industrial market outlook

United States Research Report

INDUSTRIAL MARKET OUTLOOKQ1 2016

Key Takeaways > The U.S. industrial vacancy rate declined for the 22nd consecutive quarter to 6.3%, 10 basis points (bps) lower than the previous quarter and 70 bps lower than this time last year. This is the lowest vacancy rate in over a decade.

> Occupier demand continues to outpace new supply. Over 63.8 million square feet (MSF) absorbed in Q1, on par with the previous quarter and an impressive 9.6% higher than this time last year.

> New supply from construction completions increased in Q1 to 60.1 MSF, the most for a quarter on record. New supply represents 0.40% of the total existing inventory, the highest since Q4 2007’s record setting 0.47% of inventory. Developer’s confidence continues to increase as 60.7% of new supply was speculative.

> Lower vacancies increased asking rates for the 18th consecutive quarter. Asking rates for Q1 16 stand at $5.52 per square foot (psf), 15 bps higher than the previous quarter and 72 bps higher than this time last year. Despite these gains, asking rents are below the all-time high of $5.63 posted in Q2 2008.

> Chicago dominated Q1 16 with over 8.7 MSF of occupancy gains or 13.8% of the U.S. total. Dallas-Ft.Worth, Inland Empire, Atlanta, and Philadelphia, all posted robust absorption in Q1 with occupiers continuing to locate consolidated distribution hubs in these regions.

> Charleston and Savannah, two port markets looking to take advantage of the Panama Canal expansion, led the nation in absorption as a percent of inventory. Both finished the first quarter at 2.7% and 1.9%, respectively.

> Colliers’ Q1 16 industrial survey remained optimistic. Of the 70 U.S. markets surveyed, over 63% expect industrial rents to rise in the coming quarters. 47% of the responders expect vacancies to tighten, with the Northeast region most bullish at 78%.

> Demand drivers for industrial real estate are sound. While the economy faces significant headwinds, the need for modern industrial space will keep absorption positive and rents ascending for the foreseeable future.

U.S. Industrial Market Healthy Despite Economic Headwinds James Breeze National Director of Industrial Research | USA

Summary Statistics, Q1 2016 United States Industrial Market

Vacancy Rate 6.3% Change from Q4 2015 (Basis Points)

-10

Absorption (MSF) YTD Absorption

63.9

New Supply (MSF) YTD New Supply

60.1

Under Construction (MSF) 185.5

ASKING RENTS PER SQUARE FOOT PER YEAR

Average Warehouse/Distribution Center

$5.52

Change from Q4 2015

1.5%

Market IndicatorsRelative to prior period

Q1 2016

Q2 2016*

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE**

* Projected, relative to prior period** Warehouse rents

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U.S. Industrial Economic Indicators

GDP

Q1 2016 +0.5% in Q1

Q4 2015 +1.4% in Q4 2015 (adjusted)

ISM

Apr-16 PMI® Apr-16 PMI 50.8, down 1 pctg. Pt. from Mar-16

RAIL TIME INDICATORS: AAR.ORG

Total Railcar Traffic - 14.3% since Apr-15

Intermodal Traffic -0.8% since Apr-15

2 United States Research Report | Q1 2016 | Industrial Market Outlook | Colliers International

Sources: BEA, ISM, AAR

from the March reading of 51.8%, but the second consecutive month PMI® registered over 50%, following five straight months of reading under 50.0%. A reading over 50% indicates that the manufacturing economy is expanding.

Port activity, another major contributor to industrial real estate fundamentals, started 2016 strong. The Ports of Los Angeles and Long Beach recorded a robust first quarter with the Port of Los Angeles posting the strongest quarter in its 109-year history. The Ports of New York/New Jersey, Seattle/Tacoma, Virginia, Oakland, and Jacksonville all posted calendar year-over-year gains in the first quarter. The Panama Canal expansion, which is set to open in June 2016, will bring minor volume improvements to east coast ports in the near term. Long-term growth will accelerate following the completion of improvements that are underway in many east coast ports to increase capacity and service post-panamax vessels traveling through the canal.

The U.S. industrial market continues to improve, posting lower vacancies, robust occupancy gains, and a record amount of new construction to quench increased demand from occupiers looking to modernize and improve their logistics capabilities. This led to a 1.5% increase in asking rents compared with the previous quarter.

The rapid increase in new supply does warrant some caution. Post-recession, developer discipline kept speculative construction in check and absorption significantly higher than new supply. The trend could reverse in upcoming quarters. Now over 185 MSF is under construction, the majority of it speculative. The good news is over 40% of the product under construction is located in markets with robust occupancy gains including Dallas (12.9%), Inland Empire (8.7%), Atlanta (6.9%), Houston (6.6%), and Chicago (6.2%).

Industrial Economic Indicators The U.S. economy continued a trend of slow Q1 growth with the advance estimate for GDP expanding at an anemic 0.5%, 90 basis points (bps) lower than adjusted GDP of 1.4% in Q4 15. The fall in GDP was a result of lower consumer spending, a decline in business investment, and a shaky world economy reducing U.S. exports in Q1.

Despite the rocky start, economic fundamentals relating to industrial real estate were healthy. Nonfarm payroll jobs rose by 160,000 in April, with an average of just under 200,000 jobs added the first months of 2016. Over the past year, an impressive 2.7 million jobs were added in the U.S. The trade, transportation, and utilities sector, the heaviest user of industrial space, added 475,000 jobs with construction adding 260,000 payrolls over the same time period.

Manufacturing fundamentals were mixed. Employment growth has been negative three of the past seven months, for a total decline of 19,000 year-over-year. However, manufacturing expanded in April as the PMI ® registered 50.8%, a decrease of one percentage point

N O R T H E A S T

S O U T H

M I D W E S T

W E S T

Absorption Per Market (SF) Q4 '15 - Q1 '16

5,700,000

2,850,000

570,000

-570,000

-2,850,000

-5,700,000

4.5 billion

2.25 billion

450 million

Occupied SF

Vacant SF

SF By Region

N O R T H E A S T

S O U T H

M I D W E S T

W E S T

Absorption Per Market (SF) Q4 '15 - Q1 '16

5,700,000

2,850,000

570,000

-570,000

-2,850,000

-5,700,000

4.5 billion

2.25 billion

450 million

Occupied SF

Vacant SF

SF By Region

N O R T H E A S T

S O U T H

M I D W E S T

W E S T

Absorption Per Market (SF)q4 '15 - q1 '16

8,800,000

4,400,000

880,000

-880,000

-4,400,000

-8,800,000

4.5 billion

2.25 billion

450 million

Occupied SF

Vacant SF

SF By Region

Industrial Vacancy, Inventory & AbsorptionQ1 2016 | United States

How would you characterize current industrial rents in your market?

% of reporting marketsSource: Colliers International

7.9 7.7 7.5 7.2 7.0 6.7 6.6 6.4 6.3

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Excluding renewals, of the leases signed this quarter, did most tenants Expand, Hold Steady or Contract?


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Provide a three month forecast for rents (relative to current quarter):

U.S. OFFICE MARKET Q1 2014 - Q1 2016

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ABSORPTION, UNDER CONSTRUCTION (SF) | SELECT MARKETS | Q1 2016

Under Construction Q1-16 Absorption

Houston, TX

New Jersey - Northern

Los Angeles, CA

Savannah, GA

New Jersey - Central

Atlanta, GA

Inland Empire, CA

Dallas-Ft. Worth, TX

Chicago, IL

Declining, 3.1%

No Clear Direction, 15.4%

Bottoming, 1.5%

Increasing, 63.1%Increasing, 63.1%

Peaking, 16.9%

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8.7% 23.1% 17.4% 13.2%

22.2%

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53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6% 3 United States Research Report | Q1 2016 | Industrial Market Outlook | Colliers International

Vacancy

The U.S. vacancy rate declined 10 bps compared with the previous quarter and 70 bps compared with the previous year to 6.3% in Q1. The decline was broad-based with only 12 markets posting negative absorption.

The West region posted the lowest vacancy rate in Q1 of 4.6%, in large part to Los Angeles 1.4% vacancy rate, the lowest in the country. The Midwest region finished first quarter at 6.1%, 10 bps lower than the previous quarter. More than 2.1 MSF of mid-sized (under 300,000 square feet) modern bulk inventory absorbed in Indianapolis in Q1, lowering vacancy rates 60 bps to 7.4%, the largest decline in the region. Vacancy rates were stable in the South at 7.0%. Demand in Nashville is robust with vacancy rates descending 90 bps to 4.6% in Q1. The Northeast region posted a 30-bp quarter-over-quarter decline to 7.8% in Q1. Baltimore posted occupancy gains of 878,915 SF lowering its vacancy rate to 9.0%, a 70-bp decline compared with the previous quarter.

U.S. Industrial Market Q1 2014 to Q1 2016

Source: Colliers International

Industrial Transaction Volume Q1 2016 - United States

7.9 7.7 7.5 7.2 7.0 6.7 6.6 6.4 6.3

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Los Angeles, CA

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Declining, 3.1%


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Peaking, 16.9%

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8.7% 23.1% 17.4% 13.2%

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47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

8.7% 23.1% 17.4% 13.2%

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47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.9 7.7 7.5 7.2 7.0 6.7 6.6 6.4 6.3

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Peaking, 16.9%

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8.7% 23.1% 17.4% 13.2%

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47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

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47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

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77.8% 65.0%

53.8% 54.5% 60.9%

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46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

Source: Real Capital Analytics

Manufacturing at a Glance - April 2016

INDEXSERIES INDEX

(APR 2016)

SERIES INDEX

(MAR 2016)

PERCENTAGE-POINT

CHANGEDIRECTION RATE OF

CHANGETREND*

(MONTHS)

PMI® 50.8 51.8 -1.0 Growing Slower 2

New Orders 55.8 58.3 -2.5 Growing Slower 4

Production 54.2 55.3 -1.1 Growing Slower 4

Employment 49.2 48.1 1.1 Contracting Slower 5

Supplier Deliveries 49.1 50.2 -1.1 Faster From

Slower 1

Inventories 45.5 47.0 -1.5 Contracting Faster 10

Customers’ Inventories 46.0 49.0 -3 Too Low Faster 3

Prices 59.0 51.5 7.5 Increasing Faster 2

Backlog of Orders 50.5 51.0 -0.5 Growing Slower 2

Exports 52.5 52.0 0.5 Growing Faster 2

Imports 50.0 49.5 0.5 Unchanged From Contracting 1

OVERALL ECONOMY Growing Slower 83

Manufacturing Sector Growing Slower 2

*Number of months moving in current directionSource: ISM

Absorption, Under Construction (SF)Select U.S. Markets | Q1 2016


Absorption

Net absorption remained strong in Q1 at over 63.8 MSF, 1.2% higher compared with the previous quarter. Chicago dominated Q1 absorption at 8.7 MSF, 13.8% of the U.S. total. Nine new leases over 200,000 SF were signed in Chicago, while 14 build-to-suit (BTS) completions totaling 3.3 MSF, were the main contributors to the robust occupancy gains. Other regional distribution hubs posted healthy occupancy gains including Dallas-Ft. Worth at 5.4 MSF, Inland Empire at 4.3 MSF and Atlanta and Philadelphia at 3.4 MSF each.

Ranked by absorption relative to inventory, East Coast port markets accounted for three of the top five markets in the U.S. Charleston led the way with Q1 absorption representing 2.7% of total inventory. Savannah finished 2nd with 1.9% of the total inventory being absorbed. Jacksonville finished 5th in the nation with occupancy gains of 1.5% of total inventory. All three markets look to take advantage of increased port activity in the coming quarters following the completion of the Panama Canal expansion.

Construction Activity

Rising demand for modern bulk distribution space pushed new supply to an all-time record of 60.1 MSF in Q1, breaking the previous record of 55.8 MSF in Q4 2007. 60.7% of new supply was speculative with developers confident that demand from consolidation and e-commerce will quickly absorb this inventory.

Construction is heavily concentrated in a handful of markets such as Atlanta, which led the nation with 7.3 MSF of new supply, 70.2% was speculative. This was the most new supply for a quarter in Atlanta in over a decade. Fourteen BTS completions elevated new supply in Chicago to 5.8 MSF in Q1. Despite the large amount of BTS completions, 43.1% of new supply was speculative. The Inland Empire, one of the first markets in the nation to develop speculative inventory post-recession, completed 5.2 MSF in Q1, 66.1% of it speculative. Bulk inventory dominates construction in each of these markets to quenching demand from occupiers looking for higher clear heights, larger truck courts, and other amenities necessary in modern logistics and e-commerce related functions.

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46.2% 40.0% 65.0% 45.5% 50.8%

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46.2% 40.0% 65.0% 45.5% 50.8%

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70%

90%

100%


Midwest

South

Northeas

tWest U.S.




0%

10%

20%

30%

40%

50%

60%

80%

70%

90%

100%

Up Same Down

Midwest

South

Northeas

tWest U.S.



0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q1 2016

Vaca

ncy

%


0.0 5.0 10.0 15.0 20.0 25.0 Millions



Houston, TX


Los Angeles, CA

Savannah, GA


Atlanta, GA

Inland Empire, CA


Chicago, IL

Declining, 3.1%


Bottoming, 1.5%


Peaking, 16.9%

-100%

-50%

0%

50%

100%

150%

200%

$-

$20

$40

$60

$80

$100

$120

07Q2

07Q4

08Q208Q4

09Q2

09Q4

10Q210Q4

11Q2

11Q4

12Q212Q4

13Q2

13Q4

14Q214Q4

15Q2

15Q4

0%

10%

20%

30%

40%

50%

60%

80%

70%

90%

100%

Up Same Down

Midwest

South

Northeas

tWest U.S.

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.9 7.7 7.5 7.2 7.0 6.7 6.6 6.4 6.3

Billio

ns


0%

10%

20%

30%

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tWest U.S.




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10%

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Up Same Down

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tWest U.S.



0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q1 2016

Vaca

ncy

%


0.0 5.0 10.0 15.0 20.0 25.0 Millions



Houston, TX


Los Angeles, CA

Savannah, GA


Atlanta, GA

Inland Empire, CA


Chicago, IL

Declining, 3.1%


Bottoming, 1.5%


Peaking, 16.9%

-100%

-50%

0%

50%

100%

150%

200%

$-

$20

$40

$60

$80

$100

$120

07Q2

07Q4

08Q208Q4

09Q209Q4

10Q210Q4

11Q2

11Q4

12Q212Q4

13Q213Q4

14Q214Q4

15Q215Q4

0%

10%

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30%

40%

50%

60%

80%

70%

90%

100%

Up Same Down

Midwest

South

Northeas

tWest U.S.

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.9 7.7 7.5 7.2 7.0 6.7 6.6 6.4 6.3

Billi

ons


0%

10%

20%

30%

40%

50%

60%

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70%

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Midwest

South

Northeas

tWest U.S.




0%

10%

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60%

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Up Same Down

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Northeas

tWest U.S.



0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q1 2016

Vaca

ncy

%


0.0 5.0 10.0 15.0 20.0 25.0 Millions



Houston, TX


Los Angeles, CA

Savannah, GA


Atlanta, GA

Inland Empire, CA


Chicago, IL

Declining, 3.1%


Bottoming, 1.5%


Peaking, 16.9%

-100%

-50%

0%

50%

100%

150%

200%

$-

$20

$40

$60

$80

$100

$120

07Q2

07Q4

08Q208Q4

09Q2

09Q4

10Q210Q4

11Q2

11Q4

12Q212Q4

13Q2

13Q4

14Q214Q4

15Q2

15Q4

0%

10%

20%

30%

40%

50%

60%

80%

70%

90%

100%

Up Same Down

Midwest

South

Northeas

tWest U.S.

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

8.7% 23.1% 17.4% 13.2%

22.2%

30.4%

53.8%

47.8% 39.7%

77.8% 60.9%

23.1% 34.8%

47.1%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

5.0% 1.6%

77.8% 65.0%

53.8% 54.5% 60.9%

22.2% 30.0%

46.2% 45.5% 37.5%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

7.7% 10.0% 4.5% 4.6%

46.2% 40.0% 65.0% 45.5% 50.8%

46.2% 50.0% 35.0%

50.0% 44.6%

Excluding renewals of the leases signed this quarter, did most tenants expand, hold steady or contract?




% of reporting marketsSource: Colliers International


Land constraints in certain markets, combined with concern for over building, reduced the amount of space under construction to 185.5 MSF in Q1, a 3.3% decline compared with the previous quarter. Over half was speculative. Dallas-Ft. Worth development is booming with 20.0 MSF under construction, 18.2 MSF was speculative. Buildings under construction in Dallas-Ft. Worth were 34.0% pre-leased at the end of Q1, up from 20.0% pre-leased at year-end 2015.

Investment Activity

U.S. investment transaction volume finished Q1 at $12.6 billion according to Real Capital Analytics (RCA), a 38% decline from the first quarter last year. The lack of quality industrial space for sale combined with a very strong Q1 15 created a significant percentage drop.

Investment activity was healthy in secondary markets in Q1 including Boston (7.0%) which led the nation with 51 properties trading for $881 million, and East Bay (6.1%) with 31 properties trading hands for $768 million. Los Angeles posted another strong quarter of investment activity at $848 million, representing 6.7% of the total sales volume in Q1.

Cap rates increased in Q1 to 6.9%, 30 bps higher than the previous quarter. The increase in cap rates is a direct result of a higher percentage of class B and C buildings selling in Q1. Despite an uptick in cap rates, according to RCA, industrial remains competitive in today’s low yield environment with other product types nationwide including office at 6.6%, retail at 6.6%, apartments at 5.7% and hotels at 8.4%.

Conclusion

Demand drivers for industrial real estate are sound. While the economy faces significant headwinds including weakened domestic manufacturing and decreased worldwide trade, U.S. imports should increase with solid job growth and improved consumer demand. We expect the need for new, modern industrial space will be robust, keeping absorption positive for the foreseeable future. Rent growth should drive investment activity with foreign capital and U.S. institutional investors competing for the limited amount of inventory available to purchase.

United States Industrial Overview | Q1 2016UNITED STATES WEST MIDWEST SOUTH NORTHEAST

Number of Markets 71 23 13 24 11

Inventory (Million SF) 15,193.8 3,937.5 4,226.6 4,691.2 2,338.5

% of U.S. Inventory 100.0% 25.9% 27.8% 30.9% 15.4%

Q1-16 New Supply (Million SF) 60.1 14.5 13.5 25.0 7.1

% of U.S. New Supply 100.0% 24.2% 22.5% 41.6% 11.8%

Vacancy (%) 6.3% 4.6% 6.1% 7.0% 7.8%

Q1-16 Absorption (Million SF) 31.3 7.0 9.8 11.2 3.3

Sources: Real Capital Analytics, Colliers International

Top 5 MSAs in Transaction Volume Q1 2016

1. Boston $886 million

2. Los Angeles $848 million

3. East Bay $768 million

4. Chicago $542 million

5. Inland Empire $487 million


Industrial Real Estate Indicators U.S.

GDP + 0.5% in Q1

Inventory 15.2 BSF

Vacancy 6.3% Nationwide (down 10 bps)

Net Absorption 63.9 MSF in Q1

New Supply 60.1 MSF in Q1, most on record

New Supply to Inventory 0.40% in Q1 most since 0.47% in Q4 2007

Asking Rental Rates (psf) $5.52 psf, highest since Q3 2008

- Top 10 Markets account for 55.9% of 63.9 MSF net absorption in Q1.


Top 5 MSAs in Net Absorption Q1 2016

1. Dallas-Ft. Worth 8.8 MSF

2. Inland Empire 5.4 MSF

3. Atlanta 4.4 MSF

4. Philadelphia 3.4 MSF

5. Chicago 3.4 MSF


United States | Industrial Survey | Inventory, New Supply, Under Construction

MARKET INVENTORY (SF) MAR 31, 2016

SPECULATIVE NEW SUPPLY Q1 2016 (SF)

TOTAL NEW SUPPLY Q1 2016

SPECULATIVE CURRENTLY UNDER CONSTRUCTION (SF)

TOTAL CURRENTLY UNDER CONSTRUCTION (SF)

NORTHEAST

Baltimore, MD 237,650,486 151,878 415,378 59,400 943,716

Boston, MA**** 171,329,699 0 386,000 0 1,061,855

Hartford, CT 95,613,351 0 0 0 0

Long Island, NY 156,768,033 0 0 491,912 491,912

New Hampshire 61,542,042 98,484 98,484 0 0

New Jersey - Central 317,340,170 1,542,313 1,542,313 1,815,852 1,815,852

New Jersey - Northern 363,881,051 40,000 355,000 2,128,331 2,397,586

Philadelphia, PA 427,680,568 1,825,691 2,073,143 5,669,630 9,547,206

Pittsburgh, PA 178,316,374 0 98,791 833,524 1,089,629

Shenandoah Valley, MD-VA-WV 101,386,736 24,800 72,800 430,050 1,960,323

Washington, D.C. 227,027,165 376,040 2,020,895 746,866 3,142,655

Northeast Total 2,338,535,675 4,059,206 7,062,804 12,175,565 22,450,734

SOUTH

Atlanta, GA 640,715,663 5,126,084 7,306,012 7,424,824 12,796,701

Austin, TX 68,222,333 151,278 174,870 72,000 72,000

Birmingham, AL 107,102,000 0 0 0 120,000

Charleston, SC 35,288,763 752,000 1,409,000 142,000 142,000

Charlotte, NC 344,201,366 438,500 3,359,463

Columbia, SC 86,543,247 0 0 0 765,191

Dallas-Ft. Worth, TX 770,081,212 3,489,986 4,181,913 18,220,526 20,014,871

Ft. Lauderdale-Broward, FL 111,692,981 212,291 212,291 799,639 799,639

Greenville/Spartanburg, SC 189,650,188 632,420 1,156,820 1,290,638 5,155,638

Houston, TX 519,561,628 2,589,279 3,239,279 2,907,262 12,261,923

Huntsville, AL 54,890,549 0 0 0 0

Jacksonville, FL 124,883,737 237,319 747,752 0 98,877

Louisville, KY 188,810,800 1,192,626 2,226,000

Memphis, TN 231,835,204 1,373,316 1,858,513 0 1,527,500

Miami, FL 215,849,162 401,317 401,317 2,405,232 2,405,232

Nashville, TN 191,083,708 51,800 51,800 1,300,000 3,275,000

Norfolk, VA 101,392,341 0 0 55,000 55,000

Orlando, FL 136,214,769 0 301,384 0 276,048

Raleigh, NC 113,267,104 311,943 728,273

Richmond, VA 113,812,828 340,000 21,000 21,000

Savannah, GA 47,480,950 387,000 1,017,000 1,057,000 2,157,000

Tampa Bay, FL 201,912,721 401,670 401,670 4,150,596 4,150,596

West Palm Beach, FL 51,456,862 235,445 235,445 531,118 531,118

South Total 4,691,226,026 16,041,205 24,978,135 40,376,835 72,939,070

**** Q4-15 data displayedThe detail for markets with older data is removed, but numbers remain in totals and subtotals.

7 United States Research Report | Q1 2016 | Industrial Market Outlook | Colliers International7

United States | Industrial Survey | Inventory, New Supply, Under Construction

MARKET INVENTORY (SF) MAR 31, 2016

SPECULATIVE NEW SUPPLY Q1 2016 (SF)

TOTAL NEW SUPPLY Q1 2016

SPECULATIVE CURRENTLY UNDER CONSTRUCTION (SF)

TOTAL CURRENTLY UNDER CONSTRUCTION (SF)

MIDWEST

Chicago, IL 1,338,800,146 2,507,274 5,815,473 5,749,836 11,476,764

Cincinnati, OH 249,464,611 0 0 3,296,507 4,837,987

Cleveland, OH 395,161,963 127,000 1,123,200 714,188 1,570,988

Columbus, OH 226,757,195 482,300 1,069,784 1,167,254 3,940,254

Dayton, OH 104,287,094 0 140,000 60,000 506,000

Detroit, MI 534,220,490 461,807 1,802,681

Indianapolis, IN 233,495,171 432,631 993,293 1,279,712 2,301,436

Kansas City, MO-KS 241,686,086 1,098,908 1,098,908 5,721,562 6,291,562

Milwaukee, WI 249,247,038 1,033,533 1,033,533 302,000 392,000

Minneapolis/St. Paul, MN 244,298,078 469,468 1,324,468 709,056 2,291,906

Omaha, NE 68,684,560 265,300 265,300 369,644 562,644

St. Louis, MO 226,219,339 0 0 2,002,153 3,514,153

Midwest Total 4,226,555,846 6,416,414 13,519,886 21,446,912 39,834,375

WEST

Albuquerque, NM**** 37,386,940 0 0 0 0

Bakersfield, CA 37,675,102 0 65,413 139,920 359,520

Boise, ID**** 46,373,012 0 0 0 12,000

Denver, CO 221,212,606 120,785 120,785 1,044,995 4,838,062

Fairfield, CA 49,586,980 774,758 774,758 146,013 238,271

Fresno, CA 68,289,425 180,729 180,729 0 0

Honolulu, HI 39,767,808 0 0 0 0

Las Vegas, NV 121,719,635 832,535 1,104,060 1,446,539 1,446,539

Los Angeles - Inland Empire, CA 467,509,200 3,416,100 5,166,100 14,608,000 16,187,000

Los Angeles, CA 895,073,600 760,600 760,600 2,914,200 2,914,200

Oakland, CA 143,409,822 0 0 637,938 637,938

Orange County, CA 181,251,300 508,300 508,300 676,000 676,000

Phoenix, AZ 290,765,974 1,176,855 2,023,079 1,625,232 2,884,906

Pleasanton/Tri-Valley, CA 17,370,791 0 0 1,298,207 1,298,207

Portland, OR 198,247,454 0 307,532 0 2,106,001

Reno, NV 88,307,974 277,000 8,706,774

Sacramento, CA 164,392,401 96,152 0 0

San Diego, CA 188,527,333 0 306,054 927,609 1,831,268

San Francisco Peninsula, CA 39,500,680 0 0 0 0

San Jose - Silicon Valley, CA 254,499,838 0 302,400 1,466,981 1,616,981

Seattle/Puget Sound, WA 268,194,901 788,915 788,915 3,000,000 3,000,000

Stockton/San Joaquin County, CA 100,743,196 745,640 1,745,640 517,250 1,541,803

Walnut Creek, CA 17,703,948 0 0 15,240 15,240

West Total 3,937,509,920 9,305,217 14,527,517 30,464,124 50,310,710

U.S. TOTALS 15,193,827,467 35,822,042 60,088,342 104,463,436 185,534,889

(continued)



United States | Industrial Survey | Absorption, Vacancy

MARKET ABSORPTION Q1 2016 (SF)

VACANCY RATE DEC 31, 2015

VACANCY RATE MAR 31, 2016

CHANGE IN VACANCY

NORTHEAST

Baltimore, MD 1,970,464 9.7% 9.0% -0.7%

Boston, MA**** -1,331,254 17.8% 18.6% 0.8%

Hartford, CT 380,650 7.2% 6.8% -0.4%

Long Island, NY 80,815 3.6% 3.6% -0.1%

New Hampshire 584,433 8.2% 7.2% -0.9%

New Jersey - Central 2,070,168 5.7% 5.2% -0.5%

New Jersey - Northern 1,344,013 6.6% 6.3% -0.3%

Philadelphia, PA 3,428,338 8.1% 7.7% -0.4%

Pittsburgh, PA 795,004 6.6% 6.2% -0.4%

Shenandoah Valley, MD-VA-WV 725,295 8.9% 8.3% -0.6%

Washington, D.C. 1,523,404 9.2% 9.3% 0.0%

Northeast Total 11,571,330 8.1% 7.8% -0.3%

SOUTH

Atlanta, GA 3,449,400 7.7% 8.2% 0.5%

Austin, TX 108,264 5.8% 5.9% 0.1%

Birmingham, AL 73,646 9.5% 9.4% -0.1%

Charleston, SC 958,756 5.8% 6.9% 1.0%

Charlotte, NC -146,604 8.6% 8.7% 0.2%

Columbia, SC 307,457 8.7% 8.3% -0.4%

Dallas-Ft. Worth, TX 5,389,157 7.2% 7.0% -0.2%

Ft. Lauderdale-Broward, FL 189,614 6.5% 6.5% -0.1%

Greenville/Spartanburg, SC 1,026,802 7.6% 7.6% 0.0%

Houston, TX 1,324,641 5.1% 5.4% 0.3%

Huntsville, AL 453,139 6.7% 5.8% -0.8%

Jacksonville, FL 1,838,090 7.0% 6.1% -0.9%

Louisville, KY 1,300,038 5.2% 5.2% -0.1%

Memphis, TN 1,685,125 9.3% 9.2% -0.1%

Miami, FL 501,253 4.8% 4.7% -0.1%

Nashville, TN 1,830,505 5.5% 4.6% -0.9%

Norfolk, VA -267,999 7.0% 7.2% 0.3%

Orlando, FL 730,333 7.6% 7.3% -0.3%

Raleigh, NC 110,362 6.6% 6.8% 0.1%

Richmond, VA 569,191 8.4% 8.2% -0.2%

Savannah, GA 900,750 3.0% 3.2% 0.2%

Tampa Bay, FL 719,918 7.6% 7.4% -0.2%

West Palm Beach, FL 274,602 5.1% 5.0% -0.1%

South Total 23,719,601 7.0% 7.0% 0.0%



United States | Industrial Survey | Absorption, Vacancy

MARKET ABSORPTION Q1 2016 (SF)

VACANCY RATE DEC 31, 2015

VACANCY RATE MAR 31, 2016

CHANGE IN VACANCY

MIDWEST

Chicago, IL 8,783,243 7.3% 7.1% -0.3%

Cincinnati, OH 533,256 5.1% 4.9% -0.2%

Cleveland, OH 355,949 5.4% 5.6% 0.2%

Columbus, OH 1,445,902 6.4% 6.1% -0.3%

Dayton, OH 454,905 7.5% 7.2% -0.4%

Detroit, MI 2,156,550 4.8% 4.4% -0.4%

Indianapolis, IN 2,282,214 8.0% 7.4% -0.6%

Kansas City, MO-KS 406,144 6.1% 6.4% 0.3%

Milwaukee, WI 722,973 4.2% 4.3% 0.1%

Minneapolis/St. Paul, MN 631,389 6.4% 6.5% 0.1%

Omaha, NE -21,117 2.7% 3.3% 0.5%

St. Louis, MO -92,560 6.9% 6.9% 0.0%

Midwest Total 17,768,886 6.2% 6.1% -0.2%

WEST

Albuquerque, NM**** 95,336 6.7% 6.4% -0.3%

Bakersfield, CA 524,637 4.7% 3.6% -1.2%

Boise, ID**** -261,610 3.8% 3.8% 0.0%

Denver, CO 254,183 4.1% 4.1% -0.1%

Fairfield, CA -12,000 5.0% 6.5% 1.6%

Fresno, CA 343,519 5.4% 5.1% -0.3%

Honolulu, HI 67,682 1.7% 1.5% -0.2%

Las Vegas, NV 630,108 5.6% 5.9% 0.3%

Los Angeles - Inland Empire, CA 4,347,400 4.3% 4.5% 0.1%

Los Angeles, CA 765,900 1.5% 1.4% -0.1%

Oakland, CA 396,354 2.4% 2.1% -0.3%

Orange County, CA 361,000 3.2% 3.0% -0.2%

Phoenix, AZ 1,633,654 10.9% 11.0% 0.1%

Pleasanton/Tri-Valley, CA 320,324 4.4% 2.5% -2.0%

Portland, OR 430,263 5.1% 5.1% -0.1%

Reno, NV -33,533 8.8% 9.1% 0.3%

Sacramento, CA 545,910 10.4% 10.1% -0.3%

San Diego, CA 13,247 4.9% 5.0% 0.1%

San Francisco Peninsula, CA -144,878 2.5% 2.7% 0.3%

San Jose - Silicon Valley, CA -674,544 5.0% 5.2% 0.2%

Seattle/Puget Sound, WA -110,305 3.7% 4.1% 0.3%

Stockton/San Joaquin County, CA 1,533,195 8.0% 8.0% 0.0%

Walnut Creek, CA -228,756 7.7% 8.9% 1.3%

West Total 10,797,086 4.6% 4.6% 0.0%

U.S. TOTALS 63,856,903 6.4% 6.3% -0.1%

(continued)



United States | Industrial Survey | 3-Month Forecasts, Sales Price, Cap Rates

MARKET VACANCY FORECAST (3 MONTHS)**

RENT FORECAST (3 MONTHS)**

ABSORPTION FORECAST (3 MONTHS)**

AVERAGE SALES PRICE (USD/SF) AVERAGE CAP RATE

NORTHEAST

Baltimore, MD Down Up Positive $116 8.1%

Boston, MA**** N/A N/A N/A $77 7.3%

Hartford, CT Same Same Positive $38 8.5%

Long Island, NY Down Up Positive $98 8.1%

New Hampshire N/A N/A Positive

New Jersey - Central Down Up Positive

New Jersey - Northern Down Up Positive $140 4.8%

Philadelphia, PA Down Up Positive $81 6.5%

Pittsburgh, PA Same Up Positive $55 7.8%

Shenandoah Valley, MD-VA-WV Down Up Positive $74 6.8%

Washington, D.C. Down Same Positive $122 7.0%

Northeast Average* $89 7.2%

SOUTH

Atlanta, GA Same Up Positive $49 7.6%

Austin, TX Same Up Positive $98 6.1%

Birmingham, AL Same Same Close to zero

Charleston, SC Down Same Positive $39

Charlotte, NC Down N/A Positive

Columbia, SC Down Up Positive $31

Dallas-Ft. Worth, TX Same Same Positive $45 7.4%

Ft. Lauderdale-Broward, FL Down Up Positive $78 7.8%

Greenville/Spartanburg, SC Down Up Positive $47 6.6%

Houston, TX Up Down Positive $66 8.3%

Huntsville, AL Same Same Close to zero

Jacksonville, FL Down Up Positive $35 9.0%

Louisville, KY Up N/A Positive

Memphis, TN Same Up Positive $36 7.3%

Miami, FL Down Up Positive $83 7.3%

Nashville, TN Down Up Positive $53 7.3%

Norfolk, VA Down Same Positive $55 8.5%

Orlando, FL Down Up Positive $64 7.5%

Raleigh, NC Down N/A Positive

Richmond, VA N/A N/A N/A

Savannah, GA Down Up Positive $44 7.0%

Tampa Bay, FL Down Up Positive $70 8.0%

West Palm Beach, FL Down Up Positive $84 8.0%

South Average* $58 7.7%

* Straight averages used** Forecasts for warehouse space**** Q4-15 data displayedThe detail for markets with older data is removed, but numbers remain in totals and subtotals.


United States | Industrial Survey | 3-Month Forecasts, Sales Price, Cap Rates

MARKET VACANCY FORECAST (3 MONTHS)**

RENT FORECAST (3 MONTHS)**

ABSORPTION FORECAST (3 MONTHS)**

AVERAGE SALES PRICE (USD/SF) AVERAGE CAP RATE

MIDWEST

Chicago, IL Same Up Positive $68 5.2%

Cincinnati, OH Up Up Positive $46 8.0%

Cleveland, OH Down Up Positive $49 8.0%

Columbus, OH Same Up Positive $34 6.8%

Dayton, OH Same Same Close to zero $30

Detroit, MI Down Same Positive $33 7.0%

Indianapolis, IN Down Up Positive $43 6.3%

Kansas City, MO-KS Up Up Positive $75 7.6%

Milwaukee, WI Same Same Positive $55 7.8%

Minneapolis/St. Paul, MN Same Same Positive $35

Omaha, NE Same Up Positive

St. Louis, MO Up Same Close to zero $45 7.0%

Midwest Average* $47 7.1%

WEST

Albuquerque, NM**** Same Same Close to zero $88 7.5%

Bakersfield, CA Same Same Positive $42 10.0%

Boise, ID**** Down Up Positive $179 7.5%

Denver, CO Up Up Positive $89 7.4%

Fairfield, CA Same Up Close to zero $97 6.2%

Fresno, CA Same Same Positive $44 7.3%

Honolulu, HI Down Up Positive

Las Vegas, NV Up Same Negative

Los Angeles - Inland Empire, CA Same Up Positive $89 6.5%

Los Angeles, CA Same Up Close to zero $125 5.5%

Oakland, CA Same Up Positive $152 5.3%

Orange County, CA Same Same Close to zero $120 5.8%

Phoenix, AZ Down Up Positive $80 7.0%

Pleasanton/Tri-Valley, CA Up Same Negative

Portland, OR Down Up Positive $100 5.4%

Reno, NV Up N/A Positive

Sacramento, CA Down Same Positive $71 7.1%

San Diego, CA Down Up Positive $127 5.0%

San Francisco Peninsula, CA Same Same Close to zero $325 4.7%

San Jose - Silicon Valley, CA Same Same Close to zero $209 6.6%

Seattle/Puget Sound, WA Same Up Positive $146 6.3%

Stockton/San Joaquin County, CA Down Up Positive

Walnut Creek, CA Down Same Positive

West Average* $122 6.5%

U.S. AVERAGE* $81 7.1%

(continued)



United States | Industrial Survey | Average Asking NNN Rents as of March 2016

MARKETWAREHOUSE /

DISTRIBUTION SPACE (USD/SF/YR)

BULK SPACE (USD/SF/YR)

FLEX / SERVICE SPACE (USD/SF/YR)

TECH / R&D SPACE (USD/SF/YR)

NORTHEAST

Baltimore, MD $5.23 $4.94 $9.65 $16.66

Boston, MA**** $6.39 $5.96 $7.34 $16.36

Hartford, CT $3.90 $5.88 $7.87 $6.50

Long Island, NY $10.00 $10.00 $7.83

New Hampshire $5.83 $6.13 $9.45

New Jersey - Central $5.19 $4.82 $11.38

New Jersey - Northern $6.40 $6.30 $10.22

Philadelphia, PA $4.85 $4.95 $7.75 $11.25

Pittsburgh, PA $5.74 $5.51 $11.75 $11.75

Shenandoah Valley, MD-VA-WV $3.72 $3.31 $8.35 $5.12

Washington, D.C. $7.85 $7.16 $12.20 $13.12

Northeast Average* $5.92 $5.88 $9.13 $11.28

SOUTH

Atlanta, GA $3.63 $3.46 $8.28 $11.46

Austin, TX $9.23 $6.14 $11.10 $8.27

Birmingham, AL $4.36 $3.72 $8.75

Charleston, SC $4.71 $4.82 $11.82

Charlotte, NC $3.89 $3.99 $8.54

Columbia, SC $3.06 $3.41 $7.35

Dallas-Ft. Worth, TX $3.55 $2.90 $7.70 $9.05

Ft. Lauderdale-Broward, FL $8.00 $7.18 $11.50 $7.55

Greenville/Spartanburg, SC $3.76 $3.58 $7.52

Houston, TX $6.38 $4.93 $12.27 $12.78

Huntsville, AL $7.06 $4.52 $7.47

Jacksonville, FL $3.50 $4.05 $9.46

Louisville, KY $3.75 $3.70 $8.54

Memphis, TN $2.69 $2.81 $5.29 $9.75

Miami, FL $10.13 $7.44 $17.36 $8.60

Nashville, TN $4.50 $4.04 $8.76 $8.11

Norfolk, VA $4.73 $4.46 $8.41 $11.74

Orlando, FL $5.33 $5.04 $9.36 $13.23

Raleigh, NC $4.54 $4.72 $12.42

Richmond, VA $4.02 $4.08 $8.37 $10.54

Savannah, GA $3.95 $3.80 $7.00 $10.00

Tampa Bay, FL $4.59 $4.45 $8.38 $4.59

West Palm Beach, FL $9.09 $6.66 $12.95 $8.05

South Average* $5.09 $4.46 $9.38 $9.55



United States | Industrial Survey | Average Asking NNN Rents as of March 2016

MARKETWAREHOUSE /

DISTRIBUTION SPACE (USD/SF/YR)

BULK SPACE (USD/SF/YR)

FLEX / SERVICE SPACE (USD/SF/YR)

TECH / R&D SPACE (USD/SF/YR)

MIDWEST

Chicago, IL $4.73 $4.47 $9.50

Cincinnati, OH $3.46 $3.33 $6.54 $6.54

Cleveland, OH $3.76 $3.76 $7.09 $7.09

Columbus, OH $3.00 $3.00 $6.05 $6.05

Dayton, OH $2.75 $2.99 $4.68 $4.68

Detroit, MI $4.60 $3.87 $8.22 $8.22

Indianapolis, IN $3.41 $6.09

Kansas City, MO-KS $4.48 $4.05 $8.26 $7.56

Milwaukee, WI $4.85 $3.75 $5.50

Minneapolis/St. Paul, MN $5.05 $4.81 $7.08 $7.54

Omaha, NE $4.53 $4.41 $6.68 $5.94

St. Louis, MO $3.79 $3.81 $6.94 $3.98

Midwest Average* $3.94 $3.76 $6.72 $6.23

WEST

Albuquerque, NM**** $5.10 $4.29 $9.24 $9.24

Bakersfield, CA $4.00 $3.40 $8.40

Boise, ID**** $5.16 $5.40 $6.84 $6.36

Denver, CO $6.47 $5.64 $9.91 $11.17

Fairfield, CA $5.71 $5.67 $6.34 $9.13

Fresno, CA $4.42 $3.65 $8.98 $8.98

Honolulu, HI $14.07

Las Vegas, NV $6.36 $6.15 $8.28 $11.28

Los Angeles - Inland Empire, CA $5.76 $5.10 $7.35 $7.99

Los Angeles, CA $7.68 $5.97 $10.01 $13.13

Oakland, CA $7.32 $7.44 $8.52 $17.04

Orange County, CA $8.28 $7.66 $14.65 $11.25

Phoenix, AZ $6.20 $4.93 $12.29 $12.53

Pleasanton/Tri-Valley, CA $6.12 $6.12

Portland, OR $5.70 $5.13 $11.40 $10.15

Reno, NV $4.23 $3.88 $7.81

Sacramento, CA $5.16 $3.48 $8.88 $8.04

San Diego, CA $9.24 $7.92 $13.08 $18.84

San Francisco Peninsula, CA $12.24 $11.40 $32.52 $32.52

San Jose - Silicon Valley, CA $8.69 $6.83 $13.34 $22.15

Seattle/Puget Sound, WA $6.68 $6.42 $13.98 $15.59

Stockton/San Joaquin County, CA $4.56 $4.68 $6.84 $5.88

Walnut Creek, CA $4.44 $9.60 $13.80

West Average* $6.68 $5.77 $10.87 $12.90

U.S. TOTALS $5.52 $4.96 $9.29 $10.42

(continued)



MARKET VACANCY RATE MAR 31, 2016

Los Angeles, CA 1.4%

Honolulu, HI 1.5%

Oakland, CA 2.1%

Pleasanton/Tri-Valley, CA 2.5%

San Francisco Peninsula, CA 2.7%

Orange County, CA 3.0%

Savannah, GA 3.2%

Omaha, NE 3.3%

Long Island, NY 3.6%

Bakersfield, CA 3.6%

Boise, ID**** 3.8%

Denver, CO 4.1%

Seattle/Puget Sound, WA 4.1%

Milwaukee, WI 4.3%

Detroit, MI 4.4%

Los Angeles - Inland Empire, CA 4.5%

Nashville, TN 4.6%

Miami, FL 4.7%

Cincinnati, OH 4.9%

San Diego, CA 5.0%

West Palm Beach, FL 5.0%

Portland, OR 5.1%

Detroit, MI 5.1%

Portland, OR 5.2%


Fresno, CA 5.2%

Louisville, KY 5.2%

San Jose - Silicon Valley, CA 5.4%

New Jersey - Central 5.6%

Houston, TX 5.8%

Cleveland, OH 5.9%

Huntsville, AL 5.9%

Austin, TX 6.1%

Las Vegas, NV 6.1%

Columbus, OH 6.2%

Jacksonville, FL 6.3%

Pittsburgh, PA 6.3%

U.S. AVERAGE 6.4%

New Jersey - Northern 6.4%

Kansas City, MO-KS 6.5%

Albuquerque, NM**** 6.5%

Ft. Lauderdale-Broward, FL 6.5%

Minneapolis/St. Paul, MN 6.8%

Fairfield, CA 6.8%

Raleigh, NC 6.9%

Hartford, CT 6.9%

Charleston, SC 7.0%

St. Louis, MO 7.1%

Dallas-Ft. Worth, TX 7.2%


Chicago, IL 7.2%

Dayton, OH 7.2%

Norfolk, VA 7.3%

New Hampshire 7.4%

Orlando, FL 7.4%

Indianapolis, IN 7.6%

Tampa Bay, FL 7.7%

Greenville/Spartanburg, SC 8.0%

Philadelphia, PA 8.2%

Stockton/San Joaquin County, CA 8.2%

Richmond, VA 8.3%

Atlanta, GA 8.3%

Columbia, SC 8.7%

Shenandoah Valley, MD-VA-WV 8.9%

Charlotte, NC 9.0%

Walnut Creek, CA 9.1%

Baltimore, MD 9.2%

Reno, NV 9.3%

Memphis, TN 9.4%

Washington, D.C. 10.1%

Birmingham, AL 11.0%

Sacramento, CA 18.6%

Phoenix, AZ 11.0%

Boston, MA**** 18.6%

U.S. | Vacancy Rankings


Copyright © 2016 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.

Colliers International666 Fifth Avenue New York, NY 10103+1 212 716 3500colliers.com

INDUSTRIAL SERVICES | contactDwight Hotchkiss

President, Brokerage Services | USANational Director, Industrial | USA

+1 213 532 [email protected]

FOR MORE INFORMATIONJames Breeze

National Director of Industrial Research | USA+1 909 937 6365

[email protected]

Pete Culliney Director of Research | Global

+1 212 716 3689 [email protected]

CONTRIBUTORSJeff Simonson

U.S. Senior Research Analyst | USA

AJ Paniagua U.S. Research Analyst | USA

Andrew Nelson Chief Economist | USA

GlossaryBulk Space – Warehouse space 100,000 square feet or more with minimum ceiling heights of 24 feet. All loading is dock-height.

Flex Space – Single-story build-ings 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, to distribution, light industrial and occasional heavy industrial use.

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 space.

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.

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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