4q 2013 industrial report
TRANSCRIPT
NORTH COUNTY SAN DIEGOINDUSTRIAL MARKET REPORT
YEAR END 2013
SUPPLY BY SIZESUBMARKET VACANCY
1Industrial Property Report
VACANCY RATE
8.59% 821.5K sfNET ABSORPTION (YTD)
$.74 nnnAVERAGE RENTAL
RATES / SF
$112 AVERAGE SALE
PRICES / SF
52.2M sfMARKET SIZE
OVERVIEW
The North San Diego County industrial market is largely decentralized and comprised of fi ve cities including Carlsbad, Escondido, Oceanside, San
Marcos and Vista. Situated 35 miles north of downtown San Diego and 52 miles south of John Wayne Airport in Orange County, the coastal
location is a major factor in the area’s appeal to corporate users and its 826,985 residents.
MARKET TRENDS BUILDINGS TOTAL INVENTORY VACANT SF VACANCY RATE YTD ABSORPTION
Carlsbad 486 14,958,382 1,700,746 11.37% 377,889
Escondido 638 7,330,446 357,101 4.87% 157,368
Oceanside 393 7,992,771 1,054,897 13.20% 69,078
San Marcos 488 8,520,535 418,300 4.91% 194,143
Vista 530 13,394,248 953,439 7.12% 22,003
TOTAL 2,535 52,196,382 4,484,483 8.59% 821,481
0
10
20
30
40
50
60
70
80
90
100
5,000 to 9,999 SF 10,000 to 19,999 SF 20,000 to 49,999 SF 50,000 to 99,999 SF 100,000+ SFN
um
ber
of
Spaces\
Build
ings
Availa
ble
SPACES AVAILABLE
ANALYSIS BY SIZE
13.4
%
4.6
%
14.5
%
8.0
%
7.2
%
11.9
%
5.4
%
13.9
%
5.8
%
6.2
%
11.4
%
4.9
%
13.2
%
4.9
%
7.1
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Carlsbad Escondido Oceanside San Marcos Vista
Vacancy (
%)
SUBMARKET INDUSTRIAL DIRECT VACANCY For Lease For Sale
SPACES AVAILABLE
ANALYSIS BY SIZE
YEAR-TO-DATE
Q4 2012
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Yr.-over-Yr.)
Q3 2013 Q4 2013
SUBMARKET INDUSTRIAL DIRECT VACANCY
(Current Qtr.)(Prior Qtr.)
2Industrial Property Report
NORTH COUNTY - YEAR END 2013
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
Total Future Inventory 634,921
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION
DIST
31.5%
MFG
32.8%
IMT
12.8%
R&D
23.0%
NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,196,382
Total Future Inventory 3,946,954
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
NORTH COUNTYTotal Vacancy by Product Type
VISTATotal Vacancy by Product Type
Total Future Inventory 634,921
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
DIST 16,419,353
MFG 17,096,027
IMT 6,698,357
R&D 11,982,645
Total Existing Inventory 52,196,382
Total Future Inventory 3,946,954Total Future Inventory 634,921
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,196,382
Under Construction 156,421
Proposed 3,790,533
Total Future Inventory 3,946,954
SIGNIFICANT LEASE TRANSACTIONS
SF Term Eff ective Rate
Flat Fitty 11,583 48 $1.20
UCC Distributing 32,666 48 $0.47
Techniche Solutions 13,254 24 $0.69
Twin Flowers 14,009 88 $0.51
DiBella Baking Company 14,302 62 $0.69
SIGNIFICANT SALE TRANSACTIONS
SF COE Price/SF
5960 Pascal Ct 82,751 12/31/13 $96
2120 Harmony Grove Rd 56,352 12/19/13 $115
3182 Lionshead Ave 26,811 10/16/13 $209
1050 Los Vallecitos Blvd 105,618 12/20/13 $93
6190 Yarrow Dr 17,944 10/24/13 $132
3Industrial Property Report
INDUSTRIAL STATS
NORTH COUNTY MARKET TRENDS NORTH COUNTY INDUSTRIAL RENT TRENDS
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
2007 2008 2009 2010 2011 2012 2013 Q4
$/S
F/M
onth
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
NORTH COUNTYWeighted Monthly Average Asking Rents
VISTAWeighted Monthly Average Asking Rents
ESCONDIDO HISTORICAL MARKET TRENDS
0%
2%
4%
6%
8%
10%
12%
14%
-750
-500
-250
0
250
500
750
1,000
1,250
1,500
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
NORTH COUNTY HISTORICAL MARKET TRENDS
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
7,284,032Distribution 208 725,567 9.96% 1,184 0.02% 726,751 9.98% 76,408 365,496 0 147,548 0 1,425,8350.00%
9,135,321Industrial 687 551,242 6.03% 0 0.00% 551,242 6.03% 65,048 61,948 0 0 0 425,2460.00%
17,096,027Manufacturing 932 1,434,317 8.39% 0 0.00% 1,434,317 8.39% -68,911 121,233 0 37,050 156,421 148,97827.61%
6,698,357Multi-Tenant 364 527,010 7.87% 15,406 0.23% 542,416 8.10% 65,268 173,800 0 0 0 00.00%
2,191 40,213,737 3,238,136 8.05% 16,590 0.04% 722,477 0 184,598 156,421 2,000,059137,813 27.61%3,254,726 8.09%Industrial
11,925,338R&D 342 1,161,329 9.74% 11,121 0.09% 1,172,450 9.83% 8,182 99,004 0 0 0 1,790,4740.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
344 11,982,645 1,218,636 10.17% 11,121 0.09% 99,004 0 0 0 1,790,4748,182 0.00%1,229,757 10.26%R&D
2,535 52,196,382 4,456,772 8.54% 27,711 0.05% 821,481 0 184,598 156,421 3,790,533145,995 27.61%Total 4,484,483 8.59%
NORTH COUNTY - YEAR END 2013
CARLSBAD - YEAR END 2013
Industrial Property Report 4
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
3.5%MFG
29.0%
IMT
15.3%
R&D
52.2%
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
ESCONDIDOTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
DIST 5527,340
MFG 4,341,496
IMT 2,285,360
R&D 7,804,186
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Under Construction 0
Proposed 1,839,132
Total Future Inventory 1,839,132
Total Future Inventory 53,000
3-POINT SUMMARY
» User building purchases very active in 2013 with 14
deals closing
» Multi-tenant projects fi lling up and asking lease rates will
increase this year by 10%
» Speculative development coming back to the market with
several projects in the planning stages
CARLSBAD - YEAR END 2013
Industrial Property Report 5
INDUSTRIAL STATS
CARLSBAD MARKET TRENDS CARLSBAD INDUSTRIAL RENT TRENDS
ESCONDIDOWeighted Monthly Average Asking Rents
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
0%
2%
4%
6%
8%
10%
12%
14%
16%
-100
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
527,340Distribution 6 0 0.00% 0 0.00% 0 0.00% 0 3,459 0 0 0 100,0000.00%
4,341,496Manufacturing 156 548,055 12.62% 0 0.00% 548,055 12.62% 43,355 139,735 0 37,050 0 00.00%
2,285,360Multi-Tenant 96 190,283 8.33% 0 0.00% 190,283 8.33% 22,052 99,083 0 0 0 00.00%
258 7,154,196 738,338 10.32% 0 0.00% 242,277 0 37,050 0 100,00065,407 0.00%738,338 10.32%Industrial
7,746,879R&D 226 905,101 11.68% 0 0.00% 905,101 11.68% 6,982 135,612 0 0 0 1,739,1320.00%
57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%
228 7,804,186 962,408 12.33% 0 0.00% 135,612 0 0 0 1,739,1326,982 0.00%962,408 12.33%R&D
486 14,958,382 1,700,746 11.37% 0 0.00% 377,889 0 37,050 0 1,839,13272,389 0.00%Total 1,700,746 11.37%
Industrial Property Report 6
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventoryy 7,336,446
Under Construction 0
Proposed 39,500
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
ESCONDIDO
INVENTORY BREAKDOWN
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
DIST
25.8%
MFG
53.6%
IMT
16.0%
R&D
4.7%
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
DIST 1,888,654
MFG 3,926,740
IMT 1,170,616
R&D 344,436
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
ESCONDIDO - YEAR END 2013
3-POINT SUMMARY
» 2013 had strong small-tenant activity (under 10,000 SF
spaces had ~50 new leases); only 2 leases above
10,000 SF
» Purchase prices increased 25% as more large building
(above 10,000 SF) sales closed escrow since 2006
» Stone Brewery continues to expand in Escondido by
purchasing a 56,352 SF building for $115/SF
Industrial Property Report 7
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95
$1.00
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-400
-300
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY HISTORICAL MARKET TRENDS
INDUSTRIAL STATS
ESCONDIDO MARKET TRENDS ESCONDIDO INDUSTRIAL RENT TRENDS
ESCONDIDO - YEAR END 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
926,483Distribution 42 85,185 9.19% 0 0.00% 85,185 9.19% 9,084 152,678 0 147,548 0 30,0000.00%
962,171Industrial 120 34,593 3.60% 0 0.00% 34,593 3.60% 0 1,984 0 0 0 00.00%
3,926,740Manufacturing 364 146,124 3.72% 0 0.00% 146,124 3.72% 33,005 -6,457 0 0 0 00.00%
1,170,616Multi-Tenant 85 74,792 6.39% 0 0.00% 74,792 6.39% -5,650 17,580 0 0 0 00.00%
611 6,986,010 340,694 4.88% 0 0.00% 165,785 0 147,548 0 30,00036,439 0.00%340,694 4.88%Industrial
344,436R&D 27 16,407 4.76% 0 0.00% 16,407 4.76% 0 -8,417 0 0 0 9,5000.00%
27 344,436 16,407 4.76% 0 0.00% -8,417 0 0 0 9,5000 0.00%16,407 4.76%R&D
638 7,330,446 357,101 4.87% 0 0.00% 157,368 0 147,548 0 39,50036,439 0.00%Total 357,101 4.87%
Industrial Property Report 8
OCEANSIDE
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
OCEANSIDETotal Vacancy by Product Type
SAN MARCOSTotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
DIST
70.6%
MFG
3.2%IMT
14.3%R&D
11.9%
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
DIST 5,641,183
MFG 256,997
IMT 1,140,506
R&D 954,085
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
OCEANSIDE - YEAR END 2013
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Under Construction 0
Proposed 1,380,401
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Under Construction
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
3-POINT SUMMARY
» Sysco buying US Foods so future of 28 acre site in
Ocean Ranch unknown
» Coca Cola closed on 14 acres in Ocean Ranch in late
December for $14.75 SF
» Small buildings for sale market very active in 2013
with 21 closed escrows
Industrial Property Report 9
INDUSTRIAL STATS
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
$0.50
$0.55
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
OCEANSIDEWeighted Monthly Average Asking Rents
SAN MARCOSWeighted Monthly Average Asking Rents
Insufficient data for R&D rents
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-400
-300
-200
-100
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDSOCEANSIDE MARKET TRENDS OCEANSIDE INDUSTRIAL RENT TRENDS
OCEANSIDE - YEAR END 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
1,477,490Distribution 25 522,274 35.35% 0 0.00% 522,274 35.35% 32,929 69,158 0 0 0 1,023,3420.00%
4,163,693Industrial 272 321,932 7.73% 0 0.00% 321,932 7.73% 17,764 23,060 0 0 0 342,0810.00%
256,997Manufacturing 12 70,566 27.46% 0 0.00% 70,566 27.46% -17,184 -30,003 0 0 0 14,9780.00%
1,140,506Multi-Tenant 64 88,366 7.75% 5,000 0.44% 93,366 8.19% 31,114 11,633 0 0 0 00.00%
373 7,038,686 1,003,138 14.25% 5,000 0.07% 73,848 0 0 0 1,380,40164,623 0.00%1,008,138 14.32%Industrial
954,085R&D 20 39,099 4.10% 7,660 0.80% 46,759 4.90% 5,565 -4,770 0 0 0 00.00%
20 954,085 39,099 4.10% 7,660 0.80% -4,770 0 0 0 05,565 0.00%46,759 4.90%R&D
393 7,992,771 1,042,237 13.04% 12,660 0.16% 69,078 0 0 0 1,380,40170,188 0.00%Total 1,054,897 13.20%
Industrial Property Report 10
SAN MARCOS
ESCONDIDOTotal Vacancy by Product Type
CARLSBADTotal Vacancy by Product Type
OCEANSIDETotal Vacancy by Product Type
0%
5%
10%
15%
20%
25%
30%
35%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
SAN MARCOSTotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
DIST
68.5%
MFG
16.3% IMT
1.8%
R&D
13.3%
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
DIST 5,838,680
MFG 1,390,013
IMT 155,053
R&D 1,136,789
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Total Future Inventory 53,000
CARLSBAD INVENTORY DISTRIBUTION
Total Existing Inventory 7,336,446
Total Future Inventory 39,500
ESCONDIDO INVENTORY DISTRIBUTION
Total Future Inventory 1,380,401
Total Existing Inventory 7,992,771
OCEANSIDE INVENTORY DISTRIBUTION
Total Existing Inventory 8,520,535
SAN MARCOS INVENTORY DISTRIBUTION
527,340
MFG 4,341,496
IMT 2,285,360
Total Existing Inventory 14,958,382
Total Future Inventory 1,839,132
Under Construction 0
Proposed 53,000
Total Future Inventory 53,000
SAN MARCOS - YEAR END 2013
3-POINT SUMMARY
» Expect 5-10% rent and sale price growth due to 4.9%
vacancy and steady demand
» Lack of available alternatives > 15,000 SF forces tenants
and buyers to look outside San Marcos
» Multi-tenant lease rates reaching into the $.80’s/SF
modifi ed gross in newer, well-maintained projects
Industrial Property Report 11
INDUSTRIAL STATS
ESCONDIDOWeighted Monthly Average Asking Rents
CARLSBADWeighted Monthly Average Asking Rents
OCEANSIDEWeighted Monthly Average Asking Rents
$0.50
$0.75
$1.00
$1.25
$1.50
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
SAN MARCOSWeighted Monthly Average Asking Rents
CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
-300
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
SAN MARCOS HISTORICAL MARKET TRENDSSAN MARCOS MARKET TRENDS SAN MARCOS INDUSTRIAL RENT TRENDS
SAN MARCOS - YEAR END 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
2,332,898Distribution 111 80,022 3.43% 1,184 0.05% 81,206 3.48% 17,033 101,763 0 0 0 00.00%
3,505,782Industrial 259 142,311 4.06% 0 0.00% 142,311 4.06% 43,744 75,682 0 0 0 53,0000.00%
1,390,013Manufacturing 74 88,717 6.38% 0 0.00% 88,717 6.38% 10,058 26,212 0 0 0 00.00%
155,053Multi-Tenant 9 29,706 19.16% 2,400 1.55% 32,106 20.71% 4,580 -1,671 0 0 0 00.00%
453 7,383,746 340,756 4.61% 3,584 0.05% 201,986 0 0 0 53,00075,415 0.00%344,340 4.66%Industrial
1,136,789R&D 35 70,499 6.20% 3,461 0.30% 73,960 6.51% 1,575 -7,843 0 0 0 00.00%
35 1,136,789 70,499 6.20% 3,461 0.30% -7,843 0 0 0 01,575 0.00%73,960 6.51%R&D
488 8,520,535 411,255 4.83% 7,045 0.08% 194,143 0 0 0 53,00076,990 0.00%Total 418,300 4.91%
Industrial Property Report 12
VISTA
NORTH COUNTYTotal Vacancy by Product Type
0%
5%
10%
15%
20%
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution Manufacturing Multi-Tenant R&D
VISTATotal Vacancy by Product Type
INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE
DIST
18.8%
MFG
53.6%
IMT
14.5%
R&D
13.0%
Total Future Inventory 634,921
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,196,382
Total Future Inventory 3,946,954
Total Future Inventory 634,921
DIST 2,523,496
MFG 7,180,781
IMT 1,946,822
R&D 1,743,149
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,196,382
Total Future Inventory 3,946,954
Under Construction 156,421
Proposed 478,500
Total Future Inventory 634,921
Total Existing Inventory 13,394,248
VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION
Total Existing Inventory 52,196,382
Total Future Inventory 3,946,954
VISTA - YEAR END 2013
3-POINT SUMMARY
» Strong demand seen from both owner-occupiers and
investors as nine sales are completed during Q4 – median
size: 13,000 SF and price/SF: $110
» Limited supply (7.12% vacancy) will help push sale prices
and lease rates higher during 2014
» Vacancy increased from 6.20% Q3 to 7.12% Q4 due to
Dimension One Spa vacating a 128,000 SF building
Industrial Property Report 13
INDUSTRIAL STATS
NORTH COUNTYWeighted Monthly Average Asking Rents
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
2007 2008 2009 2010 2011 2012 2013 Q4
Distribution (NNN) Manufacturing (NNN)
Multi-Tenant (Mod. Gross) R&D (NNN)
VISTAWeighted Monthly Average Asking RentsCARLSBAD HISTORICAL MARKET TRENDS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 Q4
Vacancy R
ate
SF (
00
0s)
Net Absorption New Supply Vacancy
VISTA HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
VISTA MARKET TRENDS VISTA INDUSTRIAL RENT TRENDS
VISTA - YEAR END 2013
Existing Properties Absorption New Supply UC / Proposed
SF
Inventory
Total
BldgsType
SF
Vacant
Direct
SF
Vacant
Sublease
SF
Vacant
Total
Rate
Vacancy
Total
Rate
Vacancy
Sublease
Rate
Vacancy
Direct
SF QTR
Absorption
Net
SF YTD
Absorption
Net
SF QTR
Supply
New
SF YTD
Supply
New
SF
Construction
Under
Availability
UC
SF
Proposed
2,019,821Distribution 24 38,086 1.89% 0 0.00% 38,086 1.89% 17,362 38,438 0 0 0 272,4930.00%
503,675Industrial 36 52,406 10.40% 0 0.00% 52,406 10.40% 3,540 -38,778 0 0 0 30,1650.00%
7,180,781Manufacturing 326 580,855 8.09% 0 0.00% 580,855 8.09% -138,145 -8,254 0 0 156,421 134,00027.61%
1,946,822Multi-Tenant 110 143,863 7.39% 8,006 0.41% 151,869 7.80% 13,172 47,175 0 0 0 00.00%
496 11,651,099 815,210 7.00% 8,006 0.07% 38,581 0 0 156,421 436,658-104,071 27.61%823,216 7.07%Industrial
1,743,149R&D 34 130,223 7.47% 0 0.00% 130,223 7.47% -5,940 -15,578 0 0 0 41,8420.00%
34 1,743,149 130,223 7.47% 0 0.00% -15,578 0 0 0 41,842-5,940 0.00%130,223 7.47%R&D
530 13,394,248 945,433 7.06% 8,006 0.06% 23,003 0 0 156,421 478,500-110,011 27.61%Total 953,439 7.12%
Industrial Property Report 14
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations
or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any
interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied
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Prepared by:
ADAM MOLNAR
TUCKER HOHENSTEIN
MIKE ERWIN
760 438 8950
AIRPORT
BUSINESS
PARK
INDUSTRY STREETSEAGATE
CORPORATE
CENTER
RANCHO DEL ORO
PACIFIC COAST
BUSINESS PARK
OCEAN RANCH
CORPORATE CENTER
OCEANSIDE GATEWAY
OCEAN VISTA
VISTA PACIFIC
WEST CARLSBADCARLSBAD RANCH
CARLSBAD
RESEARCH
CENTER
CARLSBAD
AIRPORT CENTRE
PALOMAR AIRPORT
BUSINESS PARK
GATEWAY
CENTER
PALOMAR
TECH CENTER
CARLSBAD
OAKS NORTH
OAK RIDGE
BUSINESS CENTER II
CARLSBAD
OAKS WEST
NORTH COUNTY
INDUSTRIAL PARK
OAK RIDGE
BUSINESS CENTER I
VENTURE COMMERCE
CENTER
SYCAMORE VISTA
RANCHO
VISTA
BUSINESS
PARK
PALOMAR
CORPORATE
CENTERCARLSBAD
RACEWAY
SAN MARCOS
INDUSTRIAL PARK
TWIN OAKS
INDUSTRIAL
RANCHEROS
DRIVE
ESCONDIDO
AUTO PARK
EAST ESCONDIDO
INDUSTRIAL
LA COSTA MEADOWS
INDUSTRIAL PARK
UNIVERSITY AREA
MEYERS/BARHAM
BUSINESS PARK
ESCONDIDO
RESEARCH &
TECHNOLOGY
CENTERWINERDIGE
BUSINESS PARK
76
78
5
PRESCOTT
BRESSI RANCH
CORPORATE
CENTER
CARLSBAD
CORPORATE
CENTERLIBERTY
GATEWAY
CARLSBAD
OAKS EAST
PALOMAR
FORUM
North County San Diego
Total Industrial Buildings 2,535
Total Square Footage 52.2 M
Total Vacancy 8.59%
Under Construction 156,421