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MANUFACTURING WHOLESALE DISTRIBUTION LIGHT INDUSTRIAL R&D
MIRAMARMarket Overview
DISTRIBUTION In Our Opinion
The Miramar Distribution Market continues to be
very strong with limited space available in any
size range. The market experienced negative
absorption in the 4th Quarter, but that is not
unusual once a market reaches above 95%.
Tenants are having a tough time finding “the right
space” and many are renewing. With the higher
rental rates, we are also finding some tenants
closing down or moving to less expensive areas.
So long as the macro-economic picture remains
solid, we should see more of the same ahead.
QUARTER4TH
2018
RANDY LACHANCE, SIOR Senior Vice President Lic #0096974 858.458.3374 [email protected]
WESTON YAHN Senior Associate Lic #01975469 858.458.3321 [email protected]
TODD HOLLEY, SIOR Senior Vice President Lic #01046508 858.458.3349 [email protected]
Weston YahnSenior AssociateLic # 01975469P [email protected]
Prepared By:
Randy LaChance, SIORSenior Vice PresidentLic # 00969674P [email protected]
4180 La Jolla Village Dr., Ste. 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 Fax | Lic. No. 01991785 | www.voitco.comLicensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2018 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services.
Todd Holley, SIORSenior Vice PresidentLic # 01046508P [email protected]
3RD QUARTER 2018 | 1
TABLE OF CONTENTSMarket Overview...........................................................................2
Competing Properties ............................................................... 3-5
Availability Report ..................................................................... 6-9
Lease Comparables ...................................................................10
Space Available by Size .............................................................11
Net Absorption Analysis ..............................................................12
Comparable Sales Transactions.................................................13
2
Miramar Industrial Market
Overall: 13,250,927
Multi-Tenant Business Park: 1,953,693
Distribution: 4,295,535
PID’s/Industrial Condos 1,255,877
Other: 5,843,505
15%
Multi-TenantBusiness Park
PID’s/Industrial Condos
9%
32%Distribution
44%Other
75%
80%
85%
90%
95%
100%
2013 2
Q
2014 1
Q
2015 1
Q
2016 1
Q
2017 1
Q
2018 1
Q
2018 4
Q
92%93%
95% 95%
92%
95% 95%96%
97% 97% 97% 97%
95%96% 96% 96%
97% 97% 97% 97% 97% 97% 97%
Miramar Industrial MarketTotal Size: 13,250,927 Square FeetOccupancy Report
75%
80%
85%
90%
95%
100%
2013 2
Q
2014 1
Q
2015 1
Q
2016 1
Q
2017 1
Q
2018 1
Q
2018 4
Q
89%90%
93% 93%
91%92%
91%
94%
98% 98% 98% 98%
94%
97%
95% 95%
98%99%
96%97% 97%
98%97%
Miramar Distribution MarketTotal Size: 4,295,535 Square FeetOccupancy Report
MARKET OVERVIEW 4TH QUARTER 2018 | 2
COMPETING PROPERTIES
15
16
4TH QUARTER 2018 | 3
1
2
34
45 6
7
89
1011 12
13
14
17
COMPETING PROPERTIES
Map # PictureProject NameAddress Project Size (SF) Building Size (SF) Asking Rate Occupancy
1 Eastgate Distribution9999 Olson Drive
200,000 20,000 & Up N/A 100%
2 Sorrento Vista Industrial5950 & 6060 Nancy Ridge Drive
227,792 20,000 & Up N/A 100%
3 Brady Distribution Center9550 Distribution Center
56,350 10,000 & Up N/A 100%
4 Fenton PortfolioDistribution Avenue, Carroll Way
372,000 10,000 & Up N/A 86%
5 Liberty Industrial ParkDistribution Avenue
68,794 6,000 & Up $0.99-$1.05 NNNNNN = $0.19
91%
6 Miramar Commerce Park7130 & 7170 Miramar Road
422,764 18,000 & Up N/A 100%
7 Manulife7466 & 8960 Carroll Way
152,106 10,000 & Up N/A 100%
8 Trepte Industrial ParkTrade Street
233,731 4,600 & Up $1.50 MG 96%
9 Miramar Distribution Center7825 & 7835 Trade Street9990 Empire Street
413,917 200,000 & Up N/A 100%
10 Loma Business Park9220 Trade Place & Dunbrook
137,036 7,000 & Up N/A 100%
4TH QUARTER 2018 | 4
Map # PictureProject NameAddress Project Size (SF) Building Size (SF) Asking Rate Occupancy
11 Stromesa Distribution7949 Stromesa Court
107,564 4,700 & Up $0.95 NNN 92%
12 Rexford Miramar9340, 9455, 9404 Cabot Drive9855 Distribution Ave & 9190 Activity Rd
374,589 7,000 & Up N/A 100%
13 Arjons Industrial Park8221, 8333, 8441 Arjons Drive
244,400 9,600 & Up N/A 96%
14 Activity Distribution Center9020, 9040 & 9060 Activity Road
251,318 5,000 & Up N/A 100%
15 Dowdy Distribution Center9369 & 9389 Dowdy
83,986 5,000 & Up N/A 100%
16 7077 Consolidated Way 157,208 18,000 & Up N/A 100%
17 7666 Formula Place 30,000 10,000 & Up N/A 100%
COMPETING PROPERTIES (CONT.) 4TH QUARTER 2018 | 5
AVAILABILITY REPORT
Project # Picture Project Name/AddressUnit Size(Sq. Ft.) Lease Rate Office % Comments
1 Eastgate Distribution Center
100% Leased
2 Sorrento Vista Industrial
5950 Nancy Ridge Drive, #100 25,220 SF $1.25 NNN 25% 6 docks, 2 gradeSublease
3 Brady Distribution Center
100% Leased
4 Fenton Miramar Industrial
7590 Carroll Road 52,103 SF $0.99 NNN 5% 8 docks, 2 grade level
4TH QUARTER 2018 | 6
AVAILABILITY REPORT (CONT.)
Project # Picture Project Name/AddressUnit Size(Sq. Ft.) Lease Rate Office % Comments
5 Liberty Distribution Park
9689 Distribution Avenue 6,512 $0.99 NNN 10% 1 dock high door
6 Miramar Commerce Park
100% Leased
7 Manulife
100% Leased
8 Trepte Industrial Park
7706 Trade Street 9,000 SF $1.50 Gross 20% 2 grade level doors, 1 dock, street frontage, spec office
9 Miramar Distribution Center
100% Leased
4TH QUARTER 2018 | 7
AVAILABILITY REPORT (CONT.)AVAILABILITY REPORT (CONT.)
Project # Picture Project Name/AddressUnit Size(Sq. Ft.) Lease Rate Office % Comments
10 Loma Business Center
100% Leased
11 Stromesa Distribution
7949 Stromesa Court, Suites F&T 9,400 $0.95 NNN 5% 1 dock high; 1 grade level
12 Rexford
100% Leased
13 Arjons Industrial Park
8221 Arjons Drive 9,660 withheld 10% 1 dock high; 1 grade levelSublease
14 Activity Distribution Center 100% Leased
4TH QUARTER 2018 | 8
AVAILABILITY REPORT (CONT.)
Project # Picture Project Name/AddressUnit Size(Sq. Ft.) Lease Rate Office % Comments
15 Dowdy Distribution Center
100% Leased
16 7077 Consolidated Way
100% Leased
17 7666 Formula Place
100% Leased
N/A 100% Leased
4TH QUARTER 2018 | 9
LEASE COMPARABLES
Project # Picture
Lease Start Address
Lessee/Lessor
Sq. Ft. % Office
Lease Rate Net Effective
Annual Increases/ Term
TIA/ Concessions
7 11/14/2018
*Sublease
Carroll Way Industrial
7466 Carroll Road, #C
Land Rover
RD America, LLC
32,000 SF
10%
$0.90 NNN
$0.91 NNN
3%
25 Months
$0.62/SF
0 Months
15 11/1/2018 9389 Dowdy Drive, Suite F The House Whisperers
Tiffany Investment Corporation
5,093 SF
10%
$1.00 NNN
$1.05 NNN
3%
48 Months
$0.00/SF
0 Months
N/A 10/13/2018
*Sublease
8515 Miramar Place Crest Beverage
Hyperikon
54,560 SF
10%
$1.08 G
$1.12 G
3%
40 Months
$0.00/SF
0 Months
8 8/1/2018 Trepte Industrial Park
7670 Trade Street, Suite A&B
The Morning Sun Distribution Corp
Trepte Industrial Park
9,000 SF
10%
$1.30 IG
$1.38 IG
3%
87 Months
$1.00/SF
0 Months
4TH QUARTER 2018 | 10
0
3
6
9
12
15
25,001 SquareFeet and Up
15,001 to 25,000Square Feet
7,001 to 15,000Square Feet
0 to 7,000Square Feet
SignedLeases
Vacanciesthis Quarter
PreviouslyExisting Vacancy
20
2TotalVacancies
2 Signed Leases
0 Signed Leases 3
1 TotalVacancy
3 0 Signed Leases
0 TotalVacancies
3 TotalVacancies
1
2
2
3 Signed Leases
3
01 10
3
6
9
12
15
25,001 SquareFeet and Up
15,001 to 25,000Square Feet
7,001 to 15,000Square Feet
0 to 7,000Square Feet
SignedLeases
Vacanciesthis Quarter
PreviouslyExisting Vacancy
20
2TotalVacancies
2 Signed Leases
0 Signed Leases 3
1 TotalVacancy
3 0 Signed Leases
0 TotalVacancies
3 TotalVacancies
1
2
2
3 Signed Leases
3
01 1
0
3
6
9
12
15
25,001 SquareFeet and Up
15,001 to 25,000Square Feet
7,001 to 15,000Square Feet
0 to 7,000Square Feet
SignedLeases
Vacanciesthis Quarter
PreviouslyExisting Vacancy
20
2TotalVacancies
2 Signed Leases
0 Signed Leases 3
1 TotalVacancy
3 0 Signed Leases
0 TotalVacancies
3 TotalVacancies
1
2
2
3 Signed Leases
3
01 1
0
3
6
9
12
15
25,001 SquareFeet and Up
15,001 to 25,000Square Feet
7,001 to 15,000Square Feet
0 to 7,000Square Feet
SignedLeases
Vacanciesthis Quarter
PreviouslyExisting Vacancy
20
2TotalVacancies
2 Signed Leases
0 Signed Leases 3
1 TotalVacancy
3 0 Signed Leases
0 TotalVacancies
3 TotalVacancies
1
2
2
3 Signed Leases
3
01 1
SPACE AVAILABLE BY SIZE 4TH QUARTER 2018 | 11
NET ABSORPTION ANALYSIS
-200000 Sq. Ft.
-150000 Sq. Ft.
-100000 Sq. Ft.
-50000 Sq. Ft.
0 Sq. Ft.
50000 Sq. Ft.
100000 Sq. Ft.
150000 Sq. Ft.
200000 Sq. Ft.
250000 Sq. Ft.
Distribution Total Net Absorption Overall Total Net Absorption
2013
3Q
2013
4Q
2014
1Q
2014
2Q
2014
3Q
2014
4Q
2013
1Q
2012
3Q
2018
1Q
2012
2Q
2012
4Q
2013
2Q
2015
1Q
2015
2Q
2015
3Q
2015
4Q
2016
1Q
2016
2Q
2016
3Q
2016
4Q
2017
1Q
2017
2Q
2017
3Q
2017
4Q
2018
2Q
2018
3Q
2018
4Q
4TH QUARTER 2018 | 12
COMPARABLE SALE TRANSACTIONS 4TH QUARTER 2018 | 13
2018 SalesProject Name: 6875 Consolidated Way
Project Address: 6875 Consolidated Way
Project Size: 72,675 SF
Product Type: Distribution
Close Date: 10/2018
Sales Price: $11,750,094 Price PSF: $161.68
Cap Rate: 4.5%
2017 Sales None2016 Sales
Project Name: 9190 Activity Drive
Project Address: 9190 Activity Drive
Project Size: 83,500 SF
Product Type: Distribution
Close Date: 12/2016
Sales Price: $15,550,000 Price PSF: $186.23
Cap Rate: 5.1%
Project Name: 8525 Camino Santa Fe
Project Address: 8525 Camino Santa Fe
Project Size: 58,351 SF
Product Type: Distribution
Close Date: 03/2016
Sales Price: $8,450,000 Price PSF: $144.81
Cap Rate: 5.5%
2015 Sales None2014 Sales
Project Name: Westcore Portfolio
Project Address: 9755-9855 Distribution Avenue 9340, 9404, 9495 Cabot Road
Project Size: 338,716 SF
Product Type: Distribution
Close Date: 07/2014
Sales Price: $90,000,000* *Part of larger portfolio sale Price PSF: N/A
Cap Rate: N/A
MIRAMAR DISTRIBUTION MARKET | 13
M I R A M A R D I S T R I B U T I O N M A R K E T O V E R V I E W
4TH QUARTER 2018MARKET OVERVIEW
Presented By:
4180 La Jolla Village Dr., Suite 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 Fax | Lic #01991785 | www.voitco.com
Randy LaChance, SIORSenior Vice PresidentLic #[email protected]
Todd Holley, SIORSenior Vice President | PartnerLic #[email protected]
Licensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2018 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services.
Weston YahnSenior AssociateLic #[email protected]