industrial report 2q cassidy... · of this growth came from starwest botanicals taking occupancy of...

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City, State Year

Industrial Report

Sacramento Valley Second Quarter 2013

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

2009 2010 2011 2012 YTD-13

www.cassidyturley.com

10%

11%

12%

13%

14%

15%

2008 2009 2010 2011 2012 2013

SACRAMENTO VALLEY INDUSTRIAL

Squ

are

Feet

(0

00s)

Net Absorption

Vacancy

10-Year Average

Vacancy See-Saw Coming to an End?

The second quarter of 2013 ended on a positive note for the Sacramento industrial market. The market posted an impressive 1.1 million square feet of occupancy growth during the second quarter of 2013 as local vacancy dropped from 13.3% to 12.6%. This is most positive net absorption that the industrial market has recorded since Q4 2007, when local occupancy grow by over 1.9 million square feet. In other words, the last three months saw the highest level of industrial occupancy growth since before the recession, and at levels that were more indicative of demand trends at the height of the last real estate cycle. Meanwhile, though Sacramento still has a way to go before vacancy levels return to where they were prior to the downturn (10.1% in Q3 2008), the current rate of 12.6% is the lowest we have seen in three years. While local recovery had essentially stalled during the past two years—vacancy had wavered within the 13% range for the previous eight consecutive quarters (Q2 2010 through Q1 2013), the increased demand and leasing activity that began in Q1 is finally starting to reflect as noticeable declines in the vacancy rate. It is too soon to call, but it appears that we may finally have seen an end to the “see-saw” vacancy trend that has been the norm for the last three years.

Natomas/Northgate, McClellan, West Sacramento See Large Gains

Quarterly activity across the region’s industrial submarkets was largely positive—of the 16trade areas that comprise the Sacramento market, 12 recorded occupancy growth in Q2.The Natomas/Northgate submarket recorded just over 300,000 square feet of occupancygrowth during the quarter and saw its vacancy rate fall from 16.6% to 14.0%. The majorityof this growth came from Starwest Botanicals taking occupancy of 118,000 square feet onMain Avenue. The 14% vacancy rate recorded this quarter is one of the lowest rates theNatomas/Northgate market has posted since the beginning of 2009-- vacancy in this tradearea has dropped 3.6% in the last 12 months alone. The McClellan submarket alsoexperienced a strong quarter, recording just over 300,000 square feet of growth. Most ofthis came from the California Department of Parks and Recreation taking occupancy of a265,000 square foot space on Lang Avenue. This positive growth managed to drive thevacancy down from 21.9% to 19.7%. The McClellan submarket has typically had one of thehighest vacancy rates in the region, peaking at 23.1% during the third quarter of 2012. The19.7% rate recorded this quarter marks the first time in the last three years vacancy in thistrade area has fallen under 20%. The West Sacramento submarket also performed well,recording 258,000 square feet of occupancy growth and seeing vacancy decline from 9.9%to 9.0%. Two recently completed buildings saw new tenants take occupancy this quarter.3045 Mulvaney Place (131,000 square feet) was occupied by food distributor Saladino’s,and 2970 Ramco Street (70,000 square feet) was taken by owner Nippon Shokken.

Industrial Market SnapshotSacramento Valley • Second Quarter 2013

Economic Indicators

Q2 13 Q2 12

Sacramento Valley Employment

962,600 929,700

Sacramento Valley Unemployment

7.84% 10.78%

U.S. Unemployment 7.6% 8.2%

U.S. CCI 74.86 65.25

Vacancy12.6%

Net Absorption1,136,045 SF

Deliveries131,211 SF

Asking Rent$0.36 NNN

Market Tracker*Arrows = Current Qtr Trend

Highlights:

• Vacancy falls to 12.6% - one of the lowest rates recorded since Q2 2010.

• Q2 was impressive in terms of occupancy growth – 1.1 million square feet wasabsorbed during the quarter – the most amount of growth seen in the regionpost-recession.

• The average asking rent remains at $0.36 PSF NNN. Rental rate growth is notanticipated any time soon.

• Demand and activity continue to be lively – the return of the housing markethas brought construction and home-related users back into the market.


SACRAMENTO VALLEY INDUSTRIAL

Roseville/Rocklin Sees Minimal Occupancy Loss; Woodland/Davis Poised for Vacancy

Decline

While a few submarkets experienced occupancy losses during the quarter, none of these losses were substantial enough to impact occupancy growth. The only submarket that experienced any noteworthy loss was the Roseville/Rocklin submarket, which lost 72,000 square feet during the quarter as its vacancy rate increased from 17.3% to 17.8%. While the Woodland/Davis submarket experienced only minor losses during the quarter, it has struggled to regain its footing after suffering a few large losses over the last twelve months. Until just slightly after the recession began, vacancy in this submarket was in the 10% to 11% range. Losses suffered in 2012 pushed this rate up to 17%, placing Woodland/Davis behind McClellan and Roseville/Rocklin in terms of highest regional vacancy rates. The good news, however, is that this appears to be just a minor setback for one of the strongest industrial distribution markets in the region. A recent sale of two large industrial buildings in Woodland will have a significant beneficial impact on vacancy in this trade area, when these buildings are occupied by their new owners during the third quarter.

Forging Ahead

Though the industrial market is not without its challenges--average asking rates for the region remain flat with rental rate growth off the table for the time being—indicators suggest that the market will continue to post moderate occupancy gains throughout the remainder of the year.

Our brokers report that touring activity and active space requirements are still very lively. Much of this activity is coming from medium-sized local distribution and manufacturing users. Meanwhile, the return of the housing market has brought increased demand from construction and housing-related users. Though most of the deals being inked are coming from medium-sized users in the 10,000 to 30,000 square feet range, our brokers are reporting that there are a few manufacturing and distribution users seeking space in excess of 200,000 square feet in the marketplace. If any of these requirements actually land as deals it would have a significant impact on the regional vacancy rate. But we already know that vacancy is almost guaranteed to fall in Q3 (barring any unforeseen major space givebacks) simply because of the recent user-sale of two 400,000 square foot distribution warehouse buildings in Woodland. Though this transaction closed just a few days after the close of the second quarter, the ensuing occupancy during the third quarter will potentially push regional vacancy down even further, most likely into the 11% range.

Industrial Market SnapshotSacramento Valley • Second Quarter 2013

$0.30

$0.34

$0.38

$0.42

$0.46

$0.50

2008 2009 2010 2011 2012 2013

Average Asking Rate

Availabilities by Size (SF)

0-10K 10-25K 25-50K 50K+

0

50

100

150

200

$0

$50

$100

$150

$200

2008 2009 2010 2011 2012 YTD-13

Sales Volume, $Mil # Bldgs Sold

Industrial Sales

Key Lease Transactions Second Quarter 2013

PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET

3434 52nd Avenue 44,920 AC Square, Inc. New Lease South Sacramento

840 N 10th Street 43,561 RL Liquidators New Lease Richards

8301-8351 Luzon Street 43,560 Integrity Retail New Lease Power Inn

3200 Dwight Road 25,746 Robinson Anderson Print & Fulfillment

Renewal Elk Grove/Laguna

3825 Cincinnati Avenue 24,000 Pewag, Inc. Renewal Roseville/Rocklin

2505-2535 Front Street 19,956 Universal Limosine New Lease West Sacramento

3701 Seaport Boulevard 14,400 International Greenhouse Contractors

New Lease West Sacramento

8848 Madison Avenue 8,000 V3 Fitness New Lease NE Sacramento

Cassidy Turley Industrial Market SnapshotSacramento Valley • Second Quarter 2013


Abby FriedmanResearch Analyst

520 Capitol MallFifth FloorSacramento, CA 95814Tel: 916.617.4266Fax: 916.376.8840

Managing Editors:

Garrick BrownDirector of [email protected]

Todd CampbellResearch Operations [email protected]

The information contained within this report is gatheredfrom multiple sources considered to be reliable. Theinformation may contain errors or omissions and ispresented without any warranty or representations as to itsaccuracy.

Copyright © 2013 Cassidy Turley.All rights reserved.

About Cassidy Turley

Cassidy Turley is a leading commercial real estate services provider with more than 3,800 professionals

in more than 60 offices nationwide. Based in Washington, DC, the company represents a wide range of

clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions.

The firm completed transactions valued at $22 billion in 2012, manages approximately 400 million

square feet on behalf of institutional, corporate and private clients and supports more than 23,000

domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full

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Key Industrial Sale Transactions Second Quarter 2013

PROPERTY SF BUYER CITY SALE PRICE

8400 Belvedere Avenue 77,400 High Cube Investments Sacramento $3,415,500

8388 Rovana Circle 72,000 Carmel River Stables Sacramento $3,000,000

3655 Cincinnati Avenue 52,000 PG&E Rocklin $2,660,625

1235 Fee Drive 33,386 Tuff Shed Sacramento $2,250,000

4500 Beloit Drive 30,864 ServiceMaster Sacramento $1,700,000

3750 Pell Drive 57,595 Sacramento Laundry Company

Sacramento $1,500,000

1151 Sunset Boulevard 22,500 Bianchi Estates Rocklin $1,047,323

TOTALBLDGS

INVENTORY SUBLET VACANT DIRECT VACANTVACANCY

RATECURRENT NET ABSORPTION

YTD NET ABSORPTION

UNDER CONSTRUC-

TION

AVERAGE ASKING RENT

Submarket

Auburn/Newcastle 79 2,038,783 0 167,753 8.2% (4,715) (3,955) 0 $0.58

Davis/Woodland 186 16,406,457 0 2,727,600 16.6% (7,699) (233,369) 0 $0.26

Downtown Sacramento 86 2,663,503 0 165,833 6.2% (1,600) (1,600) 0 $0.55

East Sacramento 23 510,830 0 28,200 5.5% 13,000 17,040 0 $0.62

Elk Grove/Laguna 102 4,976,297 0 539,751 10.8% 67,214 73,240 0 $0.37

Folsom/El Dorado Hills 95 2,223,302 0 148,955 6.7% 62,468 62,421 0 $0.71

Mather 121 3,664,076 18,000 583,040 16.4% 35,395 (40,388) 0 $0.39

McClellan 288 13,711,248 150,978 2,555,412 19.7% 300,834 393,026 0 $0.40

Natomas/Northgate 200 11,632,483 0 1,634,297 14.0% 300,892 408,345 0 $0.37

Northeast Sacramento 194 4,967,532 0 416,517 8.4% 54,139 (36,812) 0 $0.40

Power Inn 558 24,291,883 14,400 2,447,400 10.1% 33,320 19,878 0 $0.32

Richards 90 4,225,791 0 273,336 6.5% 42,892 (239,866) 0 $0.37

Roseville/Rocklin 268 15,361,290 42,897 2,691,588 17.8% (72,727) (15,522) 0 $0.40

South Sacramento 124 4,016,576 0 124,025 3.1% 42,577 35,343 0 $0.39

Sunrise 329 9,266,129 8,040 902,421 9.9% 11,694 87,329 0 $0.39

West Sacramento 305 15,510,556 0 1,400,470 9.0% 258,361 256,214 0 $0.37

TOTAL 3,048 135,426,736 234,315 16,806,598 12.6% 1,136,045 781,324 0 $0.36

*Industrial asking rates converted to NNN

Market SummaryBuilding Building Vacancy Rate

Base Count Direct Sublease Total Q2-13 Q2-12

Auburn / New Castle 2,038,783 79 167,753 0 167,753 8.2% 8.5% $0.58

Davis / Woodland 16,406,457 186 2,727,600 0 2,727,600 16.6% 17.4% $0.26

Downtown Sacramento 2,663,503 86 165,833 0 165,833 6.2% 5.3% $0.55

East Sacramento 510,830 23 28,200 0 28,200 5.5% 5.9% $0.62

Elk Grove / Laguna 4,976,297 102 539,751 0 539,751 10.8% 14.1% $0.37

Folsom / El Dorado Hills 2,223,302 95 148,955 0 148,955 6.7% 7.1% $0.71

Mather 3,664,076 121 583,040 18,000 601,040 16.4% 14.0% $0.39

McClellan 13,711,248 288 2,555,412 150,978 2,706,390 19.7% 21.5% $0.40

Natomas / Northgate 11,632,483 200 1,634,297 0 1,634,297 14.0% 17.7% $0.37

Northeast Sacramento 4,967,532 194 416,517 0 416,517 8.4% 8.7% $0.40

Power Inn 24,291,883 558 2,447,400 14,400 2,461,800 10.1% 11.2% $0.32

Richards 4,225,791 90 273,336 0 273,336 6.5% 8.2% $0.37

Roseville / Rocklin 15,361,290 268 2,691,588 42,897 2,734,485 17.8% 18.2% $0.40

South Sacramento 4,016,576 124 124,025 0 124,025 3.1% 4.4% $0.39

Sunrise 9,226,129 329 902,421 8,040 910,461 9.9% 11.8% $0.39

West Sacramento 15,510,556 305 1,400,470 0 1,400,470 9.0% 9.6% $0.37

Total Market 135,426,736 3,048 16,806,598 234,315 17,040,913 12.6% 13.8% $0.36

Vacancy by Area

Market Rent Ranges & Average Asking Rate NNN


SubmarketAvg. Asking Rate (NNN)

Vacant Space

8.2%

16.6%

6.2% 5.5%

10.8%

6.7%

16.4%

19.7%

14.0%

8.4%

10.1%

6.5%

17.8%

3.1%

9.9%9.0%

8.5%

17.4%

5.3%5.9%

14.1%

7.1%

14.0%

21.5%

17.7%

8.7%

11.2%

8.2%

18.2%

4.4%

11.8%

9.6%

0%

5%

10%

15%

20%

25%

Auburn / NewCastle

Davis /Woodland

DowntownSacramento

EastSacramento

Elk Grove /Laguna

Folsom / ElDorado Hills

Mather McClellan Natomas /Northgate

NortheastSacramento

Power Inn Richards Roseville /Rocklin

SouthSacramento

Sunrise WestSacramento

Q2-13 Q2-12

$0.58

$0.26

$0.55

$0.62

$0.37

$0.71

$0.39 $0.40 $0.37

$0.40

$0.32

$0.37 $0.40 $0.39 $0.39 $0.37

$0.56

$0.25

$0.41

$0.55

$0.38

$0.69

$0.36 $0.41

$0.33 $0.36

$0.33 $0.29

$0.41 $0.40 $0.39 $0.41

$-

$0.25

$0.50

$0.75

Auburn / NewCastle

Davis /Woodland

DowntownSacramento

EastSacramento

Elk Grove /Laguna

Folsom / ElDorado Hills

Mather McClellan Natomas /Northgate

NortheastSacramento

Power Inn Richards Roseville /Rocklin

SouthSacramento

Sunrise WestSacramento

Q2-13 Q2-12

Sacramento Valley Industrial ReportSecond Quarter 2013

Total MarketQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

Total Building Base: 135,025,525 135,225,525 135,225,525 135,295,525 135,426,736Total Buildings: 3,045 3,046 3,046 3,047 3,048

Direct Vacant: 17,555,457 17,328,810 16,883,956 17,774,672 16,806,598Sublease Vacant: 1,034,497 1,017,065 1,034,070 271,075 234,315Total Vacant: 18,589,954 18,345,875 17,918,026 18,045,747 17,040,913Total Occupied SF 116,435,571 116,879,650 117,307,499 117,249,778 118,385,823

Vacancy: 13.8% 13.6% 13.3% 13.3% 12.6%

Gross Absorption: 1,616,674 1,772,657 1,748,490 2,219,228 2,403,737Net Absorption: -1,036,694 444,079 427,849 -57,721 1,136,045YTD Net Absorption -364,831 79,248 507,097 -57,721 1,078,324Growth Rate (%) -0.8% 0.2% 0.3% -0.1% 0.7%Total New Construction: 0 200,000 0 70,000 131,211

Avg Asking Rate (NNN): $0.36 $0.37 $0.38 $0.36 $0.36

Vacancy & Average Asking Rate Trend


13.3%13.5%

13.9%14.0% 14.0%

13.4%13.5%

13.0%

13.8%13.6%

13.3%

13.3%

12.6%

$0.00

$0.10

$0.20

$0.30

$0.40

9%

12%

15%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

acan

cy

Vacancy Avg. Asking Rate


Auburn / NewcastleQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

Total Building Base: 2,038,783 2,038,783 2,038,783 2,038,783 2,038,783Total Buildings: 79 79 79 79 79

Direct Vacant: 173,118 150,753 163,798 163,038 167,753Sublease Vacant: 0 0 0 0 0Total Vacant: 173,118 150,753 163,798 163,038 167,753Total Occupied SF 1,865,665 1,888,030 1,874,985 1,875,745 1,871,030

Vacancy: 8.5% 7.4% 8.0% 8.0% 8.2%

Gross Absorption: 10,350 30,040 23,015 26,270 0Net Absorption -14,063 22,365 -13,045 760 -4,715YTD Net Absorption -4,158 18,207 5,162 760 -3,955Growth Rate (%) 0.2% -1.0% 0.3% -0.2% 1.3%Total New Construction: 0 0 0 0 0




4.8% 4.5%4.8%

5.7%6.0%

8.3%8.3%

7.8%

8.5%

7.4%

8.0% 8.0% 8.2%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



Davis / WoodlandQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 2,818,442 2,578,793 2,494,231 2,719,901 2,727,600Sublease Vacant: 0 0 0 0 0Total Vacant: 2,818,442 2,578,793 2,494,231 2,719,901 2,727,600Total Occupied SF 13,388,015 13,827,664 13,912,226 13,686,556 13,678,857

Vacancy: 17.4% 15.7% 15.2% 16.6% 16.6%

Gross Absorption: 179,228 454,301 507,376 60,736 62,589Net Absorption -1,035,377 439,649 84,562 -225,670 -7,699YTD Net Absorption -611,873 -172,224 -87,662 -225,670 -233,369Growth Rate (%) 1.8% -1.7% -0.3% 2.7% 0.0%Total New Construction: 0 200,000 0 0 0




15.7% 15.4%

16.7%

18.0%

15.9%

14.4%13.6%

11.0%

17.4%

15.7%15.2%

16.6% 16.6%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

4%

8%

12%

16%

20%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

on

thVa

can

cy



Downtown SacramentoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13



Vacancy: 5.3% 6.1% 6.2% 6.2% 6.2%

Gross Absorption: 16,290 5,000 0 10,000 0Net Absorption 6,290 -22,200 -1,480 0 -1,600YTD Net Absorption 34,266 12,066 10,586 0 -1,600Growth Rate (%) 0.4% 0.4% 0.2% -0.4% 0.4%Total New Construction: 0 0 0 0 0




3.3%

4.6%

5.3%

6.6%

5.1%

6.2%6.6%

5.5%5.3%

6.1% 6.2% 6.2% 6.2%

$0.00

$0.20

$0.40

$0.60

$0.80

0%

1%

2%

3%

4%

5%

6%

7%

8%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

acan

cy



East SacramentoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

Total Building Base: 510,830 510,830 510,830 510,830 510,830Total Buildings: 23 23 23 23 23

Direct Vacant: 30,000 43,200 45,240 41,200 28,200Sublease Vacant: 0 0 0 0 0Total Vacant: 30,000 43,200 45,240 41,200 28,200Total Occupied SF 480,830 467,630 465,590 469,630 482,630

Vacancy: 5.9% 8.5% 8.9% 8.1% 5.5%

Gross Absorption: 2,070 0 0 6,000 13,000Net Absorption 2,070 -13,200 -2,040 4,040 13,000YTD Net Absorption 6,070 -7,130 -9,170 4,040 17,040Growth Rate (%) 0.4% 0.4% 0.0% -1.2% -1.4%Total New Construction: 0 0 0 0 0




5.0%

0.7% 0.7%

6.5%

3.3% 3.3%

7.1%

6.3%5.9%

8.5%8.9%

8.1%

5.5%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

0%

2%

4%

6%

8%

10%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

acan

cy



Elk Grove / LagunaQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 702,250 700,159 606,691 600,665 539,751Sublease Vacant: 0 6,300 6,300 6,300 0Total Vacant: 702,250 706,459 612,991 606,965 539,751Total Occupied SF 4,274,047 4,269,838 4,363,306 4,369,332 4,436,546

Vacancy: 14.1% 14.2% 12.3% 12.2% 10.8%

Gross Absorption: 58,591 20,900 103,320 46,171 115,499Net Absorption -9,213 -4,209 93,468 6,026 67,214YTD Net Absorption -18,939 -23,148 70,320 6,026 73,240Growth Rate (%) -0.9% 0.8% -1.7% 1.1% -1.4%Total New Construction: 0 0 0 0 0




17.1% 17.5%16.9%

14.3% 14.3%13.6% 13.7% 13.9% 14.1% 14.2%

12.3% 12.2%

10.8%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

0%

4%

8%

12%

16%

20%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

acan

cy



Folsom / El DoradoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13



Vacancy: 7.1% 10.0% 9.5% 9.5% 6.7%

Gross Absorption: 6,875 11,843 42,290 56,496 87,808Net Absorption -19,190 -63,349 10,101 -47 62,468YTD Net Absorption -31,434 -94,783 -84,682 -47 62,421Growth Rate (%) -0.1% -0.2% -1.4% -0.6% -1.4%Total New Construction: 0 0 0 0 0




5.3% 5.3%

7.2%6.9%

5.2%4.9%

5.7%6.2%

7.1%

10.0%9.5% 9.5%

6.7%

$0.00

$0.25

$0.50

$0.75

$1.00

0%

2%

4%

6%

8%

10%

12%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



MatherQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 514,677 495,218 542,652 618,435 583,040Sublease Vacant: 0 0 18,000 18,000 18,000Total Vacant: 514,677 495,218 560,652 636,435 601,040Total Occupied SF 3,149,399 3,168,858 3,103,424 3,027,641 3,063,036

Vacancy: 14.0% 13.5% 15.3% 17.4% 16.4%

Gross Absorption: 16,855 78,999 13,326 37,832 73,859Net Absorption -7,184 19,459 -65,434 -75,783 35,395YTD Net Absorption -8,927 10,532 -54,902 -75,783 -40,388Growth Rate (%) 0.8% -1.7% 1.8% -0.7% -1.0%Total New Construction: 0 0 0 0 0




14.7%

14.9%

14.6% 14.0%13.5% 13.1% 13.8% 13.9% 14.0%

13.5%

15.3%17.4%

16.4%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

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McClellanQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 2,083,302 2,309,616 2,240,183 2,861,246 2,555,412Sublease Vacant: 871,233 859,233 859,233 145,978 150,978Total Vacant: 2,954,535 3,168,849 3,099,416 3,007,224 2,706,390Total Occupied SF 10,756,713 10,542,399 10,611,832 10,704,024 11,004,858

Vacancy: 21.5% 23.1% 22.6% 21.9% 19.7%

Gross Absorption: 181,078 121,504 205,999 895,041 573,527Net Absorption 89,602 -214,314 69,433 92,192 300,834YTD Net Absorption 86,850 -127,464 -58,031 92,192 393,026Growth Rate (%) 0.1% 0.4% -0.6% -5.0% 2.3%Total New Construction: 0 0 0 0 0




19.8% 20.0% 20.5%

22.0% 22.7%22.9%

22.2% 22.2%21.5%

23.1% 22.6%21.9%

19.7%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

5%

10%

15%

20%

25%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



Natomas / NorthgateQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 1,931,651 1,913,120 1,939,802 1,891,689 1,634,297Sublease Vacant: 122,840 122,840 102,840 43,500 0Total Vacant: 2,054,491 2,035,960 2,042,642 1,935,189 1,634,297Total Occupied SF 9,577,992 9,596,523 9,589,841 9,697,294 9,998,186

Vacancy: 17.7% 17.5% 17.6% 16.6% 14.0%

Gross Absorption: 169,845 218,849 84,694 188,429 362,101Net Absorption -128,335 18,531 -6,682 107,453 300,892YTD Net Absorption -164,247 -145,716 -152,398 107,453 408,345Growth Rate (%) 1.0% -0.4% 1.2% -0.9% -1.5%Total New Construction: 0 0 0 0 0




17.0% 16.6%15.8%

15.5%16.0% 16.2% 16.2% 16.6%

17.7% 17.5% 17.6%16.6%

14.0%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

5%

10%

15%

20%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

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Northeast SacramentoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 420,229 371,763 379,705 470,656 416,517Sublease Vacant: 11,900 0 0 0 0Total Vacant: 432,129 371,763 379,705 470,656 416,517Total Occupied SF 4,535,403 4,595,769 4,587,827 4,496,876 4,551,015

Vacancy: 8.7% 7.5% 7.6% 9.5% 8.4%

Gross Absorption: 54,138 90,710 55,543 63,156 62,995Net Absorption 29,970 60,366 -7,942 -90,951 54,139YTD Net Absorption 30,409 90,775 82,833 -90,951 -36,812Growth Rate (%) -0.2% -0.7% 0.7% -0.2% 0.0%Total New Construction: 0 0 0 0 0




11.7%

12.5%

9.7% 9.9%10.6% 10.9%

9.3% 9.3%8.7%

7.5% 7.6%

9.5%

8.4%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

2%

4%

6%

8%

10%

12%

14%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

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Power InnQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 2,731,189 2,522,626 2,481,678 2,480,720 2,447,400Sublease Vacant: 0 0 0 14,400 14,400Total Vacant: 2,731,189 2,522,626 2,481,678 2,495,120 2,461,800Total Occupied SF 21,560,694 21,769,257 21,810,205 21,796,763 21,830,083

Vacancy: 11.2% 10.4% 10.2% 10.3% 10.1%

Gross Absorption: 447,455 310,092 262,596 255,415 289,081Net Absorption 154,725 208,563 40,948 -13,442 33,320YTD Net Absorption 465,686 674,249 715,197 -13,442 19,878Growth Rate (%) 0.7% 0.6% 0.2% 0.0% -0.1%Total New Construction: 0 0 0 0 0




11.4%12.4% 12.5%

13.3%12.5%

13.2% 13.2%

11.9%11.2%

10.4% 10.2% 10.3% 10.1%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

3%

5%

8%

10%

13%

15%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



RichardsQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13



Vacancy: 8.2% 8.5% 7.8% 7.5% 6.5%

Gross Absorption: 0 32,117 29,400 14,242 87,961Net Absorption 0 -11,083 27,320 14,242 42,892YTD Net Absorption 1,515 -9,568 17,752 14,242 57,134Growth Rate (%) 0.4% -0.8% 0.1% 0.4% -1.7%Total New Construction: 0 0 0 0 0




9.1% 8.7% 8.8%

10.3%9.9%

9.5%

8.2% 8.2% 8.2%8.5%

7.8%7.5% 6.5%

$0.00

$0.10

$0.20

$0.30

$0.40

0%

5%

10%

15%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



Quarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 2,774,564 2,794,140 2,676,066 2,618,861 2,691,588Sublease Vacant: 27,024 22,392 42,897 42,897 42,897Total Vacant: 2,801,588 2,816,532 2,718,963 2,661,758 2,734,485Total Occupied SF 12,559,702 12,544,758 12,642,327 12,699,532 12,626,805

Vacancy: 18.2% 18.3% 17.7% 17.3% 17.8%

Gross Absorption: 218,328 57,682 189,195 261,762 77,119Net Absorption 72,661 -14,944 97,569 57,205 -72,727YTD Net Absorption -35,747 -50,691 46,878 57,205 -15,522Growth Rate (%) -1.3% 1.0% -0.9% -0.5% 1.2%Total New Construction: 0 0 0 0 0




Roseville/Rocklin(Also includes Loomis & Lincoln)

17.7%17.8% 18.5%

17.8% 18.1% 17.7% 18.0%18.7% 18.2% 18.3% 17.7% 17.3% 17.8%

$0.00

$0.15

$0.30

$0.45

$0.60

0%

4%

8%

12%

16%

20%

24%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

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South SacramentoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13



Vacancy: 4.4% 4.2% 4.0% 4.1% 3.1%

Gross Absorption: 47,218 15,700 37,105 10,836 53,540Net Absorption -15,782 4,800 10,955 -7,234 42,577YTD Net Absorption -13,732 -8,932 2,023 -7,234 35,343Growth Rate (%) -0.9% 0.8% -0.5% 0.7% -1.1%Total New Construction: 0 0 0 0 0




3.5%

4.2%4.7%

4.8%4.8%

4.4%4.0% 4.0%

4.4%4.2%

4.0% 4.1%

3.1%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

1%

2%

3%

4%

5%

6%

7%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

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SunriseQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 1,092,234 1,073,789 992,990 922,155 902,421Sublease Vacant: 0 4,800 4,800 0 8,040Total Vacant: 1,092,234 1,078,589 997,790 922,155 910,461Total Occupied SF 8,133,895 8,147,540 8,228,339 8,303,974 8,315,668

Vacancy: 11.8% 11.7% 10.8% 10.0% 9.9%

Gross Absorption: 117,058 155,838 22,610 199,233 85,450Net Absorption 53,611 13,645 80,799 75,635 11,694YTD Net Absorption 125,302 138,947 219,746 75,635 87,329Growth Rate (%) 1.5% -0.4% 1.4% -1.9% 1.2%Total New Construction: 0 0 0 0 0




14.2% 14.1% 14.1%14.5%

13.4%

12.0%

13.2%12.4%

11.8% 11.7%

10.8%10.0% 9.9%

$0.00

$0.20

$0.40

$0.60

0%

4%

8%

12%

16%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthVac

ancy



West SacramentoQuarter Q2-12 Q3-12 Q4-12 Q1-13 Q2-13


Direct Vacant: 1,463,290 1,475,820 1,455,473 1,527,620 1,400,470Sublease Vacant: 1,500 1,500 0 0 0Total Vacant: 1,464,790 1,477,320 1,455,473 1,527,620 1,400,470Total Occupied SF 13,844,555 13,832,025 13,853,872 13,851,725 14,110,086

Vacancy: 9.6% 9.6% 9.5% 9.9% 9.0%

Gross Absorption: 91,295 169,082 172,021 87,609 459,208Net Absorption -216,479 -12,530 21,847 -2,147 258,361YTD Net Absorption -225,872 -238,402 -216,555 -2,147 256,214Growth Rate (%) 0.9% -0.5% 0.0% 0.5% -2.4%Total New Construction: 0 0 0 70,000 131,211




7.7% 8.1%8.4%

8.2%

9.0%

7.7%8.1% 8.2%

9.6% 9.6% 9.5%9.9%

9.0%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

0%

2%

4%

6%

8%

10%

Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13

NN

N/M

onthV

acan

cy



Disclaimer: The information contained herein while not guaranteed has been secured by sources we deem reliable. All information should be verified prior to lease or sale.


Industrial Market Report

Sacramento Valley

Definitions

Manufacturing ProductBuildings typically used for industrial purposes (Less than (3/1000 parking, clear height less than 18’, three sides of concrete and one side of glass, usually 6%–15% office build out).

Warehouse ProductBuildings typically used for bulk warehouse purposes (2/1000 parking or less, clear height minimum of 18’, limited glass, dock and/or grade doors, and minimal build-out).

Total Building BaseTotal warehouse buildings over 10,000 square feet in size.

Direct AvailabilitiesTotal square footage being marketed for lease by landlord available within 90 days. This may include availabilities with pending leases.

Sublease Availabilities Total square footage being marketed for lease by sublessor.

VacancyTotal available square footage (direct & sublease) divided by Total Building Base.

Net AbsorptionChange in occupied building square footage in a given time period.

Avg. Asking RateWeighted Average NNN Rate (by available square footage) of available spaces with Gross rates converted to NNN rates.

Historical ContinuityCassidy Turley maintains a building by building historical record. Comparing previous reports to this report may show different building size numbers and statistics. Changes are caused by reclassification of buildings and revised building sizes. Historical comparisons should be made from this report only as Cassidy Turley adjusts the historical record accordingly.

SourceData is tracked and tallied from information provided by The Costar Group.

Report Published By:

Cassidy Turley Sacramento520 Capitol Mall Suite 500Sacramento, CA 95814Tel 916 375 1500Fax 916 376 8840

49

88

WoodlandNorth Highlands

Elk Grove

Davis

Rio Linda

Fair Oaks

Arden

Arcade

Laguna West

Florin

CitrusHeights

WestSacramento

Plymouth

Roseville

Parkway

FolsomOrangevale

Loomis

New Castle

Rocklin

AuburnLincoln

ShingleSprings

Placerville

El Dorado Hills

Camino

RanchoCordova

Winters

Vacaville

Carmichael1

2

13

14

11

12

10

8

97

5SACRAMENTO

4

3 6

Davis/Woodland

Natomas/Northgate

West Sacramento

Downtown

East Sacramento

South Sacramento

Power Inn

Elk Grove/Laguna

Mather

Sunrise

Folsom/El Dorado Hills

McClellan

Roseville/Rocklin

Auburn/New Castle

LEGEND1

2

3

4

5

6

7

8

9

10

11

12

13

14

80

80

80

5

505

5

99

99

70

65

50

49

industrial report 2q cassidy... · of this growth came from starwest botanicals taking occupancy of...

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