Market Reports

West Coast Summaries

West Coast Maps

Articles



Market Research

Industrial Market Research/Reports

  1. Washington

    1. Seattle Industrial Market Report
      First Quarter 2018

      The Puget Sound region's industrial market saw the vacancy rate inch up to 3.3% compared to the 3.0% at year end. The quarter saw delivery of 570,606 s.f., while absorption was a negative 457,147 s.f. This was surprising considering the high level of leasing activity that has occurred over the past seven-plus years. The consensus is that this was just an anomaly due to timing. During 1Q 2018 there were over 1.1M s.f. of leases signed, but most will not be moving into their new spaces until the second quarter, so we expect the vacancy to remain in the 3% and 4% range. Construction activity is still quite robust with 24 projects totaling 6.1M s.f. underway. Another 15.3M s.f. is in the pipeline, with the bulk of these in Pierce and Thurston Counties. Looking ahead, there isn't much cause for concern as all economic indicators still point to a healthy local economy.

      Downloads
      First Quarter 2018 Seattle Industrial Market Report
      Fourth Quarter 2017 Seattle Industrial Market Report
      Third Quarter 2017 Seattle Industrial Market Report
      Second Quarter 2017 Seattle Industrial Market Report
    Back to top
  2. Oregon

    1. Portland Industrial Market Report
      First Quarter 2018

      The Portland industrial real estate (excluding flex) market held its own in the first quarter of 2018, setting the stage for gains later in the year. While vacancies marketwide rose 70 basis points over the past three months, to 4.2%, the hike was largely attributable to the delivery of speculative developments rather than to givebacks from tenants in the area. Overall, metro Portland industrial properties saw 27,998 s.f. of negative net absorption in the quarter, and demand for functionally superior distribution space remains robust. Asking rental rates were essentially unchanged from the end of 2017, holding in the mid-$0.60s NNN on a blended triple-net basis marketwide, with desirable Class B industrial parks reporting asking shell rents in the high-$0.50s NNN.

      Downloads
      First Quarter 2018 Portland Industrial Market Report
      Fourth Quarter 2017 Portland Industrial Market Report
      Third Quarter 2017 Portland Industrial Market Report
      Second Quarter 2017 Portland Industrial Market Report
    Back to top
  3. California

    1. Inland Empire Industrial Market Report
      First Quarter 2018

      Setting the stage for gains later in the year, the Inland Empire's performance in Q1 2018 only further bolstered its reputation as the preeminent industrial market in the country. While vacancies marketwide edged up slightly, year-over-year, the rise was due to the delivery of speculative developments rather than the egress of tenants departing the area. In fact, with net absorption measuring in excess of 5.7 million square feet for the quarter, spurred by the unrelenting expansion of e-commerce and record high import shipments, occupier demand for industrial space in the Inland Empire, especially for functionally superior distribution space, has never been stronger.

      Downloads
      First Quarter 2018 Inland Empire Industrial Market Report
      Fourth Quarter 2017 Inland Empire Industrial Market Report
      Third Quarter 2017 Inland Empire Industrial Market Report
      Second Quarter 2017 Inland Empire Industrial Market Report
    2. Los Angeles Industrial Market Report
      First Quarter 2018

      Record-low vacancies and soaring rents continue to dominate in the Los Angeles industrial market. With the fundamentals of the industrial market remaining strong, the sector is performing at the highest levels. Despite the lack of product to transact, at 6.8 million s.f. this quarter, leasing activity is stable and healthy, setting the stage for gains later in the year. With direct occupancy gains of nearly 1.2 million s.f. year-to-date, the vacancy rate stands at 2.07% in the first quarter, up 27 basis points (bps) year-over-year. Unlike the Inland Empire, where construction of industrial space is at all-time highs, tenant demand is surpassing the capacity of developers to deliver new Industrial product because of the dearth of land to develop and its prohibitively high cost in Los Angeles.

      Downloads
      First Quarter 2018 Los Angeles Industrial Market Report
      Fourth Quarter 2017 Los Angeles Industrial Market Report
      Third Quarter 2017 Los Angeles Industrial Market Report
      Second Quarter 2017 Los Angeles Industrial Market Report
    3. Oakland/East Bay Industrial Market Report
      First Quarter 2018

      East Bay industrial landlords continued to benefit from robust demand during 1Q18, while developers and institutional buyers raced to provide high-quality distribution spaces to capitalize on the active market. Despite several givebacks over the past three quarters, the vacancy rate was 3.0% marketwide at quarter's end, and virtually all submarkets were well below 5.0%. An increase in availabilities, driven in part by cycle-high construction levels, allowed for 1.15M s.f. of first quarter leasing activity, with more likely to come later this year. More than 2.2M s.f. of future industrial space was being built in the East Bay at the end of the first quarter, but the broad base of tenants in the market should keep rental rates firm against the increase in supply. State-of-the-art spaces have enjoyed a 20% jump in rents over the past 12 months, attracting investors from around the country to purchase, renovate, and reposition industrial assets along I-880.

      Downloads
      First Quarter 2018 Oakland/East Bay Industrial Market Report
      Fourth Quarter 2017 Oakland/East Bay Industrial Market Report
      Third Quarter 2017 Oakland/East Bay Industrial Market Report
      Second Quarter 2017 Oakland/East Bay Industrial Market Report
    4. Orange County Industrial Market Report
      First Quarter 2018

      The Orange County industrial market continued to improve in 1Q 2018, as pricing continued to trend upward. Vacancy levels remained at historically low levels, stabilizing at 2.0%, an increase of 10 basis points from 4Q 2017. With conversions from industrial to other property types becoming the norm, low vacancies shall continue throughout the market. Moderate increases are expected in sales and leasing activity in 2018, to the extent that available supply allows. Furthermore, gains are anticipated in absorption, even as occupancy costs continue to rise. With minimal deliveries in the pipeline to apply substantial pressure on vacancy, 2018 is proving to be another strong year for growth.

      Downloads
      First Quarter 2018 Orange County Industrial Market Report
      Fourth Quarter 2017 Orange County Industrial Market Report
      Second Quarter 2017 Orange County Industrial Market Report
      Fourth Quarter 2016 Orange County Industrial Market Report
    5. Peninsula/San Mateo County Industrial Market Report
      Fourth Quarter 2017

      The Peninsula industrial market ended the year on a high note, reporting 294,592 s.f. of positive net absorption in the fourth quarter. Vacancy rates in industrial properties fell by 60 basis points to 2.2% this quarter, while R&D product showed a 3.2% vacancy rate marketwide. The tight market is keeping rental rates relatively stable, at an average of $1.37 NNN for industrial space and $2.50 NNN for R&D offerings. The North County submarkets remain a strong region for logistics and warehouse centers, driving tenant demand in this portion of the Peninsula. Moving into 2018, tight conditions are likely to preserve low vacancies and firm rental rates, while leasing activity and absorption will be constrained by the lack of spaces available to new and expanding tenants.

      Downloads
      Fourth Quarter 2017 Peninsula/San Mateo County Industrial Market Report
      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
    6. Sacramento Industrial Market Report
      First Quarter 2018

      The industrial market in the greater Sacramento area showed no signs of slowing down in the first quarter with 1,560,102 sf of positive net absorption. NNN overall lease rates have risen to a record high of $0.45 while vacancy reached a record low of 4.5%. The first quarter of 2018 saw a 37.5% decrease in vacancy by the strength of 1,560,102 square feet in positive net absorption. With vacancy dropping to 4.5%, and availability at 6.5% developers try to keep up with warehouse and distribution space in demand. Anticipating more lease rate increases, investors continue to bet on Sacramento for the industrial supply and demand.

      Downloads
      First Quarter 2018 Sacramento Industrial Market Report
      Fourth Quarter 2017 Sacramento Industrial Market Report
      Third Quarter 2017 Sacramento Industrial Market Report
      Second Quarter 2017 Sacramento Industrial Market Report
    7. San Diego Industrial Market Report
      First Quarter 2018

      The San Diego industrial real estate market started the year off on solid footing and continued to expand at the end of 1Q18. Rental rates are still at the highest numbers the market has ever come across, and vacancy and availability rates are staying in the record lows, only further increasing the competition for space. The industrial market is proving to be one of the strongest property sectors due to robust fundamentals, and is booming as occupiers are expanding and modernizing their distribution channels to meet the rising demand of the strong economy and the rapid rise of e-commerce sales. Overall employment growth remains positive, as the San Diego County unemployment rate sits at 3.5%, below the year-ago estimate of 4.4% and well below the unadjusted unemployment rate of 4.5% for California and the rate of 4.4% for the nation. According to the State of California's Employment Development Department, San Diego County's total non-farm employment increased by a better than average 27,900 jobs year over year between February 2017-2018. This robust local economy and increase in job growth is expected to help drive the industrial market in the right direction in the coming year.

      Downloads
      First Quarter 2018 San Diego Industrial Market Report
      Fourth Quarter 2017 San Diego Industrial Market Report
      Third Quarter 2017 San Diego Industrial Market Report
      Second Quarter 2017 San Diego Industrial Market Report
      Fourth Quarter 2016 San Diego Industrial Market Report
    8. Silicon Valley Industrial Market Report
      First Quarter 2018

      The industrial and warehouse markets posted positive gains once again to open up 2018. Net absorption for industrial and warehouse products was healthy, posting positive 527,395 s.f. and positive 499,778 s.f., respectively. Vacancies dropped to astounding lows with 1.70% and 1.80%, respectively. The average asking rate for industrial space increased to $1.31 and warehouse is now at $1.14/s.f./month on a triple-net basis. Silicon Valley's industrial and warehouse properties do not have much room left to improve, and new construction is crucial to the future success of this product. Demand remains strong, but the lack of supply has forced users to look at the far edges of the Valley for suitable spaces. The constrained supply paired with robust demand indicates rental rates figure to trend further upward in the near future.

      Downloads
      First Quarter 2018 Silicon Valley Industrial Market Report
      Fourth Quarter 2017 Silicon Valley Industrial Market Report
      Third Quarter 2017 Silicon Valley Industrial Market Report
      Second Quarter 2017 Silicon Valley Industrial Market Report
    Back to top
  4. Arizona

    1. Phoenix Industrial Market Report
      First Quarter 2018

      The Phoenix Industrial real estate market started the year with strong leasing activity, increasing development and post-recession record high in rental rates and record low in vacancy. Net absorption posted at a solid 1.3 million square feet of positive absorption, and the development pipeline has hit a record high of approximately 6.3 million square feet currently under construction.

      Downloads
      First Quarter 2018 Phoenix Industrial Market Report
      Fourth Quarter 2017 Phoenix Industrial Market Report
      Third Quarter 2017 Phoenix Industrial Market Report
      Second Quarter 2017 Phoenix Industrial Market Report
      First Quarter 2017 Phoenix Industrial Market Report
    Back to top
  5. Nevada

    1. Reno Industrial Market Report
      First Quarter 2018

      A steady but relatively quiet first quarter in the Reno industrial market promises to give way to more activity in the months to come, as showings, property inquiries, and letters of intent signaled the early stages of considerable second and third-quarter transactions. The Reno industrial market experienced 909,811 square feet of gross absorption during the quarter, driving the vacancy rate down to 3.61%.

      Downloads
      First Quarter 2018 Reno Industrial Market Report
      Fourth Quarter 2017 Reno Industrial Market Report
      Third Quarter 2017 Reno Industrial Market Report
      Second Quarter 2017 Reno Industrial Market Report
    Back to top
Subscribe to our Market Research