Q U.S. INDUSTRIAL & LOGISTICS FIGURES

Transcription

1 Q U.S. INDUSTRIAL & LOGISTICS FIGURES

2 Q U.S. INDUSTRIAL & LOGISTICS FIGURES EXECUTIVE SUMMARY DEMAND AGAIN OUTSTRIPS NEW SUPPLY, RENTS TICK UP FURTHER Availability Rate 7.2% Vacancy Rate 4.4% Net Asking Rent $7.11 PSF Net Absorption 58.8 MSF Completions 48.9 MSF Arrows indicate change from previous quarter. The U.S. industrial & logistics (I&L) sector continued to demonstrate strong fundamentals in Q2, with 58.8 million sq. ft. absorbed versus 48.9 million sq. ft. delivered. The overall market s availability rate declined 10 basis points from the previous quarter to 7.2% the lowest level since Q This marked the 33rd consecutive quarter of positive net absorption the longest streak since before The new supply of 48.9 million sq. ft. that was delivered in Q2 was up 17.8% over the previous quarter and 7.5% over Q Deliveries year-to-date are in line with 2017, as new supply comes online at a steady pace. The underconstruction pipeline of million sq. ft. in Q2 was up 6.5% over the previous quarter, which suggests that new-supply levels should grow over the next year, albeit at a moderate rate. With demand exceeding new supply, net asking rents increased 1.7% in Q2 to $7.11 per sq. ft. the highest level since CBRE began tracking the metric in Rents increased 5.5% year-over-year, exceeding the average annual growth rate of 4.1% since The major drivers of supply-chain demand consumer spending, business inventories and industrial production all showed measured growth in Q2. As expected with such strong consumer sentiment, spending rates have hit their highest levels since the 2008 recession. This is especially positive for the I&L market, as consumer spending is highly correlated to demand for warehouse and logistics real estate. 2 U.S. INDUSTRIAL & LOGISTICS Q FIGURES

3 FIGURE 1 CONSUMER CONFIDENCE RISING AS UNEMPLOYMENT PLUMMETS Consumer Sentiment Index (L) Unemployment Rate % (R) Note: 2018 figures are through July. Source: Federal Reserve Bank of St. Louis, July U.S. INDUSTRIAL & LOGISTICS Q FIGURES

4 FIGURE 2 U.S. SUPPLY CHAIN INDICATORS Q = Industrial Production Consumer Consumption Business Inventories Source: Federal Reserve Bank of St. Louis, May U.S. INDUSTRIAL & LOGISTICS Q FIGURES

5 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q FIGURE 3 POSITIVE NET ABSORPTION STREAK EXTENDS RECORD Net Absorption (MSF) 120 Net Absorption Avg. Over Streak Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

6 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q FIGURE 4 U.S. INDUSTRIAL SUPPLY AND DEMAND Completions and Net Absorption (MSF) Completions (L) Net Absorption (L) Availability Rate (R) Availability Rate (%) Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

7 FIGURE 5 LOWEST AND HIGHEST AVAILABILITY RATES (%) Lowest Availability Rates Savannah 2.9 Cincinnati 3.7 Detroit 3.8 Oakland & San Francisco Peninsula 4.0 Los Angeles 4.3 Highest Availability Rates San Antonio 13.2 Baltimore 12.2 Austin 11.3 Boston & Greenville 11.0 El Paso & Memphis 10.0 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

8 FIGURE 6 LARGEST QUARTERLY CHANGES IN AVAILABILITY RATES (BPS) Largest Decreases in Availability Reno -130 El Paso -100 Boston -80 Austin, Jacksonville & Palm Beach -70 Ft. Lauderdale & Houston -60 Largest Increases in Availability Central Valley, CA & Walnut Creek/I-680 Corridor 210 Charleston 90 Baltimore, Greenville, Pennsylvania/I-78/81 Corridor & Seattle 80 Salt Lake City, San Antonio & San Diego 60 Central New Jersey & Denver 50 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

9 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q FIGURE 7 U.S. INDUSTRIAL RENT GROWTH Year-over-Year (%) Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

10 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) *Suburban Maryland and Northern Virginia represent Washington, D.C. area. **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

11 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) (CONTINUED) **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

12 FOR MORE INFORMATION, PLEASE CONTACT: Adam Mullen Senior Managing Director Industrial & Logistics Services, Americas Spencer G. Levy Americas Head of Research & Senior Economic Advisor Follow Spencer on David Egan Global Head of Industrial & Logistics Research Follow David on Nikhil Mohan Economist Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your r esponsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

13 Q U.S. INDUSTRIAL & LOGISTICS FIGURES

14 Q U.S. INDUSTRIAL & LOGISTICS FIGURES EXECUTIVE SUMMARY DEMAND OUTPACES NEW SUPPLY, PUSHING RENTS TO ALL-TIME HIGHS Availability Rate 7.3% Vacancy Rate 4.5% Net Asking Rent $7.01 PSF Net Absorption 41.0 MSF Completions 35.0 MSF Arrows indicate change from previous quarter. After a brief period of supply and demand parity, demand in the U.S. industrial market once again outpaced new supply in Q With 41.0 million sq. ft. absorbed versus 35.0 million sq. ft. delivered, the market s availability rate declined to 7.3% the lowest level since Q This marked the 32nd consecutive quarter of positive net absorption the longest streak in almost 20 years. The new supply of 35.0 million sq. ft. that was delivered in Q1 was down 44.9% over the previous quarter and 26.6% over Q The under-construction pipeline of million sq. ft. in Q1 was up 3.7% over the previous quarter, which suggests that the near-term delivery figures should be at or slightly larger than the most recent quarters. With demand exceeding new supply, net asking rents increased 1.9% in Q1 to $7.01 per sq. ft. the highest level since CBRE began tracking the metric in Rents increased 5.9% year-over-year, well above the average 12-month growth of 3.8% during this cycle (dating back to Q when rents resumed growth). The major drivers of supply chain demand consumer consumption, business inventories and industrial production all showed measured growth in Q1. The U.S. unemployment rate was 4.1% its lowest level in 17 years. With the fastest wage growth since 2009, consumer confidence has stayed near its highest level since As expected with such strong consumer sentiment, consumption rates have hit their highest levels since the 2008 recession. This is especially positive for the industrial market, as consumer consumption is highly correlated to demand for warehouse and logistics real estate. 2 U.S. INDUSTRIAL & LOGISTICS Q FIGURES

15 FIGURE 1 TIGHT LABOR MARKET GENERATES CONSUMER CONFIDENCE Consumer Sentiment Index (L) Unemployment Rate % (R) Note: 2018 figures are through April. Source: Federal Reserve Bank of St. Louis, April U.S. INDUSTRIAL & LOGISTICS Q FIGURES

16 FIGURE 2 U.S. SUPPLY CHAIN INDICATORS Q = Industrial Production Consumer Consumption Business Inventories Source: Federal Reserve Bank of St. Louis, February U.S. INDUSTRIAL & LOGISTICS Q FIGURES

17 FIGURE 3 POSITIVE NET ABSORPTION STREAK EXTENDS RECORD Net Absorption (MSF) 120 Net Absorption Avg. Over Streak Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

18 FIGURE 4 U.S. INDUSTRIAL SUPPLY AND DEMAND Completions and Net Absorption (MSF) Completions (L) Net Absorption (L) Availability Rate (R) Availability Rate (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

19 FIGURE 5 LOWEST AND HIGHEST AVAILABILITY RATES (%) Lowest Availability Rates Savannah 3.3 Detroit 3.8 Oakland 3.9 Cincinnati 4.0 San Francisco Peninsula 4.2 Highest Availability Rates San Antonio 12.6 Austin 12.0 Boston 11.8 Baltimore 11.4 El Paso 11.0 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

20 FIGURE 6 LARGEST QUARTERLY CHANGES IN AVAILABILITY RATES (BPS) Lowest Availability Rates Savannah -360 Charleston -180 Tucson -130 Central Valley, CA -110 Cincinnati, Greenville, Jacksonville & Orlando -80 Highest Availability Rates Boston 150 Reno 110 Austin & Norfolk 100 Richmond & San Francisco Peninsula 70 Louisville 60 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

21 FIGURE 7 U.S. INDUSTRIAL RENT GROWTH Year-over-Year (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

22 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Baltimore Boston Charleston Charlotte Greenville Hartford Louisville Suburban Maryland* Central New Jersey Northern New Jersey Norfolk Pennsylvania/I-78/81 Corridor Philadelphia Pittsburgh Richmond Northern Virginia* East Chicago Cincinnati Cleveland Columbus Detroit Indianapolis Kansas City Milwaukee Minneapolis/St. Paul St. Louis Midwest United States *Suburban Maryland and Northern Virginia represent Washington, D.C. area. **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

23 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) (CONTINUED) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Atlanta Austin Dallas/Ft. Worth El Paso Ft. Lauderdale Houston Jacksonville Memphis Miami Nashville Orlando Palm Beach San Antonio Savannah Tampa South Albuquerque Central Valley, CA Denver Inland Empire Las Vegas Los Angeles Oakland Orange County Phoenix Portland Reno Sacramento Salt Lake City San Diego San Francisco Peninsula San Jose Seattle Tucson Walnut Creek/I-680 Corridor West United States **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

24 FOR MORE INFORMATION, PLEASE CONTACT: Adam Mullen Senior Managing Director Industrial & Logistics Services, Americas David Egan Global Head of Industrial & Logistics Research Follow David on Spencer G. Levy Americas Head of Research & Senior Economic Advisor Follow Spencer on Nikhil Mohan Economist Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

25 Q U.S. INDUSTRIAL & LOGISTICS FIGURES

26 Q U.S. INDUSTRIAL & LOGISTICS FIGURES EXECUTIVE SUMMARY INDUSTRIAL MARKET REACHES SUPPLY/DEMAND BALANCE Availability Rate 7.4% Vacancy Rate 4.5% Net Asking Rent $6.92 PSF Net Absorption 44.4 MSF Completions 51.7 MSF Arrows indicate change from previous quarter. While demand did not keep pace with new supply delivered in Q4 2017, full-year demand did exceed total new deliveries in The industrial market s availability rate remained steady for the sixth consecutive quarter at 7.4% the lowest level since Q Net absorption totaled 44.4 million sq. ft. in Q4, marking 31 consecutive quarters of positive demand. Total net absorption for the year exceeded 200 million sq. ft. for the fifth year in a row. The five-year average of million sq. ft. is the most since CBRE began tracking the stat in New supply totaling 51.7 million sq. ft. was delivered in Q4, on par with the previous quarter. The 2017 total of million sq. ft. was up 2.0% over 2016 and was the largest delivery total of this cycle. The under-construction pipeline of million sq. ft. in Q4 was up 2.2% over the previous quarter, which suggests that the near-term delivery figures should be in line with the most recent quarters. Though supply and demand are in balance, net asking rents still grew slightly (0.6%) in Q4 to $6.92 per sq. ft. Rent growth for the year was strong at 5.3%. Asking rents reached an all-time high in Q and have set a new record in each subsequent quarter. The major drivers of industrial demand consumer consumption and manufacturing were both well-positioned at year s end. The U.S. unemployment rate was 4.1%, its lowest level in 17 years. With consumers expectation for future wage growth at its highest point in three years, consumer confidence has risen to its highest level since With rising consumption, industrial production reached the highest point on record in December. NOTE: One of our data suppliers is performing a multi-quarter cleanup of their data in order to remove listings that have contributed to an artificially high availability rate. At odds are the number of transactions reported as being closed in 2016 that were included in 2017 data. This had the effect of lowering the availability rate in prior quarters and leaving less available space to be absorbed in With the revision, net absorption for 2016 was revised up to 307 million sq. ft. from 286 million sq. ft. and for 2017 was revised down to 176 million sq. ft. from 202 million sq. ft. Although for this report we have used the unadjusted figures, updated charts are available upon request. CBRE will make longer-term changes to improve our data process as part of the firm s commitment to better enablement technologies. 2 U.S. INDUSTRIAL & LOGISTICS Q FIGURES

27 FIGURE 1 TIGHT LABOR MARKET GENERATES CONSUMER CONFIDENCE Consumer Sentiment Index (L) Unemployment Rate % (R) Source: Federal Reserve Bank of St. Louis, November U.S. INDUSTRIAL & LOGISTICS Q FIGURES

28 FIGURE 2 STRONG CONSUMPTION SPURS GROWTH IN PRODUCTION Industrial Production Index (2012=100) Industrial Production Source: Federal Reserve Bank of St. Louis, December U.S. INDUSTRIAL & LOGISTICS Q FIGURES

29 FIGURE 3 POSITIVE NET ABSORPTION STREAK EXTENDS RECORD Net Absorption (MSF) Net Absorption Avg. Over Streak Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

30 FIGURE 4 U.S. INDUSTRIAL SUPPLY AND DEMAND Completions and Net Absorption (MSF) Completions (L) Net Absorption (L) Availability Rate (R) Availability Rate (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

31 FIGURE 5 LOWEST AND HIGHEST AVAILABILITY RATES (%) Lowest Availability Rates San Francisco Peninsula 3.5 Oakland 3.6 Detroit 4.0 Los Angeles 4.5 Orange County 4.6 Highest Availability Rates San Antonio 12.6 Baltimore 11.6 Austin & Greenville 11.0 El Paso 10.8 Boston 10.3 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

32 FIGURE 6 LARGEST QUARTERLY CHANGES IN AVAILABILITY RATES (BPS) Largest Decreases in Availability Reno -160 Ft. Lauderdale -150 Oakland -130 Jacksonville -120 Savannah -110 Largest Increases in Availability Central Valley, CA 230 Charleston & El Paso 100 Austin & Orange County 80 Sacramento & Milwaukee 70 Hartford & St. Louis 60 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

33 FIGURE 7 U.S. INDUSTRIAL RENT GROWTH Year-over-Year (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

34 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Baltimore Boston Charleston Charlotte Greenville Hartford Louisville Suburban Maryland* Central New Jersey Northern New Jersey Norfolk Pennsylvania/I-78/81 Corridor Philadelphia Pittsburgh Richmond Northern Virginia* East Chicago Cincinnati Cleveland Columbus Detroit Indianapolis Kansas City Milwaukee Minneapolis/St. Paul St. Louis Midwest United States * Suburban Maryland and Northern Virginia represent Washington, D.C. area. **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

35 FIGURE 8 U.S. INDUSTRIAL AVAILABILITY RATES (%) (CONTINUED) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Atlanta Austin Dallas/Ft. Worth El Paso Ft. Lauderdale Houston Jacksonville Memphis Miami Nashville Orlando Palm Beach San Antonio Savannah Tampa South Albuquerque Central Valley, CA Denver Inland Empire Las Vegas Los Angeles Oakland Orange County Phoenix Portland Reno Sacramento Salt Lake City San Diego San Francisco Peninsula San Jose Seattle Tucson Walnut Creek/I-680 Corridor West United States **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

36 FOR MORE INFORMATION, PLEASE CONTACT: Adam Mullen Senior Managing Director Industrial & Logistics Services, Americas David Egan Global Head of Industrial & Logistics Research Follow David on Spencer G. Levy Americas Head of Research & Senior Economic Advisor Follow Spencer on Nikhil Mohan Economist Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

37 Q U.S. INDUSTRIAL & LOGISTICS FIGURES

38 Q U.S. INDUSTRIAL & LOGISTICS FIGURES EXECUTIVE SUMMARY SUPPLY AND DEMAND IMBALANCE PUSHES RENTS TO HISTORIC HIGHS Availability Rate 7.7% Vacancy Rate 4.6% Net Asking Rent $6.88 PSF Net Absorption 61.1 MSF Completions 50.8 MSF Arrows indicate change from previous quarter. With demand exceeding supply for the 28th time in the past 30 quarters, the industrial market s availability rate fell to 7.7% the lowest level since Q Net absorption totaled 61.1 million sq. ft. in Q3, marking 30 consecutive quarters of positive demand the longest such streak in more than 20 years. After an unusually slow first quarter, demand has bounced back to a level above the cycle average, largely on the strength of e-commerce and omnichannel users. New supply grew by 12.5% quarter-over-quarter to 50.8 million sq. ft., but was down by 9.3% year-over-year. Lack of land sites and entitlement issues have kept construction in check despite record-low vacancy rates, high levels of demand and rapid rent growth. Tight supply pushed net asking rents up by 1.6% for the quarter and 6.3% year-over-year to $6.88 per sq. ft. the highest mark since CBRE began tracking this metric in Slower retail sales, auto sales and industrial production in September point to more subdued GDP growth in Q3. Moody s estimates that the impact of hurricanes Irma and Harvey will shave half a point from Q3 GDP growth due to supply chain disruptions and higher input costs of raw materials. Meanwhile, manufacturing activity and employment grew at a faster clip in September than in August. While overall employment fell by 33,000 jobs in September, largely due to the string of hurricanes, wages grew by 2.9% from a year ago and effectively offset the slowing pace of hiring. Higher wage growth and, in effect, higher disposable income couldn t have come at a better time, given that consumer confidence in October soared to its highest level since U.S. INDUSTRIAL & LOGISTICS Q FIGURES

39 FIGURE 1 TIGHT LABOR MARKET GENERATES CONSUMER CONFIDENCE Consumer Sentiment Index (L) Unemployment Rate % (R) Source: Federal Reserve Bank of St. Louis, September U.S. INDUSTRIAL & LOGISTICS Q FIGURES

40 FIGURE 2 POSITIVE NET ABSORPTION STREAK EXTENDS RECORD Net Absorption (MSF) Net Absorption Avg. Over Streak 0 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2015 Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

41 FIGURE 3 U.S. INDUSTRIAL SUPPLY AND DEMAND Completions and Net Absorption (MSF) Completions (L) Net Absorption (L) Availability Rate (R) Availability Rate (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

42 FIGURE 4 LOWEST AND HIGHEST AVAILABILITY RATES (%) Lowest Availability Rates San Francisco Peninsula 3.2 Orange County 3.8 Los Angeles 4.2 Detroit 4.3 Central Valley, CA 4.5 Highest Availability Rates San Antonio 12.5 Baltimore 12.0 Jacksonville 10.8 Greenville & Suburban Maryland 10.7 Orlando 10.6 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

43 FIGURE 5 LARGEST QUARTERLY CHANGES IN AVAILABILITY RATES (BPS) Largest Decreases in Availability Ft. Lauderdale -230 Tucson -170 Jacksonville -130 Milwaukee -80 Albuquerque -70 Largest Increases in Availability Walnut Creek/I-680 Corridor 240 Savannah 180 Reno 80 Charleston & San Jose 50 Central Valley, Los Angeles, Miami, Orange County & Palm Beach 40 Source: CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

44 FIGURE 6 U.S. INDUSTRIAL RENT GROWTH Year-over-Year (%) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Source: CBRE Econometric Advisors, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

45 FIGURE 7 U.S. INDUSTRIAL AVAILABILITY RATES (%) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Baltimore Boston Charleston Charlotte Greenville Hartford Louisville Suburban Maryland* Central New Jersey Northern New Jersey Norfolk Pennsylvania/I-78/81 Corridor Philadelphia Pittsburgh Richmond Northern Virginia* East Chicago Cincinnati Cleveland Columbus Detroit Indianapolis Kansas City Milwaukee Minneapolis/St. Paul St. Louis Midwest United States * Suburban Maryland and Northern Virginia represent Washington, D.C. area. **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

46 FIGURE 7 U.S. INDUSTRIAL AVAILABILITY RATES (%) (CONTINUED) NNN Asking Rate ($)** Vacancy Rate (%) Availability Rate (%) Market Size Rank Q Q Q Q Q Atlanta Austin Dallas/Ft. Worth El Paso Ft. Lauderdale Houston Jacksonville Memphis Miami Nashville Orlando Palm Beach San Antonio Savannah Tampa South Albuquerque Central Valley, CA Denver Inland Empire Las Vegas Los Angeles Oakland Orange County Phoenix Portland Reno Sacramento Salt Lake City San Diego San Francisco Peninsula San Jose Seattle Tucson Walnut Creek/I-680 Corridor West United States **NNN asking rates are displayed on a per sq. ft. and per annum basis. Source: U.S. national figures provided by CBRE Econometric Advisors, all other figures compiled by CBRE Research, Q U.S. INDUSTRIAL & LOGISTICS Q FIGURES

47 FOR MORE INFORMATION, PLEASE CONTACT: Adam Mullen Senior Managing Director Industrial & Logistics Services, Americas David Egan Global Head of Industrial & Logistics Research Follow David on Spencer G. Levy Americas Head of Research & Senior Economic Advisor Follow Spencer on Nikhil Mohan Economist Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74 FOR MORE INFORMATION ABOUT THIS REPORT, PLEASE CONTACT: