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Industrial Market Research/Reports

  1. Washington

    1. Seattle Industrial Market Report
      Second Quarter 2017

      At the midway point of 2017, the region's industrial market saw mostly positive results. Net absorption in the second quarter was positive at 1,186,744 s.f. (nearly 3.2 million s.f. cumulative for the first six months), buoyed by both Pierce and Thurston Counties which helped offset negative net absorption in Seattle, South King, and East King County markets. Vacancy inched up to 3.16% from 3.02%. Construction activity remains strong with nearly 1.7 million s.f. in deliveries for the quarter and nearly 5.8 million s.f. under construction. We would expect absorption to remain positive as there are nearly 2.0 million s.f. of signed leases expecting to take occupancy over the next six months. Another 13.3 million s.f. is in the pipeline that may or may not start over the next several years.

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      Second Quarter 2017 Seattle Industrial Market Report
      First Quarter 2017 Seattle Industrial Market Report
      Fourth Quarter 2016 Seattle Industrial Market Report
      Third Quarter 2016 Seattle Industrial Market Report
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  2. Oregon

    1. Portland Industrial Market Report
      Second Quarter 2017

      The Portland industrial real estate (excluding flex) market stayed hot in the second quarter of 2017, as vacancies ticked down to 3.3%, their lowest point in at least 15 years. This quarter's 827,103 s.f. of positive net absorption brought the year-to-date gain in occupied industrial space to 1,628,031 s.f. Asking rental rates climbed to $0.61 on a blended triple-net basis, varying by size, quality, and location of product, with superior offerings recording 17% year-over-year rent growth. The urban retailing giant Amazon fueled 2,037,856 s.f. of leasing activity with plans to open an 857,000 s.f. distribution center in Troutdale that will add some 2,000 fulfillment jobs to the local economy.

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      Second Quarter 2017 Portland Industrial Market Report
      First Quarter 2017 Portland Industrial Market Report
      Fourth Quarter 2016 Portland Industrial Market Report
      Third Quarter 2016 Portland Industrial Market Report
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  3. California

    1. Inland Empire Industrial Market Report
      Second Quarter 2017

      The Inland Empire industrial market continued to improve in Q2 2017, as asking lease rates remained stable. Vacancy and availability rates remain at historically low levels, even as massive amounts of new inventory continues to be added to the base. The lack of product available for lease and sale in some size ranges (particularly below 100,000 square feet) is driving prices upward and limiting transaction volume. Net occupancy remains positive and there is strong demand in the market, so any upward pressure on vacancy from the new inventory being added is unlikely to last beyond the short run. We expect moderate increases in leasing and sales activity in the coming year, as job creation stays strong. Throughout 2017, positive absorption should continue, occupancy costs will continue to increase, and with ample new construction in the pipeline, we foresee 2017 being another year of growth.

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      Second Quarter 2017 Inland Empire Industrial Market Report
      First Quarter 2017 Inland Empire Industrial Market Report
      Fourth Quarter 2016 Inland Empire Industrial Market Report
      Third Quarter 2016 Inland Empire Industrial Market Report
    2. Los Angeles Industrial Market Report
      Second Quarter 2017

      The Los Angeles industrial market continued to improve in Q2 2017, as pricing continued to trend upward, and both vacancy and availability rates remain at historically low levels. We expect increases in leasing and sales activity in 2017, as job creation maintains its strong growth. Furthermore, we anticipate gains in absorption to continue even as occupancy costs are on a constant rise. New developments are approaching completion dates, which may force upward pressure on vacancy. We foresee 2017 being another strong year of growth for the sector.

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      Second Quarter 2017 Los Angeles Industrial Market Report
      First Quarter 2017 Los Angeles Industrial Market Report
      Fourth Quarter 2016 Los Angeles Industrial Market Report
    3. Oakland/East Bay Industrial Market Report
      Second Quarter 2017

      Record-low vacancies and soaring rents continue to rule the day in the East Bay industrial market, where tenant demand remains far ahead of new supply. The market's direct vacancy rate fell below 3% for the first time this cycle during the second quarter, while the average asking rent climbed to a cycle-high $0.95/sf NNN. Those trends reflect exceptionally tight market conditions, following just 679,792 square feet of new deliveries in the last seven quarters, but developers are gradually responding to the East Bay's insatiable tenant demand, with more than 1.5 million square feet of industrial space now under construction. While rental rates may trend slightly downward in the coming quarters, as those state-of-the-art spaces priced near the top of the market are leased, sub-4% vacancies are likely to remain the norm in the logistically superior I-880 corridor for the foreseeable future.

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      Second Quarter 2017 Oakland/East Bay Industrial Market Report
      First Quarter 2017 Oakland/East Bay Industrial Market Report
      Fourth Quarter 2016 Oakland/East Bay Industrial Market Report
      Third Quarter 2016 Oakland/East Bay Industrial Market Report
    4. Orange County Industrial Market Report
      Second Quarter 2017

      The Orange County industrial market continued to improve in Q2 2017, as prices continued to trend upward. Vacancy remains at historically low levels, but ticked up to 2.4% this quarter. The lack of product available for lease and sale is driving prices upward and limiting transaction volume in the market. We expect moderate increases in leasing and sales activity in the coming year, as job creation stays strong, but the limited availability will temper transaction volume. Even with rising occupancy costs, we anticipate gains in absorption throughout the year, and with very few deliveries in the pipeline to apply upward pressure on vacancy, we foresee the market staying very tight for the coming quarters.

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      Second Quarter 2017 Orange County Industrial Market Report
      First Quarter 2017 Orange County Industrial Market Report
      Fourth Quarter 2016 Orange County Industrial Market Report
      Third Quarter 2016 Orange County Industrial Market Report
    5. Peninsula/San Mateo County Industrial Market Report
      Second Quarter 2017

      The Peninsula industrial market experienced a healthy 515,059 s.f. of gross absorption, but finished in the red for the second consecutive quarter with 329,543 s.f. of negative net absorption. The net loss can be attributed to larger blocks of space being placed on the market, but this isn't time to panic as tenant demand remains strong and recent availabilities will provide new opportunities. The market continues to be constricted in spite of the second quarter's rise in vacancy, which led to another increase in the Peninsula's average rental rate. Leasing activity is expected to persist throughout the year with the north county region being a primary target for distribution and logistics purposes.

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      Second Quarter 2017 Peninsula/San Mateo County Industrial Market Report
      First Quarter 2017 Peninsula/San Mateo County Industrial Market Report
      Fourth Quarter 2016 Peninsula/San Mateo County Industrial Market Report
      Third Quarter 2016 Peninsula/San Mateo County Industrial Market Report
    6. Sacramento Industrial Market Report
      Third Quarter 2017

      Greater Sacramento remained a highly coveted location for warehouse and distribution users during the third quarter, as the market reached new cycle lows in vacancy amid 1.16 million s.f. of positive net absorption. Sacramento industrial and flex properties have gained 3.33 million s.f. of occupied office space over the past nine months, bringing vacancies below 7% for the first time this cycle. Inbound demand from tenants remains well ahead of new construction, and big-name newcomers such as Amazon and McKesson are a testament to the market's regional strength.

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      Third Quarter 2017 Sacramento Industrial Market Report
      Second Quarter 2017 Sacramento Industrial Market Report
      First Quarter 2017 Sacramento Industrial Market Report
      Fourth Quarter 2016 Sacramento Industrial Market Report
    7. San Diego Industrial Market Report
      Second Quarter 2017

      The San Diego County industrial real estate market closed out the second quarter displaying strong positive net absorption, in a generally tight market of low availability and vacancy rates. Countywide total vacancy decreased this quarter by 30 basis points from last quarter, to 5.3%, below the 5.9% vacancy recorded at the same time last year. The vacancy rate for San Diego County's industrial market is one of the lowest numbers posted in the past ten years, and has remained in this record low for the past two years. The San Diego County unemployment rate sits at 3.6%, below the year-ago estimate of 4.3% and well below the unadjusted unemployment rate of 4.2% for California and 4.1% for the nation. According to the State of California's Employment Development Department, San Diego County's total non-farm employment increased by 20,300 jobs between May 2016 and May 2017, and we expect this strong local economy and increase in job growth to help drive the real estate market in the right direction.

      Downloads
      Second Quarter 2017 San Diego Industrial Market Report
      First Quarter 2017 San Diego Industrial Market Report
      Fourth Quarter 2016 San Diego Industrial Market Report
      Third Quarter 2016 San Diego Industrial Market Report
    8. Silicon Valley Industrial Market Report
      Second Quarter 2017

      The industrial and warehouse market trended positively this quarter, as large users absorbed big chunks of available space. Net absorption was positive for both industrial and warehouse product, at 84,441 s.f. and 53,208 s.f., respectively. Industrial vacancy dropped from 4.95% to 4.77% while warehouse vacancies realized a larger decrease, going from 2.46% to 2.08%. The average asking rate was $1.14 per s.f. per month for industrial spaces and $0.93 for warehouses, both on a triple-net basis. Demand for industrial and warehouse product remains strong in the eastern and southern parts of the Valley. Supply in the western part of Silicon Valley continues to dwindle as product is repurposed for other uses. The decreasing supply paired with steady demand means rental rates figure to trend upward in the near future.

      Downloads
      Second Quarter 2017 Silicon Valley Industrial Market Report
      First Quarter 2017 Silicon Valley Industrial Market Report
      Fourth Quarter 2016 Silicon Valley Industrial Market Report
      Third Quarter 2016 Silicon Valley Industrial Market Report
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  4. Arizona

    1. Phoenix Industrial Market Report
      Second Quarter 2017

      The Phoenix industrial real estate market started the year with increasing development, currently there is just over 4.2 million square feet under construction, and rental rates continue to increase. For the first half of 2017, the market has experienced 4.1 million square feet of positive absorption and new deliveries of over 3 million square feet causing total vacancy to decrease to 9.4%. We expect increased competition for space and higher rates to continue throughout the second half of 2017, in spite of new construction, as a result of the strong economy and business expansion. The Phoenix unemployment rate sits at 4.3%, a 10 basis point decrease from the 4.4% recorded this time last year.

      Downloads
      Second Quarter 2017 Phoenix Industrial Market Report
      First Quarter 2017 Phoenix Industrial Market Report
      Fourth Quarter 2016 Phoenix Industrial Market Report
      Third Quarter 2016 Phoenix Industrial Market Report
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  5. Nevada

    1. Reno Industrial Market Report
      Second Quarter 2017

      Record levels of inbound demand, coupled with strong local tenant growth, produced an excellent second quarter for the Reno industrial market. More than 2.1 million square feet came off the market in leases and owner/user sales this quarter, as a wide array of companies continued to be drawn to Reno's logistical advantages and business friendly climate. Industrial vacancies across the market are at or near record lows, and the quarter's 1,306,493 square feet of positive net absorption pulled the direct vacancy rate below 5% for the first time this cycle. While leasing volume increased to 1,975,752 square feet, the average deal size fell to 32,846 square feet, amid a surge in small-tenant expansions to the 10,000-50,000 square foot range. That growth was accompanied by a record number of new companies visiting the Reno area, and the fierce competition for industrial space portends further absorption gains and rental rate hikes in the coming quarters.

      Downloads
      Second Quarter 2017 Reno Industrial Market Report
      First Quarter 2017 Reno Industrial Market Report
      Fourth Quarter 2016 Reno Industrial Market Report
      Third Quarter 2016 Reno Industrial Market Report
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