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Industrial Market Research/Reports

  1. Washington

    1. Seattle Industrial Market Report
      First Quarter 2019

      The Puget Sound region's industrial market 1st quarter results are starting off in a pattern similar to a year ago. Last year, the region saw negative net absorption of just under 500,000 s.f. This quarter, the results were also negative, but a lower amount of nearly 110,000 s.f. Construction is very active at just over 5.8 million s.f. With the high volume of construction and the negative net absorption, is there reason for concern? The answer is no. We do expect some correction at some point in time, but there are several factors that point to a continued growth in the industrial market.

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      First Quarter 2019 Seattle Industrial Market Report
      Fourth Quarter 2018 Seattle Industrial Market Report
      Third Quarter 2018 Seattle Industrial Market Report
      Second Quarter 2018 Seattle Industrial Market Report
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  2. Oregon

    1. Portland Industrial Market Report
      First Quarter 2019

      The Portland industrial market has started the year by delivering an impressive amount of new industrial product, with over 400K s.f. of new inventory added. Strong fundamentals in the industrial sector have kept vacancy low in spite of all the new inventory added. Furthermore, rental rates managed to post a respectable 3.08% increase quarter-over-quarter. With roughly 1.8M s.f. of mostly high-quality logistics product still under construction at quarter's end, the outlook for Portland's industrial market remains bullish going into the second quarter of 2019.

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      First Quarter 2019 Portland Industrial Market Report
      Fourth Quarter 2018 Portland Industrial Market Report
      Third Quarter 2018 Portland Industrial Market Report
      Second Quarter 2018 Portland Industrial Market Report
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  3. California

    1. Inland Empire Industrial Market Report
      First Quarter 2019

      Hats off to a great start in one of the strongest Industrial markets nationwide. Inland Empire (IE) continues to drive momentum, fuel growth, and sustain profit year over year. With no signs of slowing down, it is safe to crown IE the king of the industrial market in Southern California. Direct net absorption was 4,744,634 s.f. Direct vacancies are at 4.3% and this should remain strong considering over 25M s.f. is under construction. Direct rental rates are $0.73/s.f., the lowest in Southern California. The market is developing uber fast, demand is satisfyingly high, unemployment is consistently down, the market is a win for everyone.

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      First Quarter 2019 Inland Empire Industrial Market Report
      Fourth Quarter 2018 Inland Empire Industrial Market Report
      Third Quarter 2018 Inland Empire Industrial Market Report
      Second Quarter 2018 Inland Empire Industrial Market Report
    2. Los Angeles Industrial Market Report
      First Quarter 2019

      Slow like a tortoise goes the market for first quarter 2019. Humbly, Q1 2019 mimics the leasing activity of Q1 2018 as competition for higher quality and flex industrial buildings has stiffened. Rents are now the highest they have ever been for industrial buildings in the past 10 years. Year over year rent growth is 5%. Market sale price per s.f. has reached an all-time high at $192 per foot. Cap rates are also the lowest the market has ever seen. In addition, this year is proving to be on fire with sales volume as Q1 2019 reached $5.2B just shy of last quarter's $5.3B. This quarter, smaller buildings asked higher price per s.f.

      Downloads
      First Quarter 2019 Los Angeles Industrial Market Report
      Fourth Quarter 2018 Los Angeles Industrial Market Report
      Third Quarter 2018 Los Angeles Industrial Market Report
      Second Quarter 2018 Los Angeles Industrial Market Report
    3. Oakland/East Bay Industrial Market Report
      First Quarter 2019

      East Bay's industrial property market (aka I-880 corridor) continued the trend of delivering significant amounts of new product that began in 2018. Demand for warehouses, distribution centers, and logistics centers in the East Bay that has blossomed out of the e-commerce boom has shown no signs of letting up. Even with all of the new deliveries and a rare quarter of significant negative net absorption, vacancies remain below 5% and overall rental rates are up 8.4% year-over-year. The East Bay industrial property market has become a hub for commerce throughout the Bay Area, and will continue to be attractive to distribution and logistics tenants going forward.

      Downloads
      First Quarter 2019 Oakland/East Bay Industrial Market Report
      Fourth Quarter 2018 Oakland/East Bay Industrial Market Report
      Third Quarter 2018 Oakland/East Bay Industrial Market Report
      Second Quarter 2018 Oakland/East Bay Industrial Market Report
    4. Orange County Industrial Market Report
      First Quarter 2019

      Redevelopment is key and Orange Country trails far behind its bigger brothers like Los Angeles and Inland Empire for industrial supply. The industrial market in Orange County kicked off 2019 with a modest 268,504 s.f. of construction deliveries. This year will see even smaller supply deliver with only 100, 276 s.f. under construction. Sales volume fell short $200,000 less than Q4 2018 representing 54 total transactions. Notably, this is one of the strongest sales volumes Q1 Orange County has seen historically. This quarter also saw one of the lowest cap rates in the past 10 years at 5.06%. Future demand will continue to motivate investors. Port improvements makes the proximity of OC desirable for new tenants. The Port of Long Beach has allocated $870 million to build a new on-dock rail that estimates up to half of the port's container volumes controlled on rails. Container volumes for both Long Beach and Los Angeles are forecasted to expand 30 million TEU by 2032, double the amount seen in 2015. Remember, 2015 saw the highest absorption historically for the OC as 2.3 million s.f. was absorbed.

      Downloads
      First Quarter 2019 Orange County Industrial Market Report
      Fourth Quarter 2018 Orange County Industrial Market Report
      Third Quarter 2018 Orange County Industrial Market Report
      Second Quarter 2018 Orange County Industrial Market Report
    5. Peninsula/San Mateo County Industrial Market Report
      First Quarter 2019

      The San Francisco Peninsula industrial market ended the first quarter with 321,141 s.f. of leasing activity, but reported 111,125 s.f. of negative net absorption. Vacancy rates fell to 3.90% from the previous quarter, with rental rates averaging to $1.68/s.f. NNN. R&D rates, fueled by the life science industry, rose to an average of $4.26/s.f. NNN. Strong demand continues for high-quality spaces, especially in the North County.

      Downloads
      First Quarter 2019 Peninsula/San Mateo County Industrial Market Report
      Fourth Quarter 2018 Peninsula/San Mateo County Industrial Market Report
      Third Quarter 2018 Peninsula/San Mateo County Industrial Market Report
      Second Quarter 2018 Peninsula/San Mateo County Industrial Market Report
    6. Sacramento Industrial Market Report
      First Quarter 2019

      Sacramento's industrial market had a record year in 2018, and has begun 2019 by building further upon the strength of last year. Historic occupancy levels reached in 2018 were topped in Q1 2019, with direct vacancy rates falling 10 basis points quarter-over-quarter. Similarly rental rates improved upon their previously historic levels in 2018 to set a new record for the market, and is now 33.3% higher year-over-year.

      Downloads
      First Quarter 2019 Sacramento Industrial Market Report
      Fourth Quarter 2018 Sacramento Industrial Market Report
      Third Quarter 2018 Sacramento Industrial Market Report
      Second Quarter 2018 Sacramento Industrial Market Report
    7. San Diego Industrial Market Report
      First Quarter 2019

      The San Diego industrial real estate market kept pace the first quarter from the record breaking metrics across the board at year end 2018, with rent growth reaching a new all-time high showing no signs of slowing down and sale prices at its peak from the annual historical average. The development pipeline accomplished a decade high of new deliveries last year and continues to hold steadfast with approximately 2 million square feet due to complete by the end of 2019, of which nearly 45% of that inventory came online in the first quarter alone.

      Downloads
      First Quarter 2019 San Diego Industrial Market Report
      Fourth Quarter 2018 San Diego Industrial Market Report
      Third Quarter 2018 San Diego Industrial Market Report
      Second Quarter 2018 San Diego Industrial Market Report
    8. Silicon Valley Industrial Market Report
      First Quarter 2019

      The Silicon Valley industrial and warehouse markets have maintained upward trends in the first quarter. Overall net absorption remains positive with 103,598 s.f. Persistently low vacancies fuel demand for industrial and warehouse products driving rental rates in Silicon Valley to $1.45/s.f. NNN and $1.08/s.f. NNN respectively. Over 3.1 million s.f. in the industrial and warehouse markets are scheduled to come online in late 2019 to help satisfy demand.

      Downloads
      First Quarter 2019 Silicon Valley Industrial Market Report
      Fourth Quarter 2018 Silicon Valley Industrial Market Report
      Third Quarter 2018 Silicon Valley Industrial Market Report
      Second Quarter 2018 Silicon Valley Industrial Market Report
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  4. Arizona

    1. Phoenix Industrial Market Report
      First Quarter 2019

      Setting the stage for the year ahead, the Phoenix industrial real estate market's performance in Q1 2019 only further reflected the consistent demand this market has shown cycle after cycle. Vacancy rates hit an all-time record low and asking rental rates soared to a new high. Leasing and sales activity continues to remain on solid footing, bolstered by a growing consumer base driving demand for industrial space among e-commerce and third-party logistics companies.

      Downloads
      First Quarter 2019 Phoenix Industrial Market Report
      Fourth Quarter 2018 Phoenix Industrial Market Report
      Third Quarter 2018 Phoenix Industrial Market Report
      Second Quarter 2018 Phoenix Industrial Market Report
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  5. Nevada

    1. Reno Industrial Market Report
      First Quarter 2019

      The first quarter of 2019 saw no change in direction with the upward trending Northern Nevada market. Overall vacancy slightly decreased from 6.40% in Q4 2018 to 5.92% and direct vacancy followed going from 5.58% to 4.89%. Total sublease space available was 904,310 square feet for the quarter. A majority of that number is attributed to the 505,340 square foot sublease of the Petco distribution center in the North Valleys submarket.

      Downloads
      First Quarter 2019 Reno Industrial Market Report
      Fourth Quarter 2018 Reno Industrial Market Report
      Third Quarter 2018 Reno Industrial Market Report
      Second Quarter 2018 Reno Industrial Market Report
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