miramar quarter - voit real estate serviceslachance.voitco.com/assets/pdf/mktintel/miramar... ·...

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%


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


AVAILABILITY REPORT (CONT.)


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


AVAILABILITY REPORT (CONT.)AVAILABILITY REPORT (CONT.)


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


AVAILABILITY REPORT (CONT.)


15 Dowdy Distribution Center

100% Leased

16 7077 Consolidated Way

100% Leased

17 7666 Formula Place

100% Leased

N/A 100% Leased


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


0

3

6

9

12

15

25,001 SquareFeet and Up

15,001 to 25,000Square 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





SignedLeases



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





SignedLeases



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





SignedLeases



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


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



Close Date: 12/2016


Cap Rate: 5.1%

Project Name: 8525 Camino Santa Fe

Project Address: 8525 Camino Santa Fe



Close Date: 03/2016


Cap Rate: 5.5%

2015 Sales None2014 Sales

Project Name: Westcore Portfolio

Project Address: 9755-9855 Distribution Avenue 9340, 9404, 9495 Cabot Road



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]

miramar quarter - voit real estate serviceslachance.voitco.com/assets/pdf/mktintel/miramar... ·...

Documents