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

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