ofo 6.0 %
total 2
2011 industrial le
easing activity. Venture capital will continue to
V w 4.0 %
10.1%
10.2%
10.2%
11.4%
10.0%
7.3%
nouris this steady gro
sh owth. As quality space continue to tighten in
y es 2.0 %
the hig sought after Mountain View and Sunnyvale submarkets,
ghly r w 0.0 %
WESTERN NO
ORTHEAST MIDWEST SOUTHWEST SOUTHHEAST NATIONAL
tech eexpansion will move into the San Clara and No
nta orth San Jose REGION R
REGION REGION REGION REGIO
ON
subma arkets, which sho fuel modest rental rate increases.
ould
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 L Leasing activity fo the Indianapo industrial
or olis
market totaled just ov 9.6 msf lease in 2011, up from the 2010
t ver ed
CHICA AGO, IL The Chicago industrial market’s overa vacancy rate
l all total o 7.6 msf. Mode bulk facilities continued to drive not only the
of ern s e
reache the lowest level in three year measuring 9.8 at year-end, a
ed rs, 8% healthy leasing activity but also the im
y y, mpressive gains sseen in
120-bp decrease from this time last year. New leasin activity
p m ng investm
ment sales, whic ended 2011 w 7.8 msf sold to investors.
ch with d
ased 10.8% over 2010 and 30.3 msf were leased, compared to
increa m High ddemand and min imal availability o these facilities combined with
of s, h
27.4 m last year. Lar blocks of ava
msf rge ailable class A sp
pace are quickly Indiana stable economic climate, sug
a’s ggest the industr market will
rial
dwindling in the area. Investment transactions reache 24.9 msf in
ed contin ue to thrive, tho
ough ongoing int ternational insta
ability is likely to
2011, the highest recoording since the end of 2008, an nearly tripled
nd prolon the slightly slo
ng ower pace of gro owth. Overall, leeasing activity is
the 9.2 msf recorded this time last year. Demand is expected to
2 e expect to continue at its current level, maintaining a moderate
ted
remain high for institu
n utional investors looking for high quality assets
h decline in vacancy, and rise in rental r
e d rates, over the next year.
and th
hose spaces will come at a premium. Investmment sales in 20 are likely to maintain their a
012 accelerated pace
of grow barring any major blows to Indiana’s econo
wth, y o omy, or global
CLEVE ELAND, OH Th Greater Cleveland industrial market ended
he
capital markets.
2011 w a significant increase in the overall vacancy rate, adjusting
with t y
to 9.6% as compared to 9.2% for the third quarter an 9.4% at the
nd WAUKEE, WI The industrial mark in Milwaukee finished the
MILWA e ket
end of the fourth quar 2010. Activ on the sales side will have th
f rter vity he year o a strong note.. Absorption rat remained positive for the
on te
most t traction heading into the first qu
g uarter 2012 with the
h sixth s
straight quarter a the year end with occupa
and ded ancy gains of 2.0 0
manuf facturing sector leading the way. The oil and ga industry will be
. as b msf an overall vacanc rate of 7.9%. Increased absor
nd cy rption and
the pr
rimary force beh this activity. Quality produc is becoming a
hind ct produc ctivity were cert
tainly positive in
ndicators for the future of the
e
premium as prices wil continue to inc
ll crease slowly. Although the
A Milwauukee industrial m
market, yet chall lenges and uncerrtainty remain
deman exists for new construction, activity will rem slow because
nd w main concer rning Wisconsin overall busine climate. Polit
n’s ess tical instability
of the cost. has pla
agued the state oover the past ye and experts b
ear believe that
potent investors ma be hesitant to sink capital into the market.
tial ay o o
DETR ROIT, MI Activity within the indu
y ustrial market re
emained steady
throug 2011. The ov
gh verall vacancy closed at 16.5%, a decrease of KANSA CITY, MO F the Kansas C metropolita area, industria
AS For City an al
1.6% f from the fourth quarter 2010. Foreclosure activ remained
F vity sales a leasing activity have continue to gain mome
and ed entum and
prevalent, which contributed to prope values rema
erty aining close to highlig ht the demand f quality distrib
for bution and flex s
space from local
all-tim lows. For 2012, we expect to see more bank
me o k-owned and naational prospects The industrial market continu to suffer
s. ues
properties hitting the market, howeve the mentality of some of
er, y from a lack of available class A distribu
e ution space. As more companies
those banks will most likely toughen up. Many have come closer to
t u c look to integrate Kans City into the distribution c
o sas eir channels, the
shorin up their financ and are expe
ng ces ected to hold ou for better
ut deman for such space continues to g
nd e grow. With the o overall vacancy
values on future forec
s closures. The typpical buyer and tenant mentality
t y rate at a respectable 7
t 7.6%, Kansas Cit is poised to ta advantage of
ty ake f
will sh as many pros
hift spects are comin to the unplea
ng asant conclusion pent-u demand follow the recession. The struggling overall
up wing
that th may have “m
hey missed out” on all-time lows on certain types of
a f econo my has kept dev velopers and owwners from any k kind of
transaactions. We exp pect that landlor and sellers will hold their
rds w specula ative constructio but demand should encoura new
on, age
ground on sale/lease rates, and in turn tenants and buyers will come
r n, constrruction in the cooming year and s several speculativ projects are
ve
to grip with the fact that they may ne to pay more per square foo
ps t eed e ot nearing the beginning phases of constr
g ruction. With mmore prospects
compa ared to deals in previous years. vying f fewer buildin the transactions are becomi more
for ngs, ing
compe etitive and the need for new dev velopment incre eases daily.
COLU UMBUS, OH The overall vacancy rate in Columbus’ industrial
e
sector decreased from 11.0% to 10.8% at the close of the fourth
r m % o
quarte with overall absorption for th year of 3.8 ms However,
er a he sf.
fourth quarter leasing activity in the class A segment was reminiscent
h g c t U.S. REGIONAL D
DIRECT WARE
EHOUSE NET RENT
of the sluggish activity for the year, with a few large deals holding up
y w d $7.0
00
the maarket. At the close of the fourt quarter, there are no pending
th e g $6.0
00
specullative buildings scheduled to com on-line. Ren rates and deal
s me ntal
velocit still have a wa to climb before dirt starts tur
ty ay rning for the $5.0
00
next s
speculative wave e. $4.0
00
ST. LOOUIS, MO A rec covery has begun to take place in the St. Louis
n $3.0
00
$5.42
$4.83
$4.13
$3.75
$3.48
$4.25
industtrial market. For the first time si
r ince 2008, the market has
m
record positive ann absorption and the year end with an
ded nual a ded $2.0
00
WESTERN NO
ORTHEAST SOUTHWESTT MIDWEST SOUTHHEAST NATIONAL
overal net absorption of 394,301 sf. The overall industrial vacancy
ll n T REGION R
REGION REGION REGION REGIO
ON
rate decreased for the first time since 2006, ending th year at 9.8%,
e e he
compa ared to 10.0% in 2010. Althoug the decrease is a good sign
n gh
that th market is gett back on track, the rate is st higher than
he ting till
the fiv
ve-year average vacancy rate of 8.0%.
v 8
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 Whiile the overall va acancy has declinned,
manufa acturing and flex sectors report minor increa
x ted ases in vacancy.
ATLA ANTA, GA Atlan saw a net increase in jobs in 2011, its first
nta
The wwarehousing/distr ribution sector h carried the o
has other industrial
since 22007, bringing th unemployment rate down to 9.2% in
he o
sector reporting a de
rs, ecline in vacancy and absorbing more than
y, g
Novem mber. Employme in Atlanta’s manufacturing se
ent m ector has seen a
370,00 sf of industria space in the fo
00 al ourth quarter. CCorporations
2.5% ppercent increase in jobs compar to one year ago while
e red a
have taaken advantage of favorable leas conditions. A
sing Amazon.com ha as
transpportation, wareh house & utilities has seen 1.3% in
ncrease in jobs.
comm itted to a $135 million investme into the Nas
ent shville market.
Industtrial leasing activ totaled 13.2 msf by year-end which is slightly
vity d y
Their ddistribution centters will occupy two fulfillment centers that
y
lagging total activity re
g eported in 2010, while user sale activity
es
approximately 1.8 msf and will provide 1,300 new jobs by early
total a
increaased by 26.0% ye ear-over-year. The overall vacan declined by
ncy
2012. Griffin Technollogies, CEVA Lo ogistics, WMH, F FedEx and LKQ
90 bps over the past twelve months, ending the year at 10.7%.
s t
absorb more than 1.5 msf of leasing activity over th last twelve
bed g he
MIAM FL The Miami-Dade industrial market closed the year with
MI, l month albeit on shor
hs, rter lease termss.
optimism looking ahea to 2012. Leas activity incre
ad sing eased 97.8%
MEMP PHIS, TN After a sluggish start, aactivity in the seecond half of the
from 3 msf at the en of 2010 to 7.3 msf at the clos of 2011, a
3.6 nd se
year reebounded, and t year ended u with a healthy performance
the up y
cant improveme which bodes well for the return to market
signific ent
overal l. The market sa a 160-bp ann drop in vaca
aw nual ancy, from 15.3%%
fundam arket also enjoye healthy sales activity as South
mentals. The ma ed h
in 2010 to 13.7%. In 2011, rents have remained flat an low at an
0 nd
Florida continued to attract investors and tenants alik Sales activity
a a s ke.
averag rate of $2.50 psf. There is ant
ge ticipation for a s
strong 2012 withh
increaased 43.5% from 1.9 msf at the end 2010 to 2.7 msf at year-end.
e
good aactivity already uunderway and nu umerous inquirie from users
es
ORLA ANDO, FL The Orlando industrial market closed 2011 ready to
O o with la
arge requiremen With an imp
nts. proved economy Memphis will
y,
transittion into the nex phase of reco
xt overy. While leas velocity in
sing contin ue to attract ne tenants to the market becaus of its
ew e se
the fin quarter fell sh
nal hort of the volume set in the pr
receding three compe etitive rents, locaation and abund
dant quadramoda transportation
al n
quarte overall vacan extended th downward tra
ers, ncy he ajectory capabi lities.
prevalent throughout 2011 and absor rption remained markedly
LOUIS SVILLE, KY As w predicted, st
we trong fourth quaarter leasing
positiv for the third consecutive qua
ve c arter. Although headwinds – and
h d
activity of 911,385 sf p
y pushed total leas activity for t year to 4.1
sing the
a 13.1% vacancy rate – persist, overall absorption of 1.5 msf in 2011
msf, abbove 4.0 msf for the first time si
r ince 2008. As ussual, over two-
saw th market reclaim 45.2% of the occupancy surre
he endered betweeen
thirds of the leasing acctivity for the qu
uarter occurred in the
2008 a 2010. Expec continued dec
and ct clines in vacancy through 2012 as
a
wareho ouse/distribution sector. Indust trial absorption o
over the past ten
compa anies shake off li
ingering doubts regarding the vaalidity of
years h averaged jus over 2.0 msf p year, suggest that the
has st per ting
econo omic recovery an move to activ consider new space
nd vely
improv economy ha allowed the L
ving as Louisville market to claw its way
t y
requirrements.
back to equilibrium.
o
JACKS SONVILLE, FL The Jacksonville industrial marke closed 2011 by
T et b
HAMP PTON ROADS, VA Industrial leasing activity on Hampton
n
extend the holding pattern establis
ding shed in the previ ious quarter.
Roads’’ Southside fared well, showing growth in absor
d rption, but not
Overa vacancy remained unchanged at 11.0% on the back of
all e
enough to offset the n
h negative absorption on the Penin nsula. The
nominnally positive abs
sorption, as market activity prov limited for
ved
overal l economy of th area is still gro
he owing, although at a sluggish
the se
econd consecutiv quarter. The year consequen proved a
ve ntly
pace. Profits have conntinued to slowly climb, but it has yet to affect
year o conflicting sign for the mark with heavily positive annual
of nals ket, y
the un employment rat which continues at 7.3%, the same as one
te, e
absorpption of 1.2 msf and evidence of new tenant dem
f mand early in the
year ag Demand for distribution and warehouse spa should
go. d ace
year te
empered by lack kluster demand in the latter half Despite the
f.
increas as consumers continue to spend and the hou
se s using market
slowdown in moment tum, cautious op
ptimism remains the watch
creeps back to norma
s al.
phrase entering 2012. Expect overall vacancy to approach 10.0% by
e v
year-e as business confidence solidifies and market hesitation gives
end c t s RICHM MOND, VA In the Richmond industrial market tenants leased
t, d
way to a steady increa in leasing vel
o ase locity. more sspace for the ye than they vac
ear cated for the firs time in severa
st al
years. Richmond com mpanies are now expanding their existing space.
r
CHAR RLOTTE, NC North Carolina was ranked the th best state
w hird
Next yyear will see a coontinuation of th positive abso
he orption trend.
for bu
usiness by Forbes. The foreign in nvestment and headquarter
With aalmost no new c construction, users will look for bargains. And
r
annouuncements contin to outpace most of the cou
nue untry following
when ffire-sale prices d
don’t materialize —not nearly as many industria
e s al
the low cost of operation and availabi of quality lab As a result
w ility bor.
properrties ended up in foreclosure as expected in the dark days of
n s e
of the low cost of opeerations and access to the grow consumer
wing
2008 — we should see some stabilizat
e tion in the mark Something to
ket.
base in the greater Ch
n harlotte metro area, we continu to see healthy
a ue y
watch will be the inter rest around the new interstate I-295
interest from users an investors in the market and the surrounding
nd t
interch
hange for the Me eadowville Techhnology Park in C Chesterfield.
counti Of particular interest is the increase in dem
ies. mand for 100,000 0
Couple with the construction of the new Amazon fu
ed ulfillment center
sf and larger propertie which is driving many compa
es, anies to considerr
there, robust activity iis expected.
the co
ounties immediat surrounding Charlotte, NC including the
tely g
northe counties of South Carolina. We expect to see build-to-suit
ern S s
discussions pick up in 2012 as cap rates compress, pu ushing values of
moder distribution fa
rn acilities closer to replacement value.
o v
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,