Ryan Mahoney - How Property Technology Is Altering the Real Estate Market
Global Industrial Mid-Year 2013 Report
1. Trade Flows
Bolster Industrial
Demand in Asia
and the Americas
> Despite anemic U.S. job growth, demand for North American industrial
warehouse space and modern distribution centers remains strong.
In Q1 2013, the North American vacancy rate declined for the eighth
straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate
stands at 4.13%.
> Thanks in part to a recent drop in exports to the United States, Mexico
has seen slowing economic growth. In Q1 2013, several Mexico City
industrial warehouses were vacated, slightly increasing the vacancy
rate to 3.49%.
> While occupier demand for industrial property in Brazil remains strong,
the market now appears to have stabilized into a more rational mode of
sustained growth. São Paulo has seen positive net absorption, in spite
of the final tally in 2012 showing a 23% decrease over the previous year.
> Demand for Beijing’s logistics properties remained as strong as it has
been since 2011. Rents grew by 11.41% year-over-year as of the end of
Q1 2013. Shanghai’s industrial sector remained stable, with average
asking rents for ground floor premises of high quality facilities in both
the logistics and workshop sectors unchanged.
> In Hong Kong, high quality warehouse buildings are nearly fully
occupied. Those users seeking to expand or rationalize their real estate
costs have had to consider the option of split operations in lower
quality buildings.
> Indian economic growth remained sluggish through the end of 2012,
however we expect industrial activity to improve, thanks to recent
government actions. These include the government-proposed National
Investment and Manufacturing Zones and the newly approved 51%
foreign direct investment in multi-brand retail trading.
Global | Industrial | Midyear 2013
HIGHLIGHTS
* December 2013 Rent (USD/PSF/YR)
** Local currency
Global Top 10 Industrial Warehouse Rents*
6-Month Change in Rent**
LONDON (HEATHROW)
HONG KONG
SINGAPORE
TOKYO
OSLO
GENEVA
PARIS
HELSINKI
MINSK
SYDNEY
21.95
21.83
21.02
20.61
20.04
16.20
14.70
14.70
13.23
13.23
MINSK
OSLO
SINGAPORE
SYDNEY
11.1%
3.9%
2.2%
12.5%
PARIS
HELSINKI
GENEVA
TOKYO
HONG KONG
LONDON
- (HEATHROW)
LEGEND
EMEA
APAC
2. 2 Global Industrial Report | Midyear 2013 | Colliers International
> Industrial take-up across the UK fell by 6% year on year in 2012 but
despite steady, if unspectacular, levels of demand for big sheds,
availability continues to fall across all regions. Based on average take-up
levels over the past decade, total availability of new or refurbished space
represents just over two years of supply across the UK as a whole.
> Munich has seen growth among automotive manufacturers and
suppliers, which are heavy users of logistics and production space.
> In Paris, a decline of household consumption and industrial
production against a backdrop of rising production costs and a loss of
competitiveness of manufacturing companies have not helped the large
warehouse market. Take-up of large warehouses in France through 2012
stood at 5.2 million square feet, down 24% from 2011.
North America
Strong Demand in North American Port and
Distribution Markets
Despite anemic U.S. job growth, demand for industrial warehouse space
and modern distribution centers remains strong. On the heels of nearly
71 million square feet of net absorption in Q4 2012, the market absorbed
another 50.5 million square feet in Q1 2013. The North American vacancy
rate declined for the eighth straight quarter, down 20 basis points to
8.20%. Canada’s vacancy rate stands at 4.13%. Vacancy has improved the
most in primary port cities and inland distribution markets with large
intermodal facilities.
Cap rates continue to compress and warehouse prices have risen. As
institutional investors become anxious about the multifamily market,
demand for modern warehouse properties in core port and inland
distribution markets grows.
3. 3 Global Industrial Report | Midyear 2013 | Colliers International
slowing economic growth in 2013. We expect this situation
to be temporary as demands from American consumers and
businesses return. A relatively slow but steady growth should
continue, accompanied by further industrial property demand.
During Q1 2013, several Mexico City industrial warehouses
were vacated, slightly increasing the vacancy rate to 3.49%. In
that period there were 14 Class A industrial properties under
construction in the market. Once complete, they will add over
one million square feet of inventory. There are an additional two
million square feet in the planning stages, which will deliver
between 2013 and 2015. We expect occupier demand combined
with the dearth of speculative construction—all but four of the
projects under construction are build-to-suit—will ensure that
the vacancy rate remains stable.
Brazil’s Industrial Market Matures
While occupier demand for industrial property in Brazil remains
strong, the market now appears to have stabilized into a more
rational mode of sustained growth. Prices are not increasing
with the rapidity that they once were and developers have
become more conservative, waiting until the inventory under
construction has been leased before approving new projects.
New Supply is picking up, but is neither excessive nor speculative.
New industrial construction increased by one-third to 40.6
million square feet. But this is less than the quarterly average
net absorption from Q1 2012 to Q1 2013 (45 million square feet).
More than half of this new space is pre-leased or build-to-suit
distribution centers for major retailers and manufacturers.
An estimated 40% of existing U.S. warehouse space is old enough
to be considered functionally obsolete. There is added urgency
on the part of retailers and manufacturers remaking their supply
chains with modern distribution facilities aligned with key
post-Panamax ports, intermodal rail facilities, and air cargo/e-
commerce fulfillment paths.
Latin America
Construction in Mexico City, But Little is
Speculative
Thanks in part to a recent drop in exports to the United
States, Mexico’s largest export market, the country has seen
North America, Average Prime Warehouse Rent, (USD/SF/YR) & Cap Rate - December 2012
*Note: Average Net rent = Gross Asking Rent - Annual Realty Taxes - Operating Expenses
Chicago
6.3%$3.71
Vancouver, BC
5.7%$7.62
Detroit
9.9%$3.70
Los Angeles - Inland Empire
7%$4.2
Dallas-Ft Worth
7.3%$3.15
Los Angeles
7%$6.21
Atlanta
7.9%$3.17
Indianapolis
6.75%$3.67
New Jersey - Central
6.3%$4.37
4. 4 Global Industrial Report | Midyear 2013 | Colliers International
São Paulo, which makes up 62% of the national industrial
inventory, has seen positive net absorption, although the final
tally in 2012 was a 23% decrease over the previous year. Our
expectations for the city remain positive. Submarkets close to
the Mario Covas Beltway, the city’s ring road, have seen strong
demand and high prices thanks in part to a lack of further
developable land.
Buenos Aires Sees Supply/Demand
Imbalance
Buenos Aires currently suffers from an imbalanced market.
Despite recent construction completions, there are virtually no
premium logistics centers available for rent. This lack of supply
has hurt demand, as there is simply no supply to meet it. Rental
rates have increased in line with national inflation. There are
many premium logistics projects currently under construction
which will come online this year. Industrial parks have also
shown a high occupancy scenario and an upward trend in land
sales prices.
Bogotá Sees Strong Demand as Users
Move to City Outskirts
In Bogotá, warehouse demand exceeds supply. In H2 2012,
absorption exceeded new construction by 8%, something that
has not been seen since 2008. Available warehouse space was
down by 45%. Few of the newly constructed warehouses are even
making it to the market, as many properties are either build-to-
suit or leased or sold before construction begins. The Bogotá
market absorbed over two million square feet of warehouse
space in the second half of 2012, which was 28% more than the
same period in the previous year. Since 2008, development has
transitioned to the city’s outskirts and now 99% of available land
is to be found there. There were 570 acres of land available in the
market, which is the highest we’ve ever recorded.
Asia Pacific
Consumers Support Asian Industrial
Resilience
The overall demand for industrial logistics real estate in Asia
remains relatively solid despite the slower-than-projected GDP
growth in a number of Asian economies and the slackening
demand for imports in western economies. Thanks to resilient
private expenditure in a number of Southeast Asian countries,
quality industrial logistics properties have been in consistent
demand, especially those catering to local distribution.
Rental growth expectations in most Asian cities remain positive.
Beijing is the most prominent city with exceptional rental
LATAM, Average Prime Warehouse Rent
(USD/SF/YR) & Cap Rate - December 2012
Mexico City
7.75%$6.25
Lima
11%$7.25
Buenos Aires
10.5%$8.81
Panama City
9.5%$9.48
Bogotá
9.8%$9.70
São Paulo
10.25%$10.55
growth, due to the accelerating expansion of third-party logistics
companies and the sustained demand for logistics space due to
the city’s lack of new supply of quality and modern facilities. In
Hong Kong, supply is falling short of demand where high quality
industrial logistic warehouses are virtually fully occupied. The
sustained demand for logistic space was lately demonstrated in
Q2 2013 by the fact that an industrial/logistic development site in
the Tsing Yi district—a traditional logistics hub in Hong Kong—
was sold for a higher than expected land price.
Beijing Sees Sustained Demand for
Logistics Space
Demand for Beijing’s logistics properties remained as strong as it
has been since 2011. The vacancy rate rested at around 2.74% as
of the end of Q1 2013. On the back of this, rents grew by 11.41%
year-over-year, to RMB 35.55 per square meter per month as
of end Q1 2013. One new project was completed in Beijing’s
logistics property market in Q1 2013, and total market inventory
expanded to more than 14 million square feet. The demand from
third party logistics, manufacturing, and pharmacy companies
should continue to grow. Several new projects are anticipated to
5. 5 Global Industrial Report | Midyear 2013 | Colliers International
complete in 2013, however this will hardly alleviate the current
demand. We expect rental and capital values to grow, albeit at a
lower rate.
Consumer Growth Supports Shanghai
Logistics Sector
Shanghai’s industrial sector remained stable in Q1 2013, despite
global economic uncertainty. China’s official Purchasing
Managers’ Index (PMI) and the HSBC’s China Manufacturing
PMI stood at 50.9 and 51.6 respectively in March, promoting
positive industrial performance. Average asking rental rates
for ground floor premises of high quality facilities in both the
logistics and workshop sectors remained unchanged from Q4
2012. In the medium to long term, increased consumer demand,
founded on rising disposable incomes and the government’s
stated goal of increasing efficiencies in the logistics sector will
sustain demand for high-quality logistics properties. In the
workshop sector, the new supply of high quality facilities will be
limited by the availability of land.
Quality Hong Kong Warehouses Near
Full Occupancy
In Hong Kong, high quality warehouse buildings are nearly fully
occupied. No new warehouses are set to complete construction
until the second half of 2014. Logistics companies have had
to negotiate with landlords for lease renewals about one year
ahead of lease expiration. Some logistics companies have pre-
committed those yet-to-be-vacated spaces. Those users seeking
to expand or rationalize their real estate costs have had to
consider the option of split operations in lower quality buildings.
This trend will continue until developers have completed
warehouse construction in the Tsing Yi district.
Japanese Exports Improving
Japan’s real GDP grew for two consecutive quarters by 0.9%
quarter-over-quarter or 3.5% annualized in Q1 2013. The exports
stopped decreasing. The Yen depreciated against USD more than
15% since the end of 2012. The decline of industrial land prices
Asia Pacific, Average Prime Warehouse Rent (USD/SF/YR) & Cap Rate - December 2012
Jakarta
9%$4.37
Singapore
4.5%$21.02
Tokyo
6.2%$20.61
Adelaide
8.25%$11.98
Beijing
6.88%$6.04
Sydney
8%$13.23
Wellington
8.5%$5.99
Hong Kong
4.1%$21.83
Auckland
7.79%$8.14
Brisbane
8.41%$10.73
*Gross rent data listed for Tokyo
6. 6 Global Industrial Report | Midyear 2013 | Colliers International
in Greater Tokyo during 2012 was less than that of 2011, -0.5%
compared with -1.8%.
Demands from rapidly growing e-commerce sectors and
expanding Third Party Logistics users are strong. Both domestic
and foreign investors have been active in the industrial property
market and we expect this trend to continue. Three Japanese
REITs that mainly target industrial properties were newly listed
between November 2012 and February 2013. Only five of the
thirty-nine Japanese REITs have industrial properties holdings.
These holdings make up about 7.5% of total holdings.
Seoul Sees Uneven Industrial Demand
Seoul has seen a decrease in transaction volume. This has meant
that there was no significant change in rent or asset value in the
second half of 2012. Recent industrial sales trends have included
the sales of properties in order to secure cash flows. Sale/leaseback
transactions are also on the rise. The market has also witnessed
many cases of PF transfer of ownership of real estate in addition
to the sales of factory sites for redevelopment into large-scale
residential projects. So while there have been some significant
industrial sales, many were transactions where property usage was
changed rather than actual industrial investment.
Sellers’ Stamp Duty Likely to Rein in
Sales Price Growth in Singapore
Average capital values of strata-titled warehouses continued
to rise in H2 2012. This was supported by high liquidity, low
interest rates and investor demand which had diverted from the
residential market where several rounds of cooling measures
were implemented.
Strong demand for industrial sites pushed land values upwards
in H2 2012 after having remained stable in H1 2012. Rents for
both prime warehouse space and prime bulk space improved
further, driven by lease renewals and higher rental expectations
from landlords.
We expect demand for warehouse space to remain healthy in
2013. However, warehouse rents and capital values will rise at a
slower pace. The imposition of a Sellers’ Stamp Duty (with effect
from 12 January 2013) on industrial properties sold within three
years of purchase to weed out speculative activity is likely to rein
in industrial property prices.
Government Actions to Propel Delhi
Industrial Activity
Indian economic growth remained sluggish through the end of
2012, however we expect industrial activity to improve thanks
to recent government actions. The government has proposed
setting up eight National Investment and Manufacturing Zones
(NIMZs), which are integrated industrial townships with state-
of- the-art infrastructure and at least 30% of total area devoted
to manufacturing. Of the eight proposed NIMZs, three would be
located in the Delhi National Capital region.
The cabinet has also approved 51% foreign direct investment
in multi-brand retail trading, subject to certain conditions. In
light of these proactive measures, we anticipate an increase in
demand for industrial properties over the coming year, with most
submarkets experiencing stability or growth in values and rents
on the back of consistent demand and limited space availability.
7. 7 Global Industrial Report | Midyear 2013 | Colliers International
Sydney Industrial a Target for Foreign
Capital
Sydney’s industrial market continues to attract offshore capital
with a number of foreign groups inquiring and purchasing
industrial assets and teaming up with local institutional owners.
The weight of funds chasing Prime Grade assets has seen Prime
Grade yields show signs of tightening. The attraction to Sydney’s
industrial market from investors continues to be driven by
strong fundamentals with tenant demand for Prime Grade assets
remaining active. However the ongoing lack of supply combined
with demand has kept availability and vacancy levels low.
Melbourne’s West Still Seeing Strong
Demand from Logistics Sector
The Melbourne industrial market continues to be dominated
by leasing and development activity in the west precinct, and
it continues to be the logistics and transport sector that is
demanding the majority of industrial space. Both the North and
West markets are seeing good demand from this sector, and
enquiries are predominately coming from logistics users involved
in the supply chain process coming out of the Port of Melbourne
(west) and Melbourne Airport (north).
Investment Activity Slows in Brisbane
Investment activity has eased in the first half of 2013 with six
transactions over $5 million, which is down from 15 transactions in
the second half of 2012. This is mainly reflective of a lack of available
stock on the market. Leasing activity has improved with 360,892
square feet of industrial floor space taken up during the first half
of 2013 compared to 285,433 square feet in the latter half of 2012.
With new supply additions at low levels (104,986 square feet of new
industrial floor space for facilities over 32,808 square feet currently
in construction phase) and demand at trend levels, prime grade net
face rents are forecast to grow 1.8% in 2013 from 2012 levels.
HONG
KONGSINGAPORE
TOKYO
ORANGE
COUNTY,CA
SAN
JOSE
-SILICON
VALLEY
VANCOUVER,B.C.
FRANKFURT
OSLO
LONDON
(HEATHROW)
BOGOTÁ
PANAMA
CITY
MEXICO
CITY
9.80
1.0
0.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
NORTH AMERICA EMEA LATIN AMERICAASIA
9.0
10.0 %
4.10
4.50
5.70
6.00 6.00
6.20 6.25
6.50
6.70
7.75
9.50
9.80Top Three Markets by Cap Rate (%) and Region - December 2012
8. 8 Global Industrial Report | Midyear 2013 | Colliers International
Adelaide Sees Shortfall in Quality Stock
Leasing demand remains solid, and with a number of major
tenants currently in the market with requirements unfulfilled,
this trend will continue. The shortfall in A Grade stock will drive
pre-lease demand for design and construct development and
the redevelopment of older style buildings. Expect moderate
rental growth in 2013 through limited supply of A Grade stock.
Institutions are now making strategic purchases and have been
selling non-core assets. Expect modest yield compression
from Q2 2013 when transactional activity for the year is well
underway. 2013 should see some expansion in values, especially
in traditional core precincts.
Expect Prime Yields to Firm in
Auckland
Industrial market activity in Auckland was patchy in 2012, with
few design build projects undertaken. As difficult economic
times continue, businesses are tending to defer expenditures,
including property expenditures, choosing instead to concentrate
on sustaining their core business. We expect overall vacancy will
track modestly down through 2013 but there will be considerable
variation between parts of the market, whether in the context
of location, quality or building size. As construction costs are
expected to increase, particularly as tenants and developers pay
more attention to seismic aspects of the building code, rents
will have to increase or land costs decline in order to provide
owners and developers with the returns that they have been
enjoying historically. It is likely that demand for good quality
industrial investments will continue to outstrip supply, and this
will continue to be the case until more supply is produced. As a
consequence prime yields are continuing to firm.
Many Wellington Tenants Attracted to
Smaller, Newer Space
In Wellington there is a trend for businesses to move from older,
larger space to newer, smaller, more efficient space, leaving a
significant number of large premises vacant. These are typically
hard to re-utilize without significant capital expenditure.
Industrial leases in Wellington tend to be documented on a
gross basis, as do office and retail leases in the capital. Currently
this favors tenants as rising insurance premiums cannot be
immediately passed on to them. While gross rentals have not
reduced, net rentals have dropped slightly as a result of rising
operating expenses, particularly insurance costs. We anticipate
that insurance premiums will continue to rise in the next twelve
months and as a consequence, net incomes will continue
to decline. Leasing activity has been steady and we expect a
continuation of this modest level of activity.
Europe, Middle East
& Africa
Limited Supply of Quality Space in
EMEA
Recovery in the European Logistics market remains generally
patchy, reflecting a lack of momentum in retail trade and
industrial production growth, two of the primary drivers of the
market. After a modest pick up towards the start to the year, retail
trade volume growth flattened in both Europe and the Eurozone,
and remains negative on an annual basis. Industrial production
marked its second consecutive monthly increase in March, but
the annual trend is also downward. Sentiment in the industrial
sector was also dented by a fresh downgrade of growth forecasts
for some larger European economies.
Generally, the market in Europe continues to be characterized
by limited supply of quality space and hardly any speculative
projects under construction. This situation, along with stable
demand levels, leaves many occupiers with limited choice of
modern developments.
9. 9 Global Industrial Report | Midyear 2013 | Colliers International
Pre-lease agreements continue to have a significant share in take-
up figures in some of the markets (e.g. Poland). However, many
tenants are withholding their decisions because of the uncertain
economic outlook and the lack of immediately available space.
Prime rents remained broadly unchanged across the majority
of the markets, with some increases observed in core European
locations, mainly on the back of the growing lack of modern
supply. By contrast, rental values remain under pressure
across most parts of Southern Europe, where demand remains
restrained by poor economic performance.
Some markets are benefitting from the further expansion of
E-Commerce, with new e-fulfillment centers built across the
region. Amazon for example is soon to open two new distribution
centers in Northern France and Northern Italy.
Steady Absorption and Little New
Supply in London Heathrow
Overall industrial take-up across the UK fell by 6% year-on-year
in 2012 but despite steady, if unspectacular, levels of demand for
big sheds, availability continues to fall across all regions. Based
on average take-up levels over the past decade, total availability
of new or refurbished space represents just over two years of
supply across the UK as a whole. In London, the figure has
slipped below 1.5 years for the best space and is only marginally
higher for all Grades. Opportunities for potential occupiers
seeking top quality, modern shed space in Greater London are
now severely limited with only very modest levels of new supply
anticipated over the next 18 months.
The Heathrow market over the last four years has seen almost
no speculative development, which is a direct consequence of
the current economic climate and is the same situation that is
prevailing throughout the rest of the South-East, West
London, and the rest of the UK. Consequently, there is very
little grade A stock available and therefore understandably a
number of build-to-suit lettings have been concluded within the
last twelve months. Steady absorption of space coupled with a
shortage of new space coming to market, has meant a downward
movement in vacancy levels across many London submarkets
over the past three years.
German Market Resilient; Munich Sees
Auto Occupier Logistics Demand
The German logistics market has been only marginally affected
by the economic difficulties gripping the Eurozone. The
availability of modern space is tight across the whole market and
this has recently driven increases in prime rents in some cities
such as Dusseldorf, Stuttgart and Munich. The Munich market is
in particularly good shape.
Satisfactory take-up figures above the long-term average have
combined with ongoing high demand to keep the situation on
the demand side solid, even in times of economic uncertainty.
In particular, further growth has been noted among automotive
manufacturers and suppliers, which are heavy users of logistics
and production space, while high purchasing power in the Munich
metro area has given retailers opportunities for expansion. The
ongoing shortage of space in the latest generation will continue
to lead to high advance leasing activity in development projects
this year, so large-scale signings are expected again. With all these
factors in mind, we believe the market will be able to pick up
where it left off, achieving as much as 918,635 square feet in total
take-up of space by the end of the year.
Paris Logistics Market Suffers from
Competition from Southern Picardy
Decline of household consumption and industrial production
against a backdrop of rising production costs and a loss of
competitiveness of our manufacturing companies have not
helped the large warehouse market. In contrast, the sharp rise in
e-commerce has increased logistic property needs. Despite these
stimulating factors, urban logistics is struggling to establish itself
in France. Take-up of large warehouses in France through 2012
stands at 5.2 square million feet, down 24% from 2011. However,
Global Industrial Capitalization Rates /
(Prime Yield/Percent)
MARKET (Select Markets) REGION
DEC
2012
DEC
2011
Vancouver, BC N.A. 5.70 7.00
London (Heathrow) EMEA 6.00 6.00
Chicago, IL N.A. 6.30 6.50
Munich EMEA 6.90 6.90
Los Angeles - Inland Empire,
CA
N.A. 7.00 6.50
Paris EMEA 7.00 6.80
Marseille EMEA 7.20 7.20
Dallas-Ft. Worth, TX N.A. 7.30 7.60
Sydney Asia Pacific 8.00 8.15
Madrid EMEA 8.25 8.50
Prague EMEA 8.25 8.50
Athens EMEA 10.00 9.00
Bucharest EMEA 10.25 10.00
10. 10 Global Industrial Report | Midyear 2013 | Colliers International
deals above 131,233 square feet accounted for 35% of the annual
take-up, and this trend towards a concentration of flows in large
scale logistics buildings should increase over the next few years.
Ile-de-France undeniably posted the year’s most disappointing
performance, with take-up of only 2.2 million square feet, down
by 25%. Although the Paris region retains the lion’s share (42%) of
the French logistics market, it has suffered more from competition
from southern Picardy, which is close to the capital and almost
trebled its take-up year-on-year in 2012. The light industrial
premises market in Ile-de-France has defied the sluggish
economic indicators. Against all expectations, sales to owner-
occupiers in that segment were a main driver of the market.
The Netherlands: Southern Hubs Faring
Well
The Dutch logistics real estate market is characterized by
relative stability, with some regional variations. Cities in the
south of the Netherlands are generally performing well; rents
for logistics properties in the province of Noord-Brabant have
increased while yields have improved. The main reason for this
growth is the increasing demand for industrial space from the
e-commerce sector and the availability of skilled employees
in the region. For the next 12 months this trend is expected to
continue in Noord-Brabant.
By contrast, rents and yields have been reversing in Venlo; the
city seems to be losing ground to cities such as Eindhoven and
Tilburg that are more successfully meeting the growing demand
for logistic space. Another notable trend is the decrease of
rental prices in Rotterdam due to an expansion of supply. At
Amsterdam Schiphol Airport there has also been an increase
in supply but this has actually led to an increase in rents; the
difference can be explained by the open market in Rotterdam
and the airport-bound market in Schiphol.
Development activity remains generally subdued and driven by
build-to-suits. This has resulted in a limited availability of Class
A warehouses. Occupiers on their side are holding on decisions
regarding any relocations and only moving when absolutely
necessary.
EMEA, Average Prime Warehouse Rent (USD/SF/YR) & Cap Rate - December 2012
Paris
7%$14.7
Manchester
7.5%$9.35
Brussels
6.75%$6.10
Frankfurt
6.7%$9.56
Warsaw
7.75%$7.65
Bucharest
10.25%$6.18
London (Heathrow)
6%$21.95
Athens
10%$6.32 Istanbul
9%$6.97
Moscow
10.5%$13.05
Antwerp
7%$5.59
Stockholm
6.75%$12.42
11. 11 Global Industrial Report | Midyear 2013 | Colliers International
Other trends in the logistics market are an increase in the
demand for large logistics buildings, driven by both the
expansion of e-commerce and sites consolidation. With the
increasing demands from e-commerce, it is noteworthy that the
south of the Netherlands is currently withstanding heavy rivalry
from Belgium, the German Ruhr area and the north of France.
Economic Crisis Taking its Toll on the
Spanish Logistics Market
The Spanish industrial and logistics real estate market has felt
the effects of the economic and financial crisis. Investment
volumes and transactions number have fallen significantly, while
the general downward pressure on rents remains. However,
certain sub-markets are finding a degree of stability i.e. prime
located and specified units over 20,000 sq m. The decrease in
consumer spending has led to a logical decline in retail demand
and, in turn, reduced the demands for space from industrial and
logistics operators. Financial constraints have determined a lack
of investment activity from small and medium companies who,
traditionally, have sought opportunities for owner occupation.
Liquidity constraints have resulted in the closure and decline of
many Spanish developers, and speculative projects have virtually
disappeared; any new developments are exercised purely on a
turnkey basis.
Rents for logistics space continue to decrease in all sectors, albeit
not as sharply as previously seen. This trend is being exacerbated
in secondary locations due to high levels of obsolete and vacant
stock. Rental levels in Madrid and Barcelona have been adjusted
by approximately 15 to 20% in prime sub markets; in secondary
locations the figure is 25 to 35%, and even more in areas with
both dated stock and high vacancy levels
Activity in CEE Driven by Pre-Lets and
Build-to-Suits
Activity remains concentrated around the larger centers of
population and economic strength, with markets such as
Moscow, Warsaw, Prague and Budapest providing the largest
volumes of modern stock.
Aside from these key city locations, there is a clear clustering
of activity around the industrial regions of Poland, the Czech
Republic and Slovakia. These locations benefit from proximity
to their feeder markets in Germany and Austria in particular,
helping drive demand for space from regional distributors,
manufacturers and retailers as well as those facilitating the
national market.
Outside of these locations, only Athens, St Petersburg and
Gdansk (Tricity) have a wider distribution role to play as major
European trading ports, which escalates the volume of activity in
these specific markets. Gdansk and St Petersburg are yet to fulfill
their potential.
Elsewhere, demand for space is driven primarily by occupiers
with local and national distribution needs to satisfy the
domestic economy. Generally, given the lack of new speculative
development, in most markets pre-lets and built-to-suits make
up a large share of new transactions.
Prime rents are stable in the majority of the markets. However,
some increases were recently registered in Prague, Budapest and
Bratislava’s region. A minor correction was observed in Athens.
12. 12 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS
MARKET COUNTRY CURRENCY
UNIT OF
MEASUREMENT
TIME PERIOD
PRIME WAREHOUSE
RENT (LOCAL
MEASURE / CURRENCY)
6-MONTH CHANGE
IN RENT (LOCAL
CURRENCY)
PRIME BULK
RENT (LOCAL
MEASURE /
CURRENCY)
ASIA PACIFIC
Adelaide Australia AUD SM Year 124.00 3.3% 87.00
Brisbane Australia AUD SM Year 111.07 0.0% 82.86
Sydney Australia AUD SM Year 137.00 2.2% 103.00
Beijing China RMB SM Month 33.75 4.5% 30.38
Guangzhou China RMB SM Month 31.95 1.4% 30.40
Hong Kong China HKD SF Month 14.10 0.0% 12.48
Shanghai China RMB SM Month 37.00 2.8% 33.00
Delhi India INR SF Month 34.00 0.0% 33.00
Jakarta Indonesia IDR SM Month 38,400.00 3.2%
Tokyo Japan JPY SM Month 1,600.00 0.0% 1,700.00
Auckland New Zealand NZD SM Year 106.00 0.0%
Christchurch New Zealand NZD SM Year 93.00 1.1%
Wellington New Zealand NZD SM Year 78.00 0.0%
Singapore Singapore SGD SF Month 2.14 3.9% 1.45
Seoul South Korea KRW SM Month 10,053.00 0.0% 10,053.00
Bangkok Thailand THB SM Month 200.00 0.0% 170.00
Chonburi Province Thailand THB SM Month 170.00 3.0% 130.00
Ho Chi Minh City Vietnam USD SM Month 4.00 5.0% 2.50
EUROPE, MIDDLE EAST, AFRICA
Vienna Austria EUR SM Month 5.00 0.0% 4.90
Minsk Belarus EUR SM Month 9.00 12.5%
Antwerp Belgium EUR SM Month 3.80 1.3% 3.35
Brussels Belgium EUR SM Month 4.15 -1.2% 3.30
Sofia Bulgaria USD SM Month 3.80 0.0%
Zagreb Croatia EUR SM Month 5.00 0.0%
Prague Czech Republic EUR SM Month 4.50 0.0%
Copenhagen Denmark DKK SM Year 450.00 0.0% 450.00
Tallinn Estonia EUR SM Month 4.80 0.0%
Helsinki Finland EUR SM Month 10.00 0.0% 7.50
Bordeaux France EUR SM Month 4.58 0.0% 3.92
Lille France EUR SM Month 4.60 0.0% 3.50
Lyon France EUR SM Month 5.90 -4.8% 4.16
Marseille France EUR SM Month 8.00 0.0% 3.75
Paris France EUR SM Month 10.00 0.0% 6.00
13. 13 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS
MARKET COUNTRY CURRENCY
UNIT OF
MEASUREMENT
TIME PERIOD
PRIME WAREHOUSE
RENT (LOCAL
MEASURE / CURRENCY)
6-MONTH CHANGE
IN RENT (LOCAL
CURRENCY)
PRIME BULK
RENT (LOCAL
MEASURE /
CURRENCY)
Toulouse France EUR SM Month 5.80 -7.2% 3.75
Berlin Germany EUR SM Month 5.60 -1.8% 4.20
Düsseldorf Germany EUR SM Month 5.50 10.0% 4.00
Frankfurt Germany EUR SM Month 6.50 0.0% 6.00
Hamburg Germany EUR SM Month 5.80 0.0% 5.80
Munich Germany EUR SM Month 6.30 1.6% 5.50
Stuttgart Germany EUR SM Month 5.50 3.8% 6.30
Athens Greece EUR SM Month 4.30 0.0%
Budapest Hungary EUR SM Month 4.50 12.5%
Dublin Ireland EUR SM Month 5.00 0.0% 4.50
Riga Latvia EUR SM Month 4.00 14.3%
Vilnius Lithuania EUR SM Month 4.80 4.3%
Amsterdam Netherlands EUR SM Month 6.25 -0.8%
Oslo Norway NOK SM Month 100.00 11.1% 85.00
Katowice Poland EUR SM Month 3.40 0.0%
Lodz Poland EUR SM Month 4.00 0.0%
Warsaw Poland EUR SM Month 5.20 -3.7%
Gdansk Poland EUR SM Month 3.60 -7.7%
Poznan Poland EUR SM Month 3.50 -2.8%
Lisbon Portugal EUR SM Month 5.00 -4.8% 3.25
Bucharest Romania EUR SM Month 4.20 -4.5%
Moscow Russia USD SM Month 11.67 -0.3%
Saint Petersburg Russia USD SM Month 10.20 0.0%
Bratislava Slovakia EUR SM Month 3.70 -5.1%
Madrid Spain EUR SM Month 5.00 -5.7% 3.00
Gothenburg Sweden SEK SM Year 650.00 0.0% 550.00
Malmo Sweden SEK SM Year 550.00 0.0% 530.00
Stockholm Sweden SEK SM Year 870.00 0.0% 550.00
Geneva Switzerland CHF SM Month 13.30 0.0% 10.40
Istanbul Turkey USD SM Month 6.25 4.2% 6.25
Belfast UK GBP SF Year 4.00 0.0% 4.00
Birmingham UK GBP SF Year 5.75 0.0% 5.50
Bristol UK GBP SF Year 7.00 0.0% 5.50
Edinburgh UK GBP SF Year 7.00 0.0% 4.50
Glasgow UK GBP SF Year 6.00 0.0% 5.00
14. 14 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS
MARKET COUNTRY CURRENCY
UNIT OF
MEASUREMENT
TIME PERIOD
PRIME WAREHOUSE
RENT (LOCAL
MEASURE / CURRENCY)
6-MONTH CHANGE
IN RENT (LOCAL
CURRENCY)
PRIME BULK
RENT (LOCAL
MEASURE /
CURRENCY)
Leeds UK GBP SF Year 5.50 0.0% 5.00
London (Heathrow) UK GBP SF Year 13.50 0.0% 12.00
Manchester UK GBP SF Year 5.75 0.0% 4.25
Kyiv Ukraine USD SM Month 7.00 0.0%
LATIN AMERICA
Buenos Aires Argentina USD SM Month 7.90 5.8% 7.50
São Paulo Brazil BRL SM Month 19.38 -1.0% 21.90
Bogotá Colombia USD SM Month 8.70 -13.0% 5.90
Mexico City Mexico USD SM Month 5.60 0.0% 5.60
Panama City Panama USD SM Month 8.50 6.3% 7.50
Lima Peru USD SM Month 6.50 18.2% 6.00
NORTH AMERICA
Calgary, AB Canada CAD SF Year 8.50 0.0% 7.25
Edmonton, AB Canada CAD SF Year 8.00 0.0% 7.50
Halifax, NS Canada CAD SF Year 7.75 0.0% 6.75
Montréal, QC Canada CAD SF Year 4.75 5.6% 4.25
Ottawa, ON Canada CAD SF Year 8.25 6.5% 7.50
Regina, SK Canada CAD SF Year 9.00 0.0% 9.00
Saskatoon, SK Canada CAD SF Year 10.00 5.3% 9.00
Toronto, ON Canada CAD SF Year 4.83 1.3%
Vancouver, BC Canada CAD SF Year 7.60 0.7% 6.80
Victoria, BC Canada CAD SF Year 12.00 0.0% 10.00
Waterloo Region, ON Canada CAD SF Year 3.97 -0.7% 3.12
Winnipeg, MB Canada CAD SF Year 6.00 0.0% 5.25
Atlanta, GA US USD SF Year 3.17 -1.9% 2.83
Bakersfield, CA US USD SF Year 4.00 0.0% 3.42
Baltimore, MD US USD SF Year 4.72 -13.7% 4.73
Birmingham, AL US USD SF Year 7.38 8.7% 4.07
Boise, ID US USD SF Year 5.04 12.0% 4.80
Boston, MA US USD SF Year 5.83 -2.0% 5.58
Charleston, SC US USD SF Year 3.85 0.0% 4.30
Charlotte, NC US USD SF Year 3.34 0.6% 3.54
Chicago, IL US USD SF Year 3.71 -4.9% 2.67
Cincinnati, OH US USD SF Year 3.53 11.4% 2.88
15. 15 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS
MARKET COUNTRY CURRENCY
UNIT OF
MEASUREMENT
TIME PERIOD
PRIME WAREHOUSE
RENT (LOCAL
MEASURE / CURRENCY)
6-MONTH CHANGE
IN RENT (LOCAL
CURRENCY)
PRIME BULK
RENT (LOCAL
MEASURE /
CURRENCY)
Cleveland, OH US USD SF Year 3.30 1.2% 2.86
Columbia, SC US USD SF Year 4.00 6.7% 4.00
Columbus, OH US USD SF Year 2.62 -1.1% 2.51
Dallas-Ft. Worth, TX US USD SF Year 3.15 3.3% 2.70
Denver, CO US USD SF Year 4.62 2.4% 3.95
Detroit, MI US USD SF Year 3.70 3.1% 3.59
Fairfield, CA US USD SF Year 5.50 1.5% 5.52
Fresno, CA US USD SF Year 3.00 25.0% 3.00
Ft. Lauderdale-Broward, FL US USD SF Year 6.14 1.0% 5.84
Grand Rapids, MI US USD SF Year 3.15 -1.6% 3.09
Greenville/Spartanburg, SC US USD SF Year 2.75 -8.3% 2.95
Hartford, CT US USD SF Year 3.98 -0.7% 3.50
Honolulu, HI US USD SF Year 11.52 0.0%
Houston, TX US USD SF Year 5.36 5.9% 4.36
Indianapolis, IN US USD SF Year 3.67 -0.8% 3.24
Jacksonville, Fl US USD SF Year 3.72 -1.6% 3.10
Kansas City, MO-KS US USD SF Year 4.20 -1.6% 3.48
Las Vegas, NV US USD SF Year 4.68 2.6% 4.16
Little Rock, AR US USD SF Year 2.68 0.0% 2.74
Long Island, NY US USD SF Year 9.07 6.0% 9.13
Los Angeles - Inland Empire, CA US USD SF Year 4.20 2.9% 3.96
Los Angeles, CA US USD SF Year 6.21 3.1% 5.94
Louisville, KY US USD SF Year 3.40 0.9% 3.42
Memphis, TN US USD SF Year 2.47 0.4% 2.50
Miami, FL US USD SF Year 7.73 5.7% 7.16
Milwaukee, WI US USD SF Year 4.68 10.1% 3.89
Minneapolis/St. Paul, MN US USD SF Year 4.67 0.0% 6.19
Nashville, TN US USD SF Year 2.95 0.7% 8.38
New Jersey - Central US USD SF Year 4.37 -0.7% 3.49
New Jersey - Northern US USD SF Year 6.28 2.6% 5.98
Oakland, CA US USD SF Year 4.56 0.0% 4.44
Omaha, NE US USD SF Year 4.62 6.7% 3.46
Orange County, CA US USD SF Year 6.96 3.6% 6.12
Orlando, FL US USD SF Year 4.40 0.2% 4.22
16. 16 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / LOCAL MEASURE / CURRENCY RENTS
MARKET COUNTRY CURRENCY
UNIT OF
MEASUREMENT
TIME PERIOD
PRIME WAREHOUSE
RENT (LOCAL
MEASURE / CURRENCY)
6-MONTH CHANGE
IN RENT (LOCAL
CURRENCY)
PRIME BULK
RENT (LOCAL
MEASURE /
CURRENCY)
Philadelphia, PA US USD SF Year 4.25 3.7% 4.14
Phoenix, AZ US USD SF Year 5.16 3.0% 4.21
Pittsburgh, PA US USD SF Year 4.47 1.1% 4.10
Pleasanton/Walnut Creek, CA US USD SF Year 4.99 -1.0% 4.26
Portland, OR US USD SF Year 5.48 5.8% 5.06
Raleigh, NC US USD SF Year 3.63 -0.3% 4.28
Reno, NV US USD SF Year 3.66 -6.4% 3.12
Richmond, VA US USD SF Year 3.36 0.0%
Sacramento, CA US USD SF Year 4.32 2.9% 3.84
San Diego, CA US USD SF Year 8.16 1.5% 7.56
San Francisco Peninsula, CA US USD SF Year 9.48 -6.0% 9.48
San Jose - Silicon Valley US USD SF Year 6.24 6.3% 5.90
Savannah, GA US USD SF Year 3.95 0.0% 3.75
Seattle/Puget Sound, WA US USD SF Year 6.11 0.7% 5.88
St. Louis, MO US USD SF Year 3.81 -1.0% 3.80
Stockton/San Joaquin County, CA US USD SF Year 3.96 4.8%
Tampa Bay, FL US USD SF Year 4.52 2.3% 3.86
Washington DC US USD SF Year 6.73 0.1% 5.59
West Palm Beach, FL US USD SF Year 6.81 1.6% 6.13
17. 17 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES
MARKET COUNTRY
EXCHANGE RATE (USD)
DECEMBER 31, 2012
DEC 2012 PRIME
WAREHOUSE RENT
USD/SF/YR
DEC 2012 PRIME BULK
RENT
(USD/SF/YR)
VACANCY
RATE (%)
DEC 2012
DEC 2012
YIELD / CAP RATE
ASIA PACIFIC
Adelaide Australia 0.96 4.99 -1.0% 4.26 8.25
Brisbane Australia 0.96 5.48 5.8% 5.06 8.41
Sydney Australia 0.96 3.63 -0.3% 4.28 8.00
Beijing China 6.23 6.04 5.44 1.71 6.88
Guangzhou China 6.23 5.72 5.44
Hong Kong China 7.75 3.66 -6.4% 3.12 4.10
Shanghai China 6.23 3.36 0.0%
Delhi India 54.85 8.16 1.5% 7.56 8.00
Jakarta Indonesia 9,799.95 9.48 -6.0% 9.48 9.00
Tokyo Japan 86.58 6.24 6.3% 5.90 6.20
Auckland New Zealand 1.21 3.95 0.0% 3.75 7.79
Christchurch New Zealand 1.21 6.11 0.7% 5.88 7.90
Wellington New Zealand 1.21 3.81 -1.0% 3.80 8.50
Singapore Singapore 1.22 3.96 4.8% 4.50
Seoul South Korea 1,065.31 10.52 10.52 4.00
Bangkok Thailand 30.59 4.52 2.3% 3.86
Chonburi Province Thailand 30.59 6.73 0.1% 5.59
Ho Chi Minh City Vietnam 1.00 4.00 2.50 27.00
EUROPE, MIDDLE EAST & AFRICA
Vienna Austria 0.76 7.35 7.20 8.50
Minsk Belarus 0.76 13.23 15.50
Antwerp Belgium 0.76 5.59 4.93 7.00
Brussels Belgium 0.76 6.10 4.85 6.75
Sofia Bulgaria 1.00 4.24 11.00
Zagreb Croatia 0.76 7.35 10.00
Prague
Czech
Republic
0.76 6.62 8.25
Copenhagen Denmark 5.66 7.39 7.39 7.50
Tallinn Estonia 0.76 7.06 9.00
Helsinki Finland 0.76 14.70 11.03 7.50
Bordeaux France 0.76 5.76 8.50
Lille France 0.76 6.76 5.15 7.50
Lyon France 0.76 6.12 7.40
Marseille France 0.76 11.76 5.51 7.20
18. 18 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES
MARKET COUNTRY
EXCHANGE RATE (USD)
DECEMBER 31, 2012
DEC 2012 PRIME
WAREHOUSE RENT
USD/SF/YR
DEC 2012 PRIME BULK
RENT
(USD/SF/YR)
VACANCY
RATE (%)
DEC 2012
DEC 2012
YIELD / CAP RATE
Paris France 0.76 14.70 8.82 7.00
Toulouse France 0.76 5.51 7.50
Berlin Germany 0.76 8.23 6.18 7.40
Düsseldorf Germany 0.76 8.09 5.88 7.25
Frankfurt Germany 0.76 9.56 8.82 6.70
Hamburg Germany 0.76 8.53 8.53 7.20
Munich Germany 0.76 9.26 8.09 6.90
Stuttgart Germany 0.76 8.09 9.26 7.20
Athens Greece 0.76 6.32 10.00
Budapest Hungary 0.76 6.62 9.00
Dublin Ireland 0.76 7.35 6.62 9.00
Riga Latvia 0.76 9.25
Vilnius Lithuania 0.76 7.06 9.25
Amsterdam Netherlands 0.76 9.19 7.00
Oslo Norway 5.56 20.04 17.04 6.50
Katowice Poland 0.76 5.00 8.25
Lodz Poland 0.76 5.88 8.25
Warsaw Poland 0.76 7.65 7.75
Gdansk Poland 0.76 5.29 8.25
Poznan Poland 0.76 5.15 8.25
Lisbon Portugal 0.76 7.35 4.78 9.25
Bucharest Romania 0.76 6.18 10.25
Moscow Russia 1.00 13.01 11.50
Saint Petersburg Russia 1.00 11.38 12.00
Bratislava Slovakia 0.76 5.44 9.00
Madrid Spain 0.76 7.35 4.41 8.25
Gothenburg Sweden 6.51 9.28 7.85 6.75
Malmo Sweden 6.51 7.85 7.57 6.75
Stockholm Sweden 6.51 12.42 7.85 6.75
Geneva Switzerland 0.92 16.20 12.67 7.50
Istanbul Turkey 1.00 6.97 6.97 9.00
Belfast UK 0.62 6.50 6.50 7.00
Birmingham UK 0.62 9.35 8.94 7.50
Bristol UK 0.62 11.38 8.94 7.50
Edinburgh UK 0.62 7.32 7.75
19. 19 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES
MARKET COUNTRY
EXCHANGE RATE (USD)
DECEMBER 31, 2012
DEC 2012 PRIME
WAREHOUSE RENT
USD/SF/YR
DEC 2012 PRIME BULK
RENT
(USD/SF/YR)
VACANCY
RATE (%)
DEC 2012
DEC 2012
YIELD / CAP RATE
Glasgow UK 0.62 8.13 7.75
Leeds UK 0.62 8.94 8.13 8.00
London (Heathrow) UK 0.62 21.95 19.51 6.00
Manchester UK 0.62 9.35 6.91 7.50
Kyiv Ukraine 1.00 7.81 12.00
LATIN AMERICA
Buenos Aires Argentina 1.00 8.81 8.36 6.00 10.50
São Paulo Brazil 2.05 10.55 11.92 16.30 10.25
Bogotá Colombia 1.00 9.70 6.58 9.80
Mexico City Mexico 1.00 6.25 6.25 3.17 7.75
Panama City Panama 1.00 9.48 8.36 11.00 9.50
Lima Peru 1.00 7.25 6.69 11.00
NORTH AMERICA
Calgary, AB Canada 0.99 8.53 7.27 5.05 7.00
Edmonton, AB Canada 0.99 8.03 7.52 3.35 6.66
Halifax, NS Canada 0.99 7.77 6.77 9.65 7.25
Montréal, QC Canada 0.99 4.77 4.26 4.34 7.25
Ottawa, ON Canada 0.99 8.28 7.52 5.76 7.50
Regina, SK Canada 0.99 9.03 9.03 3.51 7.40
Saskatoon, SK Canada 0.99 10.03 9.03 4.94 7.15
Toronto, ON Canada 0.99 4.85 4.13 6.50
Vancouver, BC Canada 0.99 7.62 6.82 3.67 5.70
Victoria, BC Canada 0.99 12.04 10.03 4.15 7.00
Waterloo Region, ON Canada 0.99 3.98 3.13 6.80 7.90
Winnipeg, MB Canada 0.99 6.02 5.27 2.97 8.25
Atlanta, GA US 1.00 3.17 2.83 12.41 7.90
Bakersfield, CA US 1.00 4.00 3.42 2.80 10.00
Baltimore, MD US 1.00 4.72 4.73 10.21 6.36
Birmingham, AL US 1.00 7.38 4.07 9.39
Boise, ID US 1.00 5.04 4.80 9.51 9.60
Boston, MA US 1.00 5.83 5.58 17.38
Charleston, SC US 1.00 3.85 4.30 10.36 7.50
Charlotte, NC US 1.00 3.34 3.54 11.78
Chicago, IL US 1.00 3.71 2.67 9.53 6.30
Cincinnati, OH US 1.00 3.53 2.88 9.22
20. 20 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES
MARKET COUNTRY
EXCHANGE RATE (USD)
DECEMBER 31, 2012
DEC 2012 PRIME
WAREHOUSE RENT
USD/SF/YR
DEC 2012 PRIME BULK
RENT
(USD/SF/YR)
VACANCY
RATE (%)
DEC 2012
DEC 2012
YIELD / CAP RATE
Cleveland, OH US 1.00 3.30 2.86 9.05
Columbia, SC US 1.00 4.00 4.00 8.78
Columbus, OH US 1.00 2.62 2.51 8.76 8.75
Dallas-Ft. Worth, TX US 1.00 3.15 2.70 9.48 7.30
Denver, CO US 1.00 4.62 3.95 7.45 8.20
Detroit, MI US 1.00 3.70 3.59 11.45 9.90
Fairfield, CA US 1.00 5.50 5.52 11.30 7.40
Fresno, CA US 1.00 3.00 3.00 9.26 9.00
Ft. Lauderdale-Broward, FL US 1.00 6.14 5.84 8.35 4.16
Grand Rapids, MI US 1.00 3.15 3.09 7.29 9.88
Greenville/Spartanburg, SC US 1.00 2.75 2.95 9.16
Hartford, CT US 1.00 3.98 3.50 9.19 8.50
Honolulu, HI US 1.00 11.52 3.75 8.00
Houston, TX US 1.00 5.36 4.36 5.15 7.90
Indianapolis, IN US 1.00 3.67 3.24 5.26 6.75
Jacksonville, Fl US 1.00 3.72 3.10 10.08 9.00
Kansas City, MO-KS US 1.00 4.20 3.48 6.72
Las Vegas, NV US 1.00 4.68 4.16 15.53
Little Rock, AR US 1.00 2.68 2.74 11.17 9.00
Long Island, NY US 1.00 9.07 9.13 5.59 7.67
Los Angeles - Inland Empire, CA US 1.00 4.20 3.96 6.45 7.00
Los Angeles, CA US 1.00 6.21 5.94 4.21 7.00
Louisville, KY US 1.00 3.40 3.42 8.96
Memphis, TN US 1.00 2.47 2.50 12.46 7.75
Miami, FL US 1.00 7.73 7.16 6.57 7.00
Milwaukee, WI US 1.00 4.68 3.89 6.51 9.00
Minneapolis/St. Paul, MN US 1.00 4.67 6.19 8.12
Nashville, TN US 1.00 2.95 8.38 8.82 10.32
New Jersey - Central US 1.00 4.37 3.49 9.17 6.30
New Jersey - Northern US 1.00 6.28 5.98 8.35
Oakland, CA US 1.00 4.56 4.44 8.23 6.50
Omaha, NE US 1.00 4.62 3.46 5.09
Orange County, CA US 1.00 6.96 6.12 4.90 6.25
Orlando, FL US 1.00 4.40 4.22 10.21 7.50
Philadelphia, PA US 1.00 4.25 4.14 9.75 7.84
21. 21 Global Industrial Report | Midyear 2013 | Colliers International
INDUSTRIAL SURVEY / U.S. DOLLAR RENTS / VACANCY RATES / INVESTMENT RATES
MARKET COUNTRY
EXCHANGE RATE (USD)
DECEMBER 31, 2012
DEC 2012 PRIME
WAREHOUSE RENT
USD/SF/YR
DEC 2012 PRIME BULK
RENT
(USD/SF/YR)
VACANCY
RATE (%)
DEC 2012
DEC 2012
YIELD / CAP RATE
Phoenix, AZ US 1.00 5.16 4.21 12.81 8.00
Pittsburgh, PA US 1.00 4.47 4.10 8.21 7.75
Pleasanton/Walnut Creek, CA US 1.00 4.99 4.26 10.22
Portland, OR US 1.00 5.48 5.06 7.18
Raleigh, NC US 1.00 3.63 4.28 10.23
Reno, NV US 1.00 3.66 3.12 10.97
Richmond, VA US 1.00 3.36 9.98
Sacramento, CA US 1.00 4.32 3.84 12.92
San Diego, CA US 1.00 8.16 7.56 9.87 8.50
San Francisco Peninsula, CA US 1.00 9.48 9.48 9.85 7.00
San Jose - Silicon Valley US 1.00 6.24 5.90 10.73 6.00
Savannah, GA US 1.00 3.95 3.75 11.84 8.50
Seattle/Puget Sound, WA US 1.00 6.11 5.88 5.82
St. Louis, MO US 1.00 3.81 3.80 8.42
Stockton/San Joaquin County, CA US 1.00 3.96 13.45
Tampa Bay, FL US 1.00 4.52 3.86 9.36 8.75
Washington DC US 1.00 6.73 5.59 10.71 6.52
West Palm Beach, FL US 1.00 6.81 6.13 7.29 6.94
22. 22 Global Industrial Report | Midyear 2013 | Colliers International22
Research Contributors
Argentina
Santiago Poy
santiago.poy@colliers.com
Asia
Simon Lo
simon.lo@colliers.com
Australia
Nerida Conisbee
nerida.conisbee@colliers.com
Mark Courtney
mark.courtney@colliers.com
Katy Dean
katy.dean@colliers.com
Anneke Thompson
anneke.thompson @colliers.com
Mathew Tiller
mathew.tiller@colliers.com
Brazil
Leandro Angelino
leandro.angelino@colliers.com
CEE
Damian Harrington
damian.harrington@colliers.com
China
Henes Chi
henes.chi@colliers.com
Cyrus Shen
cyrus.shen@colliers.com
Aries Shu
aries.shu@colliers.com
Carlby Xie
carlby.xie@colliers.com
Ricky Zhang
ricky.zhang@colliers.com
Colombia
Aurora Turriago
aurora.turriago@colliers.com
EMEA
Zuzanna Baranowska
zuzanna.baranowska@colliers.com
Bruno Berretta
bruno.berretta@colliers.com
Germany
Andreas Trumpp
andreas.trumpp@colliers.com
Hong Kong
Arthur Yim
arthur.yim@colliers.com
India
Surabhi Arora
surabhi.arora@colliers.com
Japan
Yumiko Yasuda
yumiko.yasuda@colliers.com
Korea
Gemma Choi
gemma.choi@colliers.com
Mexico
Flavio Gómez Aranzubia
flavio.gomez@colliers.com
New Zealand
Alan McMahon
alan.mcmahon@colliers.com
Nina Zhang
nina.zhang@colliers.com
Nordics
Anne Kaag Andersen
Anne.kaagandersen@colliers.com
Peru
Jorge Marcenaro
jmarcenaro@colliers.pe
Philippines
Karlo Pobre
karlo.pobre@colliers.com
Singapore
Chia Siew-Chuin
siew-chuin.chia@colliers.com
Doreen Goh
doreen.goh@colliers.com
Michelle Tee
michelle.tee@colliers.com
Taiwan
Paul Lee
paul.lee@colliers.com
United Kingdom
Dr. Walter Boettcher
walter.boettcher@colliers.com
Mark Charlton
mark.charlton@colliers.com
United States
KC Conway
kc.conway@colliers.com
Andrea Cross
andrea.cross@colliers.com
James Cook
james.cook@colliers.com
Cliff Plank
cliff.plank@colliers.com
Jeff Simonson
jeff.simonson@colliers.com
Lauren Chlebowski | Global Brand Designer
