u.s. industrial marketbeat 1q 2018 - texas a&m university · marketbeat u.s. industrial overall...

cushmanwakefield.com | 1

U.S. IndustrialQ1 2018

MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy

Net Absorption/Rent NNN 4-QTR TRAILING AVERAGE

Market Indicators

Q1 17 Q1 18 12-Month Forecast

Overall Vacancy 5.3% 5.0%

Net Absorption 56.5M 56.9M

Under Construction 218.4M 251.3M

Weighted Asking Rent (NNN) $5.68 $5.99

Rent Growth (Yr/Yr % Chg.) 4.1% 5.4%

Employment IndicatorsQ1 17 Q1 18 12-Month

Forecast

Total Nonfarm Employment 145.8M 148.1M

Industrial Employment 31.5M 32.3M

Unemployment 4.7% 4.1%

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

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Forecast

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2014 2015 2016 2017 2018

Historical Average = 8.4%

Forecast

No Signs of Slowing

Strong Start: U.S. industrial markets absorbed 56.9 million square feet (msf) in the first quarter of 2018 (Q1 2018), making it the fourth strongest start to a year of the past 30 years; only the record-setting 2016 and prior cycle highs of 2007 and 1999 were stronger. Each U.S. region performed well during the quarter, with the South and West leading absorption gains and the Northeast posting the greatest year-over-year improvement. Absorption in the Midwest remained solid, in line with 2016/2017 tallies. Leasing velocity accelerated in half of the U.S. markets, with more than three-quarters of the country registering net occupancy gains. Demand for U.S. industrial space is expected to remain strong throughout 2018, with quarterly net absorption forecast to average 58.1 msf. While that forecast is lower than the quarterly average of 61.6 msf of actual net absorption in 2017, it is higher than the 56.4 msf of quarterly net absorption of the past seven years.

Broad-Based Gains: Occupancy gains were broad-based in Q1 2018, with logistics product absorbing 51.0 msf, manufacturing footprints expanding by 2.4 msf, and flex growing by 2.9 msf. The Midwest led manufacturing and flex activity, while the West and South regions had the strongest warehouse performance. Logistics-related leasing was driven by the Inland Empire, Pennsylvania I-81/I-78 Distribution Corridor, Atlanta, Central New Jersey, Dallas, Miami and Kansas City; these markets combined accounted for more than half the nation’s warehouse absorption. Chicago, Philadelphia, San Jose, Cincinnati, and Hartford registered the best performance in manufacturing product. For flex space, Salt Lake City, Miami, Detroit, Milwaukee, Pittsburgh, Kansas City, and Minneapolis accounted for nearly 90% of the segment’s growth.

Nowhere to Go: The industrial market continued to tighten in Q1 2018 with vacancy rates falling in two-thirds of the country. At 5.0%, the U.S. overall vacancy rate is a full 330 basis points (bps) below the 10-year historical average of 8.4% for all product types. The tightest U.S. markets include Savannah, Los Angeles, San Francisco, Orange County, Fort Myers/Naples, San Jose, Central New Jersey and El Paso, all of which have headline vacancy rates of 3% or lower. Logistics-related vacancy declined by 10 bps in Q1 2018 despite the delivery of 43.3 msf of speculative warehouse product. Space options are particularly tight in the 100,000-to-250,000-square-foot size segment where new supply has lagged, and leasing demand has recently spiked. Deal volume by tenants taking space in the 250,0000-to-500,000-square-foot segments was up 16.9% in the quarter, while activity in the bulk segment of 500,000-square-feet and above continued to decline gradually from its Q3 2017 peak. The amount of available logistics space and its characteristics will remain a key storyline in 2018: 61.2% of available logistics space is more than 20 years old, and over half of it possesses clear heights below 28 feet. That presents limited options for tenants seeking modern space.

Rents Rising Faster: Rent growth accelerated in Q1 2018, with more room to run. U.S. industrial rents increased 5.4% in Q1 2018 from a year ago, rising in 59 of 79 markets tracked by Cushman & Wakefield; 19 markets reported double-digit gains. Among the regions, year-over-year rent growth was strongest in the South (7.1%) and West (6.0%) and more moderate in the Midwest (4.9%) and Northeast (4.1%). The highest rent growth was in Seattle, Sacramento, San Francisco, Jacksonville, Nashville, Raleigh/Durham and Oakland—all markets where rents increased more than 14% year-over-year. Although overall industrial rents currently stand at a record high of $5.99 per square foot (psf), on an inflation-adjusted basis they remain 4.9% below the level at the height of the last cycle. Strong occupier demand for high-quality space and infill sites capable

Source: Cushman & Wakefield Research

Source: BLS



MARKETBEAT

Development Pipeline Is Growing UNDER CONSTRUCTION (MSF)

Supply Will Not Run Away From Demand DELIVERIES BY TYPE AND NET ABSORPTION (MSF)

Tight Market Conditions Continue OVERALL INDUSTRIAL VACANCY RATE

Outlook• Demand drivers point to growth in 2018 with strong absorption

in markets with sufficient supply and robust rent growth in markets facing supply constraints.

• We forecast total retail and food sales to accelerate to 5.2%, and for eCommerce sales to grow by 16.4%, in 2018.

• Net absorption is expected to surpass 230 msf in 2018 for the third year in a row, and eclipse 200 msf in 2019 for a sixth year.

• Developers will exercise caution, with deliveries modestly outpacing demand, allowing vacancy rates to hover in the 5% range through 2018/2019.

• Rent growth will remain strong in 2018, softening slowly late in the year with rent growth gradually decelerating in 2019.




of supporting omnichannel fulfillment amid a historically tight market mean 2018 is expected to be another year of robust rent growth.

Development Picking Up: New construction starts rose by 3.6% nationally in Q1 2018 with 42 markets reporting development levels increasing quarter-over-quarter. The largest uptick in construction activity occurred in the South and West regions, as is often the case during any first quarter when seasonality limits activity in the Northeast and Midwest. Currently, there is 251.3 msf of industrial product under construction, of which 164.1 msf is speculative. Although five markets—Inland Empire, Dallas, Pennsylvania I-81/I-78 Distribution Corridor, Atlanta, and Central Valley California—account for over one-third of the development pipeline, 47 markets have more than 1 msf under construction. Activity is expected to increase, but increasing construction costs, scarcity of entitled land and labor, discerning lenders, and caution among developers diminished the likelihood that supply will outstrip demand.

Full Speed AheadDemand Drivers Look Great: Economic fundamentals remain solid, underpinned by a strong job market. An average of 202,000 new jobs have been created every month in 2018—more than the monthly averages in both 2016 and 2017. Industrial output rose 3.2% in the six months ending February—the largest 6-month growth rate for any period since 2010. Intermodal rail volume—which correlates closely with warehouse demand—rolled to its second highest weekly average ever in February, and March volume following was the strongest March on record. Strength is also evident in U.S. retail sales for March, which recorded an increase in sales at auto dealers, furniture and home stores, and electronic and appliance sellers.

Trade Rhetoric vs. Reality: Trade rhetoric has roiled equity markets and interjected a layer of complexity for logisticians. Trade reality is much different than the rhetoric. Little formal trade policy has taken effect and many countries initially subjected to steel and aluminum tariffs have received exemptions. NAFTA negotiations are showing signs of promise, and recent dialogue between the U.S. and China has taken a more conciliatory tone. Trade policy and geopolitical threats will remain headwinds but a strong job market, rising incomes that allow consumers to purchase more, elevated confidence that emboldens them to spend, and strong corporate earnings that encourage businesses to invest all point to stronger growth in 2018.

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MarketBeat U.S. Q1 2018 cushmanwakefield.com | 3

Net Absorption Leasing Activity

Demand Indicators (Overall) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018p Q1 2018p

United States 56,496,898 61,153,434 65,352,828 63,337,868 56,855,055 108,216,084

Northeast 5,895,761 12,161,672 8,861,433 5,186,345 10,728,051 14,846,171

Midwest 12,182,398 11,482,199 14,367,981 20,129,097 11,033,792 24,609,432

South 24,494,410 26,155,561 25,175,978 21,782,491 18,395,360 30,039,151

West 13,924,329 11,354,002 16,947,436 16,239,935 16,697,852 38,721,330

U.S. Industrial Report Markets Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018p Q1 2018p

Atlanta, GA 6,399,144 6,264,777 3,648,731 4,088,694 4,742,224 5,172,040

Austin, TX -209,019 134,562 -310,320 333,881 88,415 585,256

Baltimore, MD 506,693 3,729,126 2,000,608 747,727 461,676 602,386

Binghamton, NY 99,383 80,590 40,000 67,346 0 0

Birmingham, AL -340,522 12,600 41,451 54,771 73,651 139,940

Boston, MA -267,560 116,651 -141,078 492,001 278,374 1,523,439

Buffalo, NY -952,685 94,497 164,966 -924,409 -419,352 419,764

Central Valley, CA -839,196 608,268 1,117,105 921,226 1,294,976 2,326,487

Charleston, SC 1,329,240 -288,998 -412,412 -129,871 123,934 766,396

Charlotte, NC 389,560 1,162,803 349,467 188,684 398,436 777,456

Chicago, IL 2,230,409 6,553,318 2,099,650 6,156,467 3,974,101 7,156,627

Cincinnati, OH 4,263,420 186,615 424,580 1,064,784 915,287 1,620,185

Cleveland, OH 180,990 739,053 119,114 -287,548 1,362,622 1,163,404

Colorado Springs, CO 91,382 -2,312 -226,085 18,596 201,930 257,834

Columbus, OH 193,936 -195,634 1,426,826 1,812,261 320,010 1,552,032

Dallas/Ft. Worth, TX 7,966,900 6,399,621 6,888,446 4,640,129 3,232,198 4,877,241

Dayton, OH 621,366 192,475 -148,694 489,070 -74,859 53,260

Denver, CO 70,166 1,167,416 1,347,621 1,543,466 202,718 1,185,633

Detroit, MI 10,481 11,961 1,091,403 2,555,549 -226,368 2,028,359

El Paso, TX 76,000 357,161 376,794 321,135 372,123 773,195

Fort Myers/Naples, FL 160,361 196,483 -28,025 73,330 -43,593 363,581

Fredericksburg, VA -133,487 184,638 49,387 56,102 868,508 101,843

Ft. Lauderdale, FL 570,792 49,340 179,962 514,548 -82,052 983,300

Greenville, SC 1,509,164 765,525 502,474 394,982 1,800,991 1,795,119

Hampton Roads, VA 491,781 1,167,591 576,275 -36,520 302,709 349,160

Hartford, CT 183,652 261,345 27,817 135,148 337,698 372,597

Houston, TX 1,295,674 788,676 3,209,316 -104,023 57,739 2,276,680

Indianapolis, IN 468,287 458,889 2,313,853 3,716,487 647,116 3,074,876

Inland Empire CA 4,238,816 3,670,698 7,126,381 4,688,875 6,291,318 9,154,302

Jacksonville, FL 294,531 604,702 1,826,645 1,423,221 368,066 859,657

Kansas City, MO 2,458,089 2,917,834 1,682,050 2,117,643 2,037,146 2,796,834

Lakeland, FL 300,673 30,604 293,766 36,455 354,284 127,780

Las Vegas, NV 753,845 638,981 686,224 1,774,450 1,600,411 1,143,282

Long Island, NY -163,183 60,528 253,587 852,791 -325,352 667,050

Los Angeles, CA 1,817,627 1,212,513 1,837,210 1,022,046 1,493,698 9,994,018

Louisville, KY 516,917 58,395 1,245,202 1,222,039 1,637,427 1,203,388

Memphis, TN 1,719,834 1,219,093 486,717 662,189 n/a n/a

Miami, FL 716,099 -272,557 128,146 730,241 2,060,051 2,036,406

Milwaukee, WI 100,727 354,717 1,493,471 -56,043 813,894 480,259

Minneapolis, MN -361,946 477,473 872,326 825,334 592,886 n/a

Demand Indicators




Nashville, TN 625,416 -200,280 1,675,012 120,526 363,767 908,645

New Haven, CT 107,072 18,838 5,477 175,696 112,991 197,598

New Jersey - Central 1,765,243 2,548,178 2,809,359 2,184,634 3,890,321 4,173,654

New Jersey - Northern 689,129 1,364,765 497,798 1,664,946 -117,749 2,208,903

Northern VA 133,525 158,067 -20,211 35,291 16,212 558,873

Oakland/East Bay, CA 371,786 210,153 -1,569,379 660,234 -178,872 1,623,432

Oklahoma City, OK -56,356 -229,173 -542,074 N/A -3,545 282,099

Omaha, NE 130,509 146,433 349,921 455,995 -136,317 159,588

Orange County, CA 181,240 166,598 -143,511 -261,531 -130,959 1,740,922

Orlando, FL 169,416 989,386 462,458 789,720 587,900 681,534

Palm Beach County, FL 132,122 174,307 362,784 101,677 73,537 454,298

PA I-81/I-78 Distribution Corridor 2,309,040 4,642,512 3,541,623 844,371 4,777,838 3,109,193

Philadelphia, PA 1,418,070 1,422,735 1,437,888 611,009 1,139,650 1,531,487

Phoenix, AZ 2,105,250 1,199,401 2,571,976 2,600,022 1,394,165 1,836,246

Pittsburgh, PA 283,316 765,481 -650,575 -356,733 912,161 285,801

Portland, OR 645,643 829,963 870,133 -72,333 -633,444 1,452,233

Providence, RI 101,650 87,648 63,199 313,632 71,456 71,456

Puget Sound - Eastside 99,512 74,918 -182,255 220,980 524,863 763,351

Raleigh/Durham, NC -247,778 76,732 317,502 -294,394 143,571 572,717

Richmond, VA 480,166 595,183 705,151 1,022,908 -135,089 555,002

Roanoke, VA -442,290 170,468 95,604 6,011 480,115 241,088

Rochester, NY -4,470 407,166 407,166 -594,469 101,023 34,609

Sacramento, CA 770,177 483,538 1,379,668 1,426,115 1,260,063 1,282,663

Salt Lake City, UT 1,372,941 1,042,903 798,628 723,096 1,039,351 616,141

San Antonio, TX 57,024 439,830 135,180 -203,074 76,360 488,528

San Diego, CA 330,736 17,518 844,640 103,378 -85,162 1,667,853

San Francisco North Bay, CA 105,774 46,381 71,827 39,783 -107,480 106,181

San Francisco Peninsula, CA -15,400 233,572 762 15,292 26,778 162,000

San Jose (Silicon Valley), CA 276,251 -463,286 -177,705 346,282 683,222 1,261,451

Savannah, GA 0 1,183,500 0 3,855,811 0 0

Seattle, WA 1,505,694 96,309 561,459 251,674 1,762,853 2,015,848

Southern New Hampshire 378,928 60,340 184,217 -302,661 -118,498 189,254

St. Louis, MO 1,886,130 -360,935 2,643,481 1,279,098 808,274 4,524,008

St. Petersburg/Clearwater, FL 97,885 174,396 123,416 225,964 -179,626 77,306

Suburban MD -2,323 -56,959 37,371 316,522 61,323 423,623

Syracuse, NY -51,824 230,398 219,989 23,043 87,490 61,366

Tampa, FL 187,495 90,095 677,735 587,815 35,773 455,312

Tucson, AZ 42,085 120,470 32,737 218,284 57,423 131,453

Tulsa, OK -200,227 25,867 93,420 N/A 58,275 549,302

Demand Indicators

p = preliminary


Vacancy Rates

Overall Vacancy Rate Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018p

United States 5.3% 5.3% 5.1% 5.1% 5.0%

Northeast 5.7% 5.5% 5.3% 5.3% 4.9%

Midwest 5.5% 5.4% 5.4% 5.3% 5.3%

South 6.5% 6.5% 6.2% 6.1% 6.0%

West 3.7% 3.6% 3.7% 3.7% 3.5%

U.S. Industrial Report Markets Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018p

Atlanta, GA 8.7% 8.4% 7.8% 7.7% 8.1%

Austin, TX 9.5% 8.6% 9.5% 8.8% 9.2%

Baltimore, MD 7.9% 7.3% 6.9% 6.4% 6.4%

Binghamton, NY 11.3% 10.3% 9.8% 9.9% 8.8%

Birmingham, AL 11.4% 11.3% 10.8% 10.6% 10.2%

Boston, MA 6.6% 6.5% 6.4% 6.2% 5.9%

Buffalo, NY 9.2% 9.0% 8.9% 9.1% 9.2%

Central Valley, CA 3.4% 3.3% 2.8% 3.3% 4.0%

Charleston, SC 4.7% 6.0% 8.0% 8.1% 9.4%

Charlotte, NC 3.4% 3.6% 3.5% 3.4% 5.1%

Chicago, IL 6.4% 6.3% 6.7% 6.8% 6.8%

Cincinnati, OH 3.0% 3.3% 3.4% 3.2% 3.7%

Cleveland, OH 4.6% 4.2% 3.8% 3.9% 3.5%

Colorado Springs, CO 10.1% 10.0% 10.6% 10.7% 9.7%

Columbus, OH 5.6% 5.9% 5.1% 4.7% 4.8%

Dallas/Ft. Worth, TX 7.2% 6.9% 6.8% 7.0% 6.3%

Dayton, OH 7.7% 7.6% 8.2% 8.3% 7.8%

Denver, CO 4.9% 4.8% 4.8% 4.9% 5.0%

Detroit, MI 3.5% 3.5% 3.1% 2.9% 2.9%

El Paso, TX 6.8% 5.7% 5.0% 3.2% 2.7%

Fort Myers/Naples, FL 2.2% 2.0% 1.8% 1.9% 2.1%

Fredericksburg, VA 6.6% 5.3% 4.7% 5.3% 5.5%

Ft. Lauderdale, FL 4.5% 4.4% 4.0% 2.9% 3.8%

Greenville, SC 6.5% 6.2% 5.8% 5.8% 5.5%

Hampton Roads, VA 4.9% 4.7% 4.1% 4.4% 4.2%

Hartford, CT 8.1% 8.3% 8.1% 7.9% 7.1%

Houston, TX 7.0% 6.8% 6.2% 6.3% 6.0%

Indianapolis, IN 5.1% 5.1% 5.5% 5.3% 5.5%

Inland Empire CA 4.0% 4.1% 4.0% 4.1% 3.9%

Jacksonville, FL 5.6% 5.4% 4.8% 4.0% 3.4%

Kansas City, MO 8.3% 7.5% 7.1% 7.2% 7.4%

Lakeland, FL 5.1% 5.1% 3.9% 3.9% 4.9%

Las Vegas, NV 5.2% 5.4% 6.0% 6.2% 6.2%

Long Island, NY 6.8% 6.9% 6.5% 5.6% 5.1%

Los Angeles, CA 1.3% 1.2% 1.2% 1.3% 1.3%

Louisville, KY 7.2% 7.7% 8.1% 7.7% 7.2%

Memphis, TN 8.1% 8.4% 8.2% 7.8% 7.8%

Miami, FL 4.2% 5.0% 4.7% 4.7% 4.3%

Milwaukee, WI 4.5% 4.5% 3.8% 4.1% 4.1%

Minneapolis, MN 8.7% 8.7% 8.0% 8.5% 8.7%


Vacancy Rates


Nashville, TN 3.2% 2.9% 3.3% 3.5% 3.4%

New Haven, CT 9.2% 9.8% 9.8% 9.5% 7.8%

New Jersey - Central 4.1% 4.3% 3.6% 3.3% 2.6%

New Jersey - Northern 5.5% 4.8% 4.6% 4.4% 4.7%

Northern VA 8.8% 8.5% 8.7% 8.4% 10.1%

Oakland/East Bay, CA 2.1% 2.3% 3.3% 3.0% 3.1%

Oklahoma City, OK 6.8% 7.5% 9.0% 9.0% 4.9%

Omaha, NE 3.1% 3.3% 3.6% 3.4% 2.4%

Orange County, CA 2.0% 1.9% 1.9% 1.9% 1.9%

Orlando, FL 5.1% 5.6% 5.5% 5.4% 5.1%

Palm Beach County, FL 3.5% 3.6% 3.3% 2.7% 3.0%

PA I-81/I-78 Distribution Corridor 5.1% 5.3% 5.3% 5.1% 4.8%

Philadelphia, PA 3.9% 3.7% 3.4% 4.0% 3.3%

Phoenix, AZ 8.9% 8.6% 8.3% 7.9% 7.8%

Pittsburgh, PA 5.7% 4.8% 4.8% 5.4% 5.4%

Portland, OR 3.9% 3.2% 3.5% 3.9% 4.2%

Providence, RI 0.2% 0.2% 0.1% 0.1% 0.0%

Puget Sound - Eastside 4.3% 4.3% 4.9% 4.7% 4.3%

Raleigh/Durham, NC 6.5% 6.2% 5.5% 6.0% 5.5%

Richmond, VA 5.0% 4.9% 3.7% 3.7% 3.9%

Roanoke, VA 8.0% 7.3% 7.1% 7.2% 7.0%

Rochester, NY 9.6% 9.0% 9.0% 9.8% 9.7%

Sacramento, CA 7.6% 7.3% 6.3% 5.9% 4.8%

Salt Lake City, UT 6.1% 5.4% 5.8% 5.6% 3.3%

San Antonio, TX 9.1% 8.2% 8.0% 8.8% 8.4%

San Diego, CA 5.1% 5.1% 4.8% 4.8% 4.8%

San Francisco North Bay, CA 5.1% 5.2% 4.8% 4.6% 5.2%

San Francisco Peninsula, CA 2.6% 2.1% 2.1% 2.0% 1.6%

San Jose (Silicon Valley), CA 3.0% 3.4% 3.6% 3.2% 2.4%

Savannah, GA 3.0% 3.2% 3.2% 1.2% 1.2%

Seattle, WA 3.4% 3.7% 4.2% 4.1% 3.5%

Southern New Hampshire 6.3% 6.8% 7.5% 8.2% 6.3%

St. Louis, MO 6.7% 6.8% 6.7% 6.0% 6.1%

St. Petersburg/Clearwater, FL 4.1% 4.0% 3.5% 3.6% 3.8%

Suburban MD 9.9% 10.5% 10.4% 9.7% 9.7%

Syracuse, NY 10.7% 9.9% 8.8% 8.8% 8.6%

Tampa, FL 5.0% 5.4% 5.2% 5.3% 5.8%

Tucson, AZ 7.4% 7.1% 8.2% 6.6% 6.3%

Tulsa, OK 8.8% 9.1% 8.9% 8.9% 3.2%

p = preliminary


Asking Rents

Overall (All Property Types) W/D MFG

Weighted Average Asking Rent Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018p Q1 2018p

United States $5.68 $5.70 $5.80 $5.84 $5.99 $5.39 $5.77

Northeast $6.17 $6.03 $6.03 $6.17 $6.42 $6.23 $5.15

Midwest $4.48 $4.57 $4.61 $4.61 $4.70 $4.38 $4.65

South $5.23 $5.27 $5.45 $5.41 $5.60 $5.03 $4.69

West $7.83 $7.91 $7.98 $8.12 $8.30 $7.23 $8.68


Atlanta, GA $4.31 $4.35 $4.54 $4.47 $4.83 $4.08 $3.78

Austin, TX $9.27 $9.21 $9.34 $9.24 $10.08 $8.21 $10.78

Baltimore, MD $5.08 $4.78 $5.10 $5.70 $5.75 $5.21 n/a

Binghamton, NY $4.70 $4.64 $4.58 $4.57 $4.57 $4.09 $4.29

Birmingham, AL $4.18 $4.23 $4.09 $4.02 $3.98 $3.71 n/a

Boston, MA $6.61 $6.85 $6.97 $8.17 $7.45 $6.64 $8.78

Buffalo, NY $4.13 $4.13 $4.13 $4.13 $4.13 $4.25 $3.95

Central Valley, CA $4.32 $4.25 $4.24 $4.75 $4.20 $4.44 $3.36

Charleston, SC $5.36 $5.35 $5.48 $5.52 $5.54 $5.56 $4.70

Charlotte, NC $5.11 $5.27 $5.42 $5.21 $5.27 $4.79 $4.10

Chicago, IL $4.87 $4.98 $5.03 $5.08 $5.19 $4.95 $4.84

Cincinnati, OH $4.33 $4.27 $4.33 $4.25 $4.34 $4.11 $3.50

Cleveland, OH $3.99 $4.10 $4.12 $4.15 $4.30 $3.99 n/a

Colorado Springs, CO $6.78 $7.43 $7.37 $7.85 $8.06 $7.46 $7.19

Columbus, OH $3.46 $3.46 $3.46 $3.50 $3.55 $3.55 n/a

Dallas/Ft. Worth, TX $4.86 $4.93 $5.59 $5.06 $5.40 $4.27 $4.22

Dayton, OH $3.32 $3.32 $3.33 $3.26 $3.29 $3.63 $2.95

Denver, CO $8.03 $8.10 $8.03 $7.96 $7.78 $6.38 $7.24

Detroit, MI $5.36 $5.53 $5.56 $5.57 $5.79 $5.40 $5.10

El Paso, TX $3.95 $3.95 $4.00 $4.10 $4.10 $4.10 $4.00

Fort Myers/Naples, FL $7.44 $7.45 $7.50 $7.61 $7.72 $7.30 $8.65

Fredericksburg, VA $5.71 $5.69 $5.73 $5.73 $5.79 $5.45 $4.62

Ft. Lauderdale, FL $8.92 $9.12 $9.21 $9.27 $9.45 $8.91 $10.18

Greenville, SC $3.58 $3.58 $3.63 $3.60 $3.43 $3.32 $3.21

Hampton Roads, VA $5.08 $5.05 $5.00 $5.28 $5.44 $5.18 $5.97

Hartford, CT $4.53 $4.21 $4.24 $4.28 $4.47 $4.60 $3.89

Houston, TX $6.23 $6.28 $6.40 $6.44 $6.22 $6.12 $5.81

Indianapolis, IN $3.70 $3.74 $3.76 $3.80 $3.88 $3.58 $3.31

Inland Empire CA $7.28 $7.42 $7.52 $7.61 $7.69 $6.92 $8.31

Jacksonville, FL $4.63 $4.74 $4.98 $5.37 $5.52 $4.76 $9.49

Kansas City, MO $4.38 $4.45 $4.43 $4.27 $4.20 $3.57 $4.04

Lakeland, FL $5.17 $5.18 $5.76 $5.54 $5.45 $5.01 $5.95

Las Vegas, NV $7.14 $6.80 $6.81 $6.82 $6.75 $6.60 $6.36

Long Island, NY $9.97 $9.25 $9.21 $9.44 $10.68 $9.98 $10.74

Los Angeles, CA $9.25 $9.05 $9.00 $9.36 $9.85 $9.46 $8.86

Louisville, KY $3.76 $3.76 $3.70 $3.73 $3.81 $3.73 $3.14

Memphis, TN $2.73 $2.81 $2.75 $2.75 $2.75 n/a n/a

Miami, FL $7.98 $8.13 $8.25 $8.45 $8.79 $8.84 $7.32

Milwaukee, WI $4.45 $4.55 $4.59 $4.64 $4.57 $4.00 $4.84

Minneapolis, MN $4.79 $4.80 $4.90 $4.88 $4.90 $4.65 n/a


Asking Rents

p = preliminary



Nashville, TN $4.18 $5.14 $5.03 $5.09 $4.95 $4.95 $3.65

New Haven, CT $5.33 $4.62 $5.15 $5.35 $5.57 $4.64 $5.64

New Jersey - Central $7.31 $7.40 $7.39 $7.58 $7.69 $6.97 $5.49

New Jersey - Northern $7.60 $7.78 $7.82 $8.56 $8.57 $8.49 $8.23

Northern VA $11.15 $11.16 $11.12 $11.36 $11.18 $9.15 n/a

Oakland/East Bay, CA $9.12 $10.17 $10.10 $10.43 $10.40 $9.26 $11.34

Oklahoma City, OK $4.86 $4.98 $4.95 $4.95 $5.28 $4.92 $4.68

Omaha, NE $5.63 $5.57 $5.57 $5.55 $5.55 $5.34 $3.89

Orange County, CA $11.10 $11.40 $10.74 $11.24 $11.61 $10.22 $10.88

Orlando, FL $6.32 $6.29 $6.38 $6.48 $6.45 $5.61 $6.44

Palm Beach County, FL $11.12 $10.62 $10.56 $10.69 $10.74 $9.83 $9.77

PA I-81/I-78 Distribution Corridor $4.72 $4.74 $4.75 $4.77 $4.80 $4.81 $4.50

Philadelphia, PA $4.81 $4.95 $4.58 $4.51 $4.76 $4.53 $4.57

Phoenix, AZ $7.03 $6.80 $6.80 $6.70 $6.91 $5.28 $7.71

Pittsburgh, PA $7.54 $7.09 $7.68 $7.58 $8.59 $5.59 $4.28

Portland, OR $7.73 $8.34 $8.38 $8.50 $8.53 $7.24 $9.74

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a

Puget Sound - Eastside $12.27 $12.12 $12.24 $11.76 $11.75 $10.24 $7.31

Raleigh/Durham, NC $7.28 $7.50 $7.71 $8.70 $8.51 $5.87 $8.18

Richmond, VA $4.70 $4.80 $5.03 $4.92 $4.83 $4.65 $4.81

Roanoke, VA $4.43 $4.76 $4.99 $4.98 $5.21 $4.55 $7.11

Rochester, NY $4.84 $4.84 $4.84 $4.84 $5.40 $3.75 $4.75

Sacramento, CA $4.66 $4.93 $5.08 $5.06 $5.64 $5.64 $5.28

Salt Lake City, UT $5.37 $5.49 $5.64 $5.82 $5.65 $5.83 $4.15

San Antonio, TX $5.79 $5.79 $5.75 $5.79 $6.08 $5.29 n/a

San Diego, CA $12.00 $11.76 $11.88 $12.36 $12.48 $9.12 $11.04

San Francisco North Bay, CA $9.97 $11.54 $11.97 $11.69 $11.97 $11.86 $16.27

San Francisco Peninsula, CA $14.72 $16.18 $16.42 $17.72 $17.62 $17.11 $20.24

San Jose (Silicon Valley), CA $12.00 $12.48 $12.12 $13.20 $13.08 $12.00 $14.28

Savannah, GA $4.75 $4.69 $4.69 $4.62 $4.62 $4.33 n/a

Seattle, WA $7.15 $7.38 $7.45 $7.61 $8.73 $8.29 $7.15

Southern New Hampshire $5.90 $5.72 $5.62 $5.79 $5.92 $5.06 $5.51

St. Louis, MO $4.45 $4.58 $4.62 $4.47 $4.57 $4.20 $9.93

St. Petersburg/Clearwater, FL $7.93 $8.05 $7.99 $8.12 $7.86 $6.18 $6.09

Suburban MD $10.11 $9.36 $9.21 $9.37 $10.02 $8.31 n/a

Syracuse, NY $3.85 $4.07 $4.08 $4.02 $3.94 $4.19 $3.24

Tampa, FL $6.15 $5.77 $5.85 $5.72 $5.74 $5.08 $4.20

Tucson, AZ $6.44 $6.29 $6.37 $6.23 $6.09 $5.94 $5.01

Tulsa, OK $4.52 $4.53 $4.54 $4.54 $4.69 $4.78 $4.34


Inventory

Inventory Inventory Deliveries YTD 2018 Under Construction as of Q1 2018p

United States 14,410,824,692 58,799,986 251,252,728

Northeast 1,993,641,042 8,791,831 35,742,136

Midwest 3,980,416,040 13,555,670 46,547,019

South 4,455,891,503 21,504,739 95,617,226

West 3,980,876,107 14,947,746 73,346,347

U.S. Industrial Report Markets Inventory Deliveries YTD 2018 Under Construction as of Q1 2018p

Atlanta, GA 595,218,856 5,295,533 16,455,440

Austin, TX 41,563,750 350,171 1,425,067

Baltimore, MD 206,480,254 839,200 6,206,238

Binghamton, NY 17,266,122 0 0

Birmingham, AL 14,636,022 127,000 872,500

Boston, MA 145,612,419 45,000 3,064,775

Buffalo, NY 110,137,656 108,000 637,157

Central Valley, CA 124,812,694 1,309,285 9,227,339

Charleston, SC 67,701,399 2,004,601 4,586,278

Charlotte, NC 190,510,328 1,679,322 3,042,678

Chicago, IL 1,199,111,877 3,363,887 7,544,990

Cincinnati, OH 286,357,688 2,516,071 3,315,073

Cleveland, OH 493,267,300 755,000 3,668,270

Colorado Springs, CO 27,985,210 0 150,000

Columbus, OH 250,114,480 765,226 6,969,125

Dallas/Ft. Worth, TX 717,443,390 3,077,808 20,172,705

Dayton, OH 118,524,616 83,600 1,013,750

Denver, CO 242,223,330 213,800 4,631,834

Detroit, MI 535,827,638 696,874 4,520,054

El Paso, TX 52,409,401 373,760 697,662

Fort Myers/Naples, FL 41,657,618 42,715 524,521

Fredericksburg, VA 13,547,393 0 0

Ft. Lauderdale, FL 88,377,590 553,693 1,526,763

Greenville, SC 190,880,359 0 2,506,460

Hampton Roads, VA 98,264,807 50,000 195,000

Hartford, CT 93,012,333 133,200 1,255,000

Houston, TX 423,531,502 2,006,427 6,535,264

Indianapolis, IN 257,512,784 669,044 5,760,586

Inland Empire CA 523,896,800 5,909,554 25,649,881

Jacksonville, FL 106,009,294 0 1,175,100

Kansas City, MO 217,905,877 2,618,804 3,695,142

Lakeland, FL 31,571,987 636,120 650,808

Las Vegas, NV 121,262,863 1,275,681 2,460,469

Long Island, NY 132,569,626 42,000 137,582

Los Angeles, CA 1,067,244,749 2,502,195 4,153,169

Louisville, KY 158,118,608 1,411,889 5,590,250

Memphis, TN 192,588,615 N/A 5,261,192

Miami, FL 159,149,333 1,358,260 3,562,595

Milwaukee, WI 200,343,420 627,045 837,874

Minneapolis, MN 109,941,772 732,579 1,232,534


Inventory


Nashville, TN 207,732,278 0 4,505,896

New Haven, CT 47,972,701 80,500 855,000

New Jersey - Central 341,840,626 1,873,715 7,398,822

New Jersey - Northern 285,915,667 591,665 1,235,519

Northern VA 61,757,118 266,719 370,850

Oakland/East Bay, CA 205,166,608 391,834 2,915,424

Oklahoma City, OK 71,654,890 20,046 0

Omaha, NE 68,150,732 33,600 1,698,262

Orange County, CA 283,638,824 0 1,520,658

Orlando, FL 118,645,912 705,005 1,639,228

Palm Beach County, FL 41,501,932 166,392 146,253

PA I-81/I-78 Distribution Corridor 268,806,266 4,527,469 17,261,326

Philadelphia, PA 139,818,225 0 3,573,850

Phoenix, AZ 312,048,160 1,487,709 4,943,167

Pittsburgh, PA 168,467,168 150,282 143,500

Portland, OR 198,398,446 839,323 3,487,528

Providence, RI 77,727,305 0 0

Puget Sound - Eastside 60,756,319 0 726,294

Raleigh/Durham, NC 53,576,565 136,500 159,600

Richmond, VA 95,136,133 95,000 820,447

Roanoke, VA 50,835,950 0 0

Rochester, NY 73,551,473 0 0

Sacramento, CA 140,877,069 0 934,770

Salt Lake City, UT 124,177,486 477,759 3,634,305

San Antonio, TX 39,429,211 0 1,573,429

San Diego, CA 162,528,199 0 3,290,206

San Francisco North Bay, CA 25,432,841 0 422,128

San Francisco Peninsula, CA 41,886,372 0 0

San Jose (Silicon Valley), CA 85,419,650 0 634,118

Savannah, GA 55,642,703 0 3,388,742

Seattle, WA 190,166,201 540,606 4,322,323

Southern New Hampshire 48,200,877 1,240,000 0

St. Louis, MO 243,357,856 693,940 6,291,359

St. Petersburg/Clearwater, FL 47,780,757 0 126,000

Suburban MD 50,136,334 0 458,910

Syracuse, NY 42,742,578 0 179,605

Tampa, FL 80,141,279 137,500 1,094,270

Tucson, AZ 42,954,286 0 242,734

Tulsa, OK 92,259,935 171,078 347,080

p = preliminary

Methodology

Cushman & Wakefield’s quarterly estimates are derived from a variety of data sources, including its own proprietary database, and historical data from third party data sources. The market statistics are calculated from a base building inventory made up of industrial properties deemed to be competitive in the local industrial markets. Generally, owner-occupied and federally-owned buildings are not included. Older buildings unfit for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is defined as space that is available immediately or imminently after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space. The figures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received.

Regional Map

WestMidwestSouthNortheast

Jason Tolliver Head of Logistics & Industrial Research Americas Tel: +1 317.639.0549 cushmanwakefield.com

Explanation of Terms

Total Inventory: The total amount of industrial space (in buildings of a

predetermined size by market) that can be rented by a third party.

Overall Vacancy Rate: The amount of unoccupied space (new, relet, and

sublet) expressed as a percentage of total inventory.

Absorption: The net change in occupied space between two points in time.

(Total occupied space in the present quarter minus total occupied space from

the previous quarter, quoted on a net, not gross, basis.)

Leasing Activity: The sum of all leases over a period of time. This includes

pre-leasing activity as well as expansions. It does not include renewals.

Overall Weighted Asking Rents: NNN average asking rents weighted by the

amount of available direct and sublease space in industrial properties.

W/D: Warehouse and or distribution properties.

MFG: Manufacturing properties.

About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

Cushman & Wakefield Copyright 2018. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Carolyn Salzer Analyst, Logistics & Industrial Research Americas Tel: +1 847.518.3212 cushmanwakefield.com



MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy


Market Indicators








Forecast




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Forecast

Industrial Market Shows No Signs of Slowing

Another Banner Year: U.S. industrial markets absorbed 63.3 million square feet (msf) in the fourth quarter of 2017, boosting net occupancy gains for the year to over 246.3 msf. The U.S. industrial market has now recorded over 240 msf of absorption for four consecutive years—the strongest run on record. The national industrial vacancy rate held at 5.1% for all product types—the lowest rate on record—with market conditions tightening slightly in the Midwest and South. The greatest growth markets in 2017 were Dallas/Ft Worth, Atlanta, the Inland Empire, Chicago and the Pennsylvania I-81/I-78 Distribution Corridor, and together they accounted for 38% of overall U.S. net absorption.

Firing on All Cylinders: Every industrial segment remained in growth mode. Through Q4 2017, warehouse product posted 224.9 msf of net absorption, manufacturing registered 10.2 msf of growth, flex occupancy grew by 7.2 msf and high technology occupancy increased by 2.4 msf. The current industrial expansion is one for the record book. As of January 2018, the industrial sector has registered 31 consecutive quarters of net occupancy gains—the longest expansion ever. It is also among the strongest with net absorption since 2010 surpassing 1.4 trillion square feet.

Tight Conditions: At 5.1%, the U.S. industrial vacancy rate is a full 330 basis points (bps) below the 10-year historical average of 8.4% for all product types. The warehouse market remains tight with vacancy tracking at 5.2% in Q4 2017. Over the past year, logistics-related vacancy has declined 50 bps (from 5.7% to 5.2%) despite the delivery of 168.6 msf of new speculative warehouse product. Strikingly, warehouse vacancy rates remain below prior cycle lows in many industrial markets, with conditions tightening further in Q4 2017 as rates track below 5% in nearly half of all U.S. markets. At year-end 2017, the tightest U.S. markets included Savannah, Los Angeles, Orange County, the San Francisco Peninsula, and Oakland/East Bay, all of which have vacancy rates at 3% or below.

Rents Continue to Run: Healthy demand from logistics and distribution users is fueling rent growth. U.S. industrial rents increased 3.7% in Q4 2017 from a year ago to a record high of $5.84 per square foot (psf). Industrial rents rose in 62 of 79 markets tracked by Cushman & Wakefield during the same period, with many port-proximate industrial markets reporting double-digit gains. Among the regions, year-over-year rent growth in Q4 2017 was strongest in the West (6.1%), followed by the Midwest (4.4%), South (4.1%) and Northeast (2.6%). Rent growth was strongest in Jacksonville, San Francisco, Nashville, Raleigh/Durham, Oakland/East Bay and Seattle—all markets where rents grew more than 12% in 2017.

Conservative Development: New construction starts rose slightly—by 3.5%—in Q4 2017. Currently, there is 242.5 msf of industrial product under construction, of which 161.6 msf is speculative. Although development remains concentrated in major industrial markets, 42 of the 79 markets tracked have over 1 msf under construction. Given the tight market conditions and strong underlying fundamentals, developers are expected be conservative in breaking ground on additional speculative projects, which will slowly bring supply and demand fundamentals closer into balance. Nevertheless, concern over the length of the current economic cycle, the increased institutional nature of developers and financial partners, and lack of land and rising construction costs are likely to prevent dramatic increases in speculative development in most markets.


Source: BLS



MARKETBEAT

Demand in Line with Supply in Many Markets 2017 NET ABSORPTION & NEW DELIVERIES (ALL TYPES, % OF INVENTORY)

Rebalancing of Vacancy Will Occur Slowly CURRENT CONSTRUCTION COMPARED TO 5-YR ABSORPTION AVERAGE

Few Signs of Overbuilding 2017 DELIVERIES BY TYPE & YEAR-OVER-YEAR CHANGE IN VACANCY

Outlook• Logistics-related leasing will continue to benefit from solid

economic fundamentals that spur increased consumer spending.

• Net absorption will once again surpass 200 msf for a fifth year in a row.

• Increased speculative supply will place upward pressure on vacancy as supply/demand begin to slowly rebalance. We forecast average annual vacancy to rise 20 bps in 2018 to 5.3% for all industrial product types.

• Rental rate appreciation will continue, although rent growth will slowly begin to decelerate in 2018. We anticipate average annual rent gains of 2.9% in 2018 for all industrial product types.




Don’t Bet Against the U.S. Economy, More Upside than Downside

Solid Footing: The U.S. economy and industrial market are positioned to perform well in 2018. For the fourth quarter, job gains averaged 204,000 a month, the most since the third quarter of 2016. For all of 2017, U.S. firms created nearly 2.1 million net new jobs, down from 2.2 million in 2016 but almost equal to the 2012-2016 average. Renewed confidence in the economy and higher levels of real discretionary income are anticipated to boost retail sales while a stronger U.S. housing market will buttress leasing demand among firms associated with home building and furnishings. Stronger global growth is also expected to support economic growth and leasing fundamentals. In short, the U.S. economy and industrial market enter 2018 on the strongest footing of any year in the current expansion with few signs of slowing.

Paying-Up: Since 2016, the Employment Cost Index—a quarterly economic series detailing the changes in the costs of labor for businesses in the economy—has risen at a faster pace for warehouse workers than for all civilian workers. This trend is mirrored in forecasts for income: the largest growth in real per capita income is projected to be in industrial markets, particularly those in Florida and distribution-centric markets in Pennsylvania and the Midwest. Since labor typically accounts for at least half of traditional warehouse operating costs, the relationship between labor costs and warehouse operations will remain a key theme in 2018, with occupiers increasingly required to pay-up to ramp-up or keep-up warehousing and fulfillment operations.

Churning it Out: The U.S. manufacturing sector ended 2017 on a strong note with the ISM manufacturing index rising to 59.7 in December—the second fastest pace of expansion in six years. Buoyed by both domestic and international demand, new orders are surging at their fastest pace in more than 13 years. The ISM index expanded at a torrid pace in the third and fourth quarters of 2017. Since August 2017, the index has consistently tracked above 58.2, a rare occurrence. The only other period in the past 40 years that the ISM registered 58 or higher for that many consecutive months was a streak that lasted from November 2003 to August 2004. The rapid pace of expansion and rising backlog of orders indicates continued production and demand for manufacturing and logistics-related real estate in 2018

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United States 63,129,827 56,496,898 61,153,434 65,352,828 63,337,868 126,388,312

Northeast 7,233,913 5,895,761 12,161,672 8,861,433 5,186,345 17,594,167

Midwest 15,788,785 12,182,398 11,482,199 14,367,981 20,129,097 19,751,508

South 27,857,093 24,494,410 26,155,561 25,175,978 21,782,491 41,859,268

West 12,250,036 13,924,329 11,354,002 16,947,436 16,239,935 47,183,369


Atlanta, GA 3,546,425 6,399,144 6,264,777 3,648,731 4,088,694 4,732,413

Austin, TX 116,610 -209,019 134,562 -310,320 333,881 973,567

Baltimore, MD 944,082 506,693 3,729,126 2,000,608 747,727 1,549,674

Binghamton, NY 8,605 99,383 80,590 40,000 67,346 0

Birmingham, AL 33,863 -340,522 12,600 41,451 54,771 62,301

Boston, MA 996,083 -267,560 116,651 -141,078 492,001 1,268,578

Buffalo, NY 1,217,645 -952,685 94,497 164,966 -924,409 246,741

Central Valley, CA 2,031,463 -839,196 608,268 1,117,105 921,226 2,327,454

Charleston, SC 1,001,344 1,329,240 -288,998 -412,412 -129,871 532,312

Charlotte, NC 1,812,029 389,560 1,162,803 349,467 188,684 1,612,913

Chicago, IL 4,149,725 2,230,409 6,553,318 2,099,650 6,156,467 3,417,908

Cincinnati, OH 556,179 4,263,420 186,615 424,580 1,064,784 2,200,770

Cleveland, OH 1,187,461 180,990 739,053 119,114 -287,548 1,556,656

Colorado Springs, CO -160,026 91,382 -2,312 -226,085 18,596 256,249

Columbus, OH 2,080,666 193,936 -195,634 1,426,826 1,812,261 3,070,633


Dayton, OH 525,747 621,366 192,475 -148,694 489,070 87,740

Denver, CO 596,022 70,166 1,167,416 1,347,621 1,543,466 1,452,072

Detroit, MI 985,441 10,481 11,961 1,091,403 2,555,549 1,828,706

El Paso, TX -78,692 76,000 357,161 376,794 321,135 976,900

Fort Myers/Naples, FL 206,876 160,361 196,483 -28,025 73,330 434,591

Fredericksburg, VA 173,790 -133,487 184,638 49,387 56,102 101,200

Ft. Lauderdale, FL 858,893 570,792 49,340 179,962 514,548 1,465,100

Greenville, SC 1,353,175 1,509,164 765,525 502,474 394,982 798,037

Hampton Roads, VA -359,777 491,781 1,167,591 576,275 -36,520 594,345

Hartford, CT 125,862 183,652 261,345 27,817 135,148 695,034

Houston, TX 4,065,736 1,295,674 788,676 3,209,316 -104,023 4,289,307

Indianapolis, IN 1,848,702 468,287 458,889 2,313,853 3,716,487 3,507,962

Inland Empire CA 3,636,653 4,238,816 3,670,698 7,126,381 4,688,875 8,873,364

Jacksonville, FL 161,043 294,531 604,702 1,826,645 1,423,221 1,011,225

Kansas City, MO 1,840,583 2,458,089 2,917,834 1,682,050 2,117,643 2,323,760

Lakeland, FL 93,900 300,673 30,604 293,766 36,455 180,940

Las Vegas, NV 955,129 753,845 638,981 686,224 1,774,450 2,802,346

Long Island, NY -230,288 -163,183 60,528 253,587 852,791 954,300

Los Angeles, CA 250,202 1,817,627 1,212,513 1,837,210 1,022,046 5,962,573

Louisville, KY 322,851 516,917 58,395 1,245,202 1,222,039 1,723,917

Memphis, TN 3,011,967 1,719,834 1,219,093 486,717 662,189 2,996,386

Miami, FL 438,808 716,099 -272,557 128,146 730,241 1,473,547

Milwaukee, WI -12,492 100,727 354,717 1,493,471 -56,043 305,810

Minneapolis, MN 519,293 -361,946 477,473 872,326 825,334 n/a

Demand Indicators




Nashville, TN 2,529,427 625,416 -200,280 1,675,012 120,526 2,101,672

New Haven, CT 293,732 107,072 18,838 5,477 175,696 380,594

New Jersey - Central 702,054 1,765,243 2,548,178 2,809,359 2,184,634 4,445,701

New Jersey - Northern -449,521 689,129 1,364,765 497,798 1,664,946 1,841,238

Northern VA -54,788 133,525 158,067 -20,211 35,291 200,986

Oakland/East Bay, CA 274,100 371,786 210,153 -1,569,379 660,234 3,449,032

Oklahoma City, OK -66,220 -56,356 -229,173 -542,074 n/a n/a

Omaha, NE 204,651 130,509 146,433 349,921 455,995 283,489

Orange County, CA 417,332 181,240 166,598 -143,511 -261,531 1,950,984

Orlando, FL 1,013,276 169,416 989,386 462,458 789,720 439,455


PA I-81/I-78 Distribution Corridor 2,326,714 2,309,040 4,642,512 3,541,623 844,371 5,149,488

Philadelphia, PA 1,520,977 1,418,070 1,422,735 1,437,888 611,009 1,567,135

Phoenix, AZ 1,572,074 2,105,250 1,199,401 2,571,976 2,600,022 6,718,125

Pittsburgh, PA 100,230 283,316 765,481 -650,575 -356,733 507,088

Portland, OR 529,659 645,643 829,963 870,133 -72,333 2,200,213

Providence, RI 102,292 101,650 87,648 63,199 313,632 63,334

Puget Sound - Eastside 303,774 99,512 74,918 -182,255 220,980 526,743

Raleigh/Durham, NC 344,104 -247,778 76,732 317,502 -294,394 641,582

Richmond, VA 263,746 480,166 595,183 705,151 1,022,908 378,429

Roanoke, VA 69,980 -442,290 170,468 95,604 6,011 195,829

Rochester, NY 213,189 -4,470 407,166 407,166 -594,469 45,147

Sacramento, CA 183,313 770,177 483,538 1,379,668 1,426,115 3,020,499

Salt Lake City, UT 442,247 1,372,941 1,042,903 798,628 723,096 1,704,225

San Antonio, TX 142,169 57,024 439,830 135,180 -203,074 0

San Diego, CA 431,283 330,736 17,518 844,640 103,378 1,681,271

San Francisco North Bay, CA 104,199 105,774 46,381 71,827 39,783 317,543

San Francisco Peninsula, CA 72,077 -15,400 233,572 762 15,292 478,477

San Jose (Silicon Valley), CA -36,597 276,251 -463,286 -177,705 346,282 1,382,977

Savannah, GA -358,098 0 1,183,500 0 3,855,811 3,855,811

Seattle, WA 527,043 1,505,694 96,309 561,459 251,674 1,608,822

Southern New Hampshire 18,726 378,928 60,340 184,217 -302,661 301,900

St. Louis, MO 1,902,829 1,886,130 -360,935 2,643,481 1,279,098 1,168,074

St. Petersburg/Clearwater, FL 590,146 97,885 174,396 123,416 225,964 150,896

Suburban MD 250,065 -2,323 -56,959 37,371 316,522 728,167

Syracuse, NY 287,613 -51,824 230,398 219,989 23,043 127,889

Tampa, FL 146,530 187,495 90,095 677,735 587,815 936,962

Tucson, AZ 120,089 42,085 120,470 32,737 218,284 470,400

Tulsa, OK -196,268 -200,227 25,867 93,420 n/a n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 5.5% 5.3% 5.3% 5.1% 5.1%

Northeast 6.2% 5.7% 5.5% 5.3% 5.3%

Midwest 5.5% 5.5% 5.4% 5.4% 5.3%

South 6.6% 6.5% 6.5% 6.2% 6.1%

West 4.0% 3.7% 3.7% 3.7% 3.7%


Atlanta, GA 9.0% 8.7% 8.4% 7.8% 7.7%

Austin, TX 6.4% 9.5% 8.6% 9.5% 8.8%

Baltimore, MD 6.6% 7.9% 7.3% 6.9% 6.4%

Binghamton, NY 10.8% 11.3% 10.3% 9.8% 9.9%

Birmingham, AL 8.8% 11.4% 11.3% 10.8% 10.6%

Boston, MA 6.4% 6.6% 6.5% 6.4% 6.2%

Buffalo, NY 8.9% 9.2% 9.0% 8.9% 9.1%


Charleston, SC 6.8% 4.7% 6.0% 8.0% 8.1%

Charlotte, NC 3.6% 3.4% 3.6% 3.5% 3.4%

Chicago, IL 6.3% 6.4% 6.3% 6.7% 6.8%

Cincinnati, OH 4.2% 3.0% 3.3% 3.4% 3.2%

Cleveland, OH 4.6% 4.6% 4.2% 3.8% 3.9%


Columbus, OH 5.5% 5.6% 5.9% 5.1% 4.7%


Dayton, OH 8.0% 7.7% 7.6% 8.2% 8.3%

Denver, CO 4.3% 4.9% 4.8% 4.8% 4.9%

Detroit, MI 4.0% 3.5% 3.5% 3.1% 2.9%

El Paso, TX 6.8% 6.8% 5.7% 5.0% 3.2%



Ft. Lauderdale, FL 4.4% 4.5% 4.4% 4.0% 2.9%

Greenville, SC 6.6% 6.5% 6.2% 5.8% 5.8%

Hampton Roads, VA 6.6% 4.9% 4.7% 4.1% 4.4%

Hartford, CT 11.7% 8.1% 8.3% 8.1% 7.9%

Houston, TX 7.1% 7.0% 6.8% 6.2% 6.3%

Indianapolis, IN 3.0% 5.1% 5.1% 5.5% 5.3%

Inland Empire CA 4.4% 4.0% 4.1% 4.0% 4.1%

Jacksonville, FL 6.2% 5.6% 5.4% 4.8% 4.0%

Kansas City, MO 8.3% 8.3% 7.5% 7.1% 7.2%

Lakeland, FL 3.7% 5.1% 5.1% 3.9% 3.9%

Las Vegas, NV 5.1% 5.2% 5.4% 6.0% 6.2%

Long Island, NY 6.6% 6.8% 6.9% 6.5% 5.6%

Los Angeles, CA 1.4% 1.3% 1.2% 1.2% 1.3%

Louisville, KY 6.6% 7.2% 7.7% 8.1% 7.7%

Memphis, TN 8.7% 8.1% 8.4% 8.2% 7.8%

Miami, FL 4.3% 4.2% 5.0% 4.7% 4.7%

Milwaukee, WI 4.4% 4.5% 4.5% 3.8% 4.1%

Minneapolis, MN 8.2% 8.7% 8.7% 8.0% 8.5%


Vacancy Rates


Nashville, TN 2.9% 3.2% 2.9% 3.3% 3.5%

New Haven, CT 12.6% 9.2% 9.8% 9.8% 9.5%



Northern VA 9.2% 8.8% 8.5% 8.7% 8.4%


Oklahoma City, OK 7.3% 6.8% 7.5% 9.0% 9.0%

Omaha, NE 3.2% 3.1% 3.3% 3.6% 3.4%

Orange County, CA 2.0% 2.0% 1.9% 1.9% 1.9%

Orlando, FL 4.6% 5.1% 5.6% 5.5% 5.4%



Philadelphia, PA 4.2% 3.9% 3.7% 3.4% 4.0%

Phoenix, AZ 9.1% 8.9% 8.6% 8.3% 7.9%

Pittsburgh, PA 5.7% 5.7% 4.8% 4.8% 5.4%

Portland, OR 4.0% 3.9% 3.2% 3.5% 3.9%

Providence, RI 0.3% 0.2% 0.2% 0.1% 0.1%



Richmond, VA 6.6% 5.0% 4.9% 3.7% 3.7%

Roanoke, VA 7.2% 8.0% 7.3% 7.1% 7.2%

Rochester, NY 9.6% 9.6% 9.0% 9.0% 9.8%

Sacramento, CA 10.8% 7.6% 7.3% 6.3% 5.9%

Salt Lake City, UT 7.2% 6.1% 5.4% 5.8% 5.6%

San Antonio, TX 9.6% 9.1% 8.2% 8.0% 8.8%

San Diego, CA 5.3% 5.1% 5.1% 4.8% 4.8%




Savannah, GA 3.0% 3.0% 3.2% 3.2% 1.2%

Seattle, WA 3.8% 3.4% 3.7% 4.2% 4.1%


St. Louis, MO 7.0% 6.7% 6.8% 6.7% 6.0%


Suburban MD 10.7% 9.9% 10.5% 10.4% 9.7%

Syracuse, NY 10.6% 10.7% 9.9% 8.8% 8.8%

Tampa, FL 5.5% 5.0% 5.4% 5.2% 5.3%

Tucson, AZ 7.8% 7.4% 7.1% 8.2% 6.6%

Tulsa, OK 7.6% 8.8% 9.1% 8.9% 8.9%

p = preliminary


Asking Rents



United States $5.63 $5.66 $5.69 $5.80 $5.84 $5.18 $5.62

Northeast $6.03 $6.12 $6.03 $6.03 $6.19 $6.02 $4.97

Midwest $4.42 $4.48 $4.57 $4.61 $4.61 $4.31 $4.46

South $5.21 $5.22 $5.26 $5.45 $5.41 $4.66 $4.73

West $7.65 $7.82 $7.89 $7.95 $8.11 $7.00 $8.60


Atlanta, GA $4.20 $4.31 $4.35 $4.54 $4.47 $3.80 $4.17

Austin, TX $9.71 $9.27 $9.21 $9.34 $9.24 $6.86 $8.40

Baltimore, MD $5.35 $5.08 $4.78 $5.10 $5.70 $5.14 n/a

Binghamton, NY $4.71 $4.70 $4.64 $4.58 $4.57 $4.09 $4.29

Birmingham, AL $5.01 $4.18 $4.23 $4.09 $4.02 $3.71 n/a

Boston, MA $6.22 $6.61 $6.85 $6.97 $8.17 $7.13 $9.42

Buffalo, NY $4.98 $4.13 $4.13 $4.13 $4.13 $4.25 $3.95


Charleston, SC $5.26 $5.36 $5.35 $5.48 $5.52 $5.56 $4.70

Charlotte, NC $5.15 $5.11 $5.27 $5.42 $5.21 $4.67 $3.94

Chicago, IL $4.76 $4.87 $4.98 $5.03 $5.08 $4.86 $4.71

Cincinnati, OH $4.06 $4.33 $4.27 $4.33 $4.25 $3.86 $3.85

Cleveland, OH $3.94 $3.99 $4.10 $4.12 $4.15 $3.85 n/a


Columbus, OH $3.43 $3.46 $3.46 $3.46 $3.50 $3.50 n/a


Dayton, OH $3.21 $3.32 $3.32 $3.33 $3.26 $3.59 $2.89

Denver, CO $7.57 $8.03 $8.10 $8.03 $7.96 $6.42 $7.63

Detroit, MI $5.26 $5.36 $5.53 $5.56 $5.57 $5.24 $5.03

El Paso, TX $3.95 $3.95 $3.95 $4.00 $4.10 $4.10 $4.00



Ft. Lauderdale, FL $8.69 $8.92 $9.12 $9.21 $9.27 $8.62 $8.62

Greenville, SC $4.16 $3.58 $3.58 $3.63 $3.60 $3.26 $3.82

Hampton Roads, VA $5.42 $5.08 $5.05 $5.00 $5.28 $5.02 $5.83

Hartford, CT $4.08 $4.53 $4.21 $4.24 $4.28 $4.62 $3.56

Houston, TX $6.14 $6.23 $6.28 $6.40 $6.44 $6.24 $6.39

Indianapolis, IN $3.62 $3.70 $3.74 $3.76 $3.80 $3.51 $3.37

Inland Empire CA $6.82 $7.28 $7.42 $7.52 $7.61 $6.89 $8.01

Jacksonville, FL $4.24 $4.63 $4.74 $4.98 $5.37 $4.82 $5.96

Kansas City, MO $4.41 $4.38 $4.45 $4.43 $4.27 $3.82 $4.09

Lakeland, FL $5.00 $5.17 $5.18 $5.76 $5.54 $5.01 $5.95

Las Vegas, NV $7.27 $7.14 $6.80 $6.81 $6.82 $6.45 $6.16

Long Island, NY $8.86 $9.97 $9.25 $9.21 $9.44 $9.13 $9.62

Los Angeles, CA $9.08 $9.25 $9.05 $9.00 $9.36 $8.83 $9.00

Louisville, KY $3.68 $3.76 $3.76 $3.70 $3.73 $3.68 $3.09

Memphis, TN $2.55 $2.73 $2.81 $2.75 $2.75 $2.14 n/a

Miami, FL $8.32 $7.98 $8.13 $8.25 $8.45 $8.44 $6.43

Milwaukee, WI $4.35 $4.45 $4.55 $4.59 $4.64 $3.92 $4.87



Asking Rents

p = preliminary



Nashville, TN $4.07 $4.18 $5.14 $5.03 $5.09 $5.01 $4.09

New Haven, CT $5.24 $5.33 $4.62 $5.15 $5.35 $4.80 $5.33



Northern VA $11.12 $11.15 $11.16 $11.12 $11.36 $9.16 n/a


Oklahoma City, OK $4.61 $4.86 $4.98 $4.95 $4.95 n/a n/a

Omaha, NE $5.41 $5.63 $5.57 $5.57 $5.55 $4.91 n/a

Orange County, CA $11.21 $11.10 $11.40 $10.74 $11.24 $10.06 $10.35

Orlando, FL $6.48 $6.32 $6.29 $6.38 $6.48 $5.64 $5.59



Philadelphia, PA $4.63 $4.81 $4.95 $4.58 $4.51 $4.10 $3.43

Phoenix, AZ $7.05 $7.03 $6.80 $6.80 $6.70 $5.02 $7.57

Pittsburgh, PA $7.84 $7.54 $7.09 $7.68 $7.58 $5.55 $4.69

Portland, OR $8.02 $7.73 $8.34 $8.38 $8.50 $7.15 $7.74

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 N/A



Richmond, VA $4.72 $4.70 $4.80 $5.03 $4.92 $4.33 $4.16

Roanoke, VA $4.32 $4.43 $4.76 $4.99 $4.98 $4.50 $6.83

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.55 $4.66 $4.93 $5.08 $5.06 $4.97 $5.63

Salt Lake City, UT $5.45 $5.37 $5.49 $5.64 $5.82 $5.34 $5.79

San Antonio, TX $5.98 $5.79 $5.79 $5.75 $5.79 $4.98 n/a

San Diego, CA $12.12 $12.00 $11.76 $11.88 $12.36 $9.00 $11.16




Savannah, GA $4.75 $4.75 $4.69 $4.69 $4.62 $4.33 n/a

Seattle, WA $6.73 $7.15 $7.38 $7.45 $7.61 $7.07 $5.90


St. Louis, MO $4.39 $4.45 $4.58 $4.62 $4.47 $4.19 $7.17


Suburban MD $9.57 $10.11 $9.36 $9.21 $9.37 $7.69 n/a

Syracuse, NY $3.83 $3.85 $4.07 $4.08 $4.02 $4.28 $3.25

Tampa, FL $6.10 $6.15 $5.77 $5.85 $5.72 $5.00 $4.20

Tucson, AZ $6.67 $6.44 $6.29 $6.37 $6.23 $6.17 $5.08

Tulsa, OK $4.52 $4.52 $4.53 $4.54 $4.54 n/a n/a


Inventory

Inventory Inventory Deliveries 2017 Under Construction as of Q4 2017p

United States 14,254,374,086 246,050,822 242,262,914

Northeast 2,139,863,673 29,097,798 38,522,633

Midwest 3,924,752,709 60,870,674 44,947,061

South 4,251,375,452 98,034,260 89,386,671

West 3,938,382,252 58,048,090 69,606,549

U.S. Industrial Report Markets Inventory Deliveries 2017 Under Construction as of Q4 2017p

Atlanta, GA 568,438,801 17,640,102 16,414,186

Austin, TX 39,462,450 1,477,647 950,417

Baltimore, MD 205,536,774 3,804,351 5,322,329

Binghamton, NY 17,403,145 923,000 0

Birmingham, AL 14,708,455 0 239,500

Boston, MA 141,607,860 711,308 1,555,500

Buffalo, NY 110,514,178 55,000 280,400


Charleston, SC 65,973,979 1,759,985 5,322,048

Charlotte, NC 181,614,083 3,135,440 1,147,512

Chicago, IL 1,195,588,067 23,404,358 8,336,508

Cincinnati, OH 284,181,583 3,231,543 3,097,603

Cleveland, OH 491,336,124 1,821,725 3,662,000

Colorado Springs, CO 31,679,942 37,800 825,000

Columbus, OH 249,696,461 1,109,810 6,349,191


Dayton, OH 115,338,432 1,852,889 1,041,350

Denver, CO 246,663,515 6,026,330 3,934,602

Detroit, MI 497,962,535 3,584,663 3,802,353

El Paso, TX 52,323,996 286,718 236,542


Fredericksburg, VA 13,529,712 900,000 0

Ft. Lauderdale, FL 87,825,789 664,923 1,538,751

Greenville, SC 190,163,844 1,011,100 5,229,327

Hampton Roads, VA 97,358,305 599,580 245,000

Hartford, CT 92,879,133 782,850 123,200

Houston, TX 416,388,219 5,145,688 6,438,689

Indianapolis, IN 256,848,077 8,153,415 5,904,630

Inland Empire CA 517,858,172 19,402,682 25,223,635

Jacksonville, FL 107,082,686 2,573,476 814,005

Kansas City, MO 215,287,073 7,275,990 5,403,324

Lakeland, FL 30,898,925 790,716 636,120

Las Vegas, NV 117,324,620 5,564,750 1,947,244

Long Island, NY 130,769,166 24,000 695,297

Los Angeles, CA 1,080,641,455 6,020,423 6,365,058

Louisville, KY 155,848,256 5,426,549 5,798,798

Memphis, TN 192,588,615 2,641,192 5,261,192

Miami, FL 157,981,410 3,067,904 3,172,892

Milwaukee, WI 198,105,182 1,287,067 906,316

Minneapolis, MN 108,663,837 3,092,587 1,627,979


Inventory


Nashville, TN 207,995,787 4,805,642 3,996,135

New Haven, CT 48,292,201 80,000 935,500


New Jersey - Northern 287,598,708 2,005,865 2,147,654

Northern VA 57,131,862 80,160 557,144

Oakland/East Bay, CA 205,185,318 1,240,589 3,470,319

Oklahoma City, OK 71,065,215 536,200 735,000

Omaha, NE 69,083,789 1,407,829 976,862

Orange County, CA 283,793,824 274,185 1,520,658

Orlando, FL 118,245,488 3,032,432 1,096,983



Philadelphia, PA 296,281,456 3,233,678 3,604,829

Phoenix, AZ 310,643,801 5,828,136 5,170,358

Pittsburgh, PA 168,316,886 1,358,346 308,769

Portland, OR 197,493,348 2,692,461 3,655,414


Puget Sound - Eastside 60,672,519 489,397 157,363


Richmond, VA 94,625,913 770,333 215,447

Roanoke, VA 50,476,603 100,000 250,000

Rochester, NY 73,551,473 0 50,000

Sacramento, CA 140,875,778 1,298,734 787,605

Salt Lake City, UT 127,853,135 2,577,709 3,740,923

San Antonio, TX 39,577,534 1,328,065 827,217

San Diego, CA 162,974,353 586,434 3,125,499

San Francisco North Bay, CA 22,488,843 125,020 0


San Jose (Silicon Valley), CA 85,166,687 182,000 450,610

Savannah, GA 55,642,703 5,435,719 3,388,742

Seattle, WA 145,579,922 2,914,604 3,974,538

Southern New Hampshire 47,297,525 122,849 1,000,000

St. Louis, MO 242,661,549 4,648,798 3,838,945

St. Petersburg/Clearwater, FL 47,882,791 659,976 0

Suburban MD 48,638,129 216,000 182,834

Syracuse, NY 42,719,468 400,620 179,605

Tampa, FL 79,913,395 1,490,924 478,220

Tucson, AZ 42,753,403 169,971 230,134

Tulsa, OK 60,327,675 147,000 314,000

p = preliminary

Methodology


Regional Map


Jason Tolliver Head of Logistics &Industrial Research Americas Tel: +1 317.639.0549 cushmanwakefield.com
















Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.


Carolyn Salzer Analyst, Logistics & Industrial Research Americas Tel: +1 847.518.3212 cushmanwakefield.com



MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy


Market Indicators








Forecast




$4.00

$4.50

$5.00

$5.50

$6.00

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 2018Net Absorption, MSF Weighted Asking Rent, $ PSF

Forecast

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2013 2014 2015 2016 2017 2018


Forecast

Strong Occupier Demand Surmounts Wave of Historic Supply

Another Solid Year for Industrial: 175.1 million square feet (msf) of new deliveries have hit the market through the first three quarters of 2017, the largest wave of new space delivered in the first nine months of any year. Even so, industrial tenants have absorbed 187.4 msf of space, pushing the vacancy rate downward by 40 basis points (bps) year-over-year to a historic low of 5.1%. Average industrial asking rents for all product types have risen by 4.1% year-over-year to a new high of $5.80 per square foot (psf). Every industrial segment remains in growth mode with warehousing posting 167.2 msf of net absorption, manufacturing registering 11.3 msf of growth, and flex product experiencing 4.8 msf of net occupancy gains from January through September of this year.

Bigger the Market, Bigger the Leasing and Development: The U.S. industrial market remains on track to eclipse 230 msf of absorption for a fourth consecutive year. Considering that the annual average since 2010 has been 196.8 msf, 2017 will undoubtedly be another solid year. Over one-third of year-to-date absorption is attributable to five core markets: Dallas/Ft. Worth, Atlanta, Inland Empire, Chicago, and the Pennsylvania I-81/I-78 Distribution Corridor—an indication that, despite widespread occupancy gains, the bulk of activity remains concentrated in primary industrial cities. This is also the case with industrial development, as these same five markets account for over one-third of both year-to-date deliveries and product currently under construction.

Strong Fundamentals in Secondary Markets: Strengthening fundamentals in secondary markets have given rise to solid occupancy growth in Kansas City, Greenville, Baltimore, Phoenix, and Cincinnati, among other markets. Over 30 secondary markets have registered more than 1 msf of net absorption through Q3 2017. Notably, average annual rent growth for warehouse space is forecast to be stronger in secondary markets (5.5%) than in primary ones (4.8%) in 2017, although rent growth will be historically strong in both.

Supply Not Overpowering Demand: The construction pipeline is at its highest level this cycle. Despite the increase, supply and demand remain in relative equilibrium in most markets. Speculative projects account for 121.6 msf (or 69.5%) of year-to-date deliveries, and given the tight market, developers continue to break ground. Currently, there is 233.1 msf under construction, of which 150.9 msf is speculative. The greatest concentration of speculative projects is in the South and West regions (52.4 msf and 50.8 msf, respectively). Nationally, 34 markets have over 1 msf of speculative product in the pipeline, but in over half of them, vacancy rates continue to tighten, indicating a need for new supply.

Rents Continue to Run: Strong leasing activity by both traditional industrial users and eCommerce-related occupiers continues to fuel rent growth. U.S. average annual industrial warehouse asking rents have increased 23.7% since 2010, and in Q3 2017 rose 4.5% year-over-year to $5.10 psf. Among the regions, year-over-year rent growth in Q3 2017 was strongest in the West (8.4%), followed by the Midwest (5.0%) and the South (4.9%). Rents in the Northeast were virtually unchanged (0.2%). Asking rents increased quarter-over-quarter in 48 of the 79 markets tracked by Cushman & Wakefield, with the most notable increases occurring in coastal markets where a lack of available space and fierce competition are pushing rents higher.


Source: BLS



MARKETBEAT

Solid Demand in Primary and Secondary Markets YEAR-TO-DATE NET ABSORPTION (MSF)

Few Signs of Overbuilding YEAR-TO-DATE DELIVERIES BY TYPE: (MSF), VACANCY (YOY CHG, BPS)

New Demand Reflects eCommerce Dominance/Rise Q1 2008 = 100

Outlook• Logistics-related leasing will continue to benefit from solid

economic fundamentals that spur increased consumer spending.

• Net absorption will eclipse 230 msf for a fourth year in a row, and will reach 218 msf in 2018.

• Increased speculative supply will place upward pressure on vacancy as supply/demand begin to slowly rebalance in Q4 2017. We forecast average annual vacancy to rise 30 bps in 2018 to 5.3% for all industrial product types.

• Look for continued rental rate appreciation in Q4 2017, with rent growth slowly beginning to decelerate in 2018. We anticipate average annual rent gains of 3.7% in 2017, and 2.9% in 2018, for all industrial product types.

Source: U.S. Census Bureau, Cushman & Wakefield Research



U.S. Economy Powers Through Headwinds

Continued Growth on Horizon: The expansion is sailing forward despite economic uncertainty spurred by multiple hurricanes this season. Although weather snapped the 83-month streak of consecutive job gains, with firms shedding 33,000 nonfarm payrolls in September, it is important not to read too much into a single monthly report. We expect hiring to bounce back. On another positive note, the Institute for Supply Management’s (ISM) Purchasing Managers’ Index—a measure of the manufacturing sector’s health—rose to 60.8 in September, its highest reading since 2004. Seventeen of the 18 manufacturing industries the ISM tracks reported growth while the new orders component rose to a multi-year high (64.6). Those results suggest that the manufacturing sector will continue to churn out goods and drive related logistics demand in the months ahead.

Bustling Ports and Busy Railroads: Other important indicators that correlate well with the industrial sector, such as containerized retail imports, intermodal rail volume, and consumer spending, also continue to trend in a positive direction. Ports are bustling. In August 2017 (the most recent month for which data is available), U.S. retail container ports collectively handled 1.80 million TEUs—the highest monthly containerized import volume on record—surpassing the previous high of 1.78 million TEUs set one month earlier in July. This places Q3 2017 among the strongest quarters ever for containerized retail import activity. Railroads are also setting records. Average weekly intermodal rail volume in September was the second highest ever (behind 2015), with the last two weeks of that month the strongest in the history of U.S. railroads.

Confident Consumers Bode Well for Logistics: Consumer sentiment and spending also bode well for logistics and industrial demand. We anticipate consumer spending to grow by 2.7% in 2017, the same rate as last year, a pace that has translated into strong eCommerce-driven leasing fundamentals. Since the second quarter of 2016, eCommerce sales are up by more than 16%, the highest rate in five years. Retail sales are expected to pick up as we head into a holiday season that could be the best one in years. We anticipate overall retail sales will grow by 3.8% in 2017, compared to 3.0% in 2016, before accelerating to 4.1% in 2018.

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Speculative Build-to-Suit

+60 – YoY change in vacancy, basis points

-80 +20-70

+140

-70 +50 -30 +190 +190 -100 +90 0 -50 +20 -10 +40 +30 -150 -100




United States 78,483,313 63,129,827 58,229,698 62,638,053 66,513,919 118,981,266

Northeast 17,790,157 7,233,913 5,748,978 12,011,270 8,472,310 17,159,732

Midwest 23,968,635 15,788,785 13,095,694 12,254,016 15,432,229 18,697,924

South 21,353,134 27,857,093 24,562,079 26,155,357 24,810,369 39,194,870

West 15,371,387 12,250,036 14,822,947 12,217,410 17,799,011 43,928,740


Atlanta, GA 2,245,312 3,546,425 6,399,144 6,264,777 3,648,731 6,414,640

Austin, TX 80,659 116,610 -209,019 134,562 -310,320 516,135

Baltimore, MD 1,029,640 944,082 506,693 2,913,206 2,573,184 1,778,967

Binghamton, NY 80,204 8,605 99,383 80,590 40,000 40,000

Birmingham, AL 826,217 33,863 -340,522 12,600 70,051 174,362

Boston, MA 2,190,787 996,083 -267,560 116,651 -141,078 351,738

Buffalo, NY 500,257 1,217,645 -952,685 94,497 164,966 288,683

Central Valley, CA 971,895 2,031,463 -421,586 90,068 647,686 994,709

Charleston, SC -42,512 1,001,344 1,211,292 -273,598 -182,081 418,901

Charlotte, NC 1,158,781 1,812,029 756,188 1,145,159 332,705 n/a

Chicago, IL 10,474,949 4,149,725 3,051,662 7,466,514 3,612,071 3,330,265

Cincinnati, OH 1,833,726 556,179 4,407,420 199,615 426,950 1,217,160

Cleveland, OH 331,032 1,187,461 180,990 739,053 119,114 749,456

Colorado Springs, CO -97,504 -160,026 -54,690 29,210 651,506 234,241

Columbus, OH 1,349,355 2,080,666 193,936 -195,634 1,426,826 2,672,048


Dayton, OH 306,394 525,747 971,866 204,599 -499,194 135,682

Denver, CO 746,413 596,022 161,477 1,272,015 1,537,380 1,690,291

Detroit, MI 1,070,776 985,441 -59,666 89,640 1,311,972 1,477,521

El Paso, TX -293,711 -78,692 76,000 357,161 376,794 1,178,035

Fort Myers/Naples, FL 272,489 206,876 218,558 191,401 -31,237 92,915

Fredericksburg, VA 189,844 173,790 -130,887 176,438 73,387 53,081

Ft. Lauderdale, FL 702,011 858,893 570,792 49,340 179,962 870,828

Greenville, SC 1,560,194 1,353,175 1,784,144 1,856,762 2,373,548 637,388

Hampton Roads, VA -3,892 -359,777 473,881 1,001,321 724,245 291,335

Hartford, CT 866,772 125,862 183,652 261,345 27,817 412,282

Houston, TX 810,247 4,065,736 1,288,474 603,380 2,771,280 6,031,173

Indianapolis, IN 3,108,214 1,848,702 381,033 424,423 2,130,644 3,509,689

Inland Empire CA 3,784,917 3,636,653 4,238,816 3,666,936 7,042,746 11,816,138

Jacksonville, FL 239,728 161,043 288,006 442,976 1,484,796 255,831

Kansas City, MO 1,134,989 1,840,583 2,449,729 2,756,998 1,667,542 2,897,265

Lakeland, FL 231,791 93,900 300,673 -6,466 336,566 832,390

Las Vegas, NV 698,467 955,129 540,804 1,813,670 1,481,844 n/a

Long Island, NY 365,094 -230,288 -74,069 -47,352 233,960 701,149

Los Angeles, CA 1,783,386 250,202 1,770,796 1,031,454 1,727,125 8,759,081

Louisville, KY 491,942 322,851 502,185 56,395 1,219,602 2,138,200

Memphis, TN 695,753 3,011,967 1,719,834 1,219,093 486,717 3,463,589

Miami, FL 624,408 438,808 716,099 -272,557 128,146 1,133,563

Milwaukee, WI 585,596 -12,492 327 201,877 1,484,545 502,233

Minneapolis, MN 459,794 519,293 -361,946 477,473 872,326 n/a

Demand Indicators




Nashville, TN 578,168 2,529,427 628,583 299,720 1,555,256 2,042,981

New Haven, CT -169,623 293,732 107,072 18,838 5,477 140,064

New Jersey - Central 2,088,582 702,054 1,567,346 2,548,178 2,774,359 4,454,057

New Jersey - Northern 949,477 -449,521 689,129 1,225,925 386,097 1,729,446

Northern VA 293,531 -54,788 133,525 158,067 -20,211 414,613

Oakland/East Bay, CA -362,897 274,100 370,186 80,753 -1,395,593 1,901,800

Oklahoma City, OK 79,041 -66,220 -56,356 -229,173 -542,074 452,792

Omaha, NE 142,371 204,651 130,509 211,393 282,952 462,168

Orange County, CA 577,174 417,332 160,843 166,577 -247,559 2,484,749

Orlando, FL 671,947 1,013,276 175,456 966,805 381,755 1,287,982


PA I-81/I-78 Distribution Corridor 7,608,813 2,326,714 2,255,040 4,629,244 3,344,174 5,652,257

Philadelphia, PA 3,442,237 1,520,977 1,434,070 1,532,321 1,619,450 2,235,613

Phoenix, AZ 2,244,605 1,572,074 2,105,250 1,199,401 2,571,976 3,236,295

Pittsburgh, PA -175,139 100,230 283,316 765,481 -450,317 488,812

Portland, OR 308,442 529,659 645,643 829,963 870,133 831,879

Providence, RI 115,966 102,292 101,650 87,648 63,199 63,199

Puget Sound - Eastside 256,769 303,774 230,918 74,918 -182,255 604,973

Raleigh/Durham, NC -172,912 344,104 -58,747 109,980 421,973 694,614

Richmond, VA 75,820 263,746 421,366 594,383 415,115 309,224

Roanoke, VA 354,142 69,980 286,933 1,115,132 247,331 7,769

Rochester, NY 225,539 213,189 -4,470 407,166 117,303 n/a

Sacramento, CA 582,097 183,313 1,504,383 880,488 1,079,135 1,881,915

Salt Lake City, UT 763,231 442,247 1,372,941 1,042,903 798,628 2,382,384

San Antonio, TX 88,610 142,169 -161,720 181,376 550,512 540,509

San Diego, CA -100,709 431,283 330,736 17,518 844,640 2,550,822


San Francisco Peninsula, CA -193,018 72,077 -15,400 225,572 -22,221 394,596

San Jose (Silicon Valley), CA -420,112 -36,597 179,242 -472,266 -245,318 1,172,980

Savannah, GA 48,052 -358,098 0 1,183,500 n/a n/a

Seattle, WA 2,512,682 527,043 1,505,694 96,309 561,459 2,565,331

Southern New Hampshire 123,310 18,726 378,928 60,340 184,217 327,204

St. Louis, MO 3,171,439 1,902,829 1,749,834 -321,935 2,596,481 1,744,437

St. Petersburg/Clearwater, FL -37,440 590,146 130,598 83,096 104,689 219,730

Suburban MD 517,102 250,065 -2,323 -56,959 37,371 245,267

Syracuse, NY -422,119 287,613 -51,824 230,398 219,989 275,228

Tampa, FL 250,524 146,530 133,614 90,095 617,276 829,507

Tucson, AZ 1,037,269 120,089 42,085 120,470 32,737 190,163

Tulsa, OK 235,404 -196,268 -200,227 25,867 93,420 n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 5.5% 5.5% 5.3% 5.3% 5.1%

Northeast 6.3% 6.2% 5.7% 5.5% 5.3%

Midwest 5.4% 5.5% 5.5% 5.4% 5.4%

South 6.6% 6.6% 6.6% 6.5% 6.3%

West 4.1% 4.0% 3.7% 3.6% 3.7%


Atlanta, GA 8.6% 9.0% 8.7% 8.4% 7.8%

Austin, TX 7.5% 6.4% 9.5% 8.6% 9.5%

Baltimore, MD 7.0% 6.6% 7.9% 7.3% 6.9%

Binghamton, NY 11.7% 10.8% 11.3% 10.3% 9.8%

Birmingham, AL 9.0% 8.8% 11.4% 11.3% 10.8%

Boston, MA 6.7% 6.4% 6.6% 6.5% 6.4%

Buffalo, NY 8.9% 8.9% 9.2% 9.0% 8.9%


Charleston, SC 6.8% 6.8% 4.7% 6.0% 8.0%

Charlotte, NC 3.8% 3.6% 3.4% 3.6% 3.6%

Chicago, IL 6.1% 6.3% 6.4% 6.3% 6.7%

Cincinnati, OH 4.2% 4.2% 3.0% 3.3% 3.4%

Cleveland, OH 4.9% 4.6% 4.6% 4.2% 3.8%


Columbus, OH 5.9% 5.5% 5.6% 5.9% 5.1%


Dayton, OH 8.1% 8.0% 7.7% 7.6% 8.2%

Denver, CO 3.9% 4.3% 4.9% 4.8% 4.8%

Detroit, MI 4.0% 4.0% 3.5% 3.5% 3.1%

El Paso, TX 7.1% 6.8% 6.8% 5.7% 5.0%



Ft. Lauderdale, FL 5.5% 4.4% 4.5% 4.4% 4.0%

Greenville, SC 6.9% 6.6% 6.5% 6.2% 5.8%

Hampton Roads, VA 6.3% 6.6% 5.1% 5.0% 4.5%

Hartford, CT 11.9% 11.7% 8.1% 8.3% 8.1%

Houston, TX 6.7% 7.1% 7.0% 6.8% 6.2%

Indianapolis, IN 3.6% 3.0% 5.1% 5.1% 5.5%

Inland Empire CA 4.7% 4.4% 4.0% 4.1% 4.0%

Jacksonville, FL 6.5% 6.2% 5.6% 5.4% 4.8%

Kansas City, MO 7.5% 8.3% 8.3% 7.8% 7.2%

Lakeland, FL 4.2% 3.7% 5.1% 5.1% 3.9%

Las Vegas, NV 5.6% 5.1% 5.7% 6.0% 6.1%

Long Island, NY 6.5% 6.6% 6.8% 6.9% 6.5%

Los Angeles, CA 1.3% 1.4% 1.3% 1.2% 1.2%

Louisville, KY 6.2% 6.6% 7.2% 7.7% 8.1%

Memphis, TN 9.2% 8.7% 8.1% 8.4% 8.2%

Miami, FL 4.4% 4.3% 4.2% 5.0% 4.7%

Milwaukee, WI 4.0% 4.4% 4.5% 4.5% 3.8%

Minneapolis, MN 8.4% 8.2% 8.7% 8.7% 8.0%


Vacancy Rates


Nashville, TN 3.1% 2.9% 3.2% 2.9% 3.3%

New Haven, CT 13.2% 12.6% 9.2% 9.8% 9.8%



Northern VA 9.2% 9.2% 8.8% 8.5% 8.7%


Oklahoma City, OK 6.7% 7.3% 6.8% 7.5% 9.0%

Omaha, NE 3.2% 3.2% 3.1% 3.3% 3.6%

Orange County, CA 2.2% 2.0% 2.0% 1.9% 1.9%

Orlando, FL 5.1% 4.6% 5.1% 5.6% 5.5%



Philadelphia, PA 4.9% 4.2% 3.9% 3.7% 3.4%

Phoenix, AZ 9.3% 9.1% 8.9% 8.6% 8.3%

Pittsburgh, PA 6.0% 5.7% 5.7% 4.8% 4.8%

Portland, OR 4.3% 4.0% 3.9% 3.2% 3.5%

Providence, RI 0.2% 0.3% 0.2% 0.2% 0.1%



Richmond, VA 6.9% 6.6% 5.4% 5.1% 4.8%

Roanoke, VA 8.3% 7.2% 8.0% 7.3% 7.1%

Rochester, NY 9.9% 9.6% 9.6% 9.0% 9.0%

Sacramento, CA 8.9% 10.8% 6.2% 5.6% 4.8%

Salt Lake City, UT 7.5% 7.2% 6.1% 5.4% 5.8%

San Antonio, TX 9.6% 9.6% 9.2% 8.6% 7.4%

San Diego, CA 5.1% 5.3% 5.1% 5.1% 4.8%




Savannah, GA 2.3% 3.0% 3.0% 3.2% 3.2%

Seattle, WA 3.8% 3.8% 3.4% 3.7% 4.2%


St. Louis, MO 6.7% 7.0% 6.7% 6.8% 6.7%


Suburban MD 11.6% 10.7% 9.9% 10.5% 10.4%

Syracuse, NY 11.3% 10.6% 10.7% 9.9% 8.8%

Tampa, FL 5.6% 5.5% 5.0% 5.4% 5.2%

Tucson, AZ 8.1% 7.8% 7.4% 7.1% 8.2%

Tulsa, OK 7.4% 7.6% 8.8% 9.1% 8.9%

p = preliminary


Asking Rents



United States $5.57 $5.63 $5.68 $5.70 $5.80 $5.10 $5.56

Northeast $6.02 $6.03 $6.12 $6.03 $6.03 $5.85 $4.86

Midwest $4.39 $4.42 $4.48 $4.57 $4.61 $4.28 $4.46

South $5.18 $5.21 $5.22 $5.26 $5.44 $4.63 $4.59

West $7.41 $7.65 $7.92 $7.98 $8.03 $6.87 $8.62


Atlanta, GA $4.17 $4.20 $4.31 $4.35 $4.54 $3.82 $4.17

Austin, TX $9.75 $9.71 $9.27 $9.21 $9.34 $6.72 n/a

Baltimore, MD $5.49 $5.35 $5.08 $4.78 $5.10 $4.54 n/a

Binghamton, NY $4.81 $4.71 $4.70 $4.64 $4.58 $3.96 $4.29

Birmingham, AL $4.70 $5.01 $4.18 $4.23 $4.09 $3.71 n/a

Boston, MA $6.17 $6.22 $6.61 $6.85 $6.97 $6.37 $8.07

Buffalo, NY $4.98 $4.98 $4.13 $4.13 $4.13 $4.25 $3.95


Charleston, SC $5.31 $5.26 $5.36 $5.35 $5.48 $5.65 $4.71

Charlotte, NC $5.17 $5.15 $5.11 $5.27 $5.29 $4.65 $3.96

Chicago, IL $4.79 $4.76 $4.87 $4.98 $5.03 $4.82 $4.66

Cincinnati, OH $3.91 $4.06 $4.33 $4.27 $4.33 $3.95 $3.85

Cleveland, OH $3.88 $3.94 $3.99 $4.10 $4.12 $3.82 n/a


Columbus, OH $3.35 $3.43 $3.46 $3.46 $3.46 $3.46 n/a


Dayton, OH $3.19 $3.21 $3.32 $3.32 $3.33 $3.54 $2.96

Denver, CO $7.23 $7.57 $8.03 $8.10 $8.03 $6.42 $8.18

Detroit, MI $5.26 $5.26 $5.36 $5.53 $5.56 $5.22 $4.88

El Paso, TX $3.95 $3.95 $3.95 $3.95 $4.00 $4.00 $3.95



Ft. Lauderdale, FL $9.52 $8.69 $8.92 $9.12 $9.21 $8.33 $8.51

Greenville, SC $3.55 $4.16 $3.58 $3.58 $3.63 $3.28 $3.89

Hampton Roads, VA $5.21 $5.42 $5.08 $5.05 $5.00 $4.74 $5.85

Hartford, CT $4.32 $4.08 $4.53 $4.21 $4.24 $4.58 $3.49

Houston, TX $6.12 $6.14 $6.23 $6.28 $6.40 $6.17 $6.28

Indianapolis, IN $3.55 $3.62 $3.70 $3.74 $3.76 $3.43 $3.35

Inland Empire CA $6.58 $6.82 $7.28 $7.42 $7.52 $6.98 $8.45

Jacksonville, FL $4.34 $4.24 $4.63 $4.74 $4.98 $4.50 $4.26

Kansas City, MO $4.51 $4.41 $4.38 $4.45 $4.43 $3.81 $4.58

Lakeland, FL $4.85 $5.00 $5.17 $5.18 $5.76 $5.25 $5.95

Las Vegas, NV $7.86 $7.27 $7.88 $7.76 $7.30 $6.06 n/a

Long Island, NY $8.53 $8.86 $9.97 $9.25 $9.21 $8.97 $9.75

Los Angeles, CA $8.79 $9.08 $9.25 $9.05 $9.00 $8.55 $8.88

Louisville, KY $3.67 $3.68 $3.76 $3.76 $3.70 $3.59 $3.43

Memphis, TN $2.49 $2.55 $2.73 $2.81 $2.75 $2.23 n/a

Miami, FL $7.32 $8.32 $7.98 $8.13 $8.25 $8.11 $6.70

Milwaukee, WI $4.39 $4.35 $4.45 $4.55 $4.59 $4.06 $4.73



Asking Rents

p = preliminary



Nashville, TN $4.14 $4.07 $4.18 $5.14 $5.03 $4.91 $4.06

New Haven, CT $5.68 $5.24 $5.33 $4.62 $5.15 $4.62 $5.33



Northern VA $11.11 $11.12 $11.15 $11.16 $11.12 $8.97 n/a


Oklahoma City, OK $4.65 $4.61 $4.86 $4.98 $4.95 $4.18 $3.12

Omaha, NE $5.55 $5.41 $5.63 $5.57 $5.57 $4.90 $0.00

Orange County, CA $10.91 $11.21 $11.10 $11.40 $10.74 $9.76 $9.94

Orlando, FL $6.45 $6.48 $6.32 $6.29 $6.38 $5.50 $5.24



Philadelphia, PA $4.65 $4.63 $4.81 $4.95 $4.58 $4.01 $3.46

Phoenix, AZ $6.54 $7.05 $7.03 $6.80 $6.80 $4.99 $7.70

Pittsburgh, PA $7.72 $7.84 $7.54 $7.09 $7.68 $5.16 $5.17

Portland, OR $7.62 $8.02 $7.73 $8.34 $8.38 $6.94 $7.78

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.67 $4.72 $4.70 $4.80 $5.03 $4.40 $4.26

Roanoke, VA $4.18 $4.32 $4.43 $4.76 $4.99 $4.73 $6.10

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.85 $3.25 $4.75

Sacramento, CA $4.43 $4.55 $4.68 $5.04 $5.28 $5.02 $5.55

Salt Lake City, UT $5.47 $5.45 $5.37 $5.49 $5.64 $5.23 $5.48

San Antonio, TX $5.85 $5.98 $6.08 $5.77 $5.76 $4.96 n/a

San Diego, CA $12.00 $12.12 $12.00 $11.76 $11.88 $8.88 $10.56




Savannah, GA $4.79 $4.75 $4.75 $4.69 $4.69 $4.32 n/a

Seattle, WA $6.61 $6.73 $7.15 $7.38 $7.45 $6.77 $5.88


St. Louis, MO $4.27 $4.39 $4.45 $4.58 $4.62 $4.23 $6.98


Suburban MD $9.44 $9.57 $10.11 $9.36 $9.21 $7.61 n/a

Syracuse, NY $3.81 $3.83 $3.85 $4.07 $4.08 $4.35 $3.19

Tampa, FL $6.12 $6.10 $6.15 $5.77 $5.85 $5.02 $4.20

Tucson, AZ $6.81 $6.67 $6.44 $6.29 $6.37 $6.08 $5.54

Tulsa, OK $4.52 $4.52 $4.52 $4.53 $4.54 $4.87 $3.79


Inventory


United States 14,184,082,899 175,121,330 233,139,664

Northeast 2,126,249,356 22,990,154 31,046,483

Midwest 3,906,040,453 41,569,945 51,101,913

South 4,222,836,471 66,811,720 83,178,210

West 3,928,956,619 43,749,511 67,813,058


Atlanta, GA 566,250,405 15,081,069 14,764,889

Austin, TX 38,842,099 857,296 735,551

Baltimore, MD 204,005,922 2,275,186 7,734,614

Binghamton, NY 17,613,764 0 700,000

Birmingham, AL 14,708,455 0 239,500

Boston, MA 131,629,792 375,455 910,153

Buffalo, NY 111,277,196 55,000 280,400


Charleston, SC 66,147,732 1,825,987 5,673,518

Charlotte, NC 179,957,857 1,509,406 1,345,483

Chicago, IL 1,190,601,524 18,174,074 12,345,925

Cincinnati, OH 283,465,530 2,555,490 2,985,696

Cleveland, OH 491,173,199 1,301,725 2,956,000

Colorado Springs, CO 31,784,430 27,400 956,040

Columbus, OH 249,081,544 556,031 6,321,045


Dayton, OH 114,340,765 1,145,689 1,337,360

Denver, CO 244,759,750 4,125,630 4,096,565

Detroit, MI 495,580,651 1,775,201 3,365,603

El Paso, TX 52,037,278 0 436,218



Ft. Lauderdale, FL 87,673,380 664,923 1,009,382

Greenville, SC 188,236,790 766,600 0

Hampton Roads, VA 99,984,162 399,580 620,000

Hartford, CT 92,730,283 634,000 398,850

Houston, TX 414,877,322 4,087,158 4,370,915

Indianapolis, IN 253,640,978 4,460,415 7,026,399

Inland Empire CA 512,107,885 13,871,766 28,694,557

Jacksonville, FL 105,540,696 1,033,000 2,185,476

Kansas City, MO 212,730,704 4,688,819 7,185,944

Lakeland, FL 30,906,725 798,516 605,920

Las Vegas, NV 121,600,121 5,400,269 2,816,463

Long Island, NY 130,673,678 24,000 695,297

Los Angeles, CA 1,078,875,024 3,571,366 7,947,993

Louisville, KY 155,050,668 4,628,961 6,323,715

Memphis, TN 192,588,615 2,641,192 4,645,752

Miami, FL 157,928,023 2,747,294 2,762,058

Milwaukee, WI 197,826,440 886,330 1,362,845

Minneapolis, MN 106,052,379 825,015 2,443,423


Inventory


Nashville, TN 205,752,356 4,032,602 4,220,675

New Haven, CT 48,292,201 80,000 0



Northern VA 57,131,862 80,160 557,144


Oklahoma City, OK 71,065,215 536,200 735,000

Omaha, NE 68,888,299 1,100,736 1,020,955

Orange County, CA 283,736,914 274,185 1,520,658

Orlando, FL 117,336,971 2,131,843 1,836,336



Philadelphia, PA 295,816,523 2,661,198 2,469,432

Phoenix, AZ 309,392,931 4,364,574 1,992,949

Pittsburgh, PA 168,147,736 1,189,196 281,150

Portland, OR 196,092,237 2,067,328 2,418,650

Providence, RI 77,727,305 0 n/a



Richmond, VA 94,257,888 397,600 726,046

Roanoke, VA 50,333,435 100,000 250,000

Rochester, NY 73,551,473 0 50,000

Sacramento, CA 140,600,555 1,348,678 748,179

Salt Lake City, UT 127,293,336 2,017,910 4,164,423

San Antonio, TX 40,211,544 920,814 1,178,398

San Diego, CA 162,910,024 497,434 2,352,167




Savannah, GA 51,503,655 1,043,671 5,092,142

Seattle, WA 145,536,940 2,871,622 3,285,991

Southern New Hampshire 46,790,937 122,849 1,000,000

St. Louis, MO 242,658,440 4,100,420 2,750,718

St. Petersburg/Clearwater, FL 47,561,160 341,976 286,000

Suburban MD 48,594,729 216,000 136,666

Syracuse, NY 42,565,881 36,620 364,000

Tampa, FL 79,130,950 724,572 903,852

Tucson, AZ 42,719,570 169,971 230,134

Tulsa, OK 60,327,675 147,000 314,000

p = preliminary

Methodology


Regional Map


Jason Tolliver Head of Industrial Research, Americas Tel: +1 317.639.0549 cushmanwakefield.com
















Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.


Carolyn Salzer Industrial Research Analyst, Americas Tel: +1 847.518.3212 cushmanwakefield.com



MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy


Market IndicatorsQ2 16 Q2 17 12-Month

Forecast






Forecast




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EconomyRecent economic indicators point to a U.S. economic expansion that still has legs. With 222,000 net new nonfarm payroll jobs added in June, job growth remains solid. In the first half of 2017, 1.1 million new jobs were created, indicating that the U.S. economy is still a job-creating machine. In fact, the economy has added jobs every month since October 2010—a record 81-month stretch that has absorbed roughly 16 million workers. That has spurred demand for industrial space, which has registered 1.5 billion square feet (bsf) of net absorption during that period.

The manufacturing sector also remains on a roll. The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) rose to 57.8 in June, its highest level since August 2014. The index has been in expansionary territory for ten consecutive months. The new orders component of the PMI—a gauge of manufacturing’s health in the months ahead—rose to 63.5 in June, bringing it close to the multi-year high of 65.1 reached at the beginning of 2017.

U.S. rail traffic in Q2 2017 was a mix of great and mediocre. On the “great” side were year-to-date intermodal volumes through June that were the largest on record. The “mediocre” side saw motor vehicles and parts shipments post their sixth straight monthly decline. But while new light vehicle sales are down from 2016’s record pace, there is no reason to panic. Auto sales are higher in the first half of 2017 than in any comparable period since 2005.

The Conference Board’s Consumer Confidence Index ticked upward to 118.9 in June. Through the first half of 2017, the average index was 118.2. The last time the measure remained that high over a six-month period was late 2000. Despite an unexpected decline in retail sales in May (-0.3%), core retail sales—which correspond most closely with the consumer spending portion of GDP—were unchanged in May (0.6%), and online sales increased by 0.8% in May after rising 0.9% in April. Given the solid labor market, a promising manufacturing outlook, strong transportation indices, high consumer confidence and rising wages, expect to see the industrial run continue.

Market OverviewThe U.S. industrial market absorbed 59.5 million square feet (msf) of space in the second quarter of 2017, up 6.6% from that registered in the previous quarter, propelling year-to-date net absorption to 115.3 msf. Every industrial segment remains in growth mode: through mid-year, warehouse and distribution space posted 101.6 msf of net absorption, manufacturing registered 8.3 msf, and flex product experienced 5.4 msf of net occupancy gains.

Occupier demand for modern logistics space continues to be hot, with leasing of newly constructed speculative and build-to-suit product delivered in the past 24 months accounting for 62.3% of Q2 2017 net absorption. Although 19 markets report over 1 msf of positive net absorption during the second quarter, Chicago (6.9 msf), Atlanta (6.3 msf), Dallas/Ft. Worth (5.7


Source: BLS



MARKETBEAT

Speculative Construction Is on the Rise SPEC DELIVERIES ARE RISING BUT REMAIN WELL BELOW PRIOR CYCLES

On Pace for Another Strong Year DEMAND CONTINUES TO KEEP PACE WITH SUPPLY

Many Markets Remain as Tight as a Drum CURRENT VACANCY VS. PRIOR CYCLE TROUGH

Outlook• Logistics-related leasing will benefit from solid economic

fundamentals that spur increased consumer spending.

• Net absorption will eclipse 225 msf for a fourth year in a row.

• Deliveries will not overpower demand, but increased speculative supply will place upward pressure on vacancy.

• Expect continued rental rate appreciation in the second half of 2017 with rent growth decelerating in 2018.




msf), the Pennsylvania I-81/I-78 Distribution Corridor (4.6 msf), the Inland Empire (3.6 msf) and Central New Jersey (2.5 msf) account for nearly half of the nation’s net absorption.

Demand has exceeded supply has exceeded supply for 29 quarters. That has resulted in historic lows for vacancy, and a challenging operating environment for industrial occupiers seeking to expand their supply chain networks. The national industrial vacancy rate tightened further in Q2 2017, as vacancy fell 20 basis points (bps) to 5.3%, a full 300 bps below the 10-year historical average. Vacancy declined or held firm in 37 of the 79 markets tracked by Cushman & Wakefield, and rates remain below their 10-year historical average in all 79 markets.

On the development front, 107.2 msf has been delivered so far in 2017, with 52.5 msf of that total coming online in the second quarter. Over two-thirds of the deliveries this year have been speculative, but preleasing of speculative product remains brisk. In Q2 2017, preleasing rates for newly delivered product rose 340 bps from the first quarter to 48.9%, a clear indication of strong demand for functional product. The construction pipeline expanded noticeably in the second quarter, increasing by 8.1% from Q1 2017 to 237.1 msf. While the greatest concentration of construction is in large markets with strong underlying fundamentals and low vacancies, construction starts increased in 46 of 79 markets.

Given the tight conditions and strong leasing by eCommerce and 3PL occupiers, industrial asking rents have continued to rise. U.S. industrial asking rents for all product types increased 4.6% in Q2 2017 from a year ago to $5.62 per square foot (psf). Average U.S. industrial rents rose in 61 of 79 markets during the same time, with over one-quarter of the industrial markets reporting double-digit gains. Meanwhile, average U.S. warehouse rents for all classes increased 4.3% in Q2 2017 from a year ago to $5.05 psf—the highest mark since Cushman & Wakefield began tracking the metric in 1990.

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2017

Absorption (MSF) Vacancy Rate




United States 77,284,442 78,483,313 63,129,827 55,837,434 59,470,838 123,015,762

Northeast 13,074,715 17,790,157 7,233,913 5,223,888 11,590,765 16,748,574

Midwest 14,865,228 23,968,635 15,788,785 12,632,717 10,906,301 21,173,940

South 23,715,895 21,353,134 27,857,093 22,685,920 24,965,276 39,325,696

West 25,628,604 15,371,387 12,250,036 15,294,909 12,008,496 45,767,552


Atlanta, GA 3,852,450 2,245,312 3,546,425 6,399,144 6,264,777 4,889,962

Austin, TX 242,070 80,659 116,610 -209,019 134,562 572,182

Baltimore, MD 506,425 1,029,640 944,082 601,088 2,395,619 1,006,326

Binghamton, NY 117,480 80,204 8,605 99,383 80,590 n/a

Birmingham, AL 403,623 826,217 33,863 -340,522 12,600 207,745

Boston, MA 1,079,816 2,190,787 996,083 -267,560 146,431 918,449

Buffalo, NY 136,985 500,257 1,217,645 -952,685 94,497 640,095

Central Valley, CA 519,917 971,895 2,031,463 92,710 386,256 380,134

Charleston, SC 646,339 -42,512 1,001,344 1,293,927 -542,886 540,215

Charlotte, NC 1,503,782 1,158,781 1,812,029 756,188 1,145,159 341,158

Chicago, IL 5,656,574 10,474,949 4,149,725 2,891,269 6,938,000 4,296,870

Cincinnati, OH 1,787,525 1,833,726 556,179 3,966,686 163,015 1,137,431

Cleveland, OH -36,295 331,032 1,187,461 180,990 739,053 982,405

Colorado Springs, CO 98,615 -97,504 -160,026 209,304 407,173 196,862

Columbus, OH 180,470 1,349,355 2,080,666 193,936 -195,634 1,897,371


Dayton, OH 328,464 306,394 525,747 926,181 204,099 75,616

Denver, CO 1,450,866 746,413 596,022 183,192 1,473,181 3,985,137

Detroit, MI 1,478,756 1,070,776 985,441 -263,025 -366,847 1,692,314

El Paso, TX 712,193 -293,711 -78,692 76,000 357,161 581,841

Fort Myers/Naples, FL 351,557 272,489 206,876 218,558 191,401 139,206

Fredericksburg, VA 70,112 189,844 173,790 -124,975 184,902 152,140

Ft. Lauderdale, FL 20,012 702,011 858,893 534,362 116,227 748,779

Greenville, SC 3,131,610 1,560,194 1,353,175 515,093 1,385,330 779,560

Hampton Roads, VA 390,311 -3,892 -359,777 442,604 936,015 253,810

Hartford, CT 347,113 866,772 125,862 183,652 261,345 624,012

Houston, TX 92,367 810,247 4,065,736 1,100,522 211,411 4,802,741

Indianapolis, IN 2,720,089 3,108,214 1,848,702 784,605 544,064 4,579,454

Inland Empire CA 8,608,335 3,784,917 3,636,653 4,233,160 3,587,967 9,649,107

Jacksonville, FL 727,867 239,728 161,043 285,616 385,064 1,971,005

Kansas City, MO 1,775,923 1,134,989 1,840,583 2,449,729 2,374,998 2,330,838

Lakeland, FL 90,185 231,791 93,900 322,473 -11,166 241,756

Las Vegas, NV 441,278 698,467 955,129 540,804 1,813,670 n/a

Long Island, NY 112,036 365,094 -230,288 -207,859 -47,352 330,107

Los Angeles, CA 2,769,413 1,783,386 250,202 1,729,044 879,060 7,631,568

Louisville, KY 1,599,711 491,942 322,851 502,185 291,259 1,217,632

Memphis, TN 341,427 695,753 3,011,967 1,902,419 1,245,801 3,091,188

Miami, FL 353,972 624,408 438,808 456,494 52,590 2,177,744

Milwaukee, WI 743,340 585,596 -12,492 327 201,877 683,328

Minneapolis, MN 403,691 459,794 519,293 -361,946 477,473 n/a

Demand Indicators




Nashville, TN 1,433,052 578,168 2,529,427 579,181 443,020 1,150,144

New Haven, CT -117,896 -169,623 293,732 107,072 18,838 475,252

New Jersey - Central 2,672,125 2,088,582 702,054 1,400,046 2,523,645 3,950,608

New Jersey - Northern 1,341,223 949,477 -449,521 632,784 1,105,617 2,420,426

Northern VA -125,578 293,531 -54,788 133,525 114,525 471,316

Oakland/East Bay, CA 3,125,423 -362,897 274,100 370,186 272,341 2,496,916

Oklahoma City, OK 355,395 79,041 -66,220 -56,356 -229,173 396,411

Omaha, NE 81,715 142,371 204,651 114,131 211,393 468,055

Orange County, CA 625,271 577,174 417,332 73,028 53,932 1,561,698

Orlando, FL 822,697 671,947 1,013,276 187,456 834,782 832,779



Philadelphia, PA 1,336,387 3,442,237 1,520,977 1,264,786 1,324,880 1,085,319

Phoenix, AZ 2,196,394 2,244,605 1,572,074 2,105,250 1,199,401 7,862,563

Pittsburgh, PA 967,110 -175,139 100,230 283,316 667,478 614,966

Portland, OR 978,437 308,442 529,659 645,643 829,963 1,566,760

Providence, RI 254,742 115,966 102,292 101,650 87,648 132,286

Puget Sound - Eastside 1,322,354 256,769 303,774 230,918 74,918 400,744

Raleigh/Durham, NC 283,535 -172,912 344,104 -58,747 109,980 728,303

Richmond, VA 321,430 75,820 263,746 138,883 572,959 364,856

Roanoke, VA 63,011 354,142 69,980 286,933 1,115,132 33,168

Rochester, NY 801,031 225,539 213,189 -4,470 407,166 84,970

Sacramento, CA 368,021 582,097 183,313 1,359,925 229,658 1,540,013

Salt Lake City, UT 612,166 763,231 442,247 1,372,941 1,042,903 2,233,567

San Antonio, TX 142,329 88,610 142,169 -133,376 266,848 741,018

San Diego, CA 374,520 -100,709 431,283 330,736 17,518 1,693,870


San Francisco Peninsula, CA 34,830 -193,018 72,077 -15,728 180,823 701,916

San Jose (Silicon Valley), CA 494,984 -420,112 -36,597 131,208 -419,806 871,640

Savannah, GA -120,950 48,052 -358,098 n/a 1,183,500 1,183,500

Seattle, WA 1,291,209 2,512,682 527,043 1,505,694 96,309 2,249,354


St. Louis, MO -255,024 3,171,439 1,902,829 1,749,834 -385,190 3,030,258

St. Petersburg/Clearwater, FL 30,381 -37,440 590,146 132,098 8,087 426,117

Suburban MD 275,122 517,102 250,065 -2,323 -56,959 281,405

Syracuse, NY -103,764 -422,119 287,613 -51,824 230,398 199,575

Tampa, FL 262,732 250,524 146,530 163,673 19,984 526,083

Tucson, AZ 264,250 1,037,269 120,089 42,085 -168,222 532,853

Tulsa, OK -190,296 235,404 -196,268 -200,227 25,867 n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 6.1% 5.8% 5.5% 5.5% 5.3%

Northeast 7.1% 6.6% 6.3% 6.2% 5.5%

Midwest 5.9% 5.8% 5.4% 5.5% 5.5%

South 7.0% 6.8% 6.6% 6.6% 6.6%

West 4.6% 4.2% 4.1% 4.0% 3.7%


Atlanta, GA 8.4% 8.6% 9.0% 8.7% 8.4%

Austin, TX 7.7% 7.5% 6.4% 9.5% 8.6%

Baltimore, MD 7.2% 7.0% 6.6% 7.9% 7.3%

Binghamton, NY 11.7% 11.7% 10.8% 11.3% 10.3%

Birmingham, AL 14.4% 9.0% 8.8% 11.4% 11.3%

Boston, MA 7.0% 6.7% 6.4% 6.6% 6.4%

Buffalo, NY 9.0% 8.9% 8.9% 9.2% 9.0%


Charleston, SC 7.7% 6.8% 6.8% 4.7% 6.0%

Charlotte, NC 4.5% 3.8% 3.6% 3.4% 3.6%

Chicago, IL 6.3% 6.1% 6.3% 6.4% 6.3%

Cincinnati, OH 4.0% 4.2% 4.2% 3.0% 3.3%

Cleveland, OH 5.0% 4.9% 4.6% 4.6% 4.2%


Columbus, OH 6.5% 5.9% 5.5% 5.6% 5.9%


Dayton, OH 8.6% 8.1% 8.0% 7.7% 7.6%

Denver, CO 3.4% 3.9% 4.3% 4.9% 4.8%

Detroit, MI 4.6% 4.0% 4.0% 3.5% 3.5%

El Paso, TX 6.6% 7.1% 6.8% 6.8% 5.7%



Ft. Lauderdale, FL 6.8% 5.5% 4.4% 4.5% 4.4%

Greenville, SC 6.7% 6.9% 6.6% 6.4% 6.1%

Hampton Roads, VA 6.5% 6.3% 6.6% 5.4% 5.4%

Hartford, CT 12.8% 11.9% 11.7% 5.1% 5.4%

Houston, TX 6.4% 6.7% 7.1% 7.0% 6.8%

Indianapolis, IN 4.9% 3.6% 3.0% 5.1% 5.1%

Inland Empire CA 4.7% 4.7% 4.4% 4.0% 4.1%

Jacksonville, FL 6.5% 6.5% 6.2% 5.6% 5.4%

Kansas City, MO 7.5% 7.5% 8.3% 8.3% 7.8%

Lakeland, FL 5.5% 4.2% 3.7% 5.1% 5.1%

Las Vegas, NV 5.8% 5.6% 5.1% 5.7% 6.0%

Long Island, NY 6.9% 6.5% 6.6% 6.8% 6.9%

Los Angeles, CA 1.6% 1.3% 1.4% 1.3% 1.2%

Louisville, KY 5.4% 6.2% 6.6% 7.2% 7.7%

Memphis, TN 9.3% 9.2% 8.7% 8.3% 8.8%

Miami, FL 4.9% 4.4% 4.3% 4.2% 5.0%

Milwaukee, WI 4.2% 4.0% 4.4% 4.5% 4.5%

Minneapolis, MN 8.5% 8.4% 8.2% 8.7% 8.7%


Vacancy Rates


Nashville, TN 3.4% 3.1% 2.9% 3.2% 2.9%

New Haven, CT 12.9% 13.2% 12.6% 6.1% 5.0%



Northern VA 9.6% 9.2% 9.2% 8.8% 8.5%


Oklahoma City, OK 7.2% 6.7% 7.3% 6.8% 7.5%

Omaha, NE 3.1% 3.2% 3.2% 3.1% 3.3%

Orange County, CA 2.3% 2.2% 2.0% 2.0% 1.9%

Orlando, FL 5.8% 5.1% 4.6% 5.1% 5.6%



Philadelphia, PA 5.4% 4.9% 4.2% 3.9% 3.7%

Phoenix, AZ 9.6% 9.3% 9.1% 8.9% 8.6%

Pittsburgh, PA 5.6% 6.0% 5.7% 5.7% 4.8%

Portland, OR 4.4% 4.3% 4.0% 3.9% 3.2%

Providence, RI 0.3% 0.2% 0.3% 0.2% 0.2%



Richmond, VA 7.5% 6.9% 6.6% 5.4% 5.1%

Roanoke, VA 8.1% 8.3% 7.2% 8.0% 7.9%

Rochester, NY 10.2% 9.9% 9.6% 9.6% 9.0%

Sacramento, CA 9.4% 8.9% 10.8% 6.2% 5.6%

Salt Lake City, UT 7.0% 7.5% 7.2% 6.1% 5.4%

San Antonio, TX 9.0% 9.6% 9.6% 10.0% 8.9%

San Diego, CA 5.0% 5.1% 5.3% 5.1% 5.1%




Savannah, GA 2.4% 2.3% 3.0% 3.0% 3.2%

Seattle, WA 4.6% 3.8% 3.8% 3.4% 3.7%


St. Louis, MO 7.5% 6.6% 6.9% 6.7% 6.8%


Suburban MD 12.7% 11.6% 10.7% 9.9% 10.5%

Syracuse, NY 10.3% 11.3% 10.6% 10.7% 9.9%

Tampa, FL 6.1% 5.6% 5.5% 5.0% 5.4%

Tucson, AZ 8.6% 8.1% 7.8% 7.4% 7.7%

Tulsa, OK 7.8% 7.4% 7.6% 8.8% 9.1%

p = preliminary


Asking Rents



United States $5.38 $5.42 $5.50 $5.56 $5.62 $5.06 $5.50

Northeast $5.53 $5.65 $5.87 $6.02 $6.13 $5.87 $4.87

Midwest $4.34 $4.38 $4.42 $4.41 $4.40 $4.21 $4.57

South $5.12 $5.22 $5.18 $5.15 $5.22 $4.58 $4.43

West $6.96 $6.99 $7.14 $7.43 $7.78 $6.93 $8.47


Atlanta, GA $4.22 $4.17 $4.20 $4.31 $4.35 $3.75 $3.52

Austin, TX $9.66 $9.75 $9.71 $9.27 $9.21 $6.45 n/a

Baltimore, MD $5.57 $5.49 $5.35 $5.08 $4.78 $4.16 n/a

Binghamton, NY $4.81 $4.81 $4.71 $4.70 $4.64 $3.90 $4.29

Birmingham, AL $3.57 $4.70 $5.01 $4.18 $4.23 $3.85 n/a

Boston, MA $6.02 $6.17 $6.22 $6.61 $6.85 $6.22 $7.91

Buffalo, NY $4.13 $4.98 $4.98 $4.13 $4.13 $4.25 $3.95


Charleston, SC $5.31 $5.31 $5.26 $5.36 $5.35 $5.48 $4.71

Charlotte, NC $5.03 $5.17 $5.15 $5.11 $5.27 $4.62 $3.96

Chicago, IL $4.88 $4.79 $4.76 $4.87 $4.98 $4.76 $4.64

Cincinnati, OH $4.01 $3.91 $4.06 $4.33 $4.27 $3.82 $3.83

Cleveland, OH $3.95 $3.88 $3.94 $3.99 $4.10 $3.80 n/a

Colorado Springs, CO $6.42 $7.27 $7.40 $8.02 $7.42 $6.90 n/a

Columbus, OH $3.35 $3.35 $3.43 $3.46 $3.46 $3.46 n/a


Dayton, OH $3.22 $3.19 $3.21 $3.32 $3.32 $3.40 $2.97

Denver, CO $7.04 $7.23 $7.57 $8.03 $8.10 $6.49 $8.08

Detroit, MI $5.25 $5.26 $5.26 $5.36 $5.53 $5.14 $4.92

El Paso, TX $3.95 $3.95 $3.95 $3.95 $3.95 $4.00 $3.90



Ft. Lauderdale, FL $9.65 $9.52 $8.69 $8.92 $9.12 $8.39 $8.31

Greenville, SC $3.53 $3.55 $4.16 $3.44 $4.17 $3.68 $3.79

Hampton Roads, VA $5.18 $5.21 $5.42 $5.08 $5.07 $4.86 $5.64

Hartford, CT $4.27 $4.32 $4.08 $4.53 $4.20 $4.31 $3.54

Houston, TX $6.19 $6.12 $6.14 $6.23 $6.28 $6.12 $5.94

Indianapolis, IN $3.50 $3.55 $3.62 $3.70 $3.74 $3.39 $3.15

Inland Empire CA $6.24 $6.58 $6.82 $7.28 $7.42 $7.09 $8.28

Jacksonville, FL $3.99 $4.34 $4.24 $4.63 $4.74 $4.30 $3.90

Kansas City, MO $4.48 $4.51 $4.41 $4.38 $4.45 $3.83 $4.42

Lakeland, FL $4.89 $4.85 $5.00 $5.17 $5.18 $5.14 $5.34

Las Vegas, NV $7.78 $7.86 $7.27 $7.88 $7.76 $6.41 n/a

Long Island, NY $8.25 $8.53 $8.86 $9.97 $9.25 $9.02 $9.93

Los Angeles, CA $8.29 $8.79 $9.08 $9.25 $9.05 $8.72 $8.47

Louisville, KY $3.63 $3.67 $3.68 $3.76 $3.76 $3.68 $3.26

Memphis, TN $2.51 $2.49 $2.55 $2.57 $2.64 $2.30 n/a

Miami, FL $7.23 $7.32 $8.32 $7.98 $8.13 $8.17 $7.16

Milwaukee, WI $4.33 $4.39 $4.35 $4.45 $4.55 $3.95 $4.88



Asking Rents

p = preliminary



Nashville, TN $3.97 $4.14 $4.07 $4.18 $5.14 $4.98 $4.04

New Haven, CT $5.20 $5.68 $5.24 $5.85 $5.30 $4.75 $5.32



Northern VA $10.89 $11.11 $11.12 $11.15 $11.16 $8.87 n/a


Oklahoma City, OK $4.57 $4.65 $4.61 $4.86 $4.98 $4.08 $3.12

Omaha, NE $5.22 $5.55 $5.41 $5.63 $5.57 $5.20 $4.85

Orange County, CA $10.44 $10.91 $11.21 $11.10 $11.40 $9.70 $12.30

Orlando, FL $6.65 $6.45 $6.48 $6.32 $6.29 $5.43 $5.17


PA I-81/I-78 Distribution Corridor $4.57 $4.53 $4.64 $4.72 $4.74 $4.74 n/a

Philadelphia, PA $4.52 $4.65 $4.63 $4.81 $4.95 $4.25 $4.30

Phoenix, AZ $6.43 $6.54 $7.05 $7.03 $6.80 $5.03 $7.52

Pittsburgh, PA $7.70 $7.72 $7.84 $7.54 $7.09 $5.01 $5.11

Portland, OR $7.22 $7.62 $8.02 $7.73 $8.30 $8.53 $6.88

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.34 $4.67 $4.72 $4.71 $4.79 $4.17 $3.84

Roanoke, VA $4.10 $4.18 $4.32 $3.94 $3.99 $3.78 $4.30

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.40 $4.43 $4.55 $4.68 $4.80 $4.80 $5.52

Salt Lake City, UT $5.40 $5.47 $5.45 $5.37 $5.49 $5.06 $5.72

San Antonio, TX $5.83 $5.85 $5.98 $6.04 $5.77 $4.97 n/a

San Diego, CA $12.12 $12.00 $12.12 $12.00 $11.76 $8.76 $10.20




Savannah, GA $4.55 $4.79 $4.75 $4.75 $4.69 $4.32 n/a

Seattle, WA $6.04 $6.61 $6.73 $7.15 $7.38 $6.65 $5.95


St. Louis, MO $4.28 $4.27 $4.39 $4.45 $4.58 $4.17 $8.94


Suburban MD $9.20 $9.44 $9.57 $10.11 $9.36 $7.67 n/a

Syracuse, NY $3.65 $3.81 $3.83 $3.85 $4.07 $4.37 $3.13

Tampa, FL $5.48 $6.12 $6.10 $6.15 $5.77 $4.91 $4.09

Tucson, AZ $6.80 $6.81 $6.67 $6.44 $6.30 $6.07 $5.48

Tulsa, OK $4.50 $4.52 $4.52 $4.52 $4.53 $4.85 $3.79


Inventory


United States 14,046,531,597 107,189,445 237,079,831

Northeast 2,119,104,897 15,967,555 28,891,269

Midwest 3,886,798,622 23,405,869 56,302,386

South 4,132,307,732 45,552,246 84,740,445

West 3,908,320,346 22,263,775 67,145,731


Atlanta, GA 559,993,730 9,659,538 18,348,937

Austin, TX 38,644,449 659,646 964,274

Baltimore, MD 202,439,604 574,856 6,173,519

Binghamton, NY 17,613,764 **** 700,000

Birmingham, AL 14,708,455 0 127,000

Boston, MA 131,368,666 342,014 1,004,432

Buffalo, NY 111,277,196 55,000 280,400

Central Valley, CA 114,598,292 899,800 4,405,420

Charleston, SC 64,992,311 893,002 6,113,074

Charlotte, NC 179,957,857 1,509,406 1,345,483

Chicago, IL 1,180,989,237 8,723,232 18,428,814

Cincinnati, OH 282,271,739 1,409,824 3,012,883

Cleveland, OH 491,873,019 977,725 1,648,000


Columbus, OH 248,036,749 364,000 6,339,360


Dayton, OH 114,223,181 873,700 1,503,349

Denver, CO 243,119,997 2,527,522 5,959,170

Detroit, MI 494,341,274 1,257,261 3,273,214

El Paso, TX 52,037,278 0 436,500


Fredericksburg, VA 10,494,825 0 900,000

Ft. Lauderdale, FL 87,512,218 289,137 1,031,524

Greenville, SC 125,492,543 950,538 694,850

Hampton Roads, VA 96,470,662 329,580 445,000

Hartford, CT 92,730,283 634,000 1,061,850

Houston, TX 412,853,101 3,095,146 2,122,737

Indianapolis, IN 250,704,546 2,041,463 7,222,684

Inland Empire CA 504,886,132 6,603,227 27,207,194

Jacksonville, FL 104,507,696 0 3,343,476

Kansas City, MO 212,037,190 3,995,305 7,473,110

Lakeland, FL 30,928,525 820,316 605,920

Las Vegas, NV 119,620,990 3,601,254 3,387,731

Long Island, NY 130,593,153 0 719,297

Los Angeles, CA 1,077,285,198 1,544,968 8,630,386

Louisville, KY 153,461,087 3,043,625 4,882,895

Memphis, TN 193,376,072 2,641,192 3,193,010

Miami, FL 157,179,499 2,049,276 2,385,130

Milwaukee, WI 198,182,412 682,330 550,337

Minneapolis, MN 105,822,567 766,373 2,254,542


Inventory


Nashville, TN 204,479,749 2,020,132 4,448,300

New Haven, CT 47,798,552 30,000 130,500



Northern VA 57,051,702 0 399,485


Oklahoma City, OK 70,590,005 345,000 926,200

Omaha, NE 68,235,589 579,256 1,012,695

Orange County, CA 283,176,958 274,185 585,904

Orlando, FL 117,043,071 1,843,183 1,209,615



Philadelphia, PA 294,311,006 1,298,650 3,039,169

Phoenix, AZ 307,138,523 2,211,399 3,991,235

Pittsburgh, PA 167,747,744 789,204 395,570

Portland, OR 195,050,921 1,068,870 2,302,100

Providence, RI 77,727,305 n/a n/a



Richmond, VA 95,679,695 397,600 474,333

Roanoke, VA 50,093,282 100,000 250,000

Rochester, NY 73,551,473 0 50,000

Sacramento, CA 141,000,710 443,734 1,212,223

Salt Lake City, UT 125,875,624 600,198 3,117,647

San Antonio, TX 39,305,488 593,726 1,061,068

San Diego, CA 162,738,462 178,336 1,168,757




Savannah, GA 51,503,655 1,043,671 5,092,142

Seattle, WA 144,096,189 1,433,172 2,647,821

Southern New Hampshire 46,774,564 0 1,404,873

St. Louis, MO 240,081,119 1,735,400 3,583,398


Suburban MD 48,594,729 216,000 136,666

Syracuse, NY 42,742,531 36,620 104,000

Tampa, FL 78,861,533 387,126 1,241,498

Tucson, AZ 42,742,639 140,160 29,811

Tulsa, OK 60,222,675 42,000 105,000

p = preliminary

Methodology


Regional Map


















Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.


Carolyn Salzer Industrial Research Analyst, Americas Tel: +1 847.518.3212 cushmanwakefield.com

cushmanwakefi eld.com | 1


MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy

Net Absorption/Rent NNN4-QTR TRAILING AVERAGE


Forecast






Forecast




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EconomyEmployment growth in the fi rst quarter of 2017 was solid — averaging 178,000 jobs per month and thus a sizeable increase from the monthly average of 148,000 jobs added in the fourth quarter of 2016. Q1 2017 job growth was roughly on par with the average of 187,000 per month for 2016 as a whole. The March job gains of 98,000, while comparatively small, continued the record-setting streak of employment growth that began in the fourth quarter of 2010.

The manufacturing sector is on a roll. The Institute for Supply Management’s (ISM) Purchasing Managers’ Index has been in expansionary territory for seven straight months, registering 57.2 in March. That indicates conditions within the sector are much improved. The subcomponents of the ISM index painted an even stronger picture, showing new orders expanding vigorously, exports at their highest point since 2013, and employment at levels not seen since 2011. Improvement is also evident in an uptick in rail volumes. The American Association of Railroads reports that year-to-date total carloads through March totaled 180,655 — up 5.7% from a year-ago, and year-to-date intermodal volume was up 1.4% (47,977 units) over last year.

However, U.S. retail sales fell for a second straight month in March. The U.S. Commerce Department reported that retail sales declined by 0.2%, led by a decline in auto sales which were down 1.6% from the same month a year prior. Sales of cars and light trucks declined to a 16.5 million-unit pace, the slowest in more than two years, and is evidence that the auto market has cooled somewhat after an unprecedented seventh straight year of record sales. In contrast, eCommerce sales continued to grow, with online sales up 11.9% from a year ago.

The Conference Board’s Consumer Confi dence Index surged in March to 125.6 — its highest level in more than 16 years— amid growing market optimism. This reading suggests that consumer spending will accelerate. With confi dence upbeat and household balance sheets healthy, real consumption should fi rm moving forward, serving as a catalyst for industrial-related leasing.

Market OverviewThe U.S. industrial market absorbed 53.8 million square feet (MSF) of space in the fi rst quarter of 2017, a 14.4% decline from that registered in the fi rst quarter 2016. Still, Q1 2017 absorption was well above the quarterly average of 49.3 MSF of absorption witnessed during the current economic recovery and signifi cantly higher than the average quarterly absorption of 40.6 MSF registered during the last two economic growth cycles. Q1 2017 marks 28 quarters of net occupancy gains, placing the current expansion among the longest on record. The current expansion is also among the strongest with net absorption now having surpassing 1.3 billion square feet added since 2010.

The current booming industrial expansion has been more broad-based than prior expansions, and widespread occupancy gains continue across the country. Nineteen

Source: Cushman & Wakefi eld Research

Source: BLS



MARKETBEAT

Trade Policy Remains Biggest Wild CardNAFTA WITHDRAWAL APPEARS UNLIKELY, WHICH BENEFITS WAREHOUSING

Near-Term Industrial OutlookEXPECT ANOTHER STRONG PERFORMANCE FOR THE INDUSTRIAL MARKET

Will Confi dent Consumers Increase Spending?GROWING OPTIMISM SUGGESTS CONSUMER SPENDING WILL ACCELERATE

Outlook• Logistics-related leasing will benefi t from solid economic

fundamentals that spur increased consumer spending.

• Trade policy of the Trump Administration remains unclear, but it appears that the most likely policy adjustments will not roil supply chains.

• Deliveries are not expected to overpower leasing demand. However, supply will meet demand and slowly bring fundamentals back into balance.

• Expect continued rental rate appreciation in Q2 2017 with rent growth decelerating in the second half of 2017.

Source: The Conference Board, U.S. Department of Commerce

Source: U.S. Department of Transportation, Cushman & Wakefi eld Research


markets reported over 1 MSF of positive net absorption during the fi rst quarter of the year. Occupier demand for modern industrial space continues to grow, with new construction leasing of speculative and build-to-suit industrial product delivered in the past 24 months accounting for over half of Q1 2017 net absorption.

The national industrial vacancy rate continued to decline in the fi rst quarter of 2017 to 5.3%, falling 20 basis points (bps) from Q4 2016 and 80 bps from a year ago. Industrial vacancy is currently tracking at its lowest level of the past 30 years and is now a full 300 bps below the 10-year historical average of 8.3%. Vacancy rates declined or held fi rm during the quarter in 51 of the 79 markets tracked by Cushman & Wakefi eld. Strong leasing fundamentals have driven vacancies for each industrial product lower than at any point in the last cycle.

In Q1 2017, 54.9 MSF of new industrial product came online, of which 39.8 MSF was speculative. Sixteen markets delivered more than 1 MSF in Q1 2017, led by Dallas/Ft. Worth (7.1 MSF), Atlanta (6.3 MSF), Chicago (4.2 MSF), the Pennsylvania I-81/I-78 Distribution Corridor (3.2 MSF), Kansas City (2.6 MSF), Central New Jersey (2.1 MSF) and the Inland Empire (2.1 MSF). The pipeline remains robust, with ground breakings up 24% since the fourth quarter of 2016. Currently, speculative projects under construction total 145.5 MSF, which accounts for 66.3% of the total 219.3 MSF in the development pipeline. We anticipate that supply will meet demand in Q2 2017, and that vacancy will slowly begin to rebalance in the second half of 2017.

An uptick in leasing by third-party logistics services (3PLs) and healthy demand from other logistics and distribution occupiers are fueling rent growth. U.S. industrial asking rents rose 4.2% in Q1 2017 from a year ago. Industrial rents rose in 71 of the 79 markets tracked during the same period, with over one-third of industrial markets reporting double-digit gains. In many markets, industrial rents remain at historic highs, and on a national level every industrial product type is experiencing rental rate appreciation.

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Warehouse Deliveries (MSF) (R) NAFTA Loaded Truck Containers (Mil.) (L)

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Consumer Confidence Index (1985=100, SA) Retail Sales x-Autos (Mil., USD)

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Absorption (MSF) Deliveries (MSF) Vacancy Rate

MarketBeat U.S. Q1 2017 cushmanwakefi eld.com | 3



United States 62,787,242 77,284,442 78,483,313 63,129,827 53,769,325 128,175,083

Northeast 13,416,209 13,074,715 17,790,157 7,233,913 6,013,365 14,960,702

Midwest 11,960,215 14,865,228 23,968,635 15,788,785 12,488,915 26,166,406

South 25,281,012 23,715,895 21,353,134 27,857,093 18,921,872 36,325,403

West 12,129,806 25,628,604 15,371,387 12,250,036 16,345,173 50,722,572


Atlanta, GA 4,014,644 3,852,450 2,245,312 3,546,425 6,360,431 5,970,364

Austin, TX 171,666 242,070 80,659 116,610 -209,019 524,496

Baltimore, MD 1,611,283 506,425 1,029,640 944,082 90,618 3,742,266

Binghamton, NY 35,384 117,480 80,204 8,605 99,383 6,790

Birmingham, AL 108,076 403,623 826,217 33,863 -340,522 530,455

Boston, MA -245,725 1,079,816 2,190,787 996,083 -267,560 1,424,557

Buff alo, NY -276,271 136,985 500,257 1,217,645 -952,685 268,129

Charleston, SC 647,660 646,339 -42,512 1,001,344 1,293,927 374,646

Charlotte, NC 119,578 1,503,782 1,158,781 1,812,029 756,188 2,332,572

Chicago, IL 2,437,786 5,656,574 10,474,949 4,149,725 2,667,241 3,529,733

Cincinnati, OH 849,734 1,787,525 1,833,726 556,179 4,033,174 3,188,127

Cleveland, OH 962,071 -36,295 331,032 1,187,461 180,990 1,281,985

Colorado Springs, CO 32,126 98,615 -97,504 -160,026 59,099 14,234

Columbus, OH 1,381,183 180,470 1,349,355 2,080,666 193,936 1,814,510


Dayton, OH 564,858 328,464 306,394 525,747 929,381 110,891

Denver, CO -97,905 1,450,866 746,413 596,022 136,784 3,327,450

Detroit, MI 2,368,339 1,478,756 1,070,776 985,441 113,412 2,547,399

El Paso, TX 1,576,642 712,193 -293,711 -78,692 76,000 76,000


Fredericksburg, VA -76 70,112 189,844 173,790 -124,975 89,726

Ft. Lauderdale, FL 26,560 20,012 702,011 858,893 385,012 584,077

Greenville, SC 830,107 3,131,610 1,560,194 1,353,175 515,093 1,115,201

Hampton Roads, VA -204,133 390,311 -3,892 -359,777 20,276 180,180

Hartford, CT -161,857 347,113 866,772 125,862 183,652 468,262

Houston, TX 1,550,857 92,367 810,247 4,065,736 366,980 4,693,879

Indianapolis, IN 881,633 2,720,089 3,108,214 1,848,702 481,004 1,932,119

Inland Empire CA 3,483,292 8,608,335 3,784,917 3,636,653 4,215,907 12,075,658

Jacksonville, FL 1,023,149 727,867 239,728 161,043 409,928 847,739

Kansas City, MO 773,318 1,775,923 1,134,989 1,840,583 2,446,833 7,855,614

Lakeland, FL 247,320 90,185 231,791 93,900 262,677 426,657

Las Vegas, NV 792,135 441,278 698,467 955,129 540,804 n/a

Long Island, NY 493,677 112,036 365,094 -230,288 -231,655 367,827

Los Angeles, CA 2,246,044 2,769,413 1,783,386 250,202 1,365,680 10,209,325

Louisville, KY 967,870 1,599,711 491,942 322,851 489,567 1,109,418

Memphis, TN 1,690,863 341,427 695,753 3,011,967 2,240,074 2,862,686

Miami, FL 779,691 353,972 624,408 438,808 58,180 914,476

Milwaukee, WI 885,374 743,340 585,596 -12,492 327 773,266

Minneapolis, MN 1,041,300 403,691 459,794 519,293 -361,946 n/a

Nashville, TN 1,287,008 1,433,052 578,168 2,529,427 450,792 2,116,243

Demand Indicators




New Haven, CT 27,084 -117,896 -169,623 293,732 107,072 183,404

New Jersey - Central 5,861,097 2,672,125 2,088,582 702,054 1,197,271 4,766,322

New Jersey - Northern 1,723,861 1,341,223 949,477 -449,521 391,204 1,510,948

Northern VA 271,468 -125,578 293,531 -54,788 133,525 227,899

Oakland/East Bay, CA -331,755 3,125,423 -362,897 274,100 566,130 3,569,600

Oklahoma City, OK 366,886 355,395 79,041 -66,220 -56,356 232,452

Omaha, NE -18,265 81,715 142,371 204,651 111,443 402,140

Orange County, CA 428,201 625,271 577,174 417,332 -118,270 2,854,161

Orlando, FL 736,721 822,697 671,947 1,013,276 47,302 912,925



Philadelphia, PA 2,158,170 1,336,387 3,442,237 1,520,977 1,319,277 2,435,664

Phoenix, AZ 1,386,180 2,196,394 2,244,605 1,572,074 2,105,250 5,315,081

Pittsburgh, PA 873,111 967,110 -175,139 100,230 1,102,278 256,184

Portland, OR 439,415 978,437 308,442 529,659 645,643 1,174,401

Providence, RI 133,493 254,742 115,966 102,292 101,650 101,650

Puget Sound - Eastside -118,429 1,322,354 256,769 303,774 99,512 577,273

Raleigh/Durham, NC 108,522 283,535 -172,912 344,104 -92,005 782,182

Richmond, VA 547,739 321,430 75,820 263,746 138,883 512,920

Roanoke, VA -76,697 63,011 354,142 69,980 286,933 16,076

Rochester, NY 69,576 801,031 225,539 213,189 -4,470 356,293

Sacramento, CA 1,291,485 368,021 582,097 183,313 1,235,799 1,277,005

Salt Lake City, UT 410,524 612,166 763,231 442,247 1,372,941 649,444

San Antonio, TX 147,891 142,329 88,610 142,169 -171,765 221,186

San Diego, CA -236,360 374,520 -100,709 431,283 330,736 1,626,771


San Francisco Peninsula, CA 232,460 34,830 -193,018 72,077 -586 486,629

San Jose (Silicon Valley), CA 44,003 494,984 -420,112 -36,597 102,355 1,315,987

Savannah, GA 0 -120,950 48,052 -358,098 n/a n/a

Seattle, WA 618,628 1,291,209 2,512,682 527,043 1,505,694 3,198,967


St. Louis, MO -167,116 -255,024 3,171,439 1,902,829 1,693,120 2,730,622

St. Petersburg/Clearwater, FL 61,539 30,381 -37,440 590,146 59,093 176,022

Stockton/Tracy, CA 1,443,613 519,917 971,895 2,031,463 2,031,463 2,475,867

Suburban MD 108,423 275,122 517,102 250,065 -173,686 313,898

Syracuse, NY -256,271 -103,764 -422,119 287,613 -51,824 292,233

Tampa, FL 70,529 262,732 250,524 146,530 180,375 264,624

Tucson, AZ 40,472 264,250 1,037,269 120,089 42,085 174,716

Tulsa, OK -90,177 -190,296 235,404 -196,268 -200,227 n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 6.1% 5.8% 5.5% 5.5% 5.3%

Northeast 7.1% 6.6% 6.3% 6.2% 5.6%

Midwest 5.9% 5.8% 5.4% 5.5% 5.5%

South 7.0% 6.8% 6.6% 6.6% 6.6%

West 4.6% 4.2% 4.1% 4.0% 3.7%


Atlanta, GA 8.5% 8.4% 8.6% 9.0% 8.7%

Austin, TX 6.8% 7.7% 7.5% 6.4% 9.5%

Baltimore, MD 7.5% 7.2% 7.0% 6.6% 7.9%

Binghamton, NY 12.2% 11.7% 11.7% 10.8% 11.3%

Birmingham, AL 17.0% 14.4% 9.0% 8.8% 11.4%

Boston, MA 7.3% 7.0% 6.7% 6.4% 6.6%

Buff alo, NY 8.9% 9.0% 8.9% 8.9% 9.2%

Charleston, SC 7.9% 7.7% 6.8% 6.8% 4.7%

Charlotte, NC 6.4% 4.5% 3.8% 3.6% 3.4%

Chicago, IL 6.4% 6.3% 6.1% 6.3% 6.4%

Cincinnati, OH 4.2% 4.0% 4.2% 4.2% 3.0%

Cleveland, OH 5.2% 5.0% 4.9% 4.6% 4.6%


Columbus, OH 6.6% 6.5% 5.9% 5.5% 5.6%


Dayton, OH 8.7% 8.6% 8.1% 8.0% 7.7%

Denver, CO 2.7% 3.4% 3.9% 4.3% 4.9%

Detroit, MI 4.8% 4.6% 4.0% 4.0% 3.5%

El Paso, TX 8.7% 6.6% 7.1% 6.8% 6.8%



Ft. Lauderdale, FL 7.1% 6.8% 5.5% 4.4% 4.5%

Greenville, SC 7.4% 6.7% 6.9% 6.6% 6.9%

Hampton Roads, VA 7.0% 6.5% 6.3% 6.6% 5.8%

Hartford, CT 12.9% 12.8% 11.9% 11.7% 6.9%

Houston, TX 6.0% 6.4% 6.7% 7.1% 7.0%

Indianapolis, IN 5.3% 4.9% 3.6% 3.0% 5.1%

Inland Empire CA 5.5% 4.7% 4.7% 4.4% 4.0%

Jacksonville, FL 7.2% 6.5% 6.5% 6.2% 5.6%

Kansas City, MO 7.9% 7.5% 7.5% 8.3% 8.3%

Lakeland, FL 5.0% 5.5% 4.2% 3.7% 5.1%

Las Vegas, NV 5.7% 5.8% 5.6% 5.1% 5.7%

Long Island, NY 7.5% 6.9% 6.5% 6.6% 6.8%

Los Angeles, CA 2.2% 1.6% 1.3% 1.4% 1.3%

Louisville, KY 5.5% 5.4% 6.2% 6.6% 7.2%

Memphis, TN 9.5% 9.3% 9.2% 8.7% 8.3%

Miami, FL 4.9% 4.9% 4.4% 4.3% 4.2%

Milwaukee, WI 4.4% 4.2% 4.0% 4.4% 4.5%

Minneapolis, MN 8.7% 8.5% 8.4% 8.2% 8.7%

Nashville, TN 3.5% 3.4% 3.1% 2.9% 3.2%


Vacancy Rates


New Haven, CT 12.7% 12.9% 13.2% 12.6% 6.1%



Northern VA 9.0% 9.6% 9.2% 9.2% 8.8%


Oklahoma City, OK 6.5% 7.2% 6.7% 7.3% 6.7%

Omaha, NE 3.5% 3.1% 3.2% 3.2% 3.1%

Orange County, CA 2.8% 2.3% 2.2% 2.0% 2.0%

Orlando, FL 6.9% 5.8% 5.1% 4.6% 5.1%



Philadelphia, PA 5.6% 5.4% 4.9% 4.2% 3.9%

Phoenix, AZ 10.1% 9.6% 9.3% 9.1% 8.9%

Pittsburgh, PA 6.2% 5.6% 6.0% 5.7% 5.7%

Portland, OR 4.8% 4.4% 4.3% 4.0% 3.9%

Providence, RI 0.6% 0.3% 0.2% 0.3% 0.2%



Richmond, VA 8.1% 7.5% 6.9% 6.6% 5.6%

Roanoke, VA 8.3% 8.1% 8.3% 7.2% 8.0%

Rochester, NY 11.3% 10.2% 9.9% 9.6% 9.6%

Sacramento, CA 10.3% 9.4% 8.9% 10.8% 6.4%

Salt Lake City, UT 7.1% 7.0% 7.5% 7.2% 6.1%

San Antonio, TX 9.4% 9.0% 9.6% 9.6% 10.0%

San Diego, CA 5.0% 5.0% 5.1% 5.3% 5.1%




Savannah, GA 2.2% 2.4% 2.3% 3.0% 3.0%

Seattle, WA 5.8% 4.6% 3.8% 3.8% 3.4%


St. Louis, MO 6.8% 7.4% 6.5% 6.8% 6.7%


Stockton/Tracy, CA 5.8% 5.4% 5.2% 3.4% 3.5%

Suburban MD 12.6% 12.7% 11.6% 10.7% 9.9%

Syracuse, NY 11.2% 10.3% 11.3% 10.6% 10.7%

Tampa, FL 6.2% 6.1% 5.6% 5.5% 5.0%

Tucson, AZ 9.6% 8.6% 8.1% 7.8% 7.4%

Tulsa, OK 8.0% 7.8% 7.4% 7.6% 8.8%

p = preliminary


Asking Rents



United States $5.44 $5.50 $5.57 $5.63 $5.67 $5.01 $5.32

Northeast $5.66 $5.83 $6.02 $6.03 $6.15 $5.94 $4.68

Midwest $4.38 $4.41 $4.39 $4.42 $4.48 $4.19 $4.41

South $5.17 $5.23 $5.18 $5.21 $5.20 $4.44 $4.27

West $7.01 $7.15 $7.41 $7.65 $7.92 $6.72 $8.19


Atlanta, GA $4.27 $4.22 $4.17 $4.20 $4.31 $3.76 $3.53

Austin, TX $9.72 $9.66 $9.75 $9.71 $9.27 $6.48 $8.74

Baltimore, MD $5.48 $5.57 $5.49 $5.35 $5.08 $4.45 n/a

Binghamton, NY $4.74 $4.81 $4.81 $4.71 $4.70 $4.23 $4.32

Birmingham, AL $3.61 $3.57 $4.70 $5.01 $4.18 $3.83 n/a

Boston, MA $5.86 $6.02 $6.17 $6.22 $6.69 $6.06 $7.72

Buff alo, NY $4.13 $4.13 $4.98 $4.98 $4.13 $4.25 $3.95

Charleston, SC $5.07 $5.31 $5.31 $5.26 $5.36 $5.43 $4.67

Charlotte, NC $5.02 $5.03 $5.17 $5.15 $5.11 $4.52 $4.04

Chicago, IL $4.87 $4.88 $4.79 $4.76 $4.87 $4.78 $4.58

Cincinnati, OH $3.97 $4.01 $3.91 $4.06 $4.33 $3.80 $3.82

Cleveland, OH $3.89 $3.95 $3.88 $3.94 $3.99 $3.73 n/a


Columbus, OH $3.35 $3.35 $3.35 $3.43 $3.46 $3.46 n/a


Dayton, OH $3.21 $3.22 $3.19 $3.21 $3.32 $3.37 $2.96

Denver, CO $7.71 $7.04 $7.23 $7.57 $8.03 $6.84 $7.24

Detroit, MI $5.15 $5.25 $5.26 $5.26 $5.36 $4.94 $4.79

El Paso, TX $3.90 $3.95 $3.95 $3.95 $3.95 $4.00 $3.90



Ft. Lauderdale, FL $8.76 $9.65 $9.52 $8.69 $8.92 $8.45 $8.63

Greenville, SC $3.44 $3.53 $3.55 $4.16 $3.44 $3.22 $3.87

Hampton Roads, VA $5.06 $5.18 $5.21 $5.42 $5.39 $5.22 $5.14

Hartford, CT $4.22 $4.27 $4.32 $4.08 $4.53 $4.42 $4.34

Houston, TX $6.02 $6.19 $6.12 $6.14 $6.23 $6.08 $5.99

Indianapolis, IN $3.47 $3.50 $3.55 $3.62 $3.70 $3.34 $3.13

Inland Empire CA $5.90 $6.24 $6.58 $6.82 $7.28 $6.69 $8.17

Jacksonville, FL $4.05 $3.99 $4.34 $4.24 $4.63 $4.26 $2.97

Kansas City, MO $4.39 $4.48 $4.51 $4.41 $4.38 $3.88 $4.35

Lakeland, FL $4.63 $4.89 $4.85 $5.00 $5.17 $5.15 $4.55

Las Vegas, NV $7.74 $7.78 $7.86 $7.27 $7.88 $6.95 n/a

Long Island, NY $8.15 $8.25 $8.53 $8.86 $9.81 $9.76 $9.11

Los Angeles, CA $8.26 $8.29 $8.79 $9.08 $9.25 $8.94 $8.40

Louisville, KY $3.61 $3.63 $3.67 $3.68 $3.76 $3.66 $3.13

Memphis, TN $2.35 $2.51 $2.49 $2.55 $2.57 $2.28 n/a

Miami, FL $7.47 $7.23 $7.32 $8.32 $7.98 $8.03 $7.40

Milwaukee, WI $4.39 $4.33 $4.39 $4.35 $4.45 $3.88 $4.70


Nashville, TN $3.97 $3.97 $4.14 $4.07 $4.18 $4.30 $2.57


Asking Rents

p = preliminary



New Haven, CT $5.18 $5.20 $5.68 $5.24 $5.85 $5.41 $5.54



Northern VA $11.14 $10.89 $11.11 $11.12 $11.15 $8.84 n/a


Oklahoma City, OK $4.21 $4.57 $4.65 $4.61 $4.86 $4.22 $2.50

Omaha, NE $5.16 $5.22 $5.55 $5.41 $5.63 $5.28 $4.85

Orange County, CA $9.76 $10.44 $10.91 $11.21 $11.10 $9.58 $11.35

Orlando, FL $6.51 $6.65 $6.45 $6.48 $6.32 $5.27 $5.19


PA I-81/I-78 Distribution Corridor $4.35 $4.57 $4.53 $4.64 $4.72 $4.72 n/a

Philadelphia, PA $4.52 $4.52 $4.65 $4.63 $4.81 $4.26 $3.69

Phoenix, AZ $6.26 $6.43 $6.54 $7.05 $7.03 $4.88 $7.41

Pittsburgh, PA $7.21 $7.70 $7.72 $7.84 $7.54 $5.25 $5.24

Portland, OR $7.07 $7.22 $7.62 $8.02 $7.73 $6.75 $6.23

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.41 $4.34 $4.67 $4.72 $4.71 $4.10 $3.84

Roanoke, VA $4.23 $4.10 $4.18 $4.32 $3.94 $3.66 $4.23

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.40 $4.40 $4.43 $4.55 $4.66 $4.54 $5.60

Salt Lake City, UT $5.30 $5.40 $5.47 $5.45 $5.37 $5.10 $4.76

San Antonio, TX $5.76 $5.83 $5.85 $5.98 $6.04 $5.00 n/a

San Diego, CA $11.76 $12.12 $12.00 $12.12 $12.00 $9.12 $9.96




Savannah, GA $4.22 $4.55 $4.79 $4.75 $4.75 $4.32 n/a

Seattle, WA $5.85 $6.04 $6.61 $6.73 $7.15 $6.31 $5.46


St. Louis, MO $4.31 $4.28 $4.27 $4.39 $4.45 $4.07 $7.40


Stockton/Tracy, CA $3.98 $4.02 $4.06 $4.08 $4.06 $4.44 $3.24

Suburban MD $9.19 $9.20 $9.44 $9.57 $10.12 $8.42 n/a

Syracuse, NY $3.56 $3.65 $3.81 $3.83 $3.85 $4.31 $2.93

Tampa, FL $5.42 $5.48 $6.12 $6.10 $6.15 $5.38 $4.00

Tucson, AZ $6.90 $6.80 $6.81 $6.67 $6.44 $5.87 $5.86

Tulsa, OK $4.49 $4.50 $4.52 $4.52 $4.52 $4.83 $3.81


Inventory


United States 14,049,637,336 54,938,360 219,299,112

Northeast 2,109,604,297 7,352,572 27,961,760

Midwest 3,878,143,274 13,725,515 48,265,277

South 4,164,068,758 23,925,682 81,393,357

West 3,897,821,007 9,934,591 61,678,718


Atlanta, GA 555,753,632 6,273,636 15,479,136

Austin, TX 38,320,749 335,946 593,130

Baltimore, MD 202,392,387 160,000 4,686,259

Binghamton, NY 17,601,714 0 700,000

Birmingham, AL 14,708,455 0 260,000

Boston, MA 130,425,392 191,014 855,432

Buff alo, NY 111,407,904 55,000 172,400

Charleston, SC 64,814,564 446,002 5,409,417

Charlotte, NC 179,080,715 352,162 1,787,545

Chicago, IL 1,175,874,072 4,165,759 16,691,530

Cincinnati, OH 281,180,419 360,664 3,750,043

Cleveland, OH 490,936,250 692,725 1,067,000


Columbus, OH 247,886,682 364,000 2,395,975


Dayton, OH 114,075,496 770,000 1,538,549

Denver, CO 241,799,754 1,204,630 3,881,982

Detroit, MI 493,313,923 376,758 3,840,597

El Paso, TX 52,037,278 0 104,000


Fredericksburg, VA 10,369,638 0 900,000

Ft. Lauderdale, FL 87,743,487 259,137 664,574

Greenville, SC 186,785,782 345,738 1,813,299

Hampton Roads, VA 95,258,193 30,000 605,559

Hartford, CT 92,514,499 0 127,000

Houston, TX 409,263,441 1,479,429 2,392,772

Indianapolis, IN 253,029,340 1,869,440 6,552,107

Inland Empire CA 500,384,125 2,131,506 27,805,691

Jacksonville, FL 104,507,696 0 2,936,041

Kansas City, MO 210,602,565 2,560,680 6,941,193

Lakeland, FL 31,024,617 758,116 668,120

Las Vegas, NV 117,472,328 1,257,478 4,703,197

Long Island, NY 130,435,520 0 719,297

Los Angeles, CA 1,077,382,454 358,925 6,532,582

Louisville, KY 152,325,370 1,907,908 3,932,766

Memphis, TN 192,072,073 1,077,972 1,563,220

Miami, FL 154,000,711 1,213,261 3,263,945

Milwaukee, WI 197,896,286 278,560 494,770

Minneapolis, MN 104,769,001 345,173 1,059,442

Nashville, TN 203,313,673 804,220 5,652,459


Inventory


New Haven, CT 47,863,075 0 135,000



Northern VA 56,855,867 0 399,485

Oakland/East Bay, CA 204,476,525 0 1,473,974

Oklahoma City, OK 68,912,893 100,000 1,171,200

Omaha, NE 68,199,188 206,356 1,098,673

Orange County, CA 282,749,006 41,666 232,519

Orlando, FL 115,574,173 249,200 1,556,803

Palm Beach County, FL 40,459,236 0 736,931


Philadelphia, PA 293,168,918 692,530 2,773,908

Phoenix, AZ 306,953,913 1,630,513 4,021,593

Pittsburgh, PA 167,555,119 596,579 470,150

Portland, OR 194,685,062 431,246 2,818,387




Richmond, VA 93,503,433 60,000 711,933

Roanoke, VA 49,995,771 0 0

Rochester, NY 73,551,473 0 50,000

Sacramento, CA 141,114,298 423,734 1,073,255

Salt Lake City, UT 125,731,188 438,852 2,722,906

San Antonio, TX 39,331,519 303,200 897,747

San Diego, CA 162,842,066 178,336 907,734




Savannah, GA 50,459,984 0 5,000,913

Seattle, WA 143,580,512 924,329 2,217,116

Southern New Hampshire 46,890,390 0 1,033,873

St. Louis, MO 240,380,052 1,735,400 2,835,398


Stockton/Tracy, CA 114,169,641 381,600 2,341,449

Suburban MD 48,352,584 0 311,000

Syracuse, NY 42,767,773 0 142,000

Tampa, FL 78,435,558 196,324 1,178,800

Tucson, AZ 42,711,884 120,000 49,971

Tulsa, OK 60,222,675 42,000 0

p = preliminary

Methodology

Cushman & Wakefi eld’s quarterly estimates are derived from a variety of data sources, including its own proprietary database, and historical data from third party data sources. The market statistics are calculated from a base building inventory made up of industrial properties deemed to be competitive in the local industrial markets. Generally, owner-occupied and federally-owned buildings are not included. Older buildings unfi t for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is defi ned as space that is available immediately or imminently after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space. The fi gures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received.

Regional Map


Jason TolliverHead of Industrial Research, AmericasTel: +1 317.639.0549cushmanwakefi eld.com















About Cushman & Wakefi eld

Cushman & Wakefi eld is a leading global real estate services fi rm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefi eld is among the largest commercial real estate services fi rms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefi eld brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefi eld.com or follow @CushWake on Twitter.

Cushman & Wakefi eld Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Carolyn SalzerIndustrial Research Analyst, AmericasTel: +1 847.518.3212cushmanwakefi eld.com



MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy

Net Absorption/Rent NNN4-QTR TRAILING AVERAGE


Forecast






Forecast




$4.50

$5.00

$5.50

$6.00

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2011 2012 2013 2014 2015 2016


EconomyThe U.S. economy and industrial market are positioned to perform well in 2017. In the third quarter of 2016 real GDP expanded at a 3.5% annual rate — the strongest growth rate in two years and more than triple the rate of growth for the fi rst half of 2016. Nationally, 2.2 million jobs were created during 2016, and the unemployment rate (4.7% in December) declined to its lowest level since 2007. Wage growth is fi rming: hourly earnings rose 2.9% year-over-year in December — a post-recession high. The increase in wages will enable households to further increase consumption in 2017, sustaining economic momentum and bolstering logistics-related leasing. Economic data refl ect an increasingly confi dent consumer. The Conference Board’s Consumer Confi dence Index rose to 113.7 in December — its highest level this business cycle — with the expectation series of the index showing that consumers anticipate business conditions, jobs and their income to improve in the next six months. Given that consumer spending is a dominant driver of industrial demand these readings indicate more momentum for the industrial sector, especially as eCommerce continues to grow rapidly. As a share of retail sales, excluding autos, eCommerce has grown from 1% in Q1 2000 to 9.3% in Q3 2016. We expect that share to increase by another 1% by the end of 2018; that means the current rate of $100 billion eCommerce sales per quarter will increase roughly 25% to nearly $125 billion per quarter in Q4 2018 as retail sales increase. This equates to an additional $2 billion in eCommerce sales per month within the next two years. This growth trajectory suggests similar, if not more, robust absorption for warehouse and distribution product.

The U.S. manufacturing sector ended 2016 on a strong note: the ISM manufacturing index rose to a two-year high of 54.7 in December as production and new orders surged. The strength in production and new orders reported in the ISM index are consistent with other economic data including core capital goods orders and the manufacturing portion of industrial production, both of which indicate a stronger manufacturing sector. Domestic companies have also reined in inventories to more closely align with sales and there are early signs corporate investment is beginning to fi rm, both of which bode well for the industrial market.

Market OverviewDemand remained robust in the fi nal quarter of 2016 as the U.S. industrial market absorbed 63.6 million square feet (MSF) of space. This propelled annual net absorption to a record-setting 282.9 MSF and pushed deliveries to a cyclical high of 232.9 MSF. Typically such a robust development pipeline would dramatically rebalance supply and demand fundamentals and elevate the vacancy rate, but these are not typical times. Ecommerce continues to structurally alter supply chains and drive robust levels of leasing. As a result, the vacancy rate tightened in Q4 2016 falling by 30 basis points (bps) to 5.5% for all industrial product types.

Every industrial segment remains in growth mode: in 2016, logistics-related warehousing posted 242.9 MSF of net absorption, manufacturing registered 25.1 MSF of growth, fl ex


Source: BLS



MARKETBEAT

Stronger Growth Expected in the Near Term ODDS ARE HIGH THAT FISCAL STIMULUS MEASURES YIELD GROWTH

Supply/Demand Remains ImbalancedSTRONG DEMAND AND SUPPLY CONSTRAINTS TIGHTEN VACANCY

Confi dent Consumers Will Spur SpendingWITH CONFIDENCE AT CYCLICAL HIGH EXPECT INCREASED CONSUMPTION

Outlook• Solid labor markets and fi rmer wage growth will support

consumer confi dence and spur stronger consumer spending. Consumption will drive industrial absorption, particularly for warehouse.

• Given the expected policy changes (tax cuts, spending increases, deregulation) from the Trump administration, the near-term outlook has been revised upward. The medium- and long-term outlook is less certain.

• Net absorption will once again approach 250 MSF in 2017. Leasing demand will balance new deliveries and hold national vacancy steady.

• We anticipate that supply will meet demand for industrial space in the latter half of 2017. Until then, expect strong pressure on rents to remain.

Source: The Conference Board, Cushman & Wakefi eld Research

Source: Bureau of Economic Analysis, Moody’s Analytics, Cushman & Wakefi eld Research


product posted 13.1 MSF of net occupancy gains, and high technology occupancy increased by 1.8 MSF. The current industrial expansion is one for the record book. As of January 2017, the industrial sector has registered 27 consecutive quarters of net occupancy gains, placing this expansion among the longest ever. It is also among the strongest with net absorption for the past three years (825.5 MSF) surpassing the strongest period of occupancy growth in the prior cycle (726.8 MSF from 1997-1999).

U.S. industrial vacancy (5.5%) is currently at its lowest level of the past 30 years and is a full 290 bps below the 10-year historical average of 8.4% for all product types. Warehouse conditions remain tight with vacancy holding steady at 5.6% in Q4 2016. Over the past year, logistics-related vacancy has declined 130 bps (from 6.9% to 5.6%) despite the delivery of 156.8 MSF of new speculative warehouse product. In most industrial markets, vacancy rates have fallen below prior-cycle lows.

Healthy demand from logistics and distribution users is fueling rent growth. U.S. industrial asking rents increased 3.9% in Q4 2016 from a year ago. Industrial rents rose in 61 of 79 markets tracked by Cushman & Wakefi eld during the same period, with over one-quarter of industrial markets reporting double-digit gains. In many markets, industrial rents remain at historic highs, and on a national level every industrial product type is witnessing rental rate appreciation.

Currently, there is 215.6 MSF of industrial product under construction, of which 145.9 MSF is speculative. Although development remains strongest in major industrial markets, port cities and primary inland distribution hubs, nearly half of the U.S. markets currently have over 1 MSF under construction. Given the tight market conditions and strong underlying fundamentals, developers are expected to break ground on additional speculative projects which will help bring supply and demand fundamentals closer to balance. Nonetheless, tenant activity in the market remains brisk and it is likely that leasing demand will keep pace with supply deliveries in the near term.

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

F

2017

F

2018

F

U.S.

Rea

l GDP

(AR,

%)

Forecast

152535455565758595

105115

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Consumer Confidence Index (1985=100, SA)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

(150)

(100)

(50)

0

50

100

150

200

250

300

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

F

2018

F

Absorption (MSF) Deliveries (MSF) Vacancy Rate

Forecast




United States 67,306,547 63,488,580 77,180,220 78,685,200 63,570,692 113,560,952

Northeast 12,367,311 13,416,209 13,195,260 17,826,866 7,215,187 18,147,115

Midwest 12,898,159 12,229,265 14,808,451 24,147,525 15,575,179 19,386,783

South 22,626,849 25,281,012 23,715,895 21,353,134 27,857,093 34,657,589

West 19,414,228 12,562,094 25,460,614 15,357,675 12,923,233 41,369,465


Atlanta, GA 3,787,196 4,014,644 3,852,450 2,245,312 3,546,425 3,372,193

Austin, TX 385,165 171,666 242,070 80,659 116,610 559,142

Baltimore, MD 273,161 1,611,283 506,425 1,029,640 944,082 3,631,917

Binghamton, NY -153,440 35,384 117,480 80,204 8,605 38,425

Birmingham, AL -176,074 108,076 403,623 826,217 33,863 366,784

Boston, MA 2,704,991 -245,725 1,079,816 2,190,787 996,083 2,252,510

Buff alo, NY n/a -276,271 136,985 500,257 1,217,645 400,555

Charleston, SC 870,931 647,660 646,339 -42,512 1,001,344 392,512

Charlotte, NC 275,502 119,578 1,503,782 1,158,781 1,812,029 3,201,420

Chicago, IL 3,181,601 2,437,786 5,656,574 10,474,949 4,149,725 6,666,466

Cincinnati, OH 1,050,450 849,734 1,787,525 1,833,726 556,179 1,352,275

Cleveland, OH 680,698 962,071 -36,295 331,032 1,187,461 654,647

Colorado Springs, CO 168,596 352,165 -140,722 238,973 n/a n/a

Columbus, OH 958,752 1,381,183 180,470 1,349,355 2,080,666 1,722,404


Dayton, OH 416,061 564,858 328,464 306,394 525,747 352,790

Denver, CO -438,786 -97,905 1,450,866 746,413 596,022 1,662,841

Detroit, MI 2,281,673 2,368,339 1,478,756 1,070,776 985,441 1,297,651

East Bay, CA 1,080,889 -331,755 3,125,423 -362,897 274,100 3,260,893

El Paso, TX 390,000 1,576,642 712,193 -293,711 -78,692 381,012


Fredericksburg, VA -21,638 -76 70,112 189,844 173,790 13,460

Ft. Lauderdale, FL 51,158 26,560 20,012 702,011 858,893 504,301

Greenville, SC 866,914 830,107 3,131,610 1,560,194 1,353,175 719,932

Hampton Roads, VA -21,546 -204,133 390,311 -3,892 -359,777 310,433

Hartford, CT -196,297 -161,857 347,113 866,772 125,862 760,829

Houston, TX 243,707 1,550,857 92,367 810,247 4,065,736 3,092,847

Indianapolis, IN 1,620,767 881,633 2,720,089 3,108,214 1,848,702 2,055,036

Inland Empire CA 6,018,135 3,483,292 8,608,335 3,784,917 3,636,653 8,084,982

Jacksonville, FL 1,314,626 1,023,149 727,867 239,728 161,043 1,765,254

Kansas City, MO 919,847 773,318 1,775,923 1,134,989 1,840,583 3,341,210

Lakeland, FL 131,220 247,320 90,185 231,791 93,900 271,151

Las Vegas, NV 411,294 792,135 441,278 698,467 955,129 n/a

Long Island, NY 247,509 493,677 112,036 365,094 -230,288 664,447

Los Angeles, CA 2,184,513 2,246,044 2,769,413 1,783,386 250,202 6,898,527

Louisville, KY 1,292,708 967,870 1,599,711 491,942 322,851 1,647,055

Memphis, TN 1,542,588 1,690,863 341,427 695,753 3,011,967 593,500

Miami, FL 549,178 779,691 353,972 624,408 438,808 1,591,214

Milwaukee, WI 546,891 885,374 743,340 585,596 -12,492 1,100,019

Minneapolis, MN 671,568 1,041,300 403,691 459,794 519,293 n/a

Demand Indicators




Nashville, TN 3,115,044 1,287,008 1,433,052 578,168 2,529,427 1,109,119

New Haven, CT -120,269 27,084 -117,896 -169,623 293,732 504,192

New Jersey - Central 2,797,263 5,861,097 2,672,125 2,088,582 702,054 3,929,231

New Jersey - Northern 1,281,402 1,723,861 1,341,223 949,477 -449,521 2,512,247

Oklahoma City, OK -249,225 366,886 355,395 79,041 -66,220 n/a

Omaha, NE -67,189 -18,265 81,715 142,371 204,651 349,282

Orange County, CA 554,044 428,201 625,271 577,174 417,332 2,110,423

Orlando, FL 393,499 736,721 822,697 671,947 1,013,276 708,743



Philadelphia, PA 1,852,105 2,158,170 1,336,387 3,442,237 1,520,977 2,705,267

Phoenix, AZ 4,027,249 1,386,180 2,196,394 2,244,605 1,572,074 4,970,674

Pittsburgh, PA 1,189,636 873,111 967,110 -175,139 100,230 855,723

Portland, OR 3,128,684 439,415 978,437 308,442 529,659 1,498,415

Providence, RI n/a 133,493 254,742 115,966 102,292 102,292

Puget Sound - Eastside 213,643 -118,429 1,322,354 256,769 303,774 560,558

Raleigh/Durham, NC 847,787 108,522 283,535 -172,912 344,104 276,401

Richmond, VA -197,984 547,739 321,430 75,820 263,746 376,678

Roanoke, VA 239,271 -76,697 63,011 354,142 69,980 55,368

Rochester, NY 338,920 69,576 801,031 225,539 213,189 66,658

Sacramento, CA -134,622 1,291,485 368,021 582,097 183,313 946,930

Salt Lake City, UT 512,920 410,524 612,166 763,231 442,247 2,175,660

San Antonio, TX 304,981 147,891 142,329 88,610 142,169 332,021

San Diego, CA 611,932 -236,360 374,520 -100,709 431,283 1,538,161


San Francisco Peninsula, CA 100,315 232,460 34,830 -193,018 72,077 410,723

San Jose (Silicon Valley), CA 455,549 44,003 494,984 -420,112 -36,597 1,479,305

Savannah, GA 610,191 0 -120,950 48,052 -358,098 1,536,630

Seattle, WA -737,959 618,628 1,291,209 2,512,682 527,043 2,011,211

Southern New Hampshire 303,388 233,167 181,794 160,019 n/a n/a

St. Louis, MO 637,040 101,934 -311,801 3,350,329 1,689,223 495,003

St. Petersburg/Clearwater, FL 20,082 61,539 30,381 -37,440 590,146 344,814

Stockton/Tracy, CA 1,080,889 1,555,862 591,264 621,706 2,544,634 2,850,526

Suburban MD 107,919 108,423 275,122 517,102 250,065 428,279

Suburban VA -196,354 271,468 -125,578 293,531 -54,788 125,262

Syracuse, NY 12,313 -256,271 -103,764 -422,119 287,613 134,321

Tampa, FL 375,052 70,529 262,732 250,524 146,530 360,109

Tucson, AZ 103,939 40,472 264,250 1,037,269 120,089 597,451

Tulsa, OK -95,054 -90,177 -190,296 235,404 -196,268 n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 6.5% 6.2% 6.1% 5.8% 5.5%

Northeast 7.7% 7.3% 7.1% 6.5% 6.3%

Midwest 6.2% 6.2% 5.9% 5.8% 5.4%

South 7.4% 7.0% 7.0% 6.8% 6.6%

West 5.1% 4.9% 4.6% 4.2% 4.1%


Atlanta, GA 7.9% 8.5% 8.4% 8.6% 9.0%

Austin, TX 6.1% 6.8% 7.7% 7.5% 6.4%

Baltimore, MD 8.3% 7.5% 7.2% 7.0% 6.6%

Binghamton, NY 12.4% 12.2% 11.7% 11.7% 10.8%

Birmingham, AL 12.4% 17.0% 14.4% 9.0% 8.8%

Boston, MA 7.6% 7.3% 7.0% 6.7% 6.5%

Buff alo, NY 8.8% 8.9% 9.0% 8.9% 8.9%

Charleston, SC 7.3% 7.9% 7.7% 6.8% 6.8%

Charlotte, NC 6.0% 6.4% 4.5% 3.8% 3.6%

Chicago, IL 6.4% 6.4% 6.3% 6.1% 6.3%

Cincinnati, OH 4.5% 4.2% 4.0% 4.2% 4.2%

Cleveland, OH 5.3% 5.2% 5.0% 4.9% 4.6%


Columbus, OH 6.5% 6.6% 6.5% 5.9% 5.5%


Dayton, OH 9.1% 8.7% 8.6% 8.1% 8.0%

Denver, CO 4.3% 2.7% 3.4% 3.9% 4.3%

Detroit, MI 5.4% 4.8% 4.6% 4.0% 4.0%

East Bay, CA 3.5% 2.9% 2.7% 3.1% 2.9%

El Paso, TX 11.6% 8.7% 6.6% 7.1% 6.8%



Ft. Lauderdale, FL 6.4% 7.1% 6.8% 5.5% 4.4%

Greenville, SC 6.8% 7.4% 6.7% 6.9% 6.6%

Hampton Roads, VA 6.4% 7.0% 6.5% 6.3% 6.6%

Hartford, CT 12.6% 12.9% 12.8% 11.9% 11.7%

Houston, TX 5.5% 6.0% 6.4% 6.7% 7.1%

Indianapolis, IN 7.3% 5.3% 4.9% 3.6% 3.0%

Inland Empire CA 5.7% 5.5% 4.7% 4.7% 4.4%

Jacksonville, FL 8.0% 7.2% 6.5% 6.5% 6.2%

Kansas City, MO 7.4% 7.9% 7.5% 7.5% 8.3%

Lakeland, FL 3.5% 5.0% 5.5% 4.2% 3.7%

Las Vegas, NV 6.8% 5.7% 5.9% 5.8% 5.4%

Long Island, NY 8.3% 7.5% 6.9% 6.5% 6.6%

Los Angeles, CA 2.3% 2.2% 1.6% 1.3% 1.4%

Louisville, KY 4.9% 5.5% 5.4% 6.2% 6.6%

Memphis, TN 9.8% 9.5% 9.3% 9.2% 8.7%

Miami, FL 5.7% 4.9% 4.9% 4.4% 4.3%

Milwaukee, WI 4.7% 4.4% 4.2% 4.0% 4.4%

Minneapolis, MN 9.9% 8.7% 8.5% 8.4% 8.2%


Vacancy Rates


Nashville, TN 4.7% 3.5% 3.4% 3.1% 2.9%

New Haven, CT 12.4% 12.7% 12.9% 13.2% 12.6%



Oklahoma City, OK 6.7% 6.5% 7.2% 6.7% 7.3%

Omaha, NE 3.0% 3.5% 3.1% 3.2% 3.2%

Orange County, CA 2.8% 2.8% 2.3% 2.2% 2.0%

Orlando, FL 7.3% 6.9% 5.8% 5.1% 4.6%



Philadelphia, PA 5.6% 5.6% 5.4% 4.9% 4.2%

Phoenix, AZ 10.3% 10.1% 9.6% 9.3% 9.1%

Pittsburgh, PA 6.8% 6.2% 5.6% 6.0% 5.7%

Portland, OR 4.9% 4.8% 4.4% 4.3% 4.0%

Providence, RI 0.8% 0.6% 0.3% 0.2% 0.3%



Richmond, VA 7.9% 8.1% 7.5% 6.9% 6.6%

Roanoke, VA 7.6% 8.3% 8.1% 8.3% 7.2%

Rochester, NY 11.4% 11.3% 10.2% 9.9% 9.6%

Sacramento, CA 10.8% 10.3% 9.4% 8.9% 10.8%

Salt Lake City, UT 7.3% 7.1% 7.0% 7.5% 7.2%

San Antonio, TX 10.4% 9.4% 9.0% 9.6% 9.6%

San Diego, CA 5.0% 5.0% 5.0% 5.1% 5.3%




Savannah, GA 2.2% 2.2% 2.4% 2.3% 3.0%

Seattle, WA 5.0% 5.8% 4.6% 3.8% 3.8%


St. Louis, MO 6.6% 6.9% 7.3% 6.4% 6.6%



Suburban MD 12.2% 12.6% 12.7% 11.6% 10.7%

Suburban VA 11.9% 9.0% 9.6% 9.2% 9.2%

Syracuse, NY 10.8% 11.2% 10.3% 11.3% 10.6%

Tampa, FL 6.1% 6.2% 6.1% 5.6% 5.5%

Tucson, AZ 9.2% 9.6% 8.6% 8.1% 7.8%

Tulsa, OK 7.8% 8.0% 7.8% 7.4% 7.6%

p = preliminary


Asking Rents



United States $5.43 $5.48 $5.52 $5.57 $5.64 $4.98 $5.20

Northeast $5.65 $5.75 $5.84 $5.98 $6.06 $5.70 $4.52

Midwest $4.33 $4.35 $4.40 $4.38 $4.40 $4.14 $4.32

South $5.12 $5.21 $5.19 $5.24 $5.24 $4.46 $4.17

West $7.09 $7.09 $7.19 $7.42 $7.62 $6.43 $7.95


Atlanta, GA $4.29 $4.27 $4.22 $4.17 $4.20 $3.68 $3.52

Austin, TX $9.94 $9.72 $9.66 $9.75 $9.71 $6.92 $7.80

Baltimore, MD $5.61 $5.48 $5.57 $5.49 $5.35 $4.86 n/a

Binghamton, NY $4.83 $4.74 $4.81 $4.81 $4.71 $4.23 $4.42

Birmingham, AL $4.58 $3.61 $3.57 $4.70 $5.01 $4.57 n/a

Boston, MA $5.96 $5.86 $6.02 $6.17 $6.22 $5.83 $5.66

Buff alo, NY $4.13 $4.13 $4.13 $4.98 $4.98 $4.75 $3.95

Charleston, SC $4.93 $5.07 $5.31 $5.31 $5.26 $5.46 $4.35

Charlotte, NC $4.81 $5.02 $5.03 $5.17 $5.15 $4.73 $4.19

Chicago, IL $4.85 $4.87 $4.88 $4.79 $4.76 $4.68 $4.46

Cincinnati, OH $3.89 $3.97 $4.01 $3.91 $4.06 $3.64 $3.74

Cleveland, OH $3.87 $3.89 $3.95 $3.88 $3.94 $3.60 n/a


Columbus, OH $3.38 $3.35 $3.35 $3.35 $3.43 $3.43 n/a


Dayton, OH $3.21 $3.21 $3.22 $3.19 $3.21 $3.01 $2.93

Denver, CO $8.24 $7.71 $7.04 $7.23 $7.57 $6.29 $8.78

Detroit, MI $5.04 $5.15 $5.25 $5.26 $5.26 $4.74 $4.72

East Bay, CA $7.98 $8.84 $8.52 $8.88 $9.01 $7.46 $10.34

El Paso, TX $3.75 $3.90 $3.95 $3.95 $3.95 $4.00 $3.90



Ft. Lauderdale, FL $7.75 $8.76 $9.65 $9.52 $8.69 $7.96 $7.24

Greenville, SC $3.86 $3.44 $3.53 $3.55 $4.16 $3.48 $3.36

Hampton Roads, VA $5.03 $5.06 $5.18 $5.21 $5.42 $5.28 $4.80

Hartford, CT $4.18 $4.22 $4.27 $4.32 $4.08 $4.13 $3.52

Houston, TX $6.05 $6.02 $6.19 $6.12 $6.14 $6.05 $5.72

Indianapolis, IN $3.55 $3.47 $3.50 $3.55 $3.62 $3.53 $3.55

Inland Empire CA $5.75 $5.90 $6.24 $6.58 $6.82 $6.31 $7.54

Jacksonville, FL $4.05 $4.05 $3.99 $4.34 $4.24 $3.82 $3.08

Kansas City, MO $4.14 $4.39 $4.48 $4.51 $4.41 $3.92 $4.44

Lakeland, FL $4.53 $4.63 $4.89 $4.85 $5.00 $4.94 $4.55

Las Vegas, NV $7.19 $7.69 $7.74 $7.80 $7.24 $6.15 n/a

Long Island, NY $8.63 $8.15 $8.25 $8.53 $8.86 $8.51 $8.15

Los Angeles, CA $8.09 $8.26 $8.29 $8.79 $9.08 $8.94 $7.96

Louisville, KY $3.52 $3.61 $3.63 $3.67 $3.68 $3.58 $3.16

Memphis, TN $2.50 $2.35 $2.51 $2.49 $2.55 $2.37 n/a

Miami, FL $7.08 $7.47 $7.23 $7.32 $8.32 $8.01 $6.65

Milwaukee, WI $4.29 $4.39 $4.33 $4.39 $4.35 $3.85 $4.46



Asking Rents

p = preliminary



Nashville, TN $4.03 $3.97 $3.97 $4.14 $4.07 $5.19 $2.58

New Haven, CT $5.23 $5.18 $5.20 $5.68 $5.24 $5.16 $4.33



Oklahoma City, OK $4.00 $4.21 $4.57 $4.65 $4.61 $3.96 $2.50

Omaha, NE $5.28 $5.16 $5.22 $5.55 $5.41 $5.15 $5.05

Orange County, CA $9.62 $9.76 $10.44 $10.91 $11.21 $9.03 $11.56

Orlando, FL $6.36 $6.51 $6.65 $6.45 $6.48 $5.34 $5.34



Philadelphia, PA $4.70 $4.52 $4.52 $4.65 $4.63 $4.22 $3.64

Phoenix, AZ $6.29 $6.26 $6.43 $6.54 $7.05 $4.86 $7.40

Pittsburgh, PA $5.74 $7.21 $7.70 $7.72 $7.84 $5.01 $4.58

Portland, OR $6.72 $7.07 $7.22 $7.62 $8.02 $6.55 $6.00

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.43 $4.41 $4.34 $4.67 $4.72 $4.03 $3.83

Roanoke, VA $4.14 $4.23 $4.10 $4.18 $4.32 $4.28 $4.33

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.74 $4.40 $4.40 $4.43 $4.55 $4.51 $4.76

Salt Lake City, UT $5.28 $5.30 $5.40 $5.47 $5.45 $5.18 $4.38

San Antonio, TX $5.74 $5.76 $5.83 $5.85 $5.98 $4.97 n/a

San Diego, CA $11.52 $11.76 $12.12 $12.00 $12.12 $9.00 $10.20




Savannah, GA $4.22 $4.22 $4.55 $4.79 $4.75 $4.32 n/a

Seattle, WA $5.84 $5.85 $6.04 $6.61 $6.73 $6.12 $4.90


St. Louis, MO $4.22 $4.07 $4.14 $4.22 $4.28 $4.00 $7.29



Suburban MD $9.20 $9.19 $9.20 $9.44 $9.57 $8.27 n/a

Suburban VA $10.97 $11.14 $10.89 $11.11 $11.12 $9.02 n/a

Syracuse, NY $3.82 $3.56 $3.65 $3.81 $3.83 $4.44 $2.87

Tampa, FL $5.31 $5.42 $5.48 $6.12 $6.10 $5.27 $3.92

Tucson, AZ $6.92 $6.90 $6.80 $6.81 $6.67 $6.47 $6.04

Tulsa, OK $4.52 $4.49 $4.50 $4.52 $4.52 $4.83 $3.81


Inventory


United States 14,205,625,356 232,871,130 215,633,304

Northeast 2,326,052,719 32,815,006 30,729,998

Midwest 3,870,131,441 56,938,841 52,081,592

South 4,155,553,347 90,954,439 81,740,952

West 3,853,887,849 52,162,844 51,080,762

U.S. Industrial Report Markets Inventory Deliveries 2016 Under Construction as of Q4 2016p

Atlanta, GA 550,446,346 17,499,949 14,797,634

Austin, TX 46,041,861 630,870 840,565

Baltimore, MD 204,910,029 159,987 4,512,080

Binghamton, NY 17,660,684 0 650,000

Birmingham, AL 15,240,259 180,000 260,000

Boston, MA 344,260,641 2,294,473 868,342

Buff alo, NY 111,993,208 1,790,000 196,630

Charleston, SC 64,241,111 2,921,678 3,526,502

Charlotte, NC 178,766,479 1,700,983 1,248,032

Chicago, IL 1,171,767,498 18,041,677 20,777,821

Cincinnati, OH 280,775,653 4,906,907 2,753,546

Cleveland, OH 489,103,389 2,605,420 1,528,925

Colorado Springs, CO 34,367,377 275,198 n/a

Columbus, OH 248,352,834 5,928,095 2,759,975


Dayton, OH 113,130,990 556,300 2,286,066

Denver, CO 242,502,073 4,019,565 3,068,019

Detroit, MI 492,818,096 1,725,084 3,219,554

East Bay, CA 200,263,602 3,003,429 1,129,190

El Paso, TX 52,037,278 445,000 320,000


Fredericksburg, VA 10,250,997 0 0

Ft. Lauderdale, FL 88,060,927 266,851 765,976

Greenville, SC 197,629,483 2,007,000 3,198,000

Hampton Roads, VA 95,144,209 61,000 968,625

Hartford, CT 92,456,251 716,000 0

Houston, TX 406,564,052 14,872,050 2,503,518

Indianapolis, IN 248,449,485 2,978,381 6,386,751

Inland Empire CA 498,534,650 20,530,668 22,748,712

Jacksonville, FL 104,660,284 879,777 1,531,201

Kansas City, MO 207,988,781 8,340,589 6,920,628

Lakeland, FL 32,604,567 405,060 1,396,036

Las Vegas, NV 107,582,601 2,613,021 3,650,700

Long Island, NY 130,131,077 178,000 637,745

Los Angeles, CA 1,078,341,579 3,454,220 5,810,424

Louisville, KY 142,224,553 6,009,765 5,494,466

Memphis, TN 190,647,503 4,375,473 2,641,192

Miami, FL 151,740,646 1,626,819 4,220,640

Milwaukee, WI 198,032,676 1,947,459 577,770

Minneapolis, MN 104,981,039 3,079,509 788,000


Inventory


Nashville, TN 201,822,563 3,300,993 5,260,229

New Haven, CT 48,872,066 305,773 80,500



Oklahoma City, OK 68,966,254 871,719 0

Omaha, NE 68,291,937 873,368 913,356

Orange County, CA 283,034,100 624,875 222,735

Orlando, FL 110,494,129 1,366,743 1,494,160



Philadelphia, PA 289,850,312 4,098,702 3,466,438

Phoenix, AZ 305,451,542 5,472,611 3,007,218

Pittsburgh, PA 168,108,301 1,559,023 229,650

Portland, OR 193,837,947 2,243,343 2,698,132




Richmond, VA 92,574,799 304,600 578,990

Roanoke, VA 49,847,096 0 250,000

Rochester, NY 73,551,473 0 0

Sacramento, CA 133,714,559 96,152 282,254

Salt Lake City, UT 125,295,336 1,749,201 2,770,669

San Antonio, TX 39,424,869 1,701,481 1,246,874

San Diego, CA 161,367,510 1,182,206 726,791

San Francisco North Bay, CA 21,847,019 179,354 125,020


San Jose (Silicon Valley), CA 84,601,590 674,803 0

Savannah, GA 50,459,984 3,197,810 5,000,913

Seattle, WA 141,618,321 2,666,232 3,037,177

Southern New Hampshire 48,001,232 0 n/a

St. Louis, MO 246,439,063 5,956,052 3,169,200


Stockton/Tracy, CA 98,077,810 2,216,100 988,626

Suburban MD 48,410,804 1,246,170 311,000

Suburban VA 56,855,867 635,182 90,240

Syracuse, NY 42,680,937 386,500 142,000

Tampa, FL 80,044,666 28,500 702,672

Tucson, AZ 41,733,267 863,488 159,971

Tulsa, OK 60,180,675 292,500 40,250

p = preliminary

Methodology


Regional Map


















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MARKETBEAT

U.S. INDUSTRIAL

Overall Vacancy



Forecast






Forecast




EconomyDespite a series of shocks to the U.S. economy this year and uncertainties surrounding the U.S. presidential election, the fundamentals that drive demand for industrial space remain firmly intact. Important indicators that correlate well with the industrial sector, such as containerized traffic flows, transportation indices and consumer confidence, are still trending in a positive direction. The ever-important employment figures also point to ongoing industrial growth. The U.S. economy added a solid 575,00 jobs over the past three months ending in September, and wage growth is accelerating. The latest trends in the labor markets are consistent with stronger consumer spending as well as housing and construction improvements, all of which bode well for industrial-related leasing.

A bounce-back in the ISM manufacturing index in September should also help allay concerns that growth will stall in the fourth quarter of 2016. The manufacturing index returned to expansion territory, rising 2.1 points to 51.5 at the end of the third quarter. Aside from continued weakness in manufacturing employment, the sub-index readings were generally upbeat. Notably, the new orders component surged 6.0 points to 55.1, which provides some hope that business spending will improve in the fourth quarter. Order backlogs also jumped — another reason for optimism. It is also promising to see the production component move back into expansionary territory (52.8), with 10 of 18 industry sectors reporting growth in production.

Clearly the sector is confronting headwinds. Exporters continue to face a stronger U.S. dollar, global weakness persists, and firms continue to be challenged by elevated inventories which hamper freight movements by ocean, rail and trucking. For five consecutive quarters, elevated inventories have also been a drag on GDP growth. That is the longest stretch since 1957. The ISM customer inventories component climbed to 53.0 in September, its second highest reading of the current expansion. This indicates that inventories remain too high in some places along the supply chain, which will temporarily curb demand for industrial space in certain areas. But all these developments aren’t new challenges; indeed the industrial market has performed remarkably well despite them. Looking forward we still see the positives outweighing the negatives in the industrial market.

Market OverviewU.S. industrial markets absorbed 74.9 million square feet (MSF) of space in the third quarter of 2016, up 29.1% from the third quarter of 2015. This propelled year-to-date net absorption to 212.9 MSF, up 17.9% from the same period a year prior. The industrial sector has now registered 26 consecutive quarters of net occupancy gains. Although 18 markets witnessed over 1 MSF of absorption during Q3 2016, the bulk of leasing activity remained concentrated near port cities, inland distribution hubs, and population centers. Every industrial segment continued in growth mode during the quarter: through the nine months ending in September, logistics-related warehousing has posted 185.6 MSF of net absorption, manufacturing has registered 16.2 MSF of growth, and flex


Source: BLS

$4.00

$4.50

$5.00

$5.50

-30

-10

10

30

50

70

2011 2012 2013 2014 2015 2016


5.0%

7.0%

9.0%

11.0%

2011 2012 2013 2014 2015 2016




MARKETBEAT

Developers are Hustling to Bring Product Online BUILD TO SUIT VS. SPECULATIVE CONSTRUCTION (% OF TOTAL)

The Roll Continues for Industrial EXPECT CYCLICAL HIGH ABSORPTION IN 2016 AND STRONG 2017

A Positive Sign for Exporters U.S. EXPORTS ARE NO LONGER DECLINING

Outlook• Much of what drives demand for logistics space links to the

U.S. consumer, and with expected wage and labor market gains, consumption will drive industrial growth.

• U.S. imports, which are closely tied to warehousing demand, will continue to expand on the back of solid domestic demand and subdued import prices. Exports will be modest.

• Net absorption will once again surpass the 220 MSF mark. Leasing demand will balance new deliveries and hold national vacancy steady.

• We anticipate that supply will meet demand for industrial space in 2017. Until then, expect upward pressure on rents to continue.

Source: Federal Reserve



product experienced 9.9 MSF of net occupancy gains.

The national industrial vacancy rate continued to decline in the third quarter of 2016, falling by 20 basis points (BPS) from the second quarter and 90 BPS from a year-ago to 5.6%. Industrial vacancy tightened in every region and is currently tracking a full 280 BPS below the 10-year historical average of 8.4%. Warehousing conditions continued to tighten in Q3 2016 as 59 of 79 markets tracked by Cushman & Wakefield saw warehouse vacancy rates decline. In nearly every industrial market vacancy rates have now fallen below prior-cycle lows.

Strong leasing activity by both traditional industrial users and eCommerce-related occupiers continues to fuel rent growth. U.S. industrial rents increased 5.1% in the third quarter of 2016 from a year-ago, with over 40% of industrial markets currently reporting double-digit gains. In many markets, industrial rents are at historic highs, and on a national level the U.S. is witnessing rental rate appreciation for every industrial product type.

On the development front, 159.3 MSF of industrial product has been delivered in 2016, of which 59.6 MSF came online in the third quarter. Major industrial markets, port cities and primary inland distribution hubs have welcomed the majority of industrial deliveries this year — industrial product that is increasingly speculative in nature. Speculative projects account for 108.9 MSF (or 68%) of year-to-date deliveries, and given the tight market, developers continue to break ground on more speculative projects. Currently, there is 214.5 MSF of industrial product under construction, of which 102.1 MSF is expected to come online in the fourth quarter of 2016.

Despite increasing development volumes, quarterly leasing demand has continued to outpace deliveries, but that gap is closing. We continue to see the strongest development activity in the primary markets that have dominated leasing and deliveries this cycle. But development is accelerating across the country with nearly half of all U.S. industrial markets reporting more than 1 MSF under construction. Given the strength of underlying fundamentals and occupiers’ demand for modern, functional distribution space, leasing of newly delivered space is expected to be brisk.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% Build-to-Suit Construction Speculative Construction

-30%

-20%

-10%

0%

10%

20%

30%

2008

2009

2010

2011

2012

2013

2014

2015

2016

Exports, Balance of Payment Basis (Y/Y % Chg., SA)

0%

2%

4%

6%

8%

10%

12%

-200

-100

0

100

200

300

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

F

2017

F

Net Absorption (MSF) Vacancy Rate




United States 57,990,810 67,349,408 62,185,362 75,832,135 74,851,732 125,945,554

Northeast 8,613,248 12,344,677 12,839,338 12,022,967 16,626,347 24,894,889

Midwest 15,436,849 12,898,159 12,406,846 15,279,958 23,604,939 21,348,209

South 16,640,923 22,626,849 25,197,809 23,123,902 20,701,692 37,301,226

West 17,299,790 19,479,723 11,741,369 25,405,308 13,918,754 42,401,230


Atlanta, GA 2,024,104 3,787,196 3,665,803 3,730,462 2,212,205 7,383,701

Austin, TX 535,220 385,165 171,666 242,070 80,659 470,958

Baltimore, MD 515,020 273,161 1,611,283 506,425 1,029,640 2,619,155

Binghamton, NY 47,200 -176,074 35,384 117,480 117,480 130,826

Birmingham, AL -8,894 -176,074 108,076 403,623 826,217 128,815

Boston, MA -564,925 2,704,991 -247,193 851,845 2,485,635 1,247,619

Buffalo, NY n/a n/a -276,271 136,985 500,257 155,732

Charleston, SC -671,776 870,931 647,674 402,519 831,567 804,785

Charlotte, NC 44,315 275,502 -326,334 2,060,434 935,694 1,802,889

Chicago, IL 5,537,960 3,181,601 2,698,851 6,006,916 10,016,494 8,067,389

Cincinnati, OH 1,085,966 1,050,450 849,734 1,793,770 1,693,178 1,318,395

Cleveland, OH 264,832 680,698 962,071 -36,295 331,032 428,536

Colorado Springs, CO 197,926 168,596 352,165 211,443 n/a 104,005

Columbus, OH 316,303 958,752 1,381,183 180,470 1,349,355 1,684,084


Dayton, OH 909,642 416,061 564,858 336,924 552,184 381,278

Denver, CO 748,877 -438,786 73,814 1,478,592 163,723 1,061,689

Detroit, MI 2,527,064 2,281,673 2,284,855 1,250,999 769,656 1,342,533

East Bay, CA 360,593 1,080,889 -109,633 2,908,795 -144,738 4,073,936

El Paso, TX 683,500 390,000 1,576,642 712,193 -293,711 257,861


Fredericksburg, VA 53,029 -21,638 -76 70,112 170,419 66,727

Ft. Lauderdale, FL 482,672 51,158 750,090 570,142 511,427 508,890

Greenville, SC 1,108,045 866,914 830,107 3,131,610 1,560,194 604,526

Hampton Roads, VA 579,468 -21,546 -204,133 407,321 28,648 599,378

Hartford, CT 146,502 -196,297 -161,857 186,593 866,772 1,217,217

Houston, TX 2,062,877 243,707 1,477,233 -267,093 111,061 4,066,869

Indianapolis, IN 1,571,505 1,620,767 881,633 2,720,089 3,349,822 3,849,001

Inland Empire CA 3,778,078 6,018,135 3,354,969 8,375,828 3,804,033 7,735,438

Jacksonville, FL 782,236 1,314,626 1,023,149 604,465 296,244 890,133

Kansas City, MO 1,032,936 919,847 773,318 1,775,923 1,134,989 1,922,159

Lakeland, FL 171,050 131,220 247,320 78,085 179,091 131,752

Las Vegas, NV 767,457 411,294 789,986 444,432 667,316 n/a

Long Island, NY -653,171 247,509 434,777 102,586 232,379 934,171

Los Angeles, CA 3,591,968 2,184,513 2,251,117 2,651,195 1,503,682 8,267,830

Louisville, KY 1,380,064 1,292,708 928,800 1,599,711 478,317 1,711,900

Memphis, TN 2,186,850 1,542,588 1,690,863 341,427 695,753 2,171,394

Miami, FL 278,677 549,178 1,244,887 241,954 712,127 892,383

Milwaukee, WI 144,626 546,891 885,374 743,340 585,596 1,102,221

Minneapolis, MN 1,646,823 671,568 1,041,300 403,691 459,794 n/a

Demand Indicators




Nashville, TN 1,149,509 3,115,044 368,767 445,274 241,518 687,478

New Haven, CT 242,326 -120,269 27,084 98,418 -169,623 872,179


New Jersey - Northern 988,107 1,281,402 1,672,285 1,388,969 367,936 2,554,459

Oklahoma City, OK -91,810 -249,225 366,886 355,395 79,041 n/a

Omaha, NE 100,304 -67,189 -18,265 50,348 87,731 494,780

Orange County, CA 673,150 554,044 395,017 470,515 166,260 2,636,774

Orlando, FL 987,678 393,499 736,721 820,417 404,180 1,104,005



Philadelphia, PA 2,044,302 1,852,105 1,696,743 1,060,782 3,631,433 3,945,206

Phoenix, AZ 821,688 4,027,249 1,386,180 2,196,394 2,244,605 7,200,347

Pittsburgh, PA -25,911 1,189,636 873,111 991,907 -209,506 409,491

Portland, OR 919,682 3,128,684 439,415 978,437 308,442 1,476,673

Providence, RI n/a n/a 133,493 254,742 115,966 115,966

Puget Sound - Eastside 189,875 213,643 -118,429 1,322,354 256,769 589,999

Raleigh/Durham, NC -24,322 847,787 108,522 283,535 -172,912 489,149

Richmond, VA -88,609 -197,984 547,939 338,680 -81,087 180,709

Roanoke, VA 53,300 239,271 -106,122 63,011 -70,667 46,406

Rochester, NY -386,210 338,920 69,576 801,031 225,539 14,700

Sacramento, CA 1,163,411 -134,622 304,430 734,847 582,097 1,219,630

Salt Lake City, UT 977,388 512,920 410,524 612,166 763,231 1,678,706

San Antonio, TX -64,086 304,981 147,891 84,870 378,273 323,357

San Diego, CA 1,072,702 677,427 -236,360 374,520 -100,709 1,833,911


San Francisco Peninsula, CA 61,178 100,315 230,460 10,890 -212,958 333,435

San Jose (Silicon Valley), CA 365,336 455,549 39,803 494,984 -378,224 965,950

Savannah, GA n/a 610,191 n/a -120,950 48,052 48,052

Seattle, WA 443,811 -737,959 618,628 1,291,209 2,512,682 895,109

Southern New Hampshire -66,015 303,388 233,167 181,794 160,019 386,230

St. Louis, MO 298,888 637,040 101,934 53,783 3,275,108 757,833

St. Petersburg/Clearwater, FL 6,741 20,082 54,945 17,940 -44,662 197,503

Stockton/Tracy, CA 360,593 1,080,889 1,570,362 590,564 645,595 1,840,014

Suburban MD 177,624 107,919 108,423 275,122 517,102 473,481

Suburban VA 122,019 -196,354 271,468 -125,578 293,531 412,640

Syracuse, NY 63,661 12,313 -256,271 -103,764 -422,119 104,872

Tampa, FL 610,082 375,052 68,265 274,654 193,291 409,150

Tucson, AZ 416,240 103,939 -28,363 252,815 977,881 265,450

Tulsa, OK 47,441 -95,054 -90,177 -190,296 235,404 n/a*

Demand Indicators

p = preliminary


Vacancy Rates


United States 6.5% 6.2% 6.1% 5.8% 5.6%

Northeast 7.7% 7.3% 7.2% 6.6% 6.3%

Midwest 6.2% 6.2% 5.9% 5.8% 5.4%

South 7.4% 7.0% 7.1% 6.9% 6.7%

West 5.1% 4.9% 4.6% 4.2% 4.0%


Atlanta, GA 8.3% 7.9% 8.5% 8.4% 8.6%

Austin, TX 6.9% 6.1% 6.8% 7.7% 7.5%

Baltimore, MD 8.3% 8.3% 7.5% 7.2% 7.0%

Binghamton, NY 11.1% 12.4% 12.2% 11.7% 11.7%

Birmingham, AL 11.7% 12.4% 17.0% 14.4% 9.0%

Boston, MA 8.2% 7.6% 7.7% 7.4% 6.8%

Buffalo, NY 8.7% 8.8% 8.9% 9.0% 8.9%

Charleston, SC 8.6% 7.3% 7.9% 7.7% 6.4%

Charlotte, NC 6.2% 6.0% 6.4% 4.5% 3.8%

Chicago, IL 6.4% 6.4% 6.4% 6.3% 6.1%

Cincinnati, OH 4.4% 4.5% 4.2% 4.0% 4.2%

Cleveland, OH 5.4% 5.3% 5.2% 5.0% 4.9%


Columbus, OH 6.6% 6.5% 6.6% 6.5% 5.9%


Dayton, OH 9.4% 9.1% 8.7% 8.6% 8.1%

Denver, CO 4.0% 4.3% 2.7% 3.4% 3.9%

Detroit, MI 5.7% 5.4% 4.8% 4.6% 4.0%

East Bay, CA 3.5% 3.5% 2.9% 2.7% 3.0%

El Paso, TX 12.1% 11.6% 8.7% 6.6% 7.1%



Ft. Lauderdale, FL 6.0% 6.4% 7.1% 6.8% 5.5%

Greenville, SC 7.3% 6.8% 7.4% 6.7% 6.9%

Hampton Roads, VA 6.5% 6.4% 7.0% 6.4% 6.5%

Hartford, CT 12.7% 12.6% 12.9% 12.6% 11.7%

Houston, TX 5.4% 5.5% 6.0% 6.4% 6.7%

Indianapolis, IN 7.6% 7.3% 5.3% 4.9% 3.7%

Inland Empire CA 6.0% 5.7% 5.5% 4.7% 4.7%

Jacksonville, FL 8.8% 8.0% 7.2% 6.5% 6.5%

Kansas City, MO 7.6% 7.4% 7.9% 7.5% 7.5%

Lakeland, FL 4.1% 3.5% 5.0% 5.5% 4.2%

Las Vegas, NV 6.3% 6.8% 5.7% 5.9% 5.8%

Long Island, NY 9.2% 8.3% 7.5% 6.9% 6.5%

Los Angeles, CA 2.7% 2.3% 2.2% 1.6% 1.3%

Louisville, KY 5.6% 4.9% 5.5% 5.4% 6.2%

Memphis, TN 10.6% 9.8% 9.9% 9.7% 9.2%

Miami, FL 6.1% 5.7% 4.9% 4.9% 4.4%

Milwaukee, WI 4.8% 4.7% 4.4% 4.2% 4.0%

Minneapolis, MN 9.7% 9.9% 8.7% 8.5% 8.4%


Vacancy Rates


Nashville, TN 5.4% 4.7% 3.5% 3.5% 3.3%

New Haven, CT 12.7% 12.4% 12.7% 12.4% 12.7%



Oklahoma City, OK 6.2% 6.7% 6.5% 7.2% 6.7%

Omaha, NE 2.7% 3.0% 3.5% 3.1% 3.2%

Orange County, CA 3.0% 2.8% 2.8% 2.3% 2.2%

Orlando, FL 7.5% 7.3% 6.9% 5.8% 5.1%



Philadelphia, PA 5.8% 5.6% 5.6% 5.4% 4.9%

Phoenix, AZ 11.1% 10.3% 10.1% 9.6% 9.3%

Pittsburgh, PA 7.2% 6.8% 6.2% 5.6% 6.0%

Portland, OR 5.3% 4.9% 4.8% 4.4% 4.3%

Providence, RI 1.3% 0.8% 0.6% 0.3% 0.2%



Richmond, VA 7.7% 7.9% 8.1% 7.5% 7.2%

Roanoke, VA 8.3% 7.6% 8.3% 8.1% 8.3%

Rochester, NY 11.8% 11.4% 11.3% 10.2% 9.9%

Sacramento, CA 10.5% 10.8% 9.9% 9.4% 8.9%

Salt Lake City, UT 7.2% 7.3% 7.1% 7.0% 7.5%

San Antonio, TX 11.2% 10.4% 10.2% 10.5% 9.3%

San Diego, CA 5.3% 5.0% 5.0% 4.9% 5.1%




Savannah, GA 5.6% 2.2% 2.2% 2.4% 2.3%

Seattle, WA 4.3% 5.0% 5.8% 4.6% 3.8%


St. Louis, MO 6.5% 6.6% 6.9% 7.3% 6.4%



Suburban MD 12.2% 12.2% 12.6% 12.7% 11.6%

Suburban VA 11.5% 11.9% 9.0% 9.6% 9.2%

Syracuse, NY 10.9% 10.8% 11.2% 10.3% 11.3%

Tampa, FL 6.7% 6.1% 6.2% 6.1% 5.6%

Tucson, AZ 9.4% 9.2% 9.6% 8.6% 8.1%

Tulsa, OK 8.3% 7.8% 8.0% 7.8% 7.4%

p = preliminary


Asking Rents



United States $5.30 $5.40 $5.44 $5.49 $5.57 $4.88 $5.11

Northeast $5.60 $5.61 $5.66 $5.83 $6.03 $5.55 $4.52

Midwest $4.30 $4.36 $4.37 $4.40 $4.42 $4.09 $4.31

South $4.96 $5.10 $5.18 $5.23 $5.19 $4.44 $4.17

West $6.83 $7.01 $7.00 $7.10 $7.36 $6.23 $7.55


Atlanta, GA $4.20 $4.29 $4.27 $4.22 $4.17 $3.63 $3.45

Austin, TX $9.84 $9.94 $9.72 $9.66 $9.75 $6.96 $7.80

Baltimore, MD $5.40 $5.61 $5.48 $5.57 $5.49 $4.58 n/a

Binghamton, NY $4.83 $4.83 $4.74 $4.81 $4.81 $4.36 $3.50

Birmingham, AL $4.69 $4.58 $3.61 $3.57 $4.70 $4.19 n/a

Boston, MA $5.94 $5.96 $5.86 $6.02 $6.17 $5.67 $5.64

Buffalo, NY $4.13 $4.13 $4.13 $4.13 $4.98 $4.75 $3.95

Charleston, SC $4.67 $4.93 $4.92 $5.16 $5.24 $5.32 $4.63

Charlotte, NC $4.26 $4.24 $4.96 $4.99 $5.34 $4.56 $5.68

Chicago, IL $4.79 $4.85 $4.87 $4.88 $4.79 $4.66 $4.52

Cincinnati, OH $3.81 $3.89 $3.97 $4.01 $3.91 $3.49 $3.63

Cleveland, OH $3.86 $3.87 $3.89 $3.95 $3.88 $3.57 n/a


Columbus, OH $3.30 $3.38 $3.35 $3.35 $3.35 $3.35 n/a


Dayton, OH $3.19 $3.21 $3.21 $3.22 $3.19 $3.10 $2.90

Denver, CO $7.96 $8.24 $7.71 $7.04 $7.23 $5.98 $8.02

Detroit, MI $4.92 $5.04 $5.15 $5.25 $5.26 $4.70 $4.74

East Bay, CA $6.76 $7.23 $7.76 $7.55 $8.00 $6.99 $8.85

El Paso, TX $3.75 $3.75 $3.90 $3.95 $3.95 $4.00 $3.90



Ft. Lauderdale, FL $7.63 $7.75 $7.84 $7.98 $8.12 $7.38 $7.47

Greenville, SC $3.44 $3.86 $3.44 $3.53 $3.55 $3.55 $3.40

Hampton Roads, VA $4.87 $5.03 $5.06 $5.19 $5.21 $5.02 $4.52

Hartford, CT $4.21 $4.18 $4.22 $4.25 $4.32 $4.44 $3.70

Houston, TX $6.09 $6.05 $6.02 $6.19 $6.12 $6.04 $5.65

Indianapolis, IN $3.93 $3.97 $3.47 $3.50 $3.55 $3.49 $3.41

Inland Empire CA $5.38 $5.75 $5.90 $6.24 $6.58 $6.11 $7.18

Jacksonville, FL $3.91 $4.05 $4.05 $3.99 $4.34 $4.01 $3.23

Kansas City, MO $4.10 $4.14 $4.39 $4.48 $4.51 $3.87 $4.56

Lakeland, FL $4.50 $4.53 $4.63 $4.89 $4.85 $4.73 $4.60

Las Vegas, NV $7.18 $7.19 $7.56 $7.32 $7.68 $6.60 n/a

Long Island, NY $8.87 $8.63 $8.15 $8.25 $8.53 $7.90 $8.93

Los Angeles, CA $7.79 $8.09 $8.26 $8.29 $8.79 $8.41 $8.07

Louisville, KY $3.65 $3.52 $3.61 $3.63 $3.67 $3.59 $3.03

Memphis, TN $2.53 $2.50 $2.35 $2.51 $2.49 $2.28 n/a

Miami, FL $6.95 $7.08 $7.47 $7.23 $7.32 $7.09 $6.04

Milwaukee, WI $4.22 $4.29 $4.39 $4.33 $4.39 $4.01 $4.36



Asking Rents

p = preliminary



Nashville, TN $3.94 $4.03 $5.25 $5.35 $5.47 $4.86 $2.65

New Haven, CT $5.08 $5.23 $5.18 $5.20 $5.68 $5.20 $5.22



Oklahoma City, OK $4.03 $4.00 $4.21 $4.57 $4.65 $3.88 $2.50

Omaha, NE $5.34 $5.28 $5.83 $5.22 $5.55 $5.10 $5.10

Orange County, CA $9.42 $9.62 $9.76 $10.44 $10.91 $8.68 $11.70

Orlando, FL $6.25 $6.36 $6.51 $6.65 $6.45 $5.29 $6.14



Philadelphia, PA $4.76 $4.70 $4.52 $4.52 $4.65 $4.24 $3.75

Phoenix, AZ $6.14 $6.29 $6.26 $6.43 $6.54 $4.77 $7.27

Pittsburgh, PA $5.69 $5.74 $7.21 $7.70 $7.72 $4.80 $4.62

Portland, OR $6.47 $6.72 $7.07 $7.22 $7.62 $6.42 $6.14

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.43 $4.43 $4.41 $4.34 $4.67 $3.91 $3.87

Roanoke, VA $3.93 $4.14 $4.23 $4.10 $4.18 $4.13 $4.19

Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.65 $4.74 $4.40 $4.39 $4.43 $4.36 $4.85

Salt Lake City, UT $5.16 $5.28 $5.30 $5.40 $5.47 $5.18 $3.96

San Antonio, TX $5.76 $5.74 $5.57 $5.74 $5.78 $4.76 n/a

San Diego, CA $11.40 $11.52 $11.76 $12.12 $12.00 $8.88 $9.84




Savannah, GA $4.03 $4.22 $4.22 $4.55 $4.79 $4.18 n/a

Seattle, WA $5.94 $5.84 $5.85 $6.04 $6.61 $6.11 $4.10


St. Louis, MO $4.21 $4.22 $4.07 $4.14 $4.22 $3.96 $6.87



Suburban MD $8.62 $9.20 $9.19 $9.20 $9.43 $8.28 n/a

Suburban VA $8.62 $9.20 $11.14 $10.89 $11.11 $8.97 n/a

Syracuse, NY $3.87 $3.82 $3.56 $3.65 $3.81 $4.28 $2.87

Tampa, FL $5.30 $5.31 $5.42 $5.48 $6.12 $5.31 $3.65

Tucson, AZ $6.39 $6.92 $6.90 $6.80 $6.81 $6.00 $6.22

Tulsa, OK $4.56 $4.52 $4.49 $4.50 $4.52 $4.89 $3.81


Inventory

Inventory Inventory Deliveries YTD Under Construction as of Q3 2016p

United States 14,044,295,164 159,261,143 214,502,985

Northeast 2,318,000,139 22,867,637 29,373,671

Midwest 3,848,658,406 37,360,796 52,076,536

South 4,034,293,908 57,889,347 90,761,790

West 3,843,342,711 41,143,363 42,290,988

U.S. Industrial Report Markets Inventory Deliveries YTD Under Construction as of Q3 2016p

Atlanta, GA 543,860,764 11,011,545 18,877,589

Austin, TX 45,836,565 573,270 653,635

Baltimore, MD 204,750,042 0 2,317,543

Binghamton, NY 17,674,534 0 0

Birmingham, AL 15,240,259 0 440,000

Boston, MA 344,823,044 1,826,673 861,862

Buffalo, NY 110,618,208 415,000 1,571,630

Charleston, SC 63,862,024 2,321,526 4,023,468

Charlotte, NC 158,284,451 1,168,874 649,337

Chicago, IL 1,165,049,536 12,203,962 18,933,428

Cincinnati, OH 280,358,303 3,966,857 2,198,274

Cleveland, OH 487,312,807 2,109,000 1,546,345

Colorado Springs, CO 34,367,377 n/a n/a

Columbus, OH 246,897,728 4,385,226 3,111,600


Dayton, OH 112,765,194 406,300 2,411,906

Denver, CO 242,737,305 3,026,990 3,440,675

Detroit, MI 491,044,546 1,084,219 2,351,387

East Bay, CA 199,366,413 3,003,429 556,556

El Paso, TX 51,790,980 445,000 n/a


Fredericksburg, VA 10,250,597 0 n/a

Ft. Lauderdale, FL 88,289,538 163,419 910,108

Greenville, SC 195,703,177 1,605,000 3,600,000

Hampton Roads, VA 94,944,013 61,000 534,045

Hartford, CT 92,057,251 0 0

Houston, TX 398,217,339 7,590,028 6,836,968

Indianapolis, IN 247,037,923 2,343,869 4,428,137

Inland Empire CA 495,532,371 17,742,804 18,395,253

Jacksonville, FL 104,595,284 814,777 1,418,201

Kansas City, MO 204,155,531 4,539,519 7,759,235

Lakeland, FL 32,528,297 405,060 1,264,036

Las Vegas, NV 108,937,843 1,740,327 1,240,647

Long Island, NY 129,926,108 178,000 569,000

Los Angeles, CA 1,075,836,395 1,553,944 6,195,466

Louisville, KY 141,131,592 4,916,804 6,467,340

Memphis, TN 188,522,906 1,981,513 5,035,152

Miami, FL 152,564,498 1,362,762 4,507,643

Milwaukee, WI 197,466,132 1,295,479 1,098,750

Minneapolis, MN 104,472,070 1,387,759 2,168,800


Inventory


Nashville, TN 131,970,543 239,203 924,697

New Haven, CT 48,566,293 0 80,500



Oklahoma City, OK 68,540,201 445,666 59,000

Omaha, NE 68,634,237 441,707 1,025,661

Orange County, CA 282,663,728 624,875 222,735

Orlando, FL 109,840,019 632,633 1,799,630



Philadelphia, PA 289,240,195 3,886,702 3,108,508

Phoenix, AZ 304,151,338 4,172,407 2,066,259

Pittsburgh, PA 168,120,151 1,264,642 471,031

Portland, OR 192,613,739 981,408 2,641,548




Richmond, VA 91,701,177 304,600 216,000

Roanoke, VA 49,848,993 0 250,000

Rochester, NY 73,551,473 0 0

Sacramento, CA 134,076,760 96,152 282,254

Salt Lake City, UT 125,295,336 1,749,201 2,134,476

San Antonio, TX 40,843,302 1,493,721 520,551

San Diego, CA 161,134,604 949,300 635,931




Savannah, GA 49,047,984 1,785,810 5,022,871

Seattle, WA 140,965,606 2,013,517 1,981,566

Southern New Hampshire 48,001,232 0 0

St. Louis, MO 243,464,399 3,196,899 5,043,013


Stockton/Tracy, CA 98,377,416 2,216,100 1,074,337

Suburban MD 48,684,918 1,246,170 311,000

Suburban VA 56,855,867 635,182 90,240

Syracuse, NY 42,598,326 172,500 336,000

Tampa, FL 80,232,940 28,500 365,226

Tucson, AZ 41,344,427 863,488 159,971

Tulsa, OK 60,068,675 180,500 152,250

p = preliminary

Methodology


Regional Map


















Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.


U.S. Industrial Snapshot Q1 2016MARKETBEAT


U.S. INDUSTRIAL

Overall Vacancy

Net Absorption/Rent NNN4Q TRAILING AVERAGE


Forecast






Forecast




$4.00

$4.50

$5.00

$5.50

-30

-10

10

30

50

70

2010 2011 2012 2013 2014 2015 Q1 16


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010 2011 2012 2013 2014 2015 Q1 16


EconomyThe turbulent start to the year saw confi dence sagging and the economic expansion seemingly on shaky ground. But by the end of March, the U.S. economy had regained solid footing and the industrial property markets registered yet another robust quarter. Strong employment is always a dominant growth driver; it creates new income growth and adds to a solid base of consumer spending. Consumer spending in turn bolsters demand for manufacturing and warehouse space. Over the last 12 months, the U.S. economy has added 2.8 million nonfarm payroll jobs. The construction sector added 301,000 payrolls while the trade, transportation and utilities sector added 499,000 new workers. These industries are among the heaviest users of industrial space.

Cushman & Wakefi eld’s outlook for manufacturing has improved since the beginning of 2016. U.S. factory activity expanded in March for the fi rst time since last August, a sign the nation’s economy is shaking off the eff ects of a strong dollar, depressed oil prices and weakened global growth. While headwinds persist for the manufacturing sector, the recent ISM reading (51.8 in March) suggests that the worst of the manufacturing slump may be over. Also promising, current production has picked up: new factory orders rose to their highest level since November 2014, and the backlogs of orders expanded for the fi rst time since last summer – all signs suggesting the pickup in industrial production is unlikely to falter in the near term.

That said, businesses continue to work through elevated stockpiles accumulated over the fi rst half of 2015 when record inventories outpaced demand. There has been progress: inventories have declined in four of the past fi ve months, with the one exception being a fl at reading in December. But despite these back-to-back inventory declines, the inventory-to-sales ratio remains elevated at 1.41 which suggests businesses will need to continue to work through the inventory overhang through the fi rst half of 2016, hampering manufacturing and curbing GDP growth.

Market OverviewU.S. industrial markets absorbed 57.8 million square feet (msf) of space in the fi rst quarter of 2016, 9.3% more compared to fi rst quarter 2015. This marks 24 consecutive quarters of positive net occupancy gains for the sector, placing the current expansion among the longest – and the strongest – on record. The U.S. industrial market shed over 182 msf of space during the economic downturn but has absorbed more than 990 msf during the current expansion.

The booming industrial expansion has been more broad-based than previous expansions, and widespread occupancy gains continue to be registered across the country. Twenty-two markets report over 1 msf of positive net absorption during the fi rst quarter of the year. Occupier demand for modern industrial space also continues to grow, with new construction leasing of speculative and design-build industrial product delivered in the past 24 months accounting for over 75% of fi rst quarter net absorption.


Source: BLS



Top Five Years for Industrial Net Absorption2016 IS ON TRACK TO BE ANOTHER STRONG YEAR

Development Trends by Type (% of Total)

SPEC CONSTRUCTION IS CONTROLLED BUT GROWING

E-commerce SalesGROWTH OF ONLINE SALES IS A BOON FOR INDUSTRIAL

240 240

195 194

171

220

0

50

100

150

200

250

2014 2015 1996 2005 2013 2016

Q1 16

0%

3%

6%

9%

12%

15%

18%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

$0

$100

$200

$300

$400

$500

$600

Total E-commerce $ (mill)

0%

30%

60%

90%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

BTS Speculative

Outlook• The demand drivers for industrial remain fi rmly intact. Much

of what drives demand for industrial space links to the U.S. consumer, and with expected wage and labor market gains, the consumer will have the wherewithal to drive growth.

• U.S. imports, which are closely tied to warehousing demand, will continue expanding in 2016 on the back of solid domestic demand and subdued import prices. Exports will rebound modestly.

• Expect 2016 to be another year where net absorption passes the 200 msf mark. Leasing demand will balance new deliveries and hold national vacancy steady.

• Rent growth is expected to drive value in 2016. Gains will continue to permeate all product types but will be most pronounced for product located in supply constrained infi ll locations.

The national industrial vacancy rate continued to decline in the fi rst quarter, falling by 20 basis points (bps) from the prior quarter and 70 bps from the prior year to 6.1%. Industrial vacancy is currently tracking at its lowest level of the past 30 years and is now a full 220 bps below its 10-year historical average. Vacancy rates declined or held fi rm during the quarter in 44 of the 79 markets tracked by Cushman & Wakefi eld. Strong leasing fundamentals have also driven vacancies for each industrial product lower than at any point in the last cycle.

The shopping fulfi llment channel migration, to e-commerce, continues to support fundamentals by giving rise to net new users of industrial space. Over the past three years, e-commerce related tenant requirements have accounted for more than 40% of industrial net absorption. With e-commerce sales growing fi ve times faster than overall retail sales, there is expected to be signifi cant requirements for new industrial space in the future.

With vacancy at such low levels, there is a lack of functional, modern space on the market, and developers are responding with more speculative construction. In the fi rst quarter, speculative projects under construction totaled 109.9 msf, which comprised 62.5% of the total 175.8 msf currently under construction. Despite this uptick in speculative construction, it remains a controlled development environment and the market is still well below the levels of development observed at the peak of the last cycle. From 2004 to 2009 over 776 msf of industrial product was delivered, 27% more than the 566 msf of product brought online during the current expansion.

U.S. industrial rents increased 3.8% in the fi rst quarter from their year-ago level. Industrial rents increased in 68 of 79 markets tracked by Cushman & Wakefi eld year over year, with over one-fi fth of the markets across the country now registering double-digit gains. In many markets, industrial rents are currently either at their historic highs or quickly approaching them; on a national level we are witnessing rental rate appreciation for every industrial product type.

Source: U.S. Census Bureau



MarketBeat U.S. Industrial Snapshot Q1 2016 cushmanwakefi eld.com | 3

Net Absorption Net Absorption Leasing Activity

Demand Indicators (Overall) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

United States 52,922,204 65,657,493 56,546,209 65,141,181 57,864,307 106,455,724

Northeast 10,715,360 923,867 8,878,231 11,583,056 11,304,397 18,836,750

Midwest 10,298,436 13,172,780 13,784,087 11,522,524 13,785,447 15,725,227

South 16,490,398 24,907,690 16,640,923 22,626,849 21,950,556 31,232,809

West 15,418,010 26,653,156 17,242,968 19,408,752 10,823,907 40,660,938

U.S. Industrial Report Markets Q1 2015 Q2 2015 Q3 2015 Q4 2015 Net Absorption Leasing Activity

Atlanta, GA 2,801,222 3,985,958 2,024,104 3,787,196 3,347,142 3,341,527

Austin, TX 256,247 594,625 535,220 385,165 185,653 507,638

Baltimore, MD -44,448 778,856 515,020 273,161 n/a n/a

Binghamton, NY 128,847 -347,566 47,200 -176,074 35,384 7,284

Birmingham, AL 112,872 152,331 -8,894 -176,074 108,076 179,256

Boston, MA -384,311 -364,842 -299,942 1,943,370 -257,121 1,737,516

Buff alo, NY n/a n/a n/a n/a -276,271 58,236

Charleston, SC 626,912 899,558 -671,776 870,931 1,179,476 79,272

Charlotte, NC -10,144 411,302 44,315 275,502 -519,012 1,273,830

Chicago, IL 2,178,535 4,713,751 5,537,960 3,181,601 3,876,093 5,688,253

Cincinnati, OH 2,454,753 1,259,007 1,085,966 1,050,450 792,119 976,729

Cleveland, OH 19,991 1,288,175 264,832 680,698 962,071 298,885

Colorado Springs, CO 301,296 291,924 197,926 168,596 19,540 95,185

Columbus, OH -500,772 1,304,121 316,303 958,752 1,381,183 2,031,085


Dayton, OH -32,642 254,758 909,642 416,061 494,566 269,949

Denver, CO 764,334 857,435 748,877 -438,786 387,569 1,760,697

Detroit, MI 946,290 243,589 874,302 906,038 2,766,250 1,626,790

East Bay, CA 317,994 2,160,616 360,593 1,080,889 -386,962 3,828,905

El Paso, TX 11,941 194,337 683,500 390,000 1,576,642 3,504,441

Fort Myers/Naples, FL -38,875 169,382 44,970 161,561 202,365 304,774

Fredericksburg, VA 94,804 184,404 53,029 -21,638 -18,880 26,692

Ft. Lauderdale, FL 345,876 25,500 482,672 51,158 881,639 1,177,181

Greater Los Angeles 2,791,601 2,864,646 3,591,968 2,184,513 1,444,842 8,528,837

Greenville, SC 50,539 634,353 1,108,045 866,914 830,107 506,950

Hampton Roads, VA 571,725 686,350 579,468 -21,546 -204,133 429,471

Hartford, CT 1,742,928 -241,903 146,502 -196,297 -161,857 114,852

Houston, TX 2,240,204 974,766 2,062,877 243,707 515,607 4,475,420

Indianapolis, IN 1,499,290 677,781 1,571,505 1,620,767 881,633 921,223

Inland Empire CA 3,341,394 9,264,382 3,778,078 6,018,135 3,695,254 10,205,515

Jacksonville, FL -48,635 775,559 782,236 1,314,626 815,719 922,640

Kansas City, MO 1,456,781 634,460 1,032,936 919,847 782,718 1,611,921

Lakeland, FL 96,168 204,911 171,050 131,220 252,170 100,891

Las Vegas, NV 1,132,600 1,808,833 767,457 411,294 925,404 n/a

Long Island, NY 482,980 -1,053,678 -653,171 247,509 212,960 512,165

Louisville, KY 456,022 -146,656 1,380,064 1,292,708 1,073,355 1,369,442

Memphis, TN 1,028,887 3,322,321 2,186,850 1,542,588 1,322,408 2,560,210

Miami, FL 789,912 808,989 278,677 549,178 1,359,035 783,955

Milwaukee, WI 864,523 923,899 144,626 546,891 885,374 970,111

Minneapolis, MN 894,823 630,907 1,646,823 671,568 1,041,300 n/a

Demand Indicators


Net Absorption Net Absorption Leasing Activity

Demand Indicators (Overall) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Nashville, TN 245,832 915,555 1,149,509 3,115,044 1,031,751 n/a

New Haven, CT -5,801 158,553 242,326 -120,269 27,084 154,261


New Jersey - Northern 415,164 579,859 988,107 1,281,402 1,276,577 2,943,662

Oklahoma City, OK 25,816 82,128 -91,810 -249,225 366,886 n/a

Omaha, NE 54,332 383,121 100,304 -67,189 -260,117 293,825

Orange County, CA 144,345 1,045,402 673,150 554,044 294,837 3,278,145

Orlando, FL 367,694 991,386 987,678 393,499 -210,863 1,050,365

Palm Beach County, FL -89,425 67,920 159,760 277,198 560,967 363,976


Philadelphia, PA 2,194,906 -560,205 2,044,302 1,852,105 1,459,721 3,027,787

Phoenix, AZ 2,025,974 1,601,101 821,688 4,027,249 1,386,180 4,398,355

Pittsburgh, PA 654,849 -49,040 -25,911 1,189,636 1,027,360 383,715

Portland, OR 947,124 864,706 919,682 3,128,684 439,415 1,333,417

Providence, RI n/a n/a n/a n/a 133,493 133,493

Puget Sound - Eastside 148,166 443,637 189,875 213,643 -318,429 403,614

Raleigh/Durham, NC 306,084 355,348 -24,322 847,787 108,522 437,678

Richmond, VA 246,523 325,686 -88,609 -197,984 -33,353 341,534

Roanoke, VA 1,201 1,187,389 53,300 239,271 -81,358 36,251

Rochester, NY 589,707 -746,878 -386,210 338,920 69,576 22,852

Sacramento, CA 925,428 122,798 1,163,411 -134,622 1,291,485 660,273

Salt Lake City, UT 454,470 36,315 977,388 512,920 410,524 832,360

San Antonio, TX 149,096 37,794 -64,086 304,981 -62,758 316,821

San Diego, CA 908,093 127,384 1,072,702 677,427 11,002 1,590,182

San Francisco North Bay, CA 101,006 -130,163 389,837 73,004 -39,051 106,736

San Francisco Peninsula, CA 117,025 -75,595 4,356 29,344 -8,995 572,929

San Jose (Silicon Valley), CA -51,013 158,198 365,336 455,549 -6,387 1,181,123

Savannah, GA n/a 655,960 n/a 610,191 n/a n/a

Seattle, WA 439,442 2,995,775 443,811 -737,959 -100,020 1,086,613

Southern New Hampshire 131,425 895,172 -66,015 303,388 233,167 219,426

St. Louis, MO 462,532 859,211 298,888 637,040 182,257 1,036,456

St. Petersburg/Clearwater, FL 258,402 -51,479 6,741 20,082 62,588 132,965

Stockton/Tracy, CA 317,994 2,160,616 360,593 1,080,889 1,406,062 479,540

Suburban MD 150,085 418,368 177,624 107,919 231,842 595,792

Suburban VA -6,187 151,208 122,019 -196,354 271,468 618,893

Syracuse, NY -639 73,691 63,661 12,313 -256,271 343,917

Tampa, FL 31,380 459,123 610,082 375,052 91,258 386,348

Tucson, AZ 290,737 55,146 416,240 103,939 -28,363 318,512

Tulsa, OK 95,859 2,709 47,441 -95,054 -90,177 n/a

Demand Indicators

p = preliminary


Vacancy Rates


United States 6.8% 6.6% 6.5% 6.3% 6.1%

Northeast 7.8% 7.9% 7.7% 7.3% 7.1%

Midwest 6.5% 6.5% 6.3% 6.2% 6.0%

South 7.8% 7.4% 7.4% 7.0% 7.1%

West 5.6% 5.3% 5.1% 4.9% 4.7%


Atlanta, GA 7.7% 7.7% 8.3% 7.9% 8.5%

Austin, TX 9.6% 8.6% 6.9% 6.1% 4.6%

Baltimore, MD 8.5% 8.5% 8.3% 8.3% 8.3%

Binghamton, NY 9.1% 11.3% 11.1% 12.4% 12.2%

Birmingham, AL 12.2% 11.1% 11.7% 12.4% 17.0%

Boston, MA 8.0% 8.1% 8.4% 7.8% 7.9%

Buff alo, NY 9.1% 9.2% 8.7% 8.8% 8.9%

Charleston, SC 7.9% 7.2% 8.6% 7.3% 8.0%

Charlotte, NC 4.3% 4.4% 6.2% 6.0% 6.4%

Chicago, IL 6.5% 6.8% 6.4% 6.4% 6.4%

Cincinnati, OH 4.5% 4.2% 4.4% 4.5% 4.2%

Cleveland, OH 6.0% 5.5% 5.4% 5.3% 5.2%


Columbus, OH 6.5% 5.5% 6.6% 6.5% 6.6%


Dayton, OH 10.0% 9.7% 9.4% 9.1% 8.7%

Denver, CO 4.2% 4.1% 4.0% 4.3% 2.7%

Detroit, MI 6.4% 6.1% 5.7% 5.4% 5.0%

East Bay, CA 4.4% 4.1% 3.5% 3.5% 3.1%

El Paso, TX 13.1% 12.8% 12.1% 11.6% 8.7%



Ft. Lauderdale, FL 6.5% 6.6% 6.0% 6.4% 7.1%

Greater Los Angeles 3.3% 3.0% 2.7% 2.3% 2.2%

Greenville, SC 7.9% 7.4% 7.3% 6.8% 7.4%

Hampton Roads, VA 7.2% 7.0% 6.5% 6.4% 7.0%

Hartford, CT 13.0% 12.8% 12.7% 12.6% 12.9%

Houston, TX 5.7% 5.7% 5.4% 5.5% 6.0%

Indianapolis, IN 7.7% 7.3% 7.6% 7.3% 5.3%

Inland Empire CA 6.1% 5.7% 6.0% 5.7% 5.5%

Jacksonville, FL 10.2% 9.4% 8.8% 8.0% 7.2%

Kansas City, MO 7.3% 8.0% 7.6% 7.4% 8.1%

Lakeland, FL 3.3% 3.8% 4.1% 3.5% 5.0%

Las Vegas, NV 7.3% 6.6% 6.3% 6.8% 6.1%

Long Island, NY 8.0% 8.9% 9.2% 8.3% 7.5%

Louisville, KY 5.6% 5.9% 5.6% 4.9% 5.5%

Memphis, TN 13.1% 10.9% 10.6% 9.8% 9.9%

Miami, FL 6.4% 6.3% 6.1% 5.7% 4.9%

Milwaukee, WI 5.6% 5.1% 4.8% 4.7% 4.8%

Minneapolis, MN 9.8% 10.9% 9.7% 9.9% 8.7%


Vacancy Rates


Nashville, TN 6.3% 6.0% 5.4% 4.7% 4.3%

New Haven, CT 13.7% 12.9% 12.7% 12.4% 12.7%



Oklahoma City, OK 6.2% 6.3% 6.2% 6.7% 6.5%

Omaha, NE 2.8% 2.9% 2.7% 3.0% 3.5%

Orange County, CA 3.8% 3.5% 3.0% 2.8% 2.8%

Orlando, FL 8.1% 7.9% 7.5% 7.3% 6.9%



Philadelphia, PA 5.3% 6.2% 5.8% 5.6% 5.6%

Phoenix, AZ 11.1% 11.2% 11.1% 10.3% 10.1%

Pittsburgh, PA 7.5% 6.8% 7.2% 6.8% 6.2%

Portland, OR 5.1% 5.3% 5.3% 4.9% 4.8%

Providence, RI 2.0% 1.7% 1.3% 0.8% 0.6%



Richmond, VA 8.0% 7.8% 7.7% 7.9% 8.1%

Roanoke, VA 9.2% 8.4% 8.3% 7.6% 9.6%

Rochester, NY 10.3% 11.3% 11.8% 11.4% 11.3%

Sacramento, CA 10.8% 10.9% 10.5% 10.8% 10.3%

Salt Lake City, UT 6.7% 6.7% 7.2% 7.3% 7.1%

San Antonio, TX 10.5% 11.4% 11.2% 10.4% 10.2%

San Diego, CA 6.0% 5.8% 5.3% 5.0% 5.0%




Savannah, GA 7.1% 5.6% 5.6% 2.2% 2.2%

Seattle, WA 5.9% 4.8% 4.3% 5.0% 5.8%


St. Louis, MO 6.6% 6.7% 6.5% 6.6% 6.9%



Suburban MD 11.9% 11.7% 12.2% 12.2% 12.6%

Suburban VA 11.8% 11.7% 11.5% 11.9% 9.0%

Syracuse, NY 11.3% 11.1% 10.9% 10.8% 11.2%

Tampa, FL 7.8% 7.6% 6.7% 6.1% 6.2%

Tucson, AZ 10.2% 10.0% 9.4% 9.2% 9.6%

Tulsa, OK 8.5% 8.3% 8.3% 7.8% 8.0%

p = preliminary


Asking Rents

Overall (All Property Types) Overall (All Property Types) W/D MFG

Weighted Average Asking Rent Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

United States $5.24 $5.31 $5.31 $5.40 $5.44 $4.86 $5.04

Northeast $5.49 $5.49 $5.53 $5.53 $5.65 $5.35 $4.41

Midwest $4.11 $4.19 $4.25 $4.31 $4.40 $4.10 $4.14

South $4.94 $5.01 $5.01 $5.13 $5.18 $4.50 $4.14

West $6.69 $6.88 $6.83 $7.02 $6.97 $5.93 $7.29

U.S. Industrial Report Markets Q1 2015 Q2 2015 Q3 2015 Q4 2015 Overall W/D MFG

Atlanta, GA $4.03 $4.20 $4.20 $4.29 $4.27 $3.70 $3.34

Austin, TX $9.36 $9.36 $9.84 $9.94 $9.09 $8.38 n/a

Baltimore, MD $5.40 $5.37 $5.40 $5.61 $5.61 $4.72 n/a

Binghamton, NY $4.65 $4.71 $4.83 $4.83 $4.74 $4.36 $3.60

Birmingham, AL $4.49 $4.67 $4.69 $4.58 $3.61 $3.32 n/a

Boston, MA $5.28 $5.28 $5.40 $5.40 $5.79 $5.53 $5.29

Buff alo, NY $4.13 $4.13 $4.13 $4.13 $4.13 $4.25 $3.95

Charleston, SC $4.45 $4.53 $4.67 $4.93 $4.96 $4.95 $4.76

Charlotte, NC $4.88 $4.23 $4.26 $4.24 $4.96 $4.45 $4.51

Chicago, IL $4.54 $4.64 $4.79 $4.85 $4.87 $4.81 $4.31

Cincinnati, OH $3.76 $3.74 $3.81 $3.89 $3.97 $3.28 $3.74

Cleveland, OH $3.77 $3.78 $3.86 $3.87 $3.89 $3.60 n/a


Columbus, OH $3.20 $3.30 $3.30 $3.38 $3.35 $3.35 n/a


Dayton, OH $3.07 $3.05 $3.19 $3.21 $3.21 $3.22 $2.91

Denver, CO $7.60 $7.75 $7.96 $8.24 $7.71 $5.57 $8.52

Detroit, MI $4.80 $4.92 $4.92 $5.04 $5.15 $4.56 $4.56

East Bay, CA $6.70 $6.88 $6.76 $7.23 $7.72 $6.48 $9.49

El Paso, TX $3.70 $3.70 $3.75 $3.75 $3.90 $3.95 $3.80



Ft. Lauderdale, FL $7.50 $7.51 $7.63 $7.75 $8.76 $8.32 $8.49

Greater Los Angeles $7.37 $7.69 $7.79 $8.09 $8.26 $7.89 $7.88

Greenville, SC $3.43 $3.40 $3.44 $3.86 $3.44 $3.54 $3.15

Hampton Roads, VA $4.97 $4.96 $4.87 $5.03 $5.05 $4.86 $4.63

Hartford, CT $4.31 $4.28 $4.21 $4.18 $4.31 $4.39 $3.88

Houston, TX $5.68 $6.04 $6.09 $6.05 $6.02 $5.89 $5.16

Indianapolis, IN $3.90 $3.96 $3.93 $3.97 $4.20 $3.78 $4.05

Inland Empire CA $5.19 $5.24 $5.38 $5.75 $5.90 $4.93 $5.87

Jacksonville, FL $3.90 $4.00 $3.91 $4.05 $4.05 $3.57 $2.38

Kansas City, MO $4.01 $4.12 $4.10 $4.14 $4.29 $3.81 $3.79

Lakeland, FL $4.62 $4.64 $4.50 $4.53 $4.63 $4.53 $4.55

Las Vegas, NV $6.73 $7.02 $7.18 $7.19 $7.01 $6.50 n/a

Long Island, NY $8.78 $8.83 $8.87 $8.63 $8.15 $8.00 $7.89

Louisville, KY $3.61 $3.66 $3.65 $3.52 $3.61 $3.51 $3.03

Memphis, TN $2.47 $2.47 $2.53 $2.50 $2.35 $2.14 n/a

Miami, FL $6.42 $6.85 $6.95 $7.08 $7.98 $8.19 $5.56

Milwaukee, WI $4.12 $4.10 $4.22 $4.29 $4.41 $3.95 $4.31



Asking Rents

p = preliminary

Overall (All Property Types) Overall (All Property Types) W/D MFG

Weighted Average Asking Rent Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Nashville, TN $3.89 $3.90 $3.94 $4.03 $4.05 $4.73 $2.06

New Haven, CT $4.95 $4.99 $5.08 $5.23 $5.20 $4.74 $4.80



Oklahoma City, OK $4.71 $4.34 $4.03 $4.00 $4.21 $3.70 $3.12

Omaha, NE $5.83 $4.21 $5.34 $5.28 $5.16 $4.50 $3.95

Orange County, CA $8.98 $9.22 $9.42 $9.62 $9.76 $8.31 $9.02

Orlando, FL $5.97 $6.13 $6.25 $6.36 $6.51 $5.10 $6.07



Philadelphia, PA $5.02 $4.71 $4.76 $4.70 $4.52 $4.21 $3.55

Phoenix, AZ $6.07 $6.27 $6.14 $6.29 $6.26 $4.66 $7.04

Pittsburgh, PA $5.39 $5.77 $5.69 $5.74 $7.21 $4.93 $4.56

Portland, OR $6.50 $6.54 $6.47 $6.72 $6.85 $5.79 $5.72

Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a



Richmond, VA $4.34 $4.45 $4.43 $4.43 $4.41 $3.83 $4.01

Roanoke, VA $4.22 $3.92 $3.93 $4.14 $4.17 $4.04 $4.33

Rochester, NY $4.24 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75

Sacramento, CA $4.51 $4.57 $4.65 $4.74 $4.40 $4.61 $5.00

Salt Lake City, UT $4.88 $5.16 $5.16 $5.28 $5.30 $5.06 $4.44

San Antonio, TX $5.83 $5.66 $5.76 $5.74 $5.58 $4.61 n/a

San Diego, CA $10.32 $10.80 $11.40 $11.52 $11.76 $9.12 $10.20




Savannah, GA $3.95 $4.03 $4.03 $4.22 $4.22 $3.81 n/a

Seattle, WA $5.74 $5.88 $5.94 $5.84 $5.85 $5.76 $4.66


St. Louis, MO $4.03 $4.20 $4.21 $4.22 $4.07 $3.73 $6.68



Suburban MD $8.88 $8.83 $8.62 $9.20 $9.20 $8.06 n/a

Suburban VA $10.64 $11.05 $10.87 $11.02 $11.18 $9.00 n/a

Syracuse, NY $3.55 $3.59 $3.87 $3.82 $3.56 $3.39 $3.12

Tampa, FL $5.34 $5.35 $5.30 $5.31 $5.42 $4.29 $3.55

Tucson, AZ $6.47 $6.47 $6.39 $6.92 $6.90 $6.27 $6.13

Tulsa, OK $4.35 $4.44 $4.56 $4.52 $4.49 $4.83 $3.83


Inventory


United States 13,866,336,892 51,717,556 175,842,859

Northeast 2,175,583,715 8,404,223 24,368,994

Midwest 3,818,044,110 10,547,309 38,845,109

South 4,056,051,534 22,904,505 74,660,631

West 3,816,657,533 9,861,519 37,968,125

U.S. Industrial Report Markets Inventory Deliveries YTD Under Construction as of Q1 2016p

Atlanta, GA 539,223,939 6,128,194 10,385,433

Austin, TX 69,095,787 174,870 861,600

Baltimore, MD 204,841,572 n/a n/a

Binghamton, NY 17,676,688 n/a 0

Birmingham, AL 15,240,259 0 0

Boston, MA 209,562,622 32,000 1,110,241

Buff alo, NY 110,203,208 0 1,894,230

Charleston, SC 62,437,833 1,371,277 3,106,211

Charlotte, NC 157,278,779 287,891 980,832

Chicago, IL 1,154,901,087 1,957,389 12,952,160

Cincinnati, OH 276,767,471 101,000 4,576,451

Cleveland, OH 484,260,864 808,500 1,558,800

Colorado Springs, CO 33,494,808 0 0

Columbus, OH 244,076,570 1,446,856 3,682,254


Dayton, OH 112,410,134 65,400 660,900

Denver, CO 239,835,063 61,870 4,170,061

Detroit, MI 486,299,591 513,807 2,353,181

East Bay, CA 195,341,502 41,365 3,528,670

El Paso, TX 51,790,980 445,000 0

Fort Myers/Naples, FL 40,682,197 0 242,353

Fredericksburg, VA 10,166,234 0 n/a

Ft. Lauderdale, FL 83,011,875 103,515 596,768

Greater Los Angeles 1,076,849,896 556,949 2,870,185

Greenville, SC 188,670,438 0 7,078,800

Hampton Roads, VA 94,306,800 0 43,000

Hartford, CT 92,057,251 0 0

Houston, TX 390,996,249 2,846,884 7,850,509

Indianapolis, IN 246,029,723 1,273,669 1,041,200

Inland Empire CA 480,393,988 2,907,803 13,372,419

Jacksonville, FL 104,372,430 510,433 392,545

Kansas City, MO 202,131,971 2,425,985 4,961,287

Lakeland, FL 32,437,762 345,000 605,920

Las Vegas, NV 110,197,888 722,731 1,857,173

Long Island, NY 129,459,126 0 722,000

Louisville, KY 138,222,977 2,008,189 3,459,669

Memphis, TN 188,614,202 1,781,513 604,000

Miami, FL 141,577,995 206,220 3,013,729

Milwaukee, WI 197,511,905 541,315 1,028,696

Minneapolis, MN 104,671,130 207,000 1,738,000


Inventory


Nashville, TN 197,773,127 148,050 4,677,760

New Haven, CT 48,566,293 0 80,500

New Jersey - Central 333,844,211 930,030 3,200,956

New Jersey - Northern 289,927,681 315,000 637,131

Oklahoma City, OK 68,724,246 0 428,203

Omaha, NE 68,564,706 264,328 598,842

Orange County, CA 282,501,296 405,907 393,968

Orlando, FL 109,276,118 142,696 1,338,125



Philadelphia, PA 285,992,760 724,912 4,025,030

Phoenix, AZ 302,044,574 1,590,871 2,696,317

Pittsburgh, PA 170,700,811 396,302 1,137,918

Portland, OR 191,887,159 296,732 1,893,223


Puget Sound - Eastside 61,032,672 230,378 0


Richmond, VA 90,583,794 83,000 221,000

Roanoke, VA 45,060,061 n/a n/a

Rochester, NY 73,551,473 0 0

Sacramento, CA 133,898,042 0 0

Salt Lake City, UT 123,265,993 0 2,927,131

San Antonio, TX 39,847,171 524,137 629,144

San Diego, CA 160,728,634 543,330 766,800



San Jose (Silicon Valley), CA 83,871,014 0 563,760

Savannah, GA 47,145,374 0 2,841,185

Seattle, WA 140,384,596 754,483 1,388,218

Southern New Hampshire 48,001,232 0 0

St. Louis, MO 240,418,958 942,060 3,693,338

St. Petersburg/Clearwater, FL 51,416,782 0 0

Stockton/Tracy, CA 97,748,759 1,749,100 467,000

Suburban MD 47,830,665 420,880 1,019,500

Suburban VA 56,614,258 393,573 289,109

Syracuse, NY 42,427,322 15,000 184,000

Tampa, FL 80,452,998 0 0

Tucson, AZ 40,538,074 0 805,200

Tulsa, OK 60,031,175 143,000 189,750

p = preliminary


Cushman & Wakefi eld is a leading global real estate services fi rm that helps clients transform the way people work, shop, and live. The fi rm’s 43,000 employees in more than 60 countries provide deep local and global insights that create signifi cant value for occupiers and investors around the world. Cushman & Wakefi eld is among the largest commercial real estate services fi rms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefi eld.com or follow @CushWake on Twitter

Methodology


Regional Map


















cushmanwakefi eld.com


EconomyDespite concerns about slower growth in China and increased volatility in the U.S. and global fi nancial markets, the U.S. economy maintained its trajectory of steady and modest growth in the third quarter. Nonfarm job creation is on track to increase at a rate of 2.1% in 2015—its fastest pace in 15 years. As more Americans found work, new home construction and sales of existing homes have vastly improved. This bodes well for the industrial sector as a boost in housing typically translates into greater demand for warehouse space to store building materials. Moreover, housing also has a multiplier impact on consumer spending via the wealth eff ect.

Market OverviewHealthy industrial fundamentals can still be found across the nation and the industrial sector continues to perform strongly, however, despite the slowdown in economic activity in some areas of the country. Net absorption of 57.9 million square feet (msf) in the third quarter refl ected this strength, and brought the year-to-date occupancy gain in industrial properties to 173.1 msf. This puts the U.S. industrial sector on track to have another record-setting year in terms of demand for space. Signifi cant demand, space absorption and low vacancies continue to put upward pressure on rents in most major industrial hubs. The weighted average U.S. rental rate reached $5.34 NNN in the third quarter, a year-over-year increase of 4.8%. About 70% of all markets are experiencing positive rental growth, and 45% have seen year-over-year growth above 5% with double-digit gains in 14 markets.

The nationwide average vacancy of 7.4% clearly refl ects the fact that market-level supply pipelines, though growing, are still below the pace of demand in most markets. Secondary markets have seen an increase in development, but activity in primary markets, particularly distribution center hubs, has been stronger. There was 182.3 msf of construction underway across the country at the end of the third quarter.

OutlookThe economic environment in 2016 should support continued job gains, pushing the unemployment rate down below 5%, and improving the outlook for the American consumer. The shift toward online shopping will continue to be a leading demand driver for the industrial sector. Requirements for big-box space are common among e-commerce tenants, but there is also growing demand for smaller- and mid-size buildings. Increasing service expectations and the need to access labor are leading e-commerce companies to establish smaller infi ll locations around major population centers. Demand for Class A logistics product will remain strong and continue to fuel the rapid increase in construction. The need to replace aging stock should also drive a signifi cant volume of new development. Our forecast is for net absorption to continue to outpace new supply in 2016; however, the demand/supply imbalance is expected to narrow.

U.S. INDUSTRIAL

Overall Vacancy

Net Absorption/Rent NNN4Q TRAILING AVERAGE


Forecast






Forecast




$4.00

$4.50

$5.00

$5.50

-40,000,000

-5,000,000

30,000,000

65,000,000

2010 2011 2012 2013 2014 Q3 15

Net Absorption, SF Weighted Asking Rent, $ PSF

6.5%

7.5%

8.5%

9.5%

10.5%

2010 2011 2012 2013 2014 Q3 15


cushmanwakefi eld.comMarketBeat U.S. Industrial Snapshot Q3 2015

Overall Net Absorption Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

United States 67,214,679 69,832,212 53,876,596 61,302,664 57,927,727

Northeast 15,417,593 9,017,883 10,868,266 751,671 8,995,075

Midwest 14,468,284 14,185,781 10,044,719 12,992,438 13,509,848

South 18,419,734 27,372,952 17,772,112 23,571,098 16,807,763

West 18,909,068 19,255,596 15,191,499 23,987,457 18,615,041


Atlanta, GA 1,037,293 6,224,617 2,985,686 3,870,059 1,144,670

Austin, TX 15,743 582,323 256,247 594,625 535,220

Baltimore, MD 988,941 2,082,291 -44,448 778,856 515,020

Bellevue, WA -54,011 -121,331 148,166 443,637 1,400,803

Binghamton, NY 29,000 42,713 128,847 -347,566 47,200

Birmingham, AL 294,146 439,425 112,872 152,331 -8,894

Boston, MA 958,062 639,001 69,468 -226,334 744,749

Buff alo, NY n/a n/a n/a n/a n/a

Charleston, SC 646,286 303,858 927,823 965,661 593,087

Charlotte, NC 1,198,912 -105,703 -178,760 -96,289 443,913

Chicago, IL 5,448,310 3,473,748 2,354,963 3,932,839 5,161,780

Cincinnati, OH 631,603 698,644 2,334,169 1,197,258 1,046,595

Cleveland, OH 891,638 937,723 19,991 1,288,175 264,832

Colorado Springs, CO n/a n/a 301,296 291,924 197,926

Columbus, OH 1,746,014 -82,247 -500,772 1,402,273 316,303

Dallas/Fort Worth, TX 2,232,785 3,243,044 5,360,532 4,526,621 1,065,913

Dayton, OH 301,949 2,389,613 49,767 191,162 859,296

Denver, CO 790,763 2,056,618 823,744 893,754 717,454

Detroit, MI -377,699 739,803 990,983 557,248 1,311,308

East Bay, CA 1,471,696 683,023 332,910 1,160,381 247,894

El Paso, TX n/a n/a 11,941 194,337 683,500

Fort Myers/Naples FL 551,455 -124,379 -57,075 165,607 46,788

Fredericksburg, VA 38,045 -7,600 94,304 183,804 53,829

Ft. Lauderdale, FL 160,388 566,527 441,595 25,500 599,357

Greater Los Angeles 1,426,493 4,618,811 2,726,914 2,635,706 3,286,060

Greenville, SC 41,807 2,107,933 874,210 729,174 1,011,049

Hampton Roads, VA -17,601 499,398 571,725 686,350 579,468

Hartford, CT -103,215 724,156 1,732,588 -281,503 123,423

Houston, TX 2,787,290 2,203,125 2,033,276 832,255 1,963,076

Indianapolis, IN 1,420,748 2,001,103 1,499,290 987,637 1,071,505

Inland Empire CA 6,967,854 4,387,163 3,334,878 9,256,882 3,696,359

Jacksonville, FL 477,664 14,378 -62,843 799,162 702,265

Kansas City, MO 1,981,595 1,129,525 1,467,833 632,888 1,072,542

Lakeland, FL 1,133,037 188,254 83,368 232,011 144,250

Las Vegas, NV 800,334 659,285 1,132,600 1,808,833 767,457

Long Island, NY 44,150 38,025 514,710 -1,101,376 -810,758

Louisville, KY 1,741,430 1,036,456 651,291 -194,746 1,393,205

Memphis, TN 889,476 2,506,028 1,028,887 3,322,321 2,186,850

Miami, FL 514,166 682,668 530,266 672,037 219,743

Milwaukee, WI 829,335 932,633 864,523 923,899 144,626

Minneapolis, MN 645,260 538,252 753,691 624,161 1,596,352

Nashville, TN 1,676,014 592,599 303,183 915,555 1,156,109

Net Absorption


Overall Net Absorption Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

New Haven, CT 235,249 243,325 -149,034 151,752 119,205

New Jersey - Central 2,829,480 1,133,904 2,222,988 1,253,087 2,679,091

New Jersey - Northern 1,003,312 929,997 277,682 577,578 691,309

Oklahoma City, OK 176,394 224,569 25,816 82,128 -91,810

Omaha, NE 102,630 454,929 112,947 -69,779 38,928

Orange County, CA 746,527 859,657 129,270 1,035,900 688,442

Orlando, FL 448,011 1,543,405 372,494 1,018,380 845,053

Palm Beach County, FL 16,705 48,539 -119,665 67,920 136,156

PA I-81/I-78 Distribution Corridor 6,155,852 5,049,012 2,481,317 1,307,490 3,888,287

Philadelphia, PA 2,376,973 805,858 2,212,871 -711,638 1,973,879

Phoenix, AZ 1,867,206 1,034,203 2,041,494 1,601,101 821,688

Pittsburgh, PA 709,991 -727,121 654,849 -49,004 40,733

Portland, OR 771,533 940,911 947,124 864,706 919,682

Providence, RI 62,148 112,083 n/a n/a n/a

Raleigh/Durham, NC -8,257 284,262 238,852 355,348 24,322

Richmond, VA 1,812 981,326 405,523 76,229 25,781

Roanoke, VA -70,431 267,522 266,657 1,207,189 25,510

Rochester, NY 736,924 57,064 589,707 -746,878 -386,210

Sacramento, CA 1,283,505 568,351 976,364 147,810 461,097

Salt Lake City, UT 622,880 330,609 454,470 36,315 977,088

San Antonio, TX -465,310 115,526 146,396 -227,216 -86,323

San Diego, CA 386,294 1,099,020 908,093 127,384 1,072,702

San Francisco North Bay, CA 740 87,760 101,006 -129,763 288,234

San Francisco Peninsula, CA 211,324 101,735 115,025 -47,595 -25,644

San Jose, CA 331,389 547,850 -51,013 158,198 367,824

Savannah, GA n/a 520,435 n/a 655,960 n/a

Seattle, WA** 740,687 1,109,216 439,442 2,995,775 443,811

Southern New Hampshire 81,659 -79,106 132,912 852,372 -179,494

St. Louis, MO 846,901 972,055 97,334 1,324,677 625,781

St. Petersburg/Clearwater, FL -35,019 -160,633 240,822 -51,479 -47,209

Stockton/Tracy, CA 360,000 148,235 38,979 651,363 1,873,194

Suburban MD -29,804 405,234 150,085 418,368 177,624

Suburban VA -27,786 33,660 -6,187 151,208 122,019

Syracuse, NY 298,008 48,972 -639 73,691 63,661

Tampa, FL 1,449,232 -149,875 31,380 459,123 600,781

Tucson, AZ 183,854 144,480 290,737 55,146 412,970

Tulsa, OK 556,910 223,740 95,859 2,709 47,441

Net Absorption


Vacancy Rates

Overal Vacancy Rate Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

United States 8.3% 8.0% 7.9% 7.7% 7.4%

Northeast 9.7% 9.5% 9.3% 9.4% 9.2%

Midwest 7.3% 7.1% 6.7% 6.7% 6.5%

South 8.6% 8.2% 8.3% 7.9% 7.8%

West 7.1% 6.8% 6.7% 6.4% 5.9%


Atlanta, GA 8.4% 7.9% 7.7% 7.7% 8.3%

Austin, TX 9.4% 8.7% 9.6% 8.6% 6.9%

Baltimore, MD 8.3% 8.3% 8.5% 8.5% 8.3%

Bellevue, WA 10.3% 10.5% 10.2% 9.5% 6.5%

Binghamton, NY 9.8% 9.6% 9.1% 11.3% 11.1%

Birmingham, AL 15.9% 13.1% 12.2% 11.1% 11.7%

Boston, MA 11.5% 11.0% 10.7% 10.8% 10.1%

Buff alo, NY 8.8% 8.9% 9.1% 9.2% 8.7%

Charleston, SC 8.0% 6.8% 6.3% 5.9% 6.7%

Charlotte, NC 7.8% 8.0% 8.1% 8.3% 8.2%

Chicago, IL 6.6% 6.7% 6.5% 6.8% 6.4%

Cincinnati, OH 5.6% 5.4% 4.6% 4.4% 4.6%

Cleveland, OH 6.9% 6.2% 6.0% 5.5% 5.4%

Colorado Springs, CO n/a n/a 8.8% 7.2% 7.7%

Columbus, OH 7.1% 6.7% 6.5% 5.5% 6.6%

Dallas/Fort Worth, TX 8.0% 8.4% 8.3% 7.4% 7.7%

Dayton, OH 12.5% 11.8% 10.0% 10.0% 9.7%

Denver, CO 4.4% 3.9% 3.8% 3.7% 3.6%

Detroit, MI 10.6% 10.4% 10.1% 10.0% 9.5%

East Bay, CA 4.5% 4.4% 4.1% 3.5% 3.6%

El Paso, TX n/a n/a 13.0% 12.6% 12.0%

Fort Myers/Naples FL 6.3% 6.2% 6.1% 6.6% 6.2%


Ft. Lauderdale, FL 7.7% 7.3% 6.5% 6.6% 6.0%

Greater Los Angeles 3.8% 3.4% 3.3% 3.0% 2.7%

Greenville, SC 7.4% 6.9% 7.5% 7.4% 7.3%

Hampton Roads, VA 7.2% 7.3% 7.0% 6.9% 6.5%

Hartford, CT 14.1% 13.3% 13.0% 12.8% 12.7%

Houston, TX 5.6% 5.6% 5.7% 5.7% 5.4%

Indianapolis, IN 4.9% 5.1% 5.3% 5.3% 5.2%

Inland Empire CA 6.7% 6.3% 6.1% 5.7% 6.0%

Jacksonville, FL 9.7% 9.8% 10.2% 9.4% 8.8%

Kansas City, MO 7.6% 7.7% 7.4% 8.1% 7.7%

Lakeland, FL 4.4% 3.7% 3.3% 3.8% 4.1%

Las Vegas, NV 9.1% 7.9% 7.3% 6.6% 6.3%

Long Island, NY 9.1% 9.2% 8.0% 8.9% 9.2%

Louisville, KY 5.4% 5.4% 5.6% 5.9% 5.6%

Memphis, TN 14.3% 14.0% 13.1% 10.9% 10.6%

Miami, FL 6.6% 6.7% 6.4% 6.3% 6.1%

Milwaukee, WI 6.1% 5.7% 5.6% 5.1% 4.8%

Minneapolis, MN 10.6% 10.1% 9.8% 10.9% 9.7%

Nashville, TN 6.8% 6.5% 6.4% 6.1% 5.5%


Vacancy Rates

Overal Vacancy Rate Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

New Haven, CT 14.5% 13.9% 13.7% 12.9% 12.7%



Oklahoma City, OK 6.7% 5.7% 6.2% 6.3% 6.2%

Omaha, NE 2.9% 3.0% 2.7% 2.9% 2.7%

Orange County, CA 3.8% 3.7% 3.8% 3.5% 3.0%

Orlando, FL 8.8% 8.5% 8.1% 7.9% 7.5%



Philadelphia, PA 4.7% 4.7% 5.3% 6.2% 5.8%

Phoenix, AZ 11.2% 11.4% 11.1% 11.2% 11.1%

Pittsburgh, PA 6.8% 7.6% 7.5% 6.8% 7.2%

Portland, OR 5.6% 5.3% 5.1% 5.3% 5.3%

Providence, RI 2.2% 2.0% 2.0% 1.7% 1.3%


Richmond, VA 7.8% 7.6% 8.0% 7.8% 7.7%

Roanoke, VA 12.7% 9.3% 9.2% 8.5% 8.3%

Rochester, NY 11.1% 11.1% 10.3% 11.3% 11.8%

Sacramento, CA 11.9% 11.4% 10.9% 10.9% 10.6%

Salt Lake City, UT 6.6% 6.8% 6.7% 6.7% 7.2%

San Antonio, TX 10.6% 10.9% 10.5% 11.4% 11.2%

San Diego, CA 7.1% 6.4% 6.0% 5.8% 5.3%



San Jose, CA 5.6% 4.9% 4.9% 4.5% 4.1%

Savannah, GA 8.2% 7.1% 7.1% 5.6% 5.6%

Seattle, WA 6.4% 6.3% 5.9% 4.8% 4.3%


St. Louis, MO 6.7% 6.5% 6.5% 6.3% 6.0%



Suburban MD 13.0% 12.5% 11.9% 11.7% 12.2%

Suburban VA 12.1% 12.0% 11.8% 11.7% 11.5%

Syracuse, NY 11.8% 11.6% 11.3% 11.1% 10.9%

Tampa, FL 6.7% 6.8% 7.8% 7.6% 6.7%

Tucson, AZ 11.0% 10.7% 10.2% 10.0% 9.4%

Tulsa, OK 9.0% 8.7% 8.5% 8.1% 8.3%


Asking Rents

Overall Weighted Asking Rent Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

United States $5.10 $5.12 $5.20 $5.28 $5.34

Northeast $5.29 $5.37 $5.39 $5.39 $5.40

Midwest $3.39 $3.42 $3.55 $3.57 $3.66

South $8.13 $8.19 $8.24 $8.40 $8.52

West $3.59 $3.51 $3.62 $3.76 $3.78


Atlanta, GA $3.96 $4.00 $4.03 $4.20 $4.34

Austin, TX $9.00 $9.12 $9.36 $9.36 $9.84

Baltimore, MD $5.30 $5.25 $5.40 $5.37 $5.40

Bellevue, WA $9.77 $9.48 $9.95 $10.08 $9.22

Binghamton, NY $4.58 $4.58 $4.65 $4.71 $4.83

Birmingham, AL $4.36 $4.44 $4.49 $4.67 $4.69

Boston, MA $6.32 $6.37 $6.28 $6.35 $6.30

Buff alo, NY $4.66 $4.66 $4.13 $4.13 $4.13

Charleston, SC $4.38 $4.42 $4.45 $4.55 $4.69

Charlotte, NC $4.05 $4.15 $4.20 $4.16 $4.23

Chicago, IL $4.64 $4.56 $4.54 $4.64 $4.79

Cincinnati, OH $2.97 $2.91 $2.99 $3.00 $3.13

Cleveland, OH $3.76 $3.75 $3.77 $3.78 $3.86

Colorado Springs, CO n/a n/a $6.65 $6.37 $6.87

Columbus, OH $3.06 $3.09 $3.20 $3.30 $3.30

Dallas/Fort Worth, TX $5.08 $5.12 $4.97 $5.00 $5.00

Dayton, OH $2.55 $2.58 $2.56 $2.57 $3.01

Denver, CO $5.78 $6.08 $6.47 $6.66 $6.93

Detroit, MI $4.08 $4.08 $4.13 $4.22 $4.26

East Bay, CA $5.48 $5.57 $5.63 $5.66 $5.94

El Paso, TX n/a n/a $3.70 $3.70 $3.75

Fort Myers/Naples FL $5.70 $5.57 $5.73 $6.10 $6.25

Fredericksburg, VA $5.85 $5.78 $5.66 $5.61 $5.47

Ft. Lauderdale, FL $7.29 $7.45 $7.50 $7.51 $7.63

Greater Los Angeles $7.13 $7.24 $7.37 $7.69 $7.79

Greenville, SC $3.11 $3.26 $3.44 $3.38 $3.44

Hampton Roads, VA $4.96 $4.97 $4.95 $4.96 $4.87

Hartford, CT $4.24 $4.34 $4.31 $4.28 $4.21

Houston, TX $5.90 $5.79 $5.68 $6.04 $6.09

Indianapolis, IN $3.79 $3.81 $3.81 $3.83 $3.87

Inland Empire CA $5.15 $5.17 $5.19 $5.24 $5.38

Jacksonville, FL $3.98 $3.92 $3.90 $4.00 $3.91

Kansas City, MO $4.10 $4.21 $4.01 $4.12 $4.10

Lakeland, FL $4.40 $4.54 $4.62 $4.64 $4.50

Las Vegas, NV $6.48 $6.48 $6.73 $7.02 $7.18

Long Island, NY $8.17 $8.32 $8.78 $8.83 $8.87

Louisville, KY $3.63 $3.69 $3.61 $3.61 $3.65

Memphis, TN $2.79 $2.80 $2.47 $2.47 $2.53

Miami, FL $6.31 $6.52 $6.42 $6.85 $6.95

Milwaukee, WI $4.15 $4.21 $4.12 $4.10 $4.22

Minneapolis, MN $4.34 $4.37 $4.43 $4.33 $4.48

Nashville, TN $4.30 $4.48 $4.84 $4.70 $4.72


Asking Rents

Overall Weighted Asking Rent Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015p

New Haven, CT $4.73 $4.91 $4.95 $4.99 $5.08

New Jersey - Central $5.67 $6.05 $6.08 $6.02 $5.82

New Jersey - Northern $6.48 $6.63 $6.66 $6.66 $6.92

Oklahoma City, OK $4.60 $4.78 $4.71 $4.34 $4.03

Omaha, NE $4.75 $4.78 $5.83 $4.21 $5.34

Orange County, CA $8.87 $8.97 $8.98 $9.22 $9.42

Orlando, FL $5.94 $5.85 $5.97 $6.13 $6.25

Palm Beach County, FL $7.76 $8.05 $10.94 $7.91 $7.79

PA I-81/I-78 Distribution Corridor $3.86 $4.02 $4.10 $4.16 $4.07

Philadelphia, PA $5.01 $4.96 $5.02 $4.71 $4.76

Phoenix, AZ $5.28 $5.28 $5.40 $5.39 $5.40

Pittsburgh, PA $5.93 $4.86 $5.39 $5.77 $5.69

Portland, OR $6.13 $6.27 $6.50 $6.54 $6.47

Providence, RI $7.55 $4.85 $4.85 $4.85 $4.85

Raleigh/Durham, NC $4.37 $4.38 $4.57 $4.55 $4.88

Richmond, VA $3.99 $4.13 $4.34 $4.45 $4.43

Roanoke, VA $4.20 $4.33 $4.19 $3.93 $3.93

Rochester, NY $4.24 $4.24 $4.24 $4.84 $4.84

Sacramento, CA $4.44 $4.44 $4.56 $4.80 $4.80

Salt Lake City, UT $5.13 $5.01 $4.88 $5.16 $5.16

San Antonio, TX $5.74 $5.87 $5.83 $5.66 $5.76

San Diego, CA $6.84 $6.96 $7.44 $7.80 $8.28

San Francisco North Bay, CA $9.72 $9.48 $10.08 $9.84 $10.32

San Francisco Peninsula, CA $9.96 $10.34 $11.28 $11.15 $12.16

San Jose, CA $7.68 $8.04 $8.75 $8.76 $8.88

Savannah, GA $3.83 $3.95 $3.95 $4.03 $4.03

Seattle, WA $5.58 $5.76 $5.74 $5.88 $5.94

Southern New Hampshire $5.73 $5.73 $5.71 $5.72 $5.74

St. Louis, MO $4.05 $3.99 $4.03 $4.20 $4.21

St. Petersburg/Clearwater, FL $6.44 $6.59 $6.65 $6.80 $7.23

Stockton/Tracy, CA $3.77 $3.77 $3.65 $3.60 $3.60

Suburban MD $8.81 $8.88 $8.88 $8.83 $8.62

Suburban VA $10.88 $10.79 $10.73 $11.09 $10.85

Syracuse, NY $3.32 $3.39 $3.55 $3.59 $3.87

Tampa, FL $5.58 $5.62 $5.34 $5.35 $5.30

Tucson, AZ $6.34 $6.40 $6.47 $6.47 $6.39

Tulsa, OK $5.05 $5.09 $4.35 $4.44 $4.56


Inventory

Inventory Inventory Deliveries YTD 2015 UC as of Q3 2015p

United States 13,484,056,533 124,790,917 182,312,969

Northeast 2,017,662,255 21,585,810 32,686,429

Midwest 3,376,298,378 36,916,908 53,026,318

South 5,392,989,888 51,933,451 78,949,528

West 2,637,217,837 13,054,748 17,315,944

U.S. Industrial Report Markets Inventory Deliveries YTD 2015 UC as of Q3 2015p

Atlanta, GA 530,410,460 8,157,556 16,454,748

Austin, TX 45,222,178 108,750 392,205

Baltimore, MD 204,823,798 852,295 994,678

Bellevue, WA 57,770,664 227,861 430,050

Binghamton, NY 17,688,409 n/a n/a

Birmingham, AL 14,415,116 0 100,000

Boston, MA 176,983,154 0 940,000

Buff alo, NY 110,086,978 50,000 1,894,230

Charleston, SC 51,566,502 1,248,441 5,233,479

Charlotte, NC 156,313,825 1,795,973 594,420

Chicago, IL 1,150,708,705 10,187,508 10,069,042

Cincinnati, OH 275,007,642 2,466,369 3,126,145

Cleveland, OH 482,301,850 226,000 2,481,200


Columbus, OH 240,278,031 3,612,288 3,159,073

Dallas/Fort Worth, TX 551,292,966 10,912,819 20,932,835

Dayton, OH 111,655,032 735,320 422,900

Denver, CO 247,751,298 1,566,389 1,566,661

Detroit, MI 299,332,957 275,000 895,720

East Bay, CA 195,733,802 1,028,704 1,397,708

El Paso, TX 51,455,980 270,000 n/a

Fort Myers/Naples FL 40,390,687 0 59,379


Ft. Lauderdale, FL 94,691,706 688,517 749,543

Greater Los Angeles 1,076,147,759 2,495,573 2,283,010

Greenville, SC 186,145,960 0 4,844,000

Hampton Roads, VA 94,243,759 699,000 128,209

Hartford, CT 91,812,974 1,500,000 0

Houston, TX 385,098,839 6,341,907 10,399,753

Indianapolis, IN 252,439,240 4,895,086 1,600,000

Inland Empire CA 471,059,648 15,153,753 19,445,832

Jacksonville, FL 103,503,458 508,094 1,601,976

Kansas City, MO 199,248,032 2,706,466 4,108,648

Lakeland, FL 29,710,946 397,400 376,170

Las Vegas, NV 102,856,003 1,989,630 3,157,576

Long Island, NY 129,117,332 0 475,000

Louisville, KY 131,338,827 2,188,295 3,535,380

Memphis, TN 186,663,234 2,596,064 1,556,113

Miami, FL 160,843,601 841,008 1,076,390

Milwaukee, WI 195,431,964 1,337,601 1,411,398

Minneapolis, MN 104,934,275 2,696,530 1,899,360

Nashville, TN 196,095,738 370,905 3,108,606


Inventory

Inventory Inventory Deliveries YTD 2015 UC as of Q3 2015p

New Haven, CT 48,432,317 0 82,251


New Jersey - Northern 290,427,626 0 920,535

Oklahoma City, OK 69,522,067 345,000 1,655,395

Omaha, NE 68,349,607 399,244 811,504

Orange County, CA 281,710,879 502,882 1,267,078

Orlando, FL 109,410,639 1,313,745 839,434



Philadelphia, PA 283,375,803 1,898,064 5,245,342

Phoenix, AZ 302,642,401 3,991,073 4,206,215

Pittsburgh, PA 168,862,823 842,422 893,242

Portland, OR 188,465,888 1,762,862 3,110,189



Richmond, VA 90,517,421 403,060 222,800

Roanoke, VA 44,227,910 n/a n/a

Rochester, NY 73,551,473 88,500 13,332

Sacramento, CA 134,111,126 243,147 943,738

Salt Lake City, UT 122,363,219 2,346,211 1,313,667

San Antonio, TX 38,155,019 689,115 1,448,937

San Diego, CA 159,530,676 111,638 439,638



San Jose, CA 83,909,593 0 0

Savannah, GA 42,647,344 448,000 0

Seattle, WA 133,168,893 2,193,826 1,778,078

Southern New Hampshire 46,731,270 614,240 300,000

St. Louis, MO 238,509,655 1,148,272 3,951,821

St. Petersburg/Clearwater, FL 51,515,762 0 0

Stockton/Tracy, CA 48,856,682 1,196,000 1,001,378

Suburban MD 47,338,763 764,781 1,024,300

Suburban VA 47,314,800 0 610,400

Syracuse, NY 42,647,344 0 155,000

Tampa, FL 80,459,780 165,000 0

Tucson, AZ 40,246,981 270,000 800,000

Tulsa, OK 59,888,175 1,300,000 334,750


Cushman & Wakefi eld is a leading global real estate services fi rm that helps clients transform the way people work, shop and live. The fi rm’s 43,000 employees in more than 60 countries provide deep local and global insights that create signifi cant value for occupiers and investors around the world. Cushman & Wakefi eld is among the largest commercial real estate services fi rms with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facility services (branded C&W Services), global occupier services, investment & asset management (branded DTZ Investors), project & development services, tenant representation and valuation & advisory. To learn more, visit www.cushmanwakefi eld.com or follow @CushWake on Twitter.

Methodology

Cushman & Wakefi eld’s quarterly estimates are derived from a variety of data sources, including its own proprietary database, and historical data from third party data sources. The market statistics are calculated from a base building inventory made up of offi ce properties deemed to be competitive in the local offi ce markets. Generally, owner-occupied and federally-owned buildings are not included. Single tenant buildings and privately-owned buildings in which the federal government leases space are included. Older buildings unfi t for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is defi ned as space that is available immediately or imminently after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space. The fi gures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received.

Regional Map



Total Inventory: The total amount of offi ce space (in buildings of a predetermined size by market) that can be rented by a third party.

Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory.

Absorption: The net change in occupied space between two points in time. (Total occupied space in the present quarter minus total occupied space from the previous quarter, quoted on a net, not gross, basis.)

Weighted Asking Rents: NNN average asking rents.


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cushmanwakefi eld.com

DisclaimerAs you are probably aware, on September 1 the successful merger between Cushman & Wakefi eld and DTZ was fi nalized, creating one of the world’s largest real estate services fi rms. We are currently going through the process of merging both legacy Cushman & Wakefi eld and DTZ datasets, and the preliminary results of the initial eff ort to merge the two data sets are reported in our Q3 indicators.

We also expect to deliver Q4 consistent with historical deliverables, with a transition to a merged dataset being delivered for Q1 2016. This enhanced dataset may diff er from what you have received in the past.

We believe the changes we are making following the integration will result in a more robust and comprehensive dataset for you. If you have any issues once you receive fi rst quarter results, we’d be happy to discuss other options. Your satisfaction is our top priority.

u.s. industrial marketbeat 1q 2018 - texas a&m university · marketbeat u.s. industrial overall...

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