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INDUSTRIAL MARKET REVIEW Bill Throne, SIOR, CCIM, ALC First Vice President
ndustrial Market Review
EXECUTIVE SUMMARY
Vacancy rate finally below 10% Trend line: Steady drop over last five years Peninsula the star of 2013 Question: Any ‘drivers’ out there for industrial?
EXECUTIVE SUMMARY
WORLD; U.S. INFLUENCES
Panama Canal update: 2015 or later? National industrial demand: Supply Chain driven? Defense Spending / Sequestration World economy / Political uncertainty
354.5
322.2
326.2
278.8
230.8
268.8
306.3
309.4
328.5 0
50100150200250300350400
200520062007200820092010201120122013
National Historic Leasing Activity
TOP U.S. INDUSTRIAL MARKETS: 2013 LEASED
Greater Los Angeles: 35,766,051 sf Chicago: 30,861,300 sf Inland Empire: 30,496,242 sf Dallas/Ft. Worth: 28,275,842 sf New York/ NJ: 25,695,080 sf
National Historic Absorption
-48.9 14.2
75.9 146.0 111.9 94.4 -6.4 -125.1
13.1 94.4 95.1
117.2 -150-100
-500
50100150200
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
HAMPTON ROADS REGIONAL NEWS
Tolls and trucking Rt. 460 Improvement project Port of Virginia Institutional investing in Hampton Roads
LOCAL INDUSTRIAL RESULTS:
Repositioning of industrial properties Good: Healthy Submarkets / small in demand Good: Quality rents/ rising rents Bad: Building pricing continues to fall Bad: Construction costs high / no spec Leasing activity and absorption holding steady
2013 WINS
Overseas: Grandwatt Electric / Smithfield Local: Hampton Farms, Southampton Huntington Ingalls Blackstone / IndCor investments Port advantage…commodities
2014: BIG THINGS AHEAD?
Continued drop in vacancy rates Market rents strengthening Good submarkets will get better Another big box, please? It is getting better!