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Industrial Market Research/Reports

  1. Washington

    1. Seattle Industrial Market Report
      First Quarter 2017

      The industrial market continued its strong performance starting 2017 with another robust quarter of leasing activity. 2.0 million s.f. was absorbed in the first quarter and with deliveries of nearly 974,000 s.f., brought the vacancy rate down to its lowest point ever in the region at 3.02%. Construction activity remains very active with 3.35 million s.f. underway. Absorption should continue to do well as 46% of these projects are pre-leased.

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

    1. Portland Industrial Market Report
      First Quarter 2017

      The Portland industrial real estate (excluding flex) market continued to grow during the first quarter of 2017, with 508,474 square feet of positive net absorption inching the total vacancy rate down to 3.5%, despite 496,567 square feet of new construction deliveries. Asking rental rates steadied at $0.55 on a blended triple-net basis, varying by size, quality, and location of product, with superior offerings seeing 12% year-over-year rent growth and others closer to 5%. Leasing and investment activity both dipped from last year's quarterly totals, but demand remains strong, keeping vacancies low as new product is quickly absorbed and vacated spaces are backfilled.

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

    1. Inland Empire Industrial Market Report
      First Quarter 2017

      The Inland Empire industrial market continued to improve in the first quarter 2017, as asking lease rates continued to increase. 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 with new inventory being added each quarter there is a possibility of upward pressure on vacancy but only in the short run.

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

      The Los Angeles industrial market continued to improve in first quarter of 2017, as pricing continued to trend upward, and both vacancy and availability rates remain at historically low levels. 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. We expect moderate increases in leasing and sales activity in 2017, as job creation stays strong. Furthermore, we anticipate gains in absorption to continue even as occupancy costs rise, and with few deliveries in the pipeline to apply upward pressure on vacancy, we foresee 2017 being another strong year of growth for the sector.

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

      After reaching record-low vacancies during the fourth quarter of 2016, the East Bay industrial market loosened slightly to begin 2017, but demand remains strong for the area's logistically superior product. This quarter's 325,845 square feet of negative net absorption brought the vacancy rate up to 3.4%, but the loss was a blip on the radar compared to the East Bay's 2.5 million square foot gain in occupied industrial space last year. Rental rates continued to rise throughout the region, to averages of $0.71 for all industrial product, $0.65 for bulk warehouse/ distribution spaces, and $1.55 for flex product.

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

      The Orange County industrial market continued to improve in the first quarter of 2017, as pricing continued to trend upward. With the amount of overall vacant space decreasing by over 3.2% year-over-year, vacancy remains at historically low levels. 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. Moderate increases are expected in leasing and sales activity in the coming year, as job creation stays strong. Even with rising occupancy costs, gains in absorption are anticipated throughout the year, and with very few deliveries in the pipeline to apply upward pressure on vacancy, 2017 will most likely be another year of growth.

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

      The Peninsula industrial market cooled off during the first quarter of 2017 after experiencing five consecutive quarters with positive absorption. A decrease in transaction volume led to 255,781 s.f. of negative net absorption, which was primarily felt in the north county region. Record-setting rental rates were likely a contributing factor to the first quarter's slowdown, but asking rents started to plateau after the dip in activity. As rates begin to soften, leasing activity will likely resume as the north county region remains a highly desirable location for warehouse and distribution users. Nonetheless, limited availabilities will continue to make it difficult for users to find suitable space to fit their requirements.

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

      The Sacramento industrial and flex real estate market started 2017 with a bang, as 1,374,529 square feet of positive net absorption brought vacancies across the area to new cycle lows. Direct-lease vacancies in industrial buildings fell to 7.2%, despite 423,734 square feet of new deliveries, underscoring users' insatiable appetite for space in the logistically superior corners of the market. Rental rates overall held at $0.44 per square foot, but newer, Class A buildings were achieving well over $0.50/sf as bulk space became increasingly hard to come by.

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

      The San Diego County industrial real estate market started the year with negative absorption in spite of heavy leasing activity as a result of several large move outs and new construction deliveries. Countywide total vacancy rose this quarter by 40 basis points, to 5.5%, which is still below the 5.6% vacancy recorded at the beginning of last year. Despite this quarter's setback, vacancy and availability are forecasted to drop as new construction gets leased before hitting the market. The San Diego County unemployment rate sits at 4.5%, a decrease of 20 basis points from a year ago, and we expect the strong local economy and increasing job growth to drive the real estate market in 2017.

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      First Quarter 2017 San Diego Industrial Market Report
      Fourth Quarter 2016 San Diego Industrial Market Report
      Third Quarter 2016 San Diego Industrial Market Report
      Second Quarter 2016 San Diego Industrial Market Report
    8. San Francisco Industrial Market Report
      Fourth Quarter 2016

      The San Francisco industrial market relaxed slightly in the fourth quarter of 2016, as 57,931 square feet of negative net absorption increased the vacancy rate to 3.6%. Nonetheless, asking rental rates rose to an average of $17.92 per square foot, triple-net, amid limited availabilities and a growing trend of creative reuse of industrial spaces. A slowdown in land-value sales has stabilized the city's industrial stock for now, and most landlords marketing recently vacated spaces quickly secured replacement tenants, suggesting a return to positive absorption in the early quarters of the new year. Still, the region's largest traditional industrial leases are being consummated in San Mateo County and the East Bay, where available space and expansive facilities are in much greater supply. In early 2016, the San Francisco Planning Department began to engage in stricter enforcement of its Production, Distribution, and Repair (PDR) zoning, aiming to reinvigorate the manufacturing sector of the city's economy and prevent further conversion or demolition of the city's industrial buildings.

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      Fourth Quarter 2016 San Francisco Industrial Market Report
      Third Quarter 2016 San Francisco Industrial Market Report
      Second Quarter 2016 San Francisco Industrial Market Report
      First Quarter 2016 San Francisco Industrial Market Report
    9. Silicon Valley Industrial Market Report
      First Quarter 2017

      The industrial and warehouse market remained very tight to open the year, as users seeking small and medium-sized spaces found scarce supply to meet their requirements. Net absorption for industrial and warehouse products were essentially flat, posting negative 24,853 square feet and negative 90,319 square feet respectively. Industrial vacancy was also relatively flat going from 4.90% in Q1 of 2016 to 4.95% this quarter, a very modest year over year increase. Warehouse vacancies were also increased year over year going from 3.76% to 2.46%. The average asking rate for industrial and warehouse were $1.15 and $0.95 per square foot per month on a triple-net basis respectively. Silicon Valley's industrial stock continues to decline, as investors buy older properties and repurpose them for other uses. Demand for well-placed product is still strong, but the lack of supply has forced users to look at the far edges of the Valley for suitable spaces. The limited supply paired with steady demand means rental rates figure to trend upward in the near future.

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

    1. Phoenix Industrial Market Report
      First Quarter 2017

      The Phoenix industrial real estate market started the year with strong leasing activity, increasing development and steady rental rates. Despite 1.6 million square feet of positive absorption, new deliveries of over two million square feet caused total vacancy to remain unchanged at 9.8%. We expect increased competition for space and higher rates to continue throughout 2017, in spite of new construction, as a result of the strong economy and business expansion.

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

    1. Reno Industrial Market Report
      First Quarter 2017

      The Reno industrial real estate market took a brief pause in the first quarter, catching its breath after a record-setting 2016. Nonetheless, this quarter's 246,547 square feet of negative net absorption is not indicative of a decline in demand, as the vacated spaces were quickly backfilled and leasing activity picked up toward the end of the period. Asking rents inched up to a bulk-rate average of $0.36 per square foot on a blended triple-net basis, with the increase primarily occurring in the 50,000-150,000 square foot range, as mid-size landlords responded to strong demand.

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