north american industrial highlights 1q 201111

HIGHLIGHTSNORTH AMERICA

www.COllIERs.COM

Q1 2011 | IndustrIal

ROss J. MOORE Chief Economist | USA

The U.S. industrial market started 2011 on an optimistic note, reinforcing the more bullish environ-ment evident in the latter half of 2010. Solid demand for warehouse space in most regions coupled with minimal construction encouraged another substantial decline in vacancy. Vacancies dropped in many markets reflected by every region reporting a lower vacancy rate for the quarter. With leasing activity up and a degree of optimism in most markets, warehouse rents halted a three-year decline to register no change over the quarter.

With the economy registering modest growth in the first three months of the year, and reasonable growth anticipated in coming quarters, demand for warehouse space is only expected to increase as the year progresses. A key pillar of support for the U.S. industrial market is the continued strength in manufacturing, particularly goods intended for export. Exports continued to ratchet higher with March trade data showing a 19.0 percent year-over-year increase. The healthy state of manufacturing is reflected in the Institute for Supply Management (ISM) manufacturing index for April, which re-mained elevated at 60.4 (well above the critical 50 level indicating expansion). All indications are that the reinvigorated manufacturing sector is set to be the cornerstone of the economic recovery and will be a key source of growth for the U.S. industrial market.

Although signs of a true rebound in the warehouse market may not be seen until 2012, almost all economic indicators suggest demand for warehouse space will only increase during 2011. Combined with very lim-ited warehouse construction, vacancy rates are certain to go significantly lower in the coming quarters. Rents, however, are unlikely to increase in any meaningful way until well into 2012. For most landlords and investors, the most that can be expected is more leasing activity and rising occupancies.

The U.S. industrial market posted another robust quarter and all indications are demand will stay strong pulling vacancies significantly lower by year-end

MARkET INdICATORsRelative to prior period

U.s. INdUsTRIAl MARkETsUMMARy sTATIsTICs, Q1 2011

U.S. Industrial Market Starts the Year with a Flourish

Q1 2011

Q2 2011*

VACANCy

NET ABsORPTION

CONsTRUCTION

RENTAl RATE

*Projected

U.s. INdUsTRIAl MARkET Q1 2009 – Q1 2011

Mill

ion

Squa

reFe

et

Vaca

ncy

(%)

-60-50-40-30-20-10

010203040

Q1Q4Q3Q2Q1Q4Q3Q2Q1

Absorption Completions Vacancy2009 2010 2011

8

9

10

11

12

Vacancy Rate: 10.47% Change from Q4 2010: –0.15

Absorption: 26.0 Million Square Feet

New Construction: 6.0 Million Square Feet

Under Construction: 29.4 Million Square Feet

Asking Rents Per Square Foot Average Warehouse/ Distribution Center: $4.76 Change from Q4 2010: -0.1%

continued on page 6

P. 2 | COllIERs INTERNATIONAl

hIghlIghts | Q1 2011 | INDUSTRIAL | NoRTh AmeRIcA

UNITEd sTATEs | INdUsTRIAl sURVEy

MARkET

EXIsTING INVENTORy (sF)

MAR. 31, 2011NEw CONsTRUCTION

Q1 2011 (sF)CURRENTly UNdER CONsTRUCTION (sF)

NORTHEAsT

Baltimore, MD 234,956,000 0 212,000

Boston, MA 154,948,000 0 367,000

Hartford, CT 96,975,000 0 122,000

Long Island, NY 167,407,000 0 0

Long Island-Nassau, NY 55,854,000 0 0

Long Island-Suffolk, NY 111,457,000 0 0

New Jersey - Central 357,355,000 0 303,000

New Jersey - Northern 374,857,000 68,000 71,000

Philadelphia, PA 402,825,000 829,000 478,000

Washington DC 207,563,000 77,000 1,057,000

NORTHEAsT TOTAl 2,164,197,000 974,000 2,610,000

sOUTH

Atlanta, GA 595,743,000 1,632,000 725,000

Charleston, SC 32,024,000 10,000 250,000

Charlotte, NC 285,385,000 15,000 696,000

Columbia, SC 35,509,000 0 1,000,000

Dallas-Ft. Worth, TX 707,619,000 140,000 1,520,000

Ft. Lauderdale-Broward, FL 125,514,000 0 126,000

Greenville/Spartanburg, SC 171,209,000 50,000 0

Houston, TX 498,295,000 186,000 724,000

Jacksonville, FL 121,780,000 0 497,000

Little Rock, AR 45,222,000 0 497,000

Louisville, KY 170,611,000 0 391,000

Memphis, TN 199,532,000 72,000 683,000

Miami, FL 225,492,000 0 20,000

Nashville, TN 159,015,000 937,000 2,032,000

Orlando, FL 144,480,000 0 0

Raleigh, NC 102,557,000 140,000 1,676,000

Savannah, GA 43,511,000 0 615,000

Tampa Bay, FL 216,084,000 0 0

West Palm Beach, FL 58,697,000 0 265,000

sOUTH TOTAl 3,938,278,000 3,182,000 11,716,000


COllIERs INTERNATIONAl | P. 3


MARkET




MIdwEsT

Chicago, IL 1,303,720,000 319,000 3,732,000

Cincinnati, OH 256,642,000 127,000 127,000

Cleveland, OH 420,374,000 0 231,000

Columbus, OH 211,924,000 0 1,992,000

Detroit, MI 485,071,000 53,000 0

Indianapolis, IN 276,652,000 135,000 239,000

Kansas City, MO-KS 223,515,000 17,000 290,000

St. Louis, MO 262,290,000 0 11,000

West Michigan 113,073,000 0 138,000

MIdwEsT TOTAl 3,553,261,000 651,000 6,759,000

wEsT

Bakersfield, CA 31,675,000 0 506,000

Boise, ID 32,796,000 0 0

Denver, CO 278,456,000 32,000 103,000

Fairfield, CA 41,552,000 0 0

Fresno, CA 48,600,000 0 0

Honolulu, HI 38,576,000 0 0

Las Vegas, NV 107,792,000 22,000 181,000

Los Angeles - Inland Empire, CA 379,098,000 0 2,916,000

Los Angeles, CA 879,843,000 271,000 2,812,000

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

Orange County, CA 200,453,000 0 0

Phoenix, AZ 247,446,000 244,000 245,000

Pleasanton/Walnut Creek, CA 33,035,000 0 20,000

Portland, OR 192,696,000 0 947,000

Reno, NV 73,621,000 0 0

Sacramento, CA 186,424,000 8,000 0

San Diego, CA 188,338,000 0 238,000

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

San Jose/Silicon Valley, CA 253,941,000 609,000 152,000

Seattle/Puget Sound, WA 270,581,000 0 0

Stockton/San Joaquin County, CA 92,636,000 0 138,000

wEsT TOTAl 3,749,598,000 1,186,000 8,285,000

U.s. TOTAl 13,405,334,000 5,993,000 29,370,000




MARkETABsORPTION Q1 2011 (sF)

VACANCy RATE dEC. 31, 2010 (%)

VACANCy RATE MAR. 31, 2011 (%)

NORTHEAsT

Baltimore, MD 272,000 10.59 10.48

Boston, MA 367,000 21.50 21.14

Hartford, CT (54,000) 9.32 9.37

Long Island, NY 154,000 5.62 5.53

Long Island-Nassau, NY 85,000 6.41 6.25

Long Island-Suffolk, NY 160,000 5.24 5.10

New Jersey - Central (468,000) 10.78 10.91

New Jersey - Northern (320,000) 7.54 7.62

Philadelphia, PA 1,976,000 9.87 9.57

Washington DC (189,000) 12.66 12.77

NORTHEAsT TOTAl 1,984,000 10.11 10.05

sOUTH

Atlanta, GA 2,623,000 14.11 13.90

Charleston, SC 410,000 11.22 12.44

Charlotte, NC 630,000 13.84 13.63

Columbia, SC 230,000 7.00 6.35

Dallas-Ft. Worth, TX 2,172,000 12.10 11.81

Ft. Lauderdale-Broward, FL (418,000) 9.14 9.47

Greenville/Spartanburg, SC 125,000 10.53 10.26

Houston, TX 532,000 5.95 6.03

Jacksonville, FL 36,000 10.94 11.03

Little Rock, AR (782,000) 13.96 15.74

Louisville, KY 135,000 11.96 11.88

Memphis, TN 744,000 13.28 13.02

Miami, FL 733,000 8.97 8.65

Nashville, TN 474,000 14.15 13.58

Orlando, FL 109,000 12.33 12.25

Raleigh, NC 132,000 12.08 11.93

Savannah, GA 926,000 18.57 16.44

Tampa Bay, FL 923,000 11.21 10.79

West Palm Beach, FL 161,000 10.13 9.85

sOUTH TOTAl 9,895,000 11.48 11.30







MIdwEsT

Chicago, IL (749,000) 11.62 11.64

Cincinnati, OH (699,000) 8.05 8.83

Cleveland, OH 115,000 9.56 9.54

Columbus, OH (469,000) 12.96 12.81

Detroit, MI 2,343,000 15.24 14.44

Indianapolis, IN 3,356,000 8.54 7.47

Kansas City, MO-KS (830,000) 6.85 7.22

St. Louis, MO 531,000 8.23 8.03

West Michigan 1,000 9.21 9.22

MIdwEsT TOTAl 3,599,000 10.83 10.69

wEsT

Bakersfield, CA (107,000) 9.66 10.00

Boise, ID (112,000) 10.57 10.91

Denver, CO 128,000 7.77 7.74

Fairfield, CA (56,000) 14.53 14.67

Fresno, CA 40,000 7.90 7.82

Honolulu, HI (33,000) 4.74 4.83

Las Vegas, NV (213,000) 16.56 16.78

Los Angeles - Inland Empire, CA 3,730,000 11.62 10.64

Los Angeles, CA 3,356,000 5.37 5.01

Oakland, CA 626,000 9.54 9.07

Orange County, CA 541,000 5.79 5.52

Phoenix, AZ 677,000 17.00 16.75

Pleasanton/Walnut Creek, CA (426,000) 10.95 12.24

Portland, OR 297,000 9.36 9.21

Reno, NV 234,000 14.89 14.57

Sacramento, CA (239,000) 13.38 13.52

San Diego, CA 355,000 11.36 11.12

San Francisco Peninsula, CA 119,000 9.67 9.37

San Jose/Silicon Valley, CA (1,065,000) 12.99 13.82

Seattle/Puget Sound, WA 729,000 8.34 8.07

Stockton/San Joaquin County, CA 1,942,000 17.71 15.62

wEsT TOTAl 10,523,000 9.87 9.62

U.s. TOTAl 26,001,000 10.63 10.47



UNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT

(3 MONTHs)ABsORPTION FORECAsT

(3 MONTHs)RENT FORECAsT

3 MONTHs

NORTHEAsT

Baltimore, MD 49.92 7.40 Down Up Up

Boston, MA 55.00 9.00 Down Up Same

Hartford, CT 40.00 8.50 Up Down Down

Long Island, NY 100.00 8.00 Down Up Same

Long Island-Nassau, NY 60.00 5.00 Same Same Same

Long Island-Suffolk, NY 60.00 5.00 Same Same Same

New Jersey - Central 54.28 6.10 Down Up Same

New Jersey - Northern 54.06 9.70 Same Same Same

Philadelphia, PA 49.27 8.50 Down Up Same

NORTHEAsT AVERAGE 58.06 7.47 – – –

sOUTH

Atlanta, GA 32.30 8.70 Down Down Same

Charleston, SC 45.50 7.75 Down Same Same

Columbia, SC – – Down Up Up

Dallas/Fort Worth, TX 45.00 8.00 Down Same Same

Ft. Lauderdale/Broward Co., FL 100.00 – Same Same Down

Greenville, SC 30.00 10.70 Down Up Up

Houston, TX 67.00 7.80 Down Same Same

Jacksonville, FL 45.00 8.00 Down Up Same

Little Rock, AR 65.45 9.00 Same Same Same

Memphis, TN 17.00 10.00 Down Up Same

Miami-Dade, FL 57.55 6.00 Down Same Down

Nashville, TN – – Down Up Up

Orlando, FL 40.54 9.00 Same Up Same

Raleigh/Durham/Chapel Hill, NC 67.14 8.69 Same Same Same

Savannah, GaA 37.00 8.50 Down Up Same

Tampa, FL 40.52 7.50 Down Up Same

West Palm Beach/Palm Beach Co., FL 73.56 – Down Same Down

sOUTH AVERAGE 50.90 8.43 – – –



UNITEd sTATEs | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT



3 MONTHs

MIdwEsT

Chicago, IL 45.00 7.00 Down Same Same

Cincinnati, OH 32.00 8.00 Same Same Same

Columbus, OH 28.00 8.10 Same Same Same

Detroit, MI 26.07 8.50 Same Same Down

Grand Rapids, MI 28.00 10.00 Up Same Same

Indianapolis, IN – 8.75 Same Same Same

St. Louis, MO 10.26 10.00 Down Up Up

MIdwEsT AVERAGE 28.22 8.62 – – –

wEsT

Bakersfield, CA 38.00 10.00 Same Same Same

Boise, ID 45.00 – Same Same Same

Denver, CO 45.00 8.20 Down Up Same

Fairfield, CA – – Up Down Down

Fresno, CA 38.00 9.00 Same Up Same

Honolulu, HI 160.00 8.00 Same Same Same

Las Vegas, NV 110.35 – Up Same Down

Los Angeles - Inland Empire, CA 53.00 5.25 Down Up Up

Los Angeles, CA 87.00 6.75 Down Up Same

Oakland, CA 91.00 7.00 Down Up Up

Orange County, CA 105.00 6.50 Down Up Same

Phoenix, AZ 48.00 9.50 Down Up Same

Pleasanton/Walnut Creek, CA 150.00 9.00 Down Up Same

Portland, OR 69.46 – Same Same Same

Reno, NV 51.27 – Same Same Same

Sacramento, CA 51.67 8.07 Same Same Same

San Diego, CA 92.14 – Down Same Same

San Francisco Peninsula, CA 175.00 7.00 Same Same Same

San Jose/Silicon Valley, CA – Same Same Same

Seattle/Puget Sound, WA 54.68 – Down Up Same

Stockton/San Joaquin County, CA 57.00 7.80 Down Up Same

wEsT AVERAGE 80.08 7.85 – – –

U.s. AVERAGE 60.75 8.08 – – –



Occupancies rise for fourth consecutive quarter. For the fourth consecu-tive three-month period, industrial markets registered an increase in oc-cupied space. During the first quarter, net absorption totaled 25.7 million square feet (MSF)—a small drop from the fourth quarter, when occupied space increased by 28.6 MSF, but in sharp contrast to the 19.3 MSF of industrial space returned to the market in the first quarter of 2010. Of the 59 markets tracked in the U.S., 40 (68 percent) reported positive absorp-tion during the first quarter; however, the West and South accounted for the lion’s share of the country’s absorption, with occupied space increas-ing by 9.9 MSF and 10.5 MSF respectively. Canadian markets began the year in robust fashion with first quarter absorption reaching almost 6.0 MSF, considerably above the 4.0 MSF quarterly averages in 2010.

warehouse construction drops back to first-half 2010 levels. First quar-ter completions totaled 6.0 MSF, a modest decrease from the fourth quar-ter when 9.4 MSF were delivered to the market, and back to delivery levels registered in the first half of 2010. Of the 6.0 MSF delivered, 86 percent was build-to-suit and the balance was classified as speculative (spec) construction. Last quarter, build-to-suit deliveries accounted for 71 per-cent of completions. In the coming quarters construction is anticipated to be largely build-to-suit, with only 35 percent under construction at year-end classified as speculative, but there were early signs the balance be-tween build-to-suit and spec construction will be more even as early as 2012. Quarter-end construction activity totaled 29.4 MSF, a modest in-crease from the 22.7 MSF underway at the end of the fourth quarter, but well below the 107.0 MSF recorded two years ago. Canadian construction remained subdued with 1.2 MSF completed in Q1, broadly in line with con-struction levels experienced in 2010.

U.s. industrial vacancies drop by further 15 basis points. The U.S. indus-trial warehouse vacancy rate dropped 15 basis points during the first quarter to register 10.47 percent. This was in addition to a significant drop in the national vacancy rate in the fourth quarter when vacancies fell by 22 basis points. Even though the national average dropped quite significantly during the quarter, many markets are still seeing vacancies go higher: al-most 40 percent of U.S. markets (23 out of 59) saw vacancies increase in Q1. Canadian warehouse vacancies by comparison were sharply lower, falling by 33 basis points during the quarter to average 5.30 percent.

After 12 quarterly declines, industrial rents hold steady. After three years of consistently lower rents, industrial warehouse lease rates held steady in the first quarter. Warehouse rents registered $4.76 per square foot at the end of the quarter. Bulk warehouse rents also held steady at $4.37 per square foot, while both flex and R&D rents slipped $0.07 and $0.55 per square foot respectively. Canadian industrial rents were mixed during the quarter with warehouse and flex lease rates up, while bulk and R&D fell marginally.

U.S. Market Starts the Year with a FlourishContinued from page 1

MARkET ABsORPTION (sF)

San Francisco Peninsula 1,586,000

Northern New Jersey 1,281,000

Dallas 766,000

Raleigh/Durham 641,000

San Jose/Silicon Valley 416,000

Houston 391,000

San Diego 296,000

Denver 231,000

Inde

x

J F M A M J J A S O N D J F M A M J J A S O N D J F M A0

10

20

30

40

50

60

70

80

2009 2010 2011

INsTITUTE FOR sUPPly MANAGEMENT MANUFACTURING INdEX

-1,000,000 250,000 1,500,000 2,750,000 4,000,000

Chicago

New Jersey - Central

New Jersey - Northern

Savannah

Dallas

Detroit

Atlanta

Los Angeles

Indianapolis

Los Angeles - Inland Empire

ABsORPTION (sF) | sElECT MARkETs | Q1 2011

0

30000

60000

90000

120000

150000

MFJDNOSAJJMAMFJ2010 2011

Mill

ions

, Dol

lars

, Sea

sona

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TRAdE: EXPORTs - GOOds, (MIl. $, sA) | Q1 2011



UNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011

MARkETwAREHOUsE/dIsTRIBUTION

sPACE (Usd PsF)BUlk sPACE(Usd PsF)

FlEX/sERVICE sPACE (Usd PsF)

TECH/R&d sPACE (Usd PsF)

NORTHEAsT

Baltimore, MD 4.95 4.43 8.36 –

Boston, MA 4.50 4.95 8.00 11.00

Hartford, CT 4.06 4.28 6.50 6.50

Long Island, NY 7.86 14.50 15.97 8.68

Long Island-Nassau, NY 7.96 6.98 12.00 –

Long Island-Suffolk, NY 7.81 – 9.56 –

New Jersey - Central 4.47 3.70 12.10 12.63

New Jersey - Northern 5.92 5.68 10.55 5.82

Philadelphia, PA 4.00 3.75 7.00 11.00

Washington DC 7.82 – 12.27 –

NORTHEAsT AVERAGE 5.94 6.03 10.23 9.27

sOUTH

Atlanta, GA 3.26 2.88 7.27 7.03

Charleston, SC 3.65 4.00 6.00 16.25

Charlotte, NC 3.28 – 8.45 –

Columbia, SC 3.75 3.75 – 9.50

Dallas-Ft. Worth, TX 3.00 2.70 6.75 8.30

Ft. Lauderdale-Broward, FL 6.46 6.16 9.71 9.75

Greenville/Spartanburg, SC 2.91 2.95 6.86 –

Houston, TX 5.01 4.17 6.95 6.64

Jacksonville, FL 3.75 3.10 9.00 –

Little Rock, AR 2.68 2.74 7.35 –

Louisville, KY 3.35 – 7.10 –

Memphis, TN 2.72 2.45 7.35 10.50

Miami, FL 6.59 5.30 10.81 8.87

Nashville, TN 4.49 3.12 7.31 –

Orlando, FL 4.49 4.20 8.93 8.90

Raleigh, NC 3.83 3.84 8.52 –

Savannah, GA 3.95 3.75 7.00 10.00

Tampa Bay, FL 4.23 3.97 8.41 9.48

West Palm Beach, FL 6.89 6.34 10.84 14.71

sOUTH AVERAGE 4.12 16.25 8.03 9.99



UNITEd sTATEs | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011





MIdwEsT

Chicago, IL 3.67 2.30 7.40 –

Cincinnati, OH 2.88 2.88 6.08 6.08

Cleveland, OH 3.44 7.91 –

Columbus, OH 2.72 3.13 4.19 4.19

Detroit, MI 3.92 3.72 8.01 –

Grand Rapids, MI 4.14 2.80 7.50 –

Indianapolis, IN 4.48 3.83 8.34 7.32

Kansas City, MO-KS 3.95 9.69 –

St. Louis, MO 3.05 3.25 5.02 4.49

MIdwEsT AVERAGE 3.58 3.13 7.13 5.52

wEsT

Bakersfield, CA 4.00 3.42 7.00 –

Boise, ID 4.50 4.50 6.30 6.30

Denver, CO 3.50 3.25 8.50 9.50

Fairfield, CA 5.52 5.52 8.16 10.20

Fresno, CA 2.40 2.28 4.00 5.50

Honolulu, HI 11.16 –

Las Vegas, NV 4.76 4.62 6.51 10.45

Los Angeles - Inland Empire, CA 3.72 3.48 6.66 7.89

Los Angeles, CA 5.64 5.52 9.75 12.50

Oakland, CA 4.44 3.01 4.92 8.40

Orange County, CA 6.72 5.64 12.50 13.50

Phoenix, AZ 5.26 4.10 10.74 10.62

Pleasanton/Walnut Creek, CA 4.80 4.20 1.05 1.05

Portland, OR 5.20 4.96 9.36 8.94

Reno, NV 3.36 3.33 9.96 9.96

Sacramento, CA 4.18 3.75 8.63 9.25

San Diego, CA 7.80 7.08 11.28 13.56

San Francisco Peninsula, CA 9.36 9.36 22.44 22.44

San Jose/Silicon Valley, CA 5.44 5.03 8.02 12.38

Seattle/Puget Sound, WA 5.40 4.92 10.20 –

Stockton/San Joaquin County, CA 3.72 3.66 5.76 7.80

wEsT AVERAGE 5.28 4.58 8.59 10.01

U.s. AVERAGE 4.76 4.37 8.47 9.45



CANAdA | INdUsTRIAl sURVEy

MARkET




Calgary, AB 122,546,000 561,000 561,000

Edmonton, AB 77,155,000 83,000 379,000

Guelph, ON 19,739,000 0 98,000

Halifax, NS 7,077,000 0 80,000

Montreal, QC 347,771,000 0 0

Ottawa, ON 28,027,000 75,000 75,000

Regina, SK 16,195,000 20,000 695,000

Saskatoon, SK 19,700,000 40,000 550,000

Toronto, ON 760,332,000 0 2,244,000

Vancouver, BC 178,202,000 329,000 1,592,000

Waterloo Region, ON 59,829,000 80,000 65,000

CANAdA TOTAl 1,636,572,000 1,187,000 6,339,000

CANAdA | INdUsTRIAl sURVEy




Calgary, AB 803,000 5.44 5.10

Edmonton, AB 192,000 4.09 3.95

Guelph, ON (17,000) 5.60 5.69

Halifax, NS 10,000 4.96 4.82

Montreal, QC 213,000 6.16 6.10

Ottawa, ON (224,000) 5.82 6.60

Regina, SK 106,000 1.35 0.81

Saskatoon, SK 114,000 2.71 2.12

Toronto, ON 4,294,000 6.00 5.44

Vancouver, BC 440,000 4.10 4.02

Waterloo Region, ON 5,000 6.83 6.36

CANAdA TOTAl 5,935,000 5.63 5.30



CANAdA | INdUsTRIAl sURVEy | sAlEs PRICE ANd CAP RATE As OF MARCH 2011

MARkETsAlEs PRICE

(Usd PsF)CAP RATE

(%)VACANCy FORECAsT



3 MONTHs

Calgary, AB 110.00 7.00 Down Same Same

Edmonton, AB – - Down Up Same

Guelph, ON 53.00 7.00 Down Up Same

Halifax, NS 80.00 8.00 Same Same Same

Montreal, QC 60.00 8.50 Down Up Same

Ottawa, ON 88.00 8.25 Same Same Same

Regina, SK 98.00 8.00 Same Up Same

Saskatoon, SK 120.00 7.50 Up Up Up

Toronto, ON 10.77 - Down Up Up

Vancouver, BC 154.85 - Down Up Same

Waterloo Region, ON 49.00 7.00 Down Up Up

CANAdA AVERAGE 82.36 7.66 – – –

CANAdA | INdUsTRIAl sURVEy | RENTs As OF MARCH 2011





Calgary, AB 7.50 6.00 9.50 10.00

Edmonton, AB 7.25 6.75 9.50 10.50

Guelph, ON 4.74 4.59 7.53 7.53

Halifax, NS 7.00 5.50 10.00 15.00

Montreal, QC 4.25 4.00 6.50 8.50

Ottawa, ON 7.25 6.25 8.25 11.00

Regina, SK 9.00 7.00 12.00 14.00

Saskatoon, SK 9.50 8.00 12.00 13.00

Toronto, ON 4.97 4.55 7.13 7.73

Vancouver, BC 6.50 5.75 8.50 9.25

Waterloo Region, ON 3.97 2.76 8.56 8.56

CANAdA AVERAGE 6.54 5.56 9.04 10.46

GlossaryAbsorption – Net change in leased space over a given period of time.

Bulk space – 100,000 square feet or more with up to 10 percent office space, the balance being general warehouse space with 20 to 36 foot ceiling heights. All loading is dock-height.

Flex space – Single-story buildings having 10- to 18-foot ceilings with both floor-height and dock-height loading. Includes wide variation in office space utilization, ranging from retail and personal service through distribution, light industrial and occasional heavy industrial use.

Inventory – Includes all existing multi or single tenant leased and owner-occupied industrial warehouse, light manufacturing, flex 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 or grade level roll-up doors on the other. Less than 15% office.

Tech/R&d – One- and two- story, 10- to 15-foot ceiling heights with up to 50% office/dry lab space

(remainder in wet lab, workshop, storage and other support), with dock-height and floor-height loading.

Triple Net Rent – Includes rent payable to the landlord and does not include additional expenses such as taxes, insurance, maintenance, 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.S. dollars.

Vacancy Rate – Percentage of total inventory available (both vacant and occupied) as at the survey date including direct vacant and sublease space.

warehouse – 50,000 square feet or more with up to 15 percent office space, the balance being general warehouse space with 18- to 30- foot ceiling heights. All loading is dock-height.


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COllIERs INTERNATIONAl

601 Union Street, Suite 4800Seattle, WA 98101TEl +1 206 695 4200

FOR MORE INFORMATION

Ross J. MooreChief Economist | USATEl +1 617 722 0221EMAIl [email protected]

512 offices in 61 countries on 6 continentsUnited States: 125Canada: 38Latin America: 18Asia Pacific: 214EMEA: 117

• $1.5 billion in annual revenue

• 979 million square feet under management

• over 12,000 professionals

Copyright © 2011 Colliers International.

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

Accelerating success.

INdUsTRIAl VACANCy RATE RANkINGs

MARkET | UNITEd sTATEsVACANCy RATE

MAR. 31, 2011 (%)Boston, MA 21.14 Las Vegas, NV 16.78 Phoenix, AZ 16.75 Savannah, GA 16.44 Little Rock, AR 15.74 Stockton/San Joaquin County, CA 15.62 Fairfield, CA 14.67 Reno, NV 14.57 Detroit, MI 14.44 Atlanta, GA 13.90 San Jose/Silicon Valley, CA 13.82 Charlotte, NC 13.63 Nashville, TN 13.58 Sacramento, CA 13.52 Memphis, TN 13.02 Columbus, OH 12.81 Washington DC 12.77 Charleston, SC 12.44 Orlando, FL 12.25 Pleasanton/Walnut Creek, CA 12.24 Raleigh, NC 11.93 Louisville, KY 11.88 Dallas-Ft. Worth, TX 11.81 Chicago, IL 11.64 San Diego, CA 11.12 Jacksonville, FL 11.03 Boise, ID 10.91 New Jersey - Central 10.91 Tampa Bay, FL 10.79 Los Angeles - Inland Empire, CA 10.64 Baltimore, MD 10.48 Greenville/Spartanburg, SC 10.26 Bakersfield, CA 10.00 West Palm Beach, FL 9.85 Philadelphia, PA 9.57 Cleveland, OH 9.54 Ft. Lauderdale-Broward, FL 9.47 San Francisco Peninsula, CA 9.37 Hartford, CT 9.37 West Michigan 9.22 Portland, OR 9.21 Oakland, CA 9.07 Cincinnati, OH 8.83 Miami, FL 8.65 Seattle/Puget Sound, WA 8.34 St. Louis, MO 8.03 Fresno, CA 7.82 Denver, CO 7.74 New Jersey - Northern 7.62 Indianapolis, IN 7.47 Kansas City, MO-KS 7.22 Columbia, SC 6.35 Long Island-Nassau, NY 6.25 Houston, TX 6.03 Long Island, NY 5.53 Orange County, CA 5.52 Long Island-Suffolk, NY 5.10 Los Angeles, CA 5.01 Honolulu, HI 4.83

INdUsTRIAl VACANCy RATE RANkINGs

MARkET | CANAdAVACANCy RATE

MAR. 31, 2011 (%)

Ottawa, ON 6.60 Waterloo Region, ON 6.36 Montreal, QC 6.10 Guelph, ON 5.69 Toronto, ON 5.44 Calgary, AB 5.10 Halifax, NS 4.82 Vancouver, BC 4.02 Edmonton, AB 3.95 Saskatoon, SK 2.12 Regina, SK 0.81

north american industrial highlights 1q 201111

Real Estate

industrial market q1

warehouse market

new construction q1

industrial ross

square feet new construction

flourish q1

minimal construction

warehouse rents