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Industrial Market Research/Reports

  1. Washington

    1. Seattle Industrial Market Report
      Fourth Quarter 2018

      The Puget Sound region's industrial market 4th quarter results continue to be positive. On the leasing front, the region absorbed a positive 1.4 million s.f. while 2.05 million s.f. of product was delivered this quarter. With supply outpacing absorption, the vacancy rate inched upward to 3.6% from 3.5%, still a very tight market. Construction activity is still strong at nearly 5.5 million s.f. (36 buildings), with Pierce County the most active at just over 3 million s.f. About 16% of the speculative construction is pre-leased.

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

    1. Portland Industrial Market Report
      Fourth Quarter 2018

      2018 was another outstanding year for the Portland industrial market. With its fundamentals extremely strong, it simply not a question that the industrial sector is both healthy and thriving. Market-wide direct vacancies, for instance, dropped 40 basis points from last quarter, reaching 3.2 percent; while rental rates stabilized to an average of $0.66NNN per square foot, the highest on record. Meanwhile, leasing activity, both for the quarter and the year, was very strong, exceeding 1.7 million square feet for the quarter and 10.2 million square feet for 2018. Moreover, both developers and investors remain bullish about the near-term prospects of the Portland industrial market, with roughly 4.5 million square feet under construction at quarter's end, and cap rates on investment sales in the range of 5.5-6%.

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

    1. Inland Empire Industrial Market Report
      Fourth Quarter 2018

      2018 was another excellent year for the Inland Empire industrial market. Market asking rents were the highest on record, and overall demand for industrial space did not wane in the least. In fact, not only was net absorption positive for the thirty-eighth consecutive quarter, net absorption for the year set a new record with over 24.6 million square feet (MSF) coming off the market. While nearly 24 million square feet of industrial space has been completed and delivered to the market year to date, an additional 23.7 million square feet of industrial space remains under construction. Despite this high level of development activity, net absorption is on par with occupier demand.

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

      2018 was another strong year for the Los Angeles Industrial market. As it has been the case throughout each quarter of 2018, record-low vacancies and rising rents continue to dominate the sector. Although this year witnessed the highest level of new deliveries to the market at 5.4 million square feet (MSF), market wide vacancies did not budge upward at all. In fact, as absorption kept pace with demand, they declined 10 basis points from last quarter. Newly completed facilities commanded a premium rate because of higher land prices; and, the desire of tenants to occupy quality Class A & B facilities resulted in record-high rents overall.

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

      In 2018, the East Bay's industrial property market (aka I-880 corridor) delivered more new product than at any time in over fifteen years, with 1,645,901 s.f. delivered in 2018. Demand for industrial property in this market was very strong in 2018, as the direct vacancy rate ended the year at a very low 3.8%, despite deliveries increasing over 136% year-over-year. Furthermore, the strong demand and increased availability of high quality industrial product led to average rental rates ending the year 8.26% higher than 2017. In the last decade vacancy has declined by 140 basis points and asking rental rates jumped 87.3%. This market has and continues to be undergoing massive change due to spillover demand from San Francisco and the Silicon Valley, and despite the East Bay's massive run-up, the market is still a bargain for prospective tenants migrating from San Francisco and the South Bay.

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      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
      First Quarter 2018 Oakland/East Bay Industrial Market Report
    4. Orange County Industrial Market Report
      Fourth Quarter 2018

      The Orange County industrial market ended 4Q18 on a high note, reporting 341,017 s.f. of positive absorption; recovering from negative absorption levels in the last few quarters. Vacancy rates climbed by 40 basis points (bps) to 2.6% this quarter, a 30% increase year-over-year as a result of the heavy influx of new construction. It is still considered a landlord's market as rental rates continue to record post-recession highs, averaging $0.90 NNN to end the year. Overall employment growth has remained positive, and the Orange County unemployment rate has decreased to 2.8% as of November 2018, 110 basis points (bps) lower than the state's 3.9%. Healthy fundamentals accompanied by tight market conditions will likely maintain low vacancies and stable rental growth. Expect the Orange County market to remain robust in 2019.

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

      2018 was another outstanding year for the Portland industrial market. With its fundamentals extremely strong, it's simply not a question that the industrial sector is both healthy and thriving. Market-wide direct vacancies, for instance, dropped 40 basis points from last quarter, reaching 3.2 percent; while rental rates stabilized to an average of $0.66NNN per square foot, the highest on record. Meanwhile, leasing activity, both for the quarter and the year, was very strong, exceeding 1.7 million square feet for the quarter and 10.2 million square feet for 2018.

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

      Leasing and sales of large blocks of space dominated Sacramento's industrial market in 2018, with the top three leases and sales of the year being of space over 135,000 s.f. Sacramento's industrial market reached decade highs in direct occupancy and asking lease rates, each jumping 25% and 34.04%, respectively, year-over-year. The industrial market in the Sacramento area saw almost 3.5 million s.f. of direct positive net absorption by the end of the year, and over 7.16 million s.f. of total space leased. 2018 deliveries reached over 800,000 s.f., with over 1 million s.f. still in the development pipeline. Industrial property in Sacramento was a hot commodity in 2018, and most signs point to that trend continuing in 2019.

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

      The San Diego industrial real estate market continued to thrive in 2018, as average asking rental rates climbed to a new all-time record high, new deliveries soared to the highest level the market has witnessed in over 10 years and net absorption posted a healthy 1.7 million square feet. The rise in construction activity has inevitably helped to relieve the downward pressure as vacancy and availability rates ticked up since the previous year, providing many of San Diego's largest firms the opportunity to further expand within the metro. Although San Diego industrial space caters largely to life science and R&D/biotech users, logistics landlords are benefiting from the rapid expansion of e-commerce, as firms such as Amazon and FedEx have established footprints in the market. Support by groundbreaking work in the biotech and life science industries, as well as robust growth within the defense industry adds yet a further layer of demand for the already vastly lucrative market.

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

      The Silicon Valley industrial and warehouse markets reported absorption gains in the fourth quarter, followed by rising rental rates within these active markets. Industrial net absorption finished with an annual total of positive 434,706 s.f. Warehouse net absorption reported positive 363,713 s.f. for the year-end. Demand for industrial and warehouse product remains high, driving rental rates in Silicon Valley to $1.25/s.f. NNN and $1.05/s.f. NNN, respectively.

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

    1. Phoenix Industrial Market Report
      Fourth Quarter 2018

      The Phoenix industrial real estate market finished the year out strong, with vacancy and availability rates hovering at record lows and asking rental rates at a new all-time high of $0.59/SF. The market-wide total for new construction also soared to a decade-high in 2018, totaling approximately 7.9 million square feet. Development has primarily been focused on logistics space, which accounted for most of the new deliveries in the past year. Leasing and sales activity remain robust, reflecting the consistent demand the market has shown cycle after cycle.

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

    1. Reno Industrial Market Report
      Fourth Quarter 2018

      Direct vacancy for the fourth quarter in the Reno industrial market rate rose 100 BP to 5.58%, even though the quarter recorded 443,640 square feet of positive net absorption. Overall vacancy also grew from 6.01% to 6.40%. These overall and direct vacancy increases are a function of new construction deliveries and approximately 726,938 square feet of sublease space added to the market.

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