1. HIGHLIGHTS
NORTH AMERICA
www.colliers.com
Q1 2011 | Industrial
Ross J. Moore Chief Economist | USA
The U.S. industrial market started 2011 on an optimistic note, reinforcing the more bullish environ-
ment evident in the latter half of 2010. Solid demand for warehouse space in most regions coupled
with minimal construction encouraged another substantial decline in vacancy. Vacancies dropped in
many markets reflected by every region reporting a lower vacancy rate for the quarter. With leasing
activity up and a degree of optimism in most markets, warehouse rents halted a three-year decline to
register no change over the quarter.
With the economy registering modest growth in the first three months of the year, and reasonable
growth anticipated in coming quarters, demand for warehouse space is only expected to increase as
the year progresses. A key pillar of support for the U.S. industrial market is the continued strength in
manufacturing, particularly goods intended for export. Exports continued to ratchet higher with
March trade data showing a 19.0 percent year-over-year increase. The healthy state of manufacturing
is reflected in the Institute for Supply Management (ISM) manufacturing index for April, which re-
mained elevated at 60.4 (well above the critical 50 level indicating expansion). All indications are that
the reinvigorated manufacturing sector is set to be the cornerstone of the economic recovery and will
be a key source of growth for the U.S. industrial market.
Although signs of a true rebound in the warehouse market may not be seen until 2012, almost all economic
indicators suggest demand for warehouse space will only increase during 2011. Combined with very lim-
ited warehouse construction, vacancy rates are certain to go significantly lower in the coming quarters.
Rents, however, are unlikely to increase in any meaningful way until well into 2012. For most landlords and
investors, the most that can be expected is more leasing activity and rising occupancies.
The U.S. industrial
market posted another
robust quarter and all
indications are demand
will stay strong pulling
vacancies significantly
lower by year-end
market indicators
Relative to prior period
U.S. Industrial market
Summary Statistics, Q1 2011
U.S. Industrial Market Starts
the Year with a Flourish
Q1
2011
Q2
2011*
VACANCY
NET ABSORPTION
construction
rental rate
*Projected
U.S. industrial MARKET Q1 2009 – Q1 2011
MillionSquareFeet
Vacancy(%)
-60
-50
-40
-30
-20
-10
0
10
20
30
40
Q1Q4Q3Q2Q1Q4Q3Q2Q1
Absorption Completions Vacancy
2009 2010 2011
8
9
10
11
12
Vacancy Rate: 10.47%
Change from Q4 2010: –0.15
Absorption:
26.0 Million Square Feet
New Construction:
6.0 Million Square Feet
Under Construction:
29.4 Million Square Feet
Asking Rents Per Square Foot
Average Warehouse/
Distribution Center: $4.76
Change from Q4 2010: -0.1%
continued on page 6
2. p. 2 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
UNITED STATES | INDUSTRIAL SURVEY
MARKET
EXISTING
INVENTORY (SF)
MAR. 31, 2011
NEW CONSTRUCTION
Q1 2011 (SF)
CURRENTLY UNDER
CONSTRUCTION (SF)
NORTHEAST
Baltimore, MD 234,956,000 0 212,000
Boston, MA 154,948,000 0 367,000
Hartford, CT 96,975,000 0 122,000
Long Island, NY 167,407,000 0 0
Long Island-Nassau, NY 55,854,000 0 0
Long Island-Suffolk, NY 111,457,000 0 0
New Jersey - Central 357,355,000 0 303,000
New Jersey - Northern 374,857,000 68,000 71,000
Philadelphia, PA 402,825,000 829,000 478,000
Washington DC 207,563,000 77,000 1,057,000
NORTHEAST TOTAL 2,164,197,000 974,000 2,610,000
SOUTH
Atlanta, GA 595,743,000 1,632,000 725,000
Charleston, SC 32,024,000 10,000 250,000
Charlotte, NC 285,385,000 15,000 696,000
Columbia, SC 35,509,000 0 1,000,000
Dallas-Ft. Worth, TX 707,619,000 140,000 1,520,000
Ft. Lauderdale-Broward, FL 125,514,000 0 126,000
Greenville/Spartanburg, SC 171,209,000 50,000 0
Houston, TX 498,295,000 186,000 724,000
Jacksonville, FL 121,780,000 0 497,000
Little Rock, AR 45,222,000 0 497,000
Louisville, KY 170,611,000 0 391,000
Memphis, TN 199,532,000 72,000 683,000
Miami, FL 225,492,000 0 20,000
Nashville, TN 159,015,000 937,000 2,032,000
Orlando, FL 144,480,000 0 0
Raleigh, NC 102,557,000 140,000 1,676,000
Savannah, GA 43,511,000 0 615,000
Tampa Bay, FL 216,084,000 0 0
West Palm Beach, FL 58,697,000 0 265,000
SOUTH TOTAL 3,938,278,000 3,182,000 11,716,000
3. highlights | Q1 2011 | INDUSTRIAL | north America
Colliers International | p. 3
UNITED STATES | INDUSTRIAL SURVEY
MARKET
EXISTING
INVENTORY (SF)
MAR. 31, 2011
NEW CONSTRUCTION
Q1 2011 (SF)
CURRENTLY UNDER
CONSTRUCTION (SF)
midwest
Chicago, IL 1,303,720,000 319,000 3,732,000
Cincinnati, OH 256,642,000 127,000 127,000
Cleveland, OH 420,374,000 0 231,000
Columbus, OH 211,924,000 0 1,992,000
Detroit, MI 485,071,000 53,000 0
Indianapolis, IN 276,652,000 135,000 239,000
Kansas City, MO-KS 223,515,000 17,000 290,000
St. Louis, MO 262,290,000 0 11,000
West Michigan 113,073,000 0 138,000
MIDWEST TOTAL 3,553,261,000 651,000 6,759,000
west
Bakersfield, CA 31,675,000 0 506,000
Boise, ID 32,796,000 0 0
Denver, CO 278,456,000 32,000 103,000
Fairfield, CA 41,552,000 0 0
Fresno, CA 48,600,000 0 0
Honolulu, HI 38,576,000 0 0
Las Vegas, NV 107,792,000 22,000 181,000
Los Angeles - Inland Empire, CA 379,098,000 0 2,916,000
Los Angeles, CA 879,843,000 271,000 2,812,000
Oakland, CA 131,233,000 0 26,000
Orange County, CA 200,453,000 0 0
Phoenix, AZ 247,446,000 244,000 245,000
Pleasanton/Walnut Creek, CA 33,035,000 0 20,000
Portland, OR 192,696,000 0 947,000
Reno, NV 73,621,000 0 0
Sacramento, CA 186,424,000 8,000 0
San Diego, CA 188,338,000 0 238,000
San Francisco Peninsula, CA 40,808,000 0 0
San Jose/Silicon Valley, CA 253,941,000 609,000 152,000
Seattle/Puget Sound, WA 270,581,000 0 0
Stockton/San Joaquin County, CA 92,636,000 0 138,000
WEST TOTAL 3,749,598,000 1,186,000 8,285,000
U.S. TOTAL 13,405,334,000 5,993,000 29,370,000
4. p. 4 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
UNITED STATES | INDUSTRIAL SURVEY
MARKET
ABSORPTION
Q1 2011 (SF)
VACANCY RATE
DEC. 31, 2010 (%)
VACANCY RATE
mAR. 31, 2011 (%)
NORTHEAST
Baltimore, MD 272,000 10.59 10.48
Boston, MA 367,000 21.50 21.14
Hartford, CT (54,000) 9.32 9.37
Long Island, NY 154,000 5.62 5.53
Long Island-Nassau, NY 85,000 6.41 6.25
Long Island-Suffolk, NY 160,000 5.24 5.10
New Jersey - Central (468,000) 10.78 10.91
New Jersey - Northern (320,000) 7.54 7.62
Philadelphia, PA 1,976,000 9.87 9.57
Washington DC (189,000) 12.66 12.77
NORTHEAST TOTAL 1,984,000 10.11 10.05
SOUTH
Atlanta, GA 2,623,000 14.11 13.90
Charleston, SC 410,000 11.22 12.44
Charlotte, NC 630,000 13.84 13.63
Columbia, SC 230,000 7.00 6.35
Dallas-Ft. Worth, TX 2,172,000 12.10 11.81
Ft. Lauderdale-Broward, FL (418,000) 9.14 9.47
Greenville/Spartanburg, SC 125,000 10.53 10.26
Houston, TX 532,000 5.95 6.03
Jacksonville, FL 36,000 10.94 11.03
Little Rock, AR (782,000) 13.96 15.74
Louisville, KY 135,000 11.96 11.88
Memphis, TN 744,000 13.28 13.02
Miami, FL 733,000 8.97 8.65
Nashville, TN 474,000 14.15 13.58
Orlando, FL 109,000 12.33 12.25
Raleigh, NC 132,000 12.08 11.93
Savannah, GA 926,000 18.57 16.44
Tampa Bay, FL 923,000 11.21 10.79
West Palm Beach, FL 161,000 10.13 9.85
SOUTH TOTAL 9,895,000 11.48 11.30
5. highlights | Q1 2011 | INDUSTRIAL | north America
Colliers International | p. 5
UNITED STATES | INDUSTRIAL SURVEY
MARKET
ABSORPTION
Q1 2011 (SF)
VACANCY RATE
DEC. 31, 2010 (%)
VACANCY RATE
mAR. 31, 2011 (%)
midwest
Chicago, IL (749,000) 11.62 11.64
Cincinnati, OH (699,000) 8.05 8.83
Cleveland, OH 115,000 9.56 9.54
Columbus, OH (469,000) 12.96 12.81
Detroit, MI 2,343,000 15.24 14.44
Indianapolis, IN 3,356,000 8.54 7.47
Kansas City, MO-KS (830,000) 6.85 7.22
St. Louis, MO 531,000 8.23 8.03
West Michigan 1,000 9.21 9.22
MIDWEST TOTAL 3,599,000 10.83 10.69
west
Bakersfield, CA (107,000) 9.66 10.00
Boise, ID (112,000) 10.57 10.91
Denver, CO 128,000 7.77 7.74
Fairfield, CA (56,000) 14.53 14.67
Fresno, CA 40,000 7.90 7.82
Honolulu, HI (33,000) 4.74 4.83
Las Vegas, NV (213,000) 16.56 16.78
Los Angeles - Inland Empire, CA 3,730,000 11.62 10.64
Los Angeles, CA 3,356,000 5.37 5.01
Oakland, CA 626,000 9.54 9.07
Orange County, CA 541,000 5.79 5.52
Phoenix, AZ 677,000 17.00 16.75
Pleasanton/Walnut Creek, CA (426,000) 10.95 12.24
Portland, OR 297,000 9.36 9.21
Reno, NV 234,000 14.89 14.57
Sacramento, CA (239,000) 13.38 13.52
San Diego, CA 355,000 11.36 11.12
San Francisco Peninsula, CA 119,000 9.67 9.37
San Jose/Silicon Valley, CA (1,065,000) 12.99 13.82
Seattle/Puget Sound, WA 729,000 8.34 8.07
Stockton/San Joaquin County, CA 1,942,000 17.71 15.62
WEST TOTAL 10,523,000 9.87 9.62
U.S. TOTAL 26,001,000 10.63 10.47
6. p. 6 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011
MARKET
SALES PRICE
(USD PSF)
CAP rATE
(%)
VACANCY FORECAST
(3 MONTHS)
ABSORPTION FORECAST
(3 MONTHS)
RENT FORECAST
3 MONTHS
NORTHEAST
Baltimore, MD 49.92 7.40 Down Up Up
Boston, MA 55.00 9.00 Down Up Same
Hartford, CT 40.00 8.50 Up Down Down
Long Island, NY 100.00 8.00 Down Up Same
Long Island-Nassau, NY 60.00 5.00 Same Same Same
Long Island-Suffolk, NY 60.00 5.00 Same Same Same
New Jersey - Central 54.28 6.10 Down Up Same
New Jersey - Northern 54.06 9.70 Same Same Same
Philadelphia, PA 49.27 8.50 Down Up Same
NORTHEAST AVERAGE 58.06 7.47 – – –
SOUTH
Atlanta, GA 32.30 8.70 Down Down Same
Charleston, SC 45.50 7.75 Down Same Same
Columbia, SC – – Down Up Up
Dallas/Fort Worth, TX 45.00 8.00 Down Same Same
Ft. Lauderdale/Broward Co., FL 100.00 – Same Same Down
Greenville, SC 30.00 10.70 Down Up Up
Houston, TX 67.00 7.80 Down Same Same
Jacksonville, FL 45.00 8.00 Down Up Same
Little Rock, AR 65.45 9.00 Same Same Same
Memphis, TN 17.00 10.00 Down Up Same
Miami-Dade, FL 57.55 6.00 Down Same Down
Nashville, TN – – Down Up Up
Orlando, FL 40.54 9.00 Same Up Same
Raleigh/Durham/Chapel Hill, NC 67.14 8.69 Same Same Same
Savannah, GaA 37.00 8.50 Down Up Same
Tampa, FL 40.52 7.50 Down Up Same
West Palm Beach/Palm Beach Co., FL 73.56 – Down Same Down
SOUTH AVERAGE 50.90 8.43 – – –
7. highlights | Q1 2011 | INDUSTRIAL | north America
Colliers International | p. 7
UNITED STATES | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011
MARKET
SALES PRICE
(USD PSF)
CAP rATE
(%)
VACANCY FORECAST
(3 MONTHS)
ABSORPTION FORECAST
(3 MONTHS)
RENT FORECAST
3 MONTHS
midwest
Chicago, IL 45.00 7.00 Down Same Same
Cincinnati, OH 32.00 8.00 Same Same Same
Columbus, OH 28.00 8.10 Same Same Same
Detroit, MI 26.07 8.50 Same Same Down
Grand Rapids, MI 28.00 10.00 Up Same Same
Indianapolis, IN – 8.75 Same Same Same
St. Louis, MO 10.26 10.00 Down Up Up
MIDWEST AVERAGE 28.22 8.62 – – –
west
Bakersfield, CA 38.00 10.00 Same Same Same
Boise, ID 45.00 – Same Same Same
Denver, CO 45.00 8.20 Down Up Same
Fairfield, CA – – Up Down Down
Fresno, CA 38.00 9.00 Same Up Same
Honolulu, HI 160.00 8.00 Same Same Same
Las Vegas, NV 110.35 – Up Same Down
Los Angeles - Inland Empire, CA 53.00 5.25 Down Up Up
Los Angeles, CA 87.00 6.75 Down Up Same
Oakland, CA 91.00 7.00 Down Up Up
Orange County, CA 105.00 6.50 Down Up Same
Phoenix, AZ 48.00 9.50 Down Up Same
Pleasanton/Walnut Creek, CA 150.00 9.00 Down Up Same
Portland, OR 69.46 – Same Same Same
Reno, NV 51.27 – Same Same Same
Sacramento, CA 51.67 8.07 Same Same Same
San Diego, CA 92.14 – Down Same Same
San Francisco Peninsula, CA 175.00 7.00 Same Same Same
San Jose/Silicon Valley, CA – Same Same Same
Seattle/Puget Sound, WA 54.68 – Down Up Same
Stockton/San Joaquin County, CA 57.00 7.80 Down Up Same
WEST AVERAGE 80.08 7.85 – – –
U.S. AVERAGE 60.75 8.08 – – –
8. p. 8 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
Occupancies rise for fourth consecutive quarter. For the fourth consecu-
tive three-month period, industrial markets registered an increase in oc-
cupied space. During the first quarter, net absorption totaled 25.7 million
square feet (MSF)—a small drop from the fourth quarter, when occupied
space increased by 28.6 MSF, but in sharp contrast to the 19.3 MSF of
industrial space returned to the market in the first quarter of 2010. Of the
59 markets tracked in the U.S., 40 (68 percent) reported positive absorp-
tion during the first quarter; however, the West and South accounted for
the lion’s share of the country’s absorption, with occupied space increas-
ing by 9.9 MSF and 10.5 MSF respectively. Canadian markets began the
year in robust fashion with first quarter absorption reaching almost 6.0
MSF, considerably above the 4.0 MSF quarterly averages in 2010.
Warehouse construction drops back to first-half 2010 levels. First quar-
ter completions totaled 6.0 MSF, a modest decrease from the fourth quar-
ter when 9.4 MSF were delivered to the market, and back to delivery levels
registered in the first half of 2010. Of the 6.0 MSF delivered, 86 percent
was build-to-suit and the balance was classified as speculative (spec)
construction. Last quarter, build-to-suit deliveries accounted for 71 per-
cent of completions. In the coming quarters construction is anticipated to
be largely build-to-suit, with only 35 percent under construction at year-
end classified as speculative, but there were early signs the balance be-
tween build-to-suit and spec construction will be more even as early as
2012. Quarter-end construction activity totaled 29.4 MSF, a modest in-
crease from the 22.7 MSF underway at the end of the fourth quarter, but
well below the 107.0 MSF recorded two years ago. Canadian construction
remained subdued with 1.2 MSF completed in Q1, broadly in line with con-
struction levels experienced in 2010.
U.S. industrial vacancies drop by further 15 basis points. The U.S. indus-
trial warehouse vacancy rate dropped 15 basis points during the first
quarter to register 10.47 percent. This was in addition to a significant drop
in the national vacancy rate in the fourth quarter when vacancies fell by 22
basis points. Even though the national average dropped quite significantly
during the quarter, many markets are still seeing vacancies go higher: al-
most 40 percent of U.S. markets (23 out of 59) saw vacancies increase in
Q1. Canadian warehouse vacancies by comparison were sharply lower,
falling by 33 basis points during the quarter to average 5.30 percent.
After 12 quarterly declines, industrial rents hold steady. After three
years of consistently lower rents, industrial warehouse lease rates held
steady in the first quarter. Warehouse rents registered $4.76 per square
foot at the end of the quarter. Bulk warehouse rents also held steady at
$4.37 per square foot, while both flex and R&D rents slipped $0.07 and
$0.55 per square foot respectively. Canadian industrial rents were mixed
during the quarter with warehouse and flex lease rates up, while bulk and
R&D fell marginally.
U.S. Market Starts the Year with a Flourish
Continued from page 1
Index
J F M A M J J A S O N D J F M A M J J A S O N D J F M A
0
10
20
30
40
50
60
70
80
2009 2010 2011
Institute for Supply Management Manufacturing Index
-1,000,000 250,000 1,500,000 2,750,000 4,000,000
Chicago
New Jersey - Central
New Jersey - Northern
Savannah
Dallas
Detroit
Atlanta
Los Angeles
Indianapolis
Los Angeles - Inland Empire
aBSORPTION (SF) | sELECT MARKETS | q1 2011
0
30000
60000
90000
120000
150000
MFJDNOSAJJMAMFJ
2010 2011
Millions,Dollars,SeasonallyAdjusted
Trade: Exports - Goods, (Mil. $, SA) | q1 2011
9. highlights | Q1 2011 | INDUSTRIAL | north America
Colliers International | p. 9
UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH 2011
MARKET
WAREHOUSE/DISTRIBUTION
SPACE (USd PSF)
BULK SPACE
(USd PSF)
FLEX/SERVICE SPACE
(USd PSF)
TECH/R&D SPACE
(USd PSF)
NORTHEAST
Baltimore, MD 4.95 4.43 8.36 –
Boston, MA 4.50 4.95 8.00 11.00
Hartford, CT 4.06 4.28 6.50 6.50
Long Island, NY 7.86 14.50 15.97 8.68
Long Island-Nassau, NY 7.96 6.98 12.00 –
Long Island-Suffolk, NY 7.81 – 9.56 –
New Jersey - Central 4.47 3.70 12.10 12.63
New Jersey - Northern 5.92 5.68 10.55 5.82
Philadelphia, PA 4.00 3.75 7.00 11.00
Washington DC 7.82 – 12.27 –
NORTHEAST AVERAGE 5.94 6.03 10.23 9.27
SOUTH
Atlanta, GA 3.26 2.88 7.27 7.03
Charleston, SC 3.65 4.00 6.00 16.25
Charlotte, NC 3.28 – 8.45 –
Columbia, SC 3.75 3.75 – 9.50
Dallas-Ft. Worth, TX 3.00 2.70 6.75 8.30
Ft. Lauderdale-Broward, FL 6.46 6.16 9.71 9.75
Greenville/Spartanburg, SC 2.91 2.95 6.86 –
Houston, TX 5.01 4.17 6.95 6.64
Jacksonville, FL 3.75 3.10 9.00 –
Little Rock, AR 2.68 2.74 7.35 –
Louisville, KY 3.35 – 7.10 –
Memphis, TN 2.72 2.45 7.35 10.50
Miami, FL 6.59 5.30 10.81 8.87
Nashville, TN 4.49 3.12 7.31 –
Orlando, FL 4.49 4.20 8.93 8.90
Raleigh, NC 3.83 3.84 8.52 –
Savannah, GA 3.95 3.75 7.00 10.00
Tampa Bay, FL 4.23 3.97 8.41 9.48
West Palm Beach, FL 6.89 6.34 10.84 14.71
SOUTH AVERAGE 4.12 16.25 8.03 9.99
10. p. 10 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
UNITED STATES | INDUSTRIAL SURVEY | RENTS AS OF MARCH 2011
MARKET
WAREHOUSE/DISTRIBUTION
SPACE (USd PSF)
BULK SPACE
(USd PSF)
FLEX/SERVICE SPACE
(USd PSF)
TECH/R&D SPACE
(USd PSF)
midwest
Chicago, IL 3.67 2.30 7.40 –
Cincinnati, OH 2.88 2.88 6.08 6.08
Cleveland, OH 3.44 7.91 –
Columbus, OH 2.72 3.13 4.19 4.19
Detroit, MI 3.92 3.72 8.01 –
Grand Rapids, MI 4.14 2.80 7.50 –
Indianapolis, IN 4.48 3.83 8.34 7.32
Kansas City, MO-KS 3.95 9.69 –
St. Louis, MO 3.05 3.25 5.02 4.49
MIDWEST AVERAGE 3.58 3.13 7.13 5.52
west
Bakersfield, CA 4.00 3.42 7.00 –
Boise, ID 4.50 4.50 6.30 6.30
Denver, CO 3.50 3.25 8.50 9.50
Fairfield, CA 5.52 5.52 8.16 10.20
Fresno, CA 2.40 2.28 4.00 5.50
Honolulu, HI 11.16 –
Las Vegas, NV 4.76 4.62 6.51 10.45
Los Angeles - Inland Empire, CA 3.72 3.48 6.66 7.89
Los Angeles, CA 5.64 5.52 9.75 12.50
Oakland, CA 4.44 3.01 4.92 8.40
Orange County, CA 6.72 5.64 12.50 13.50
Phoenix, AZ 5.26 4.10 10.74 10.62
Pleasanton/Walnut Creek, CA 4.80 4.20 1.05 1.05
Portland, OR 5.20 4.96 9.36 8.94
Reno, NV 3.36 3.33 9.96 9.96
Sacramento, CA 4.18 3.75 8.63 9.25
San Diego, CA 7.80 7.08 11.28 13.56
San Francisco Peninsula, CA 9.36 9.36 22.44 22.44
San Jose/Silicon Valley, CA 5.44 5.03 8.02 12.38
Seattle/Puget Sound, WA 5.40 4.92 10.20 –
Stockton/San Joaquin County, CA 3.72 3.66 5.76 7.80
WEST AVERAGE 5.28 4.58 8.59 10.01
U.S. AVERAGE 4.76 4.37 8.47 9.45
11. highlights | Q1 2011 | INDUSTRIAL | north America
Colliers International | p. 11
CANADA | INDUSTRIAL SURVEY
MARKET
EXISTING
INVENTORY (SF)
MAR. 31, 2011
NEW CONSTRUCTION
Q1 2011 (SF)
CURRENTLY UNDER
CONSTRUCTION (SF)
Calgary, AB 122,546,000 561,000 561,000
Edmonton, AB 77,155,000 83,000 379,000
Guelph, ON 19,739,000 0 98,000
Halifax, NS 7,077,000 0 80,000
Montreal, QC 347,771,000 0 0
Ottawa, ON 28,027,000 75,000 75,000
Regina, SK 16,195,000 20,000 695,000
Saskatoon, SK 19,700,000 40,000 550,000
Toronto, ON 760,332,000 0 2,244,000
Vancouver, BC 178,202,000 329,000 1,592,000
Waterloo Region, ON 59,829,000 80,000 65,000
CANADA TOTAL 1,636,572,000 1,187,000 6,339,000
canada | INDUSTRIAL SURVEY
MARKET
ABSORPTION
Q1 2011 (SF)
VACANCY RATE
DEC. 31, 2010 (%)
VACANCY RATE
mAR. 31, 2011 (%)
Calgary, AB 803,000 5.44 5.10
Edmonton, AB 192,000 4.09 3.95
Guelph, ON (17,000) 5.60 5.69
Halifax, NS 10,000 4.96 4.82
Montreal, QC 213,000 6.16 6.10
Ottawa, ON (224,000) 5.82 6.60
Regina, SK 106,000 1.35 0.81
Saskatoon, SK 114,000 2.71 2.12
Toronto, ON 4,294,000 6.00 5.44
Vancouver, BC 440,000 4.10 4.02
Waterloo Region, ON 5,000 6.83 6.36
CANADA TOTAL 5,935,000 5.63 5.30
12. p. 12 | Colliers International
highlights | Q1 2011 | INDUSTRIAL | north America
CANADA | INDUSTRIAL SURVEY | SALES PRICE AND CAP RATE AS OF MARCH 2011
MARKET
SALES PRICE
(USD PSF)
CAP rATE
(%)
VACANCY FORECAST
(3 MONTHS)
ABSORPTION FORECAST
(3 MONTHS)
RENT FORECAST
3 MONTHS
Calgary, AB 110.00 7.00 Down Same Same
Edmonton, AB – - Down Up Same
Guelph, ON 53.00 7.00 Down Up Same
Halifax, NS 80.00 8.00 Same Same Same
Montreal, QC 60.00 8.50 Down Up Same
Ottawa, ON 88.00 8.25 Same Same Same
Regina, SK 98.00 8.00 Same Up Same
Saskatoon, SK 120.00 7.50 Up Up Up
Toronto, ON 10.77 - Down Up Up
Vancouver, BC 154.85 - Down Up Same
Waterloo Region, ON 49.00 7.00 Down Up Up
CANADA AVERAGE 82.36 7.66 – – –
CANADA | INDUSTRIAL SURVEY | RENTS AS OF MARCH 2011
MARKET
WAREHOUSE/DISTRIBUTION
SPACE (USd PSF)
BULK SPACE
(USd PSF)
FLEX/SERVICE SPACE
(USd PSF)
TECH/R&D SPACE
(USd PSF)
Calgary, AB 7.50 6.00 9.50 10.00
Edmonton, AB 7.25 6.75 9.50 10.50
Guelph, ON 4.74 4.59 7.53 7.53
Halifax, NS 7.00 5.50 10.00 15.00
Montreal, QC 4.25 4.00 6.50 8.50
Ottawa, ON 7.25 6.25 8.25 11.00
Regina, SK 9.00 7.00 12.00 14.00
Saskatoon, SK 9.50 8.00 12.00 13.00
Toronto, ON 4.97 4.55 7.13 7.73
Vancouver, BC 6.50 5.75 8.50 9.25
Waterloo Region, ON 3.97 2.76 8.56 8.56
CANADA AVERAGE 6.54 5.56 9.04 10.46
Glossary
Absorption – Net change in leased space over a
given period of time.
Bulk Space – 100,000 square feet or more with up
to 10 percent office space, the balance being general
warehouse space with 20 to 36 foot ceiling heights.
All loading is dock-height.
Flex Space – Single-story buildings having 10- to
18-foot ceilings with both floor-height and dock-
height loading. Includes wide variation in office
space utilization, ranging from retail and personal
service through distribution, light industrial and
occasional heavy industrial use.
Inventory – Includes all existing multi or single
tenant leased and owner-occupied industrial
warehouse, light manufacturing, flex and R&D
properties greater than or equal to 10,000 square
feet.
New Construction – Includes completed speculative
and build-to-suit construction. New construction
quoted on a net basis after any demolitions or
conversions.
Service Space – Single story (or mezzanine) with
10- to 16-foot ceilings with frontage treatment on
one side and dock-height loading or grade level
roll-up doors on the other. Less than 15% office.
Tech/R&D – One- and two- story, 10- to 15-foot
ceiling heights with up to 50% office/dry lab space
(remainder in wet lab, workshop, storage and other
support), with dock-height and floor-height loading.
Triple Net Rent – Includes rent payable to the
landlord and does not include additional expenses
such as taxes, insurance, maintenance, janitorial and
utilities. All industrial and high-tech/R&D rents in
this report are quoted on an annual, triple net per
square foot basis in U.S. dollars.
Vacancy Rate – Percentage of total inventory
available (both vacant and occupied) as at the survey
date including direct vacant and sublease space.
Warehouse – 50,000 square feet or more with up to
15 percent office space, the balance being general
warehouse space with 18- to 30- foot ceiling
heights. All loading is dock-height.
