North American Industrial Higlights 3Q 09

8/14/2019 North American Industrial Higlights 3Q 09

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North American Industrial MarketsContinue to Post Lower OccupanciesRoss J. Moore | Executive Vice President, Market and Economic Research

U.S. and Canadian industrial real estate markets again posted a weak quarter. Demand for industrial space was well below trend and warehouse construction continued to drop. Rents fell againhowever, at a reduced rate relative to the past few quarters. Even though the economy registeredpositive growth in the third quarter, warehouse markets are unlikely to bounce back anytime

soon. While the Institute for Supply Management (ISM) manufacturing index posted a secondconsecutive reading above the critical 50 level (September was 52.6) the business landscaperemains somewhat fragile, limiting any sort of recovery. For the rest of 2009 and into early 2010a further increase in vacancy is anticipated, although at a much reduced rate. With so little con-struction coming onto the market and forecasts for relatively robust economic expansion over thenext few quarters, occupancies should begin to show signs of stabilizing by mid-year.

Warehouse tenants continue to return space to the market. Third quarter absorptionwas again negative, with occupied space decreasing by 47.3 million square feet (MSF). Thirdquarter results were an improvement from last quarter but considerably worse than the year-agoperiod, when occupied space actually eked out a small gain of 6.0 MSF. This brings year-to-dateabsorption to 144.3 MSF and leaves occupied space 166.2 MSF below peak levels recorded athe end of Q1 2008. While a large number, this represents just a 1.5% decline in occupied spaceCanadian markets also returned space to the market during the third quarter with occupied space

declining by 2.4 MSF.

Warehouse construction dips to record low. Third quarter completions totaled just 11.6MSF, a sizable drop from the second quarter and the lowest on record. New construction is nowjust a fraction of that recorded for Q4 2007, when warehouse construction totaled 55.5 MSF

Next quarters construction numbers are anticipated to go even lower and stay below 10 MSF forthe balance of the year and into 2010. Scarce construction financing and uneconomic rents havehalted almost all speculative warehouse development. This was reflected in quarter-end construction activity which registered just 22.4 MSF, a substantial drop from 153.5 MSF under construc-

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HighlightsC O L L I E R S I N T E R N A T I O N A L | N O R T H A M E R I C A

Absorption Completions Vacancy

-60

-40

-20

0

20

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60

Q3 2009Q2 2009Q1 2009Q4 2008Q3 2008

7

8

9

10

11%

MillionSquareFeet

Vacancy(

%)

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MARKET INDICATORS

USA INDUSTRIAL MARKET Q3 2008 Q3 2009

USA INDUSTRIAL MARKETUMMARY STATISTICSHIRD QUARTER 2009

acancy Rate: 10.53%

Change from Q2 2009: 0.43

Absorption:

47.3 Million Square Feet

New Construction:


Under Construction:


Asking Rents Per Square Foot:

Average Warehouse/

Distribution Center: $5.04

Change from Q2 2009: 0.89%

continued on page 7

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

*Projected, relative toprior period

Q32009 Q42009*


2/82 COLLIERS INTERNATIONAL

UNITED STATES OF AMERICA INDUSTRIAL SURVEY

MARKETEXISTING INVENTORY (SF)

SEPT. 30, 2009NEW CONSTRUCTION

Q3 2009 (SF)NEW CONSTRUCTION

YTD 2009 (SF)CURRENTLY UNDERCONSTRUCTION (SF)

Atlanta, GA 573,531,000 42,000 1,548,000 62,000

Bakerseld, CA 30,725,000 36,000 186,000 528,000

Baltimore, MD 162,675,000 0 67,000 0

Boise, ID 31,612,000 0 733,000 0

Charleston, SC 30,816,000 25,000 100,000 15,000

Charlotte, NC 161,361,000 24,000 212,000 231,000Chicago, IL 1,311,569,000 1,210,000 6,349,000 1,796,000

Cincinnati, OH 272,961,000 250,000 1,312,000 186,000

Cleveland, OH 406,540,000 0 42,000 35,000

Columbia SC 34,299,000 113,000 501,000 465,000

Columbus, OH 248,697,000 12,000 12,000 12,000

Dallas-Ft. Worth, TX 738,875,000 443,000 10,286,000 1,954,000

Denver, CO 272,294,000 177,000 534,000 660,000

Detroit, MI 457,073,000 19,000 245,000 47,000

Faireld, CA 32,821,000 0 307,000 164,000

Fresno, CA 48,600,000 0 100,000 0

F t. Lauderdale /Broward County, FL 128,563,000 371,000 912,000 0

Greenville, SC 152,931,000 0 77,000 676,000

Hartford, CT 96,975,000 0 0 200,000Honolulu, HI 37,971,000 25,000 200,000 50,000

Houston, TX 475,874,000 735,000 6,361,000 1,721,000

Indianapolis, IN 237,719,000 2,692,000 3,990,000 591,000

Jacksonville, FL 116,890,000 0 1,950,000

Kansas City, MO 188,266,000 432,000 604,000 1,170,000

Las Vegas, NV 106,251,000 122,000 1,204,000 590,000

Little Rock, AR 46,743,000 0 90,000 750,000

Los Angeles Inland Empire , CA 377,949,000 416,000 3,804,000 535,000

Los Angeles, CA 770,845,000 639,000 1,571,000 653,000

Louisville, KY 94,198,000 103,000 1,185,000 600,000

Memphis, TN 185,598,000 0 100,000 400,000

Miami, FL 225,183,000 195,000 1,195,000 224,000

Milwaukee, WI 281,150,000 150,000 1,450,000 100,000Minneapolis, MN 116,648,000 0 0 181,000

Nashville, TN 192,205,000 148,000 2,034,000 1,042,000

New Jersey Central 292,483,000 30,000 275,000 16,000

New Jersey Northern 425,542,000 27,000 172,000 0

Oakland, CA 131,233,000 0 0 26,000

Orange County, CA 200,837,000 0 0 0

Orlando, FL 141,020,000 0 333,000 333,000

Philadelphia, PA 423,806,000 1,055,000 2,652,000 703,000

Phoenix, AZ 227,714,000 469,000 300,000 2,213,000

Pleasanton/Walnut Creek, CA 32,911,000 0 0 54,000

Portland, OR 160,787,000 60,000 637,000 415,000

Raleigh, NC 39,083,000 0 380,000 35,000

Reno, NV 73,309,000 0 32,000 0Sacramento, CA 185,018,000 110,000 133,000 35,000

San Diego, CA 188,715,000 129,000 1,102,000 122,000

San Francisco Peninsula, CA 40,808,000 0 0 0

San Jose/Silicon Valley, CA 252,976,000 0 0 137,000

Seattle/Puget Sound, WA 289,002,000 1,087,000 892,000 142,000

St. Louis, MO 243,382,000 231,000 796,000 822,000

Stockton/San Joaquin County, CA 89,258,000 20,000 2,404,000 0

Tampa Bay, FL 208,067,000 0 205,000 165,000

Washington, DC 203,331,000 335,000 1,149,000 1,113,000

West Palm Beach, FL 56,067,000 0 20,000 0

USA TOTAL/AVERAGE 12,551,753,000 11,931,000 60,739,000 22,398,000


3/8COLLIERS INTERNATIONAL

MARKETABSORPTIONQ3 2009 (SF)

ABSORPTIONYTD 2009 (SF)

VACANCY RATEJUNE 30, 2009 (%)

VACANCY RATESEPT. 30, 2009 (%)

Atlanta, GA 201,000 (1,655,000) 12.9 12.9

Bakerseld, CA (389,000) (271,000) 6.8 8.5

Baltimore, MD (2,079,000) (4,569,000) 15.4 16.6

Boise, ID (62,000) (1,023,000) 11.2 11.4

Charleston, SC (355,000) 28,000 9.6 10.8

Charlotte, NC (550,000) (545,000) 8.4 8.7Chicago, IL (3,133,000) (18,374,000) 11.7 11.9

Cincinnati, OH (1,043,000) (3,789,000) 9.5 10.2

Cleveland, OH (1,111,000) (3,315,000) 7.7 8.0

Columbia SC (247,000) (433,000) 7.5 8.2

Columbus, OH 93,000 43,000 11.9 11.7

Dallas-Ft. Worth, TX (5,105,000) (6,071,000) 11.2 11.9

Denver, CO (73,000) (1,088,000) 8.7 8.9

Detroit, MI (1,752,000) (3,624,000) 13.8 14.0

Faireld, CA (145,000) (652,000) 11.2 11.6

Fresno, CA 50,000 (455,000) 6.9 8.0

Ft. Lauderdale/Broward County, FL (841,000) (2,451,000) 9.2 10.1

Greenville, SC (382,000) (480,000) 10.8 11.3

Hartford, CT 13,000 (359,000) 9.4 9.4Honolulu, HI 191,000 (123,000) 5.1 4.6

Houston, TX 546,000 896,000 6.8 6.7

Indianapolis, IN 1,438,000 2,446,000 7.0 7.4

Jacksonville, FL (1,604,000) (1,306,000) 9.1 10.3

Kansas City, MO (733,000) (2,845,000) 7.5 8.1

Las Vegas, NV (925,000) (2,441,000) 13.4 14.3

Little Rock, AR (754,000) (2,027,000) 13.0 14.6

Los Angeles Inland Empire, CA (2,186,000) (6,610,000) 15.1 15.4

Los Angeles, CA (4,058,000) (11,326,000) 4.8 5.4

Louisville, KY (60,000) (629,000) 8.3 8.3

Memphis, TN (1,411,000) (3,666,000) 13.9 14.7

Miami, FL (1,334,000) (4,308,000) 9.3 10.0

Milwaukee, WI 500,000 400,000 7.9 7.8Minneapolis, MN (834,000) (3,173,000) 11.9 12.6

Nashville, TN (443,000) (340,000) 8.3 8.6

New Jersey Central (1,275,000) (1,338,000) 9.5 9.9

New Jersey Northern 76,000 (4,170,000) 7.5 7.5

Oakland, CA (967,000) (1,718,000) 9.2 9.3

Orange County, CA (412,000) (2,503,000) 5.6 5.8

Orlando, FL (873,000) (3,656,000) 12.2 13.2

Philadelphia, PA 174,000 (960,000) 9.7 9.9

Phoenix, AZ (942,000) (4,891,000) 17.1 17.4

Pleasanton/Walnut Creek, CA (84,000) (1,021,000) 14.6 14.8

Portland, OR (776,000) (2,243,000) 7.9 8.1

Raleigh, NC (543,000) (1,467,000) 21.6 23.0

Reno, NV 112,000 (1,749,000) 15.2 15.1Sacramento, CA (1,169,000) (2,804,000) 11.5 12.1

San Diego, CA (1,301,000) (3,347,000) 10.4 11.3

San Francisco Peninsula, CA (397,000) (1,354,000) 8.5 9.5

San Jose/Silicon Valley, CA (2,748,000) (9,576,000) 12.8 13.7

Seattle/Puget Sound, WA (287,000) (1,426,000) 6.3 7.0

St. Louis, MO (5,520,000) (5,181,000) 6.4 8.7

Stockton/San Joaquin County, CA (70,000) (2,048,000) 16.7 16.8

Tampa Bay, FL (525,000) (4,062,000) 9.4 10.0

Washington, DC (793,000) (2,727,000) 12.3 12.8

West Palm Beach, FL (377,000) (1,908,000) 11.4 12.1

USA TOTAL/AVERAGE (47,275,000) (144,286,000) 10.10 10.53

UNITED STATES OF AMERICA INDUSTRIAL SURVEY



UNITED STATES OF AMERICA INDUSTRIAL SURVEY SALES PRICE AND CAP RATE AS OF SEPTEMBER 2009

MARKETSALES PRICE

(US$ PSF)CAP

RATE %VACANCY FORECAST

(3 MONTHS)ABSORPTION FORECAST

(3 MONTHS)RENT FORECAST

(3 MONTHS)

Atlanta, GA 33.50 8.20 Up Down Down

Bakerseld, CA 48.00 7.50 Same Same Same

Baltimore, MD 60.00 8.50 Up Down Down

Boise, ID Up Down Down

Charleston, SC 45.00 9.50 Same Up Same

Charlotte, NC 38.00 10.00 Up Same DownChicago, IL 38.00 8.50 Same Same Same

Cincinnati, OH Same Same Same

Cleveland, OH 48.00 10.25 Up Down Down

Columbia SC Down Up Same

Columbus, OH 27.86 10.00 Up Down Down

Dallas-Ft. Worth, TX 35.00 8.80 Up Down Down

Denver, CO 37.00 9.25 Up Down Down

Detroit, MI 40.00 8.00 Up Down Down

Faireld, CA Down Up Down

Fresno, CA 35.00 10.00 Same Up Same

Ft. Lauderdale/Broward County, FL 54.00 Up Down Down

Greenville, SC 40.00 10.50 Up Down Down

Hartford, CT 40.00 10.00 Same Same SameHonolulu, HI Up Down Down

Houston, TX 81 10.60 Up Down Down

Indianapolis, IN Same Up Down

Jacksonville, FL 40.00 9.50 Down Down Down

Kansas City, MO 52.00 9.50 Up Up Same

Las Vegas, NV Up Up Down

Little Rock, AR 38.50 10.25 Same Same Same

Los Angeles Inland Empire, CA 77.00 8.50 Up Down Down

Los Angeles, CA 108.00 7.50 Up Down Down

Louisville, KY 32.00 11.00 Down Up Same

Memphis, TN Down Up Same

Miami, FL 79.83 8.00 Up Down Down

Milwaukee, WI 55.00 9.50 Down Up Same

Minneapolis, MN 45.00 10.00 Up Down Down

Nashville, TN 42.00 10.00 Up Down Down

New Jersey Central 63.00 8.00 Down Down Down

New Jersey Northern 78.00 8.00 Down Down Down

Oakland, CA 83.08 8.00 Up Down Down

Orange County, CA 127.00 8.00 Up Down Same

Orlando, FL 50.00 9.00 Up Same Down

Philadelphia, PA 40.00 9.50 Down Same Same

Phoenix, AZ 58.20 8.60 Up Down Down

Pleasanton/Walnut Creek, CA 89.82 7.00 Down Up Same

Portland, OR 101.82 9.20 Up Down Same

Raleigh, NC 40.00 10.50 Same Same Down

Reno, NV 58.64 8.50 Same Up Same

Sacramento, CA 50.00 8.00 Up Same Down

San Diego, CA 88.92 7.65 Up Up Down

San Francisco Peninsula, CA 300.00 6.50 Up Same Same

San Jose/Silicon Valley, CA Up Down Down

Seattle/Puget Sound, WA Up Down Down

St. Louis, MO 40.00 9.50 Up Down Down

Stockton/San Joaquin County, CA 53.00 8.60 Up Down Same

Tampa Bay, FL 55.00 Up Same Down

Washington, DC 101.00 Up Same Down

West Palm Beach, FL Up Down Down

USA AVERAGE 61.05 8.76



MARKETWAREHOUSE/DISTRIBUTION

SPACE (US$ PSF)BULK SPACE

(US$ PSF)FLEX/SERVICE

SPACE (US$ PSF)TECH/R&D

SPACE (US$ PSF)

Atlanta, GA 3.59 3.29 8.38 7.74

Bakerseld, CA 4.00 3.95 7.00

Baltimore, MD 5.76 4.56 9.85

Boise, ID 5.40 5.40 6.60 6.60

Charleston, SC 3.60 3.85 5.00 15.50

Charlotte, NC 3.60 3.15 6.75 6.75Chicago, IL 3.90 2.67 10.12

Cincinnati, OH 2.70 2.70 4.75

Cleveland, OH 2.75 3.17 8.37 9.00

Columbia SC 4.00 4.00 6.00 9.50

Columbus, OH 3.09 3.39

Dallas-Ft. Worth, TX 3.10 2.90 7.15 8.50

Denver, CO 3.75 3.50 8.50 9.50

Detroit, MI 4.24 9.12

Faireld, CA 5.94 12.00

Fresno, CA 2.88 2.40 3.36 7.20

Ft. Lauderdale/Broward County, FL 7.54 6.54 9.97 10.92

Greenville, SC 2.90 2.50 7.00 15.00

Hartford, CT 5.75 4.50 9.50 9.50Honolulu, HI 13.08

Houston, TX 5.20 4.53 8.1 9.25

Indianapolis, IN 4.50 2.75 5.95

Jacksonville, FL 3.00 3.75 9.00

Kansas City, MO 4.00 3.50 8.50 12.00

Las Vegas, NV 5.93 8.17 11.72

Little Rock, AR 3.57 1.79

Los Angeles Inland Empire, CA 4.04 3.98 7.25 10.25

Los Angeles, CA 6.49 6.35 14.00 14.75

Louisville, KY 3.30 3.05 9.25

Memphis, TN 2.66 2.62 7.15 10.00

Miami, FL 8.18 7.21 10.80 0.00

Milwaukee, WI 4.25 3.50 4.50 4.60

Minneapolis, MN 4.35 4.14 4.81 4.81

Nashville, TN 4.50 3.53 9.07 9.07

New Jersey Central 4.65 4.19 11.89 13.66

New Jersey Northern 5.95 5.35 10.50 13.94

Oakland, CA 4.92 4.55 6.00 9.36

Orange County, CA 8.01 7.75 13.75 13.65

Orlando, FL 5.28 4.84 9.28 9.45

Philadelphia, PA 4.00 3.75 7.00 11.00

Phoenix, AZ 5.33 5.17 12.60

Pleasanton/Walnut Creek, CA 5.86 5.02 21.68

Portland, OR 5.63 5.24 9.71 9.57

Raleigh, NC 4.25 3.50 8.00 10.00

Reno, NV 3.72 3.12 8.28

Sacramento, CA 4.79 3.36 10.80 12.00

San Diego, CA 8.40 7.56 11.04 15.84

San Francisco Peninsula, CA 10.08 10.08 21.36 21.36

San Jose/Silicon Valley, CA 5.88 5.76 8.76 13.20

Seattle/Puget Sound, WA 6.37 11.78

St. Louis, MO 2.75 2.75 5.00 12.00

Stockton/San Joaquin County, CA 3.96 3.54 7.20 7.32

Tampa Bay, FL 5.05 4.71 8.68 10.15

Washington, DC 8.29 13.14

West Palm Beach, FL 8.74 6.97 11.53

USA AVERAGE 5.04 4.29 9.11 10.40

Quarterly Change -0.89% -6.46% -0.17% -4.88%

UNITED STATES OF AMERICA INDUSTRIAL SURVEY RENTS AS OF SEPTEMBER 2009



CANADA INDUSTRIAL SURVEY AND RENTS

INDUSTRIAL SURVEY

MARKETEXISTING INVENTORY (SF)

SEPT. 30, 2009NEW CONSTRUCTION

Q3 2009 (SF)NEW CONSTRUCTION

YTD 2009 (SF)CURRENTLY UNDERCONSTRUCTION (SF)

Calgary, AB 118,458,000 549,000 2,218,000 543,000

Edmonton, AB 76,341,000 342,000 342,000 755,000

Halifax, NS 7,044,000 0 10,000 12,000

Montral, QC 338,255,000 83,000 599,000 0

Ottawa, ON 27,919,000 0 41,000 209,000

Regina, SK 14,908,000 53,000 53,000 21,000

Saskatoon, SK 19,000,000 100,000 500,000 75,000

Toronto, ON 720,045,000 23,000 5,273,000 2,130,000

Vancouver, BC 175,129,000 1,038,000 3,846,000 1,275,000

Victoria, BC 8,326,000 0 258,000 300,000

Waterloo Region, ON 61,074,000 68,000 209,000 173,000

CANADA TOTAL/AVERAGE 1,566,498,000 2,254,000 13,348,000 5,492,000

INDUSTRIAL SURVEY

MARKETABSORPTIONQ3 2009 (SF)

ABSORPTIONYTD 2009 (SF)

VACANCY RATEJUNE 30, 2009 (%)

VACANCY RATESEPT. 30, 2009 (%)

Calgary, AB 83,000 331,000 5.1 5.6

Edmonton, AB 132,000 (1,605,000) 4.2 4.5

Halifax, NS (31,000) (45,000) 7.1 7.5

Montral, QC (1,660,000) (1,019,000) 6.8 7.3Ottawa, ON (61,000) 146,000 4.4 4.6

Regina, SK (69,000) (124,000) 1.5 1.9

Saskatoon, SK 58,000 226,000 3.6 3.8

Toronto, ON 436,000 (3,794,000) 6.4 6.4

Vancouver, BC (449,000) 62,000 3.8 4.6

Victoria, BC 0 181,000 0.0 1.6

Waterloo Region, ON (817,000) (1,233,000) 5.9 7.4

CANADA TOTAL/AVERAGE (2,378,000) (6,874,000) 5.85 6.15

INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF SEPTEMBER 2009

MARKETSALES PRICE

(C$ PSF)CAP

RATE %VACANCY FORECAST

(3 MONTHS)ABSORPTION FORECAST

(3 MONTHS)RENT FORECAST

(3 MONTHS)

Calgary, AB 105.00 7.75 Same Same Same

Edmonton, AB 155.00 7.70 Up Down DownHalifax, NS 80.00 8.50 Down Up Same

Montral, QC Same Same Same

Ottawa, ON 87.00 8.80 Same Up Same

Regina, SK 158.00 8.00 Down Up Same

Saskatoon, SK 100.00 8.50 Same Same Same

Toronto, ON 69.86 7.00 Up Down Down

Vancouver, BC 100.00 7.00 Up Down Same

Victoria, BC 150.00 7.00 Up Same Same

Waterloo Region, ON 64.93 8.00 Same Same Same

CANADA AVERAGE 106.98 7.83

INDUSTRIAL SURVEY | RENTS AS OF SEPTEMBER 2009

MARKETWAREHOUSE/DISTRIBUTION

SPACE (C$ PSF)BULK SPACE

(C$ PSF)FLEX/SERVICE SPACE

(C$ PSF)TECH/R&D

SPACE (C$ PSF)

Calgary, AB 6.75 6.25 9.00 9.75

Edmonton, AB 7.20 6.40 8.15 9.00

Halifax, NS 6.75 5.50 8.95 13.95

Montral, QC 4.50 4.00 6.50 8.00

Ottawa, ON 7.00 7.00 8.50 10.00

Regina, SK 8.00 6.50 12.00 14.00

Saskatoon, SK 8.50 7.50 9.00 13.00

Toronto, ON 5.32 4.87 7.64 8.28

Vancouver, BC 7.00 6.50 8.50 9.50

Victoria, BC 11.00 12.00 14.00 14.00

Waterloo Region, ON 5.07 4.58 8.61 8.61

CANADA AVERAGE 7.01 6.46 9.17 10.74

Quarterly Change -0.89% -0.56% -0.56% -0.51%



MARKETVACANCY RATESEPT. 30, 2008 (%)

VACANCY RATESEPT. 30, 2009 (%) CHANGE

Stockton/San Joaquin County, CA 10.3 16.8 6.50

Orlando, FL 8.6 13.2 4.53

Las Vegas, NV 9.8 14.3 4.50

Raleigh, NC 18.6 23.0 4.48

Boise, ID 7.5 11.4 3.91

Reno, NV 11.3 15.1 3.80Phoenix, AZ 13.7 17.4 3.69

Columbia, SC 4.5 8.2 3.69

San Jose/Silicon Valley, CA 10.1 13.7 3.56

Los Angeles Inland Empire, CA 11.9 15.4 3.46

West Palm Beach, FL 8.6 12.1 3.46

Ft. Lauderdale-Broward, FL 6.6 10.1 3.44

San Francisco Peninsula San Mateo, CA 6.1 9.5 3.42

Pleasanton/Walnut Creek, CA 11.7 14.8 3.16

Faireld, CA 8.5 11.6 3.05

Memphis, TN 11.7 14.7 3.02

San Diego, CA 8.4 11.3 2.93

Miami, FL 7.1 10.0 2.88

St. Louis, MO 6.0 8.7 2.73Cincinnati, OH 7.5 10.2 2.68

Bakerseld, CA 6.1 8.5 2.47

Tampa Bay, FL 7.6 10.0 2.39

Kansas City, MO 5.7 8.1 2.39

Dallas-Ft. Worth, TX 9.6 11.9 2.37

Nashville, TN 6.4 8.6 2.17

Chicago, IL 9.9 11.9 2.06

Fresno, CA 6.0 8.0 2.00

USA AVERAGE 8.67 10.53 1.86

Jacksonville, FL 8.4 10.3 1.84

Los Angeles, CA 3.5 5.4 1.84

Minneapolis, MN 10.8 12.6 1.83

Washington, DC 11.0 12.8 1.77Greenville, SC 9.7 11.3 1.64

Charleston, SC 9.2 10.8 1.60

Portland, OR 6.5 8.1 1.60

Sacramento, CA 10.6 12.1 1.54

Charlotte, NC 7.2 8.7 1.52

New Jersey - Central 8.4 9.9 1.50

Oakland, CA 7.9 9.3 1.41

Detroit, MI 12.6 14.0 1.39

Philadelphia, PA 8.5 9.9 1.32

Orange County, CA 4.5 5.8 1.29

Houston, TX 5.7 6.7 1.07

New Jersey - Northern 6.4 7.5 1.06

Atlanta, GA 11.8 12.9 1.05Denver, CO 8.1 8.9 0.85

Seattle/Puget Sound, WA 6.3 7.0 0.63

Honolulu, HI 4.0 4.6 0.60

Cleveland, OH 7.6 8.0 0.40

Louisville, KY 8.0 8.3 0.36

Columbus, OH 11.7 11.7 0.05

Milwaukee, WI 7.8 7.8 0.03

Hartford, CT 9.8 9.8 (0.04)

Indianapolis, IN 7.5 7.4 (0.10)

Baltimore, MD 18.3 16.6 (1.67)

Little Rock, AR 17.1 14.6 (2.55)

tion at the end of the third quarter of 2007, and markinnew recorded low.

U.S. industrial vacancy rate reaches decade hig

The U.S. industrial warehouse vacancy rate increased 43 basis points during the third quarter to register 10.53This brought the national vacancy rate to a decade hiand up by 263 basis points from the fourth quarter of 20Of the 55 markets tracked across the country, 47 svacancies increase while six registered declines (two sno change). Canadian warehouse vacancies also increaduring the quarter, also jumping by 30 basis points 6.15%, a level not seen since 1997.

Rents drop just 0.9% during the quarter. Thquarter warehouse rents posted a surprisingly mild decrefalling just 0.9% to $5.04 per square foot. With this latdecrease, U.S. warehouse rents are down 9.9% over t

past year and 11.6% from the peak recorded in Q4 200Anecdotal evidence suggests landlords have dropped reas far as they can and are now relying on non-monetaincentives to attract tenants to their property. Canadwarehouse rents also decreased 0.9% during the quarter$7.01 CAD per square foot.

GLOSSARY

Absorption Net change in leased space over a given period of tim

Bulk Space 100,000 square feet or more with up to 10 percent

ofce space, the balance being general warehouse space with 20 to 3

foot ceiling heights. All loading is dock-height.

Flex Space Single-story buildings having 10- to 18-foot ceilings wboth oor-height and dock-height loading. Includes wide variation in

ofce space utilization, ranging from retail and personal service thro

distribution, light industrial and occasional heavy industrial use.

Inventory Includes all existing multi or single tenant leased and

owner-occupied industrial warehouse, light manufacturing, ex and

R&D properties greater than or equal to 10,000 square feet.

New Construction Includes completed speculative and build-to-

suit construction. New construction quoted on a net basis after any

demolitions or conversions.

Service Space Single story (or mezzanine) with 10- to 16-foot

ceilings with frontage treatment on one side and dock-height loading

grade level roll-up doors on the other. Less than 15% ofce.

Tech/R&D One- and two- story, 10- to 15-foot ceiling heights

with up to 50% ofce/dry lab space (remainder in wet lab, workshopstorage and other support), with dock-height and oor-height loadin

Triple Net Rent Includes rent payable to the landlord and does

not include additional expenses such as taxes, insurance, maintenanc

janitorial and utilities. All industrial and high-tech/R&D rents in this

report are quoted on an annual, triple net per square foot basis in U

dollars.

Vacancy Rate Percentage of total inventory available (both vacan

and occupied) as at the survey date including direct vacant and suble

space.

Warehouse 50,000 square feet or more with up to 15 percent

ofce space, the balance being general warehouse space with 18 to 3

foot ceiling heights. All loading is dock-height.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been madeto ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged toconsult their professional advisors prior to acting on any of the material contained in this report.

North American Industrial Markets Continue toPost Lower OccupanciesContinued from page 1

UNITED STATES OF AMERICA INDUSTRIAL SURVEY VACANCY RATES


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NORTH ANDCENTRALAMERICA

Canada

Costa Rica

MexicoUnited Statesof America

SOUTHAMERICA

ArgentinaBrazilChileColombiaPeru

Albania

Austria

Belgium

Bulgaria

Croatia

CzechRepublic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Montenegro

Netherlands

Norway

Poland

Portugal

Romania

Russia

Serbia

Slovakia

Spain

Sweden

Switzerland

Turkey

Ukraine

UnitedKingdom

AFRICA

South Africa

MIDDLE E

Israel

Qatar

Saudi Arabia

United Arab E

ChinaHong KongIndiaIndonesia

JapanMacauPakistan

PhilippinesSingaporeSouth KoreaTaiwanThailandVietnam

NewZealand

EUROPE

ASIA

www.colliers.

AUSTRALIA

COLLIERS INTERNATIONAL LOCATIONS | 294 OFFICES IN 61 COUNTRIES

$1.6 Billion (1.1 Billion) in Global Revenue

1. 1 Billion SF (102 Million SM) Under Management

12,700 Employees

Colliers International is an afliation of leadingreal estate rms committed to deliveringconsistently superior commercial real estateservices, wherever and whenever needed.

COLLIERS INTERNATIONAL HIGHLIGHTS NORTH AMERICA INDUSTRIAL THIRD QUARTER 2009

8 COLLIERS INTERNATIONAL

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North American Industrial Higlights 3Q 09