Global Industrial Highlights 2H2010

Page 1

SECOND HALF 2010 | INDUSTRIAL

GLOBAL INDUSTRIAL

HIGHLIGHTS

Industrial Markets Worldwide Showing Signs of Recovering ROSS J. MOORE Chief Economist | USA EUROPE, MIDDLE EAST, AFRICA (EMEA)

GLOBAL INDUSTRIAL CAPITALIZATION RATES (Prime Yield/Percent) MARKET (Select Markets)

DEC. 2010

JUNE 2010

Hong Kong London – Heathrow New Jersey – Northern Singapore Tokyo Vancouver Munich Paris Chicago Marseille Shanghai Seoul Madrid Dallas-Ft. Worth Sydney Los Angeles – Inland Empire Prague Atlanta Mexico City Bucharest

4.50 6.00 6.00 6.00 6.20 6.50 7.00 7.00 7.15 7.20 7.25 8.00 8.25 8.30 8.30 8.50 9.00 9.00 9.20 10.00

4.75 6.00 7.00 8.00 6.20 6.50 7.10 7.25 7.50 7.75 8.50 8.00 8.25 8.50 8.30 9.00 9.50 9.70 9.00 10.00

GLOBAL PRIME LAND PRICES

MARKET (Select Markets)

DEC. 2010 (USD PSF)

Hong Kong 1,035.00 Tokyo 509.39 Singapore 80.43 London - Heathrow 56.82 Seoul 49.18 Shanghai 32.33 Melbourne 23.04 Beijing 18.51 Antwerp 18.47 Milan 15.40 Hamburg 14.78 Leeds 10.65 Toronto 9.88 Los Angeles - Inland Empire 9.23 Helsinki 8.25 Paris 8.01 Lyon 6.77 Chicago 5.25 Dallas - Fort Worth 1.60 Atlanta 1.00

6-MONTH CHANGE* (%)

9.0 -2.6 10.7 10.3 0.0 15.0 3.3 11.8 11.1 -16.7 0.0 0.0 0.0 -13.8 0.0 0.0 0.0 5.0 28.0 -33.3

*Local Currency

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European, Middle Eastern and African warehouse leasing markets only managed to register modest growth in the second half of 2010. Greece, Hungary, Ireland, Norway, Spain, and the Baltic states in particular remained key areas of weakness. Even though signs of recovery were evident in some parts of the region, various markets were still characterized by sluggish leasing activity and little expansion. Warehouse rents again held steady during the second half of 2010, repeating a pattern witnessed during the first six months of the year. Noticeable declines, however, were recorded in Ireland, Austria, Italy, Northern Ireland and the Ukraine. Europe is home to some of the most expensive warehouse rents in the world, with London’s Heathrow submarket holding the title for the third most expensive warehouse space in the world at $20.11 USD/£12.96 GBP per square foot per year. Within the EMEA region, industrial land values in London’s Heathrow submarket remain far in excess of any other market in the region. At year-end, Heathrow land values averaged $56.82/£36.73 GBP per square foot, an increase of 10.3% during the second half of 2010 (local currency).

NORTH AMERICA U.S. and Canadian warehouse markets registered a noticeable pick-up in leasing activity in the second half of 2010. Warehouse users, sensing a sustainable recovery, began to wade cautiously back into the market. U.S. demand for warehouse space was concentrated in a number of port-related markets, while in Canada most markets enjoyed a fairly brisk six-month period. With a return of demand, and continued drop-off in both Canadaian and U.S. construction, vacancies in both countries moved lower. With both the U.S. and Canadian economies showing signs of recovery, industrial leasing markets are expected to remain relatively robust with a noticeable improvement in fundamentals by the second half of 2011. Occupancy gains are expected to be sizeable,

GLOBAL TOP TEN INDUSTRIAL WAREHOUSE RENTS RENT

MARKET Tokyo London – Heathrow Zurich Hong Kong Geneva Oslo Singapore São Paulo Helsinki Moscow

6-MONTH CHANGE

(USD/ PSF/Year)

(Local Currency, %)

22.56 20.11 17.78 17.08 16.79 15.75 15.71 15.69 14.41 13.38

-2.9 0.0 0.0 5.2 6.2 11.1 8.3 2.2 2.6 0.0

given healthy gains in manufacturing and a continued bounce-back in consumer spending. Although fundamentals will improve as the year unfolds, rents are expected to remain largely directionless for the balance of 2011. During the second half of 2010 U.S. rents fell 2.9% while Canadian rents increased just 0.2%. No North American markets ranked in the top ten highest rents, although Honolulu did come in at number 11 at $11.88 USD per square foot, per annum.

ASIA PACIFIC Asia Pacific remained the most robust region in the world, with exports posting healthy growth rates in many countries. With the region registering healthy economic growth, and exporters boosting sales both within the region and globally, rents were steady or up in most markets. At press time, we cannot gauge the effects of the March 11 earthquake and tsunami on Japan’s economy in 2011. However, it is safe to assume Japanese growth, and more importantly trade, will be adversely affected. Trade across the region will feel the effects of Japan’s devastating earthquake and tsunami; as a result, demand for warehouse space is expected to be sluggish relative to 2010. Tokyo, Hong Kong and Singapore warehouse rents all ranked in the top ten, with Tokyo lease rates the most expensive in the world at $22.56 USD per square foot, per annum/¥1,650.00 JPY per square meter, per month.


HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY RENTS MEASURE MARKET

COUNTRY

QUOTED CURRENCY

UNIT

TIME PERIOD

EUR EUR EUR EUR EUR EUR EUR DKK EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR ILS EUR EUR EUR EUR EUR NOK EUR EUR EUR EUR USD USD EUR EUR ZAR ZAR ZAR EUR SEK CHF CHF USD USD GBP GBP GBP

SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SF SF SF

Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Year Year Year

PRIME WAREHOUSE RENT (LOCAL MEASURE/ CURRENCY)

PRIME WAREHOUSE RENT, 6-MONTH CHANGE (%)

PRIME BULK RENT (LOCAL MEASURE/ CURRENCY)

5.50 10.00 3.70 3.80 4.50 6.00 4.40 37.50 4.00 9.75 4.60 4.60 5.20 4.80 7.50 5.20 5.60 5.00 6.50 5.50 6.30 5.30 5.50 4.00 40.00 4.90 5.00 3.50 3.90 7.50 83.33 5.50 5.50 6.70 4.40 12.00 9.20 5.00 3.90 50.00 45.00 55.00 6.00 66.67 14.17 15.00 6.00 6.00 4.00 5.25 7.50

-8.3 0.0 3.3 1.3 -6.3 0.0 -4.3 -5.3 0.0 2.6 0.4 0.4 0.6 -0.7 0.0 0.6 1.8 2.0 0.0 1.9 0.0 1.9 0.0 -4.8 5.3 -2.0 -7.7 0.0 0.0 0.0 11.1 0.0 0.0 -10.7 -2.2 0.0 0.0 25.0 0.0 25.0 7.1 0.0 0.0 0.0 6.2 0.0 20.0 -14.3 -11.1 0.0 7.1

5.00 7.00 3.30 3.30 3.50 5.50 3.60 37.50 3.60 7.50 3.50 3.50 3.60 3.40 4.40 3.50 4.20 4.40 5.90 5.50 5.25 6.00 4.50 3.60 35.00 4.58 5.00 3.20 3.20 5.40 75.00 4.50 3.75 6.00 4.25 10.50 8.10 4.00 3.20 45.00 42.00 48.00 3.50 47.92 10.83 13.33 6.00 5.50 4.00 5.00 5.50

PRIME LAND VALUE (LOCAL MEASURE/ CURRENCY)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

Vienna Minsk Antwerp Brussels Sofia Zagreb Prague Copenhagen Tallinn Helsinki Bordeaux Lille Lyon Marseilles Paris Toulouse Berlin Düsseldorf Frankfurt Hamburg Munich Stuttgart Athens Budapest Tel Aviv Milan Rome Riga Vilnius Amsterdam Oslo Warsaw Lisbon Dublin Bucharest Moscow Saint Petersburg Belgrade Bratislava Cape Town Durban Johannesburg Madrid Stockholm Geneva Zurich Istanbul Kyiv Belfast Birmingham Bristol P. 2

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Austria Belarus Belgium Belgium Bulgaria Croatia Czech Republic Denmark Estonia Finland France France France France France France Germany Germany Germany Germany Germany Germany Greece Hungary Israel Italy Italy Latvia Lithuania Netherlands Norway Poland Portugal Republic of Ireland Romania Russia Russia Serbia Slovakia South Africa South Africa South Africa Spain Sweden Switzerland Switzerland Turkey Ukraine United Kingdom United Kingdom United Kingdom

250.00 – 150.00 160.00 59.00 82.00 74.00 800.00 25.00 67.00 52.00 45.00 55.00 58.00 65.00 48.00 110.00 160.00 220.00 120.00 200.00 250.00 91.00 64.00 – 125.00 50.00 20.00 17.00 375.00 1,300.00 96.00 125.00 70.00 63.00 157.00 95.00 65.00 66.00 1,326.00 1,400.00 700.00 375.00 600.00 350.00 – – 62.00 6.31 6.31 6.31


HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY RENTS

MARKET

PRIME WAREHOUSE RENT (LOCAL MEASURE/ CURRENCY)

PRIME WAREHOUSE RENT, 6-MONTH CHANGE (%)

PRIME BULK RENT(LOCAL MEASURE/ CURRENCY)

PRIME LAND VALUE (LOCAL MEASURE/ CURRENCY)

QUOTED CURRENCY

UNIT

TIME PERIOD

United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom

GBP GBP GBP GBP GBP

SF SF SF SF SF

Year Year Year Year Year

7.00 6.00 5.50 13.00 5.75

0.0 0.0 0.0 0.0 0.0

4.50 5.00 5.00 12.00 4.25

5.74 3.44 6.89 36.73 6.31

Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD

SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

7.75 6.80 7.00 4.00 7.25 8.50 9.00 4.98 6.50 12.00 4.07 4.50 3.08 4.00 4.66 4.50 4.50 3.65 3.34 3.84 2.93 3.46 3.75 2.49 3.00 3.50 3.97 5.28 2.40 6.67 2.75 4.28 11.88 4.96 3.71 3.50 3.97 4.80 2.67 5.64 3.60 3.34 2.54 6.80 3.99

14.8 -2.9 0.0 0.0 -0.7 6.3 0.0 -2.9 0.0 – -17.1 – -1.9 0.0 -1.1 0.0 – 1.4 -3.2 1.9 -3.9 0.0 0.0 -16.4 0.0 0.0 -1.0 -6.4 0.0 -7.4 -8.3 0.0 5.3 1.2 – 0.0 -1.2 -4.2 -25.2 -3.6 -5.3 -3.2 -0.8 -12.5 0.5

6.50 6.15 5.50 4.00 6.25 6.50 8.00 4.56 5.75 10.00 3.54 4.00 2.84 3.92 – 4.50 4.95 4.00 – 2.69 2.93 – 3.75 2.46 2.70 3.25 3.52 – 2.28 6.43 2.95 4.28 – 4.32 2.96 3.00 4.19 4.71 2.74 5.28 3.48 – 2.49 7.04 3.13

12.05 14.60 4.25 11.00 6.75 5.75 9.11 9.88 22.50 – 7.46 11.40 1.00 2.50 – 1.75 3.75 2.65 – 5.25 1.72 – 1.10 1.84 1.60 5.00 – 7.00 2.00 – 0.86 1.49 – 2.50 1.96 – – 5.29 6.10 16.81 9.23 – 1.25 14.07 –

COUNTRY

EUROPE, MIDDLE EAST AND AFRICA (EMEA) continued

Edinburgh Glasgow Leeds London – Heathrow Manchester NORTH AMERICA

Calgary Edmonton Halifax Montreal Ottawa Regina Saskatoon Toronto Vancouver Victoria Waterloo Region Winnipeg Atlanta Bakersfield Baltimore Boise Boston Charleston Charlotte Chicago Cincinnati Cleveland Columbia Columbus Dallas-Ft. Worth Denver Detroit Fairfield Fresno Ft. Lauderdale-Broward County Greenville Hartford Honolulu Houston Indianapolis Jacksonville Kansas City Las Vegas Little Rock Los Angeles Los Angeles – Inland Empire Louisville Memphis Miami Nashville

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HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY RENTS

MARKET

QUOTED CURRENCY

UNIT

TIME PERIOD

United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States

USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD

SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF SF

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

Australia Australia Australia Australia Australia China China China China India Indonesia Japan New Zealand New Zealand New Zealand Singapore South Korea Thailand Vietnam

AUD AUD AUD AUD AUD RMB RMB HKD RMB INR IDR JPY NZD NZD NZD SGD KRW THB USD

SM SM SM SM SM SM SM SF SM SF SM SM SM SM SM SF SM SM SM

Year Year Year Year Year Month Month Month Month Month Month Month Year Year Year Month Month Month Month

Argentina Brazil Chile Colombia Costa Rica Mexico Peru

USD REAL USD USD USD USD USD

SM SM SM SM SM SM SM

Month Month Month Month Month Month Month

COUNTRY

PRIME WAREHOUSE RENT (LOCAL MEASURE/ CURRENCY)

PRIME WAREHOUSE RENT, 6-MONTH CHANGE (%)

PRIME BULK RENT (LOCAL MEASURE/ CURRENCY)

PRIME LAND VALUE (LOCAL MEASURE/ CURRENCY)

NORTH AMERICA continued

New Jersey – Central New Jersey – Northern Oakland Orange County Orlando Philadelphia Phoenix Pleasanton/Walnut Creek Portland Raleigh Reno Sacramento San Diego San Francisco Peninsula San Jose/Silicon Valley Savannah Seattle/Puget Sound St. Louis Stockton/San Joaquin County Tampa Washington, DC West Palm Beach

4.66 5.93 4.32 6.96 4.57 4.00 5.42 4.80 4.97 3.95 3.48 4.41 7.92 9.24 4.44 3.95 5.62 3.93 3.96 4.20 7.74 7.14

-1.5 -8.2 -2.7 -3.5 -3.4 0.0 26.0 0.0 -5.9 -3.4 -3.3 5.0 1.5 -3.7 -18.7 – -21.7 1.6 -2.9 -5.0 0.8 -12.2

3.77 5.63 2.88 5.76 4.11 3.75 4.18 4.20 4.64 – 3.20 3.77 7.08 9.24 5.04 3.75 – – 3.48 3.96 – 6.40

11.25 13.45 12.95 18.00 – 3.10 2.30 6.80 1.50 – 2.38 8.00 7.08 – – 2.00 4.70 – 3.50 – – 6.00

110.00 110.00 86.00 110.00 133.00 30.19 26.00 11.10 31.93 32.00 29,375.00 1,650.00 103.00 83.00 81.00 1.69 12,000.00 150.00 5.00

0.0 -8.3 1.2 10.0 0.0 0.9 4.0 5.2 1.4 6.7 9.2 -2.9 -1.0 -7.8 -9.0 8.3 0.0 – –

85.00 85.00 86.00 80.00 96.00 27.10 26.00 9.04 27.38 30.00 – 1,700.00 – – – 1.30 12,000.00 100.00 3.50

495.00 275.00 252.00 550.00 390.00 1,317.00 600.00 8,073.00 2,300.00 4,000.00 819,971.00 447,000.00 290.00 225.00 275.00 103.86 600,000.00 2,557.00 150.00

6.30 23.50 5.49 11.50 6.50 5.40 6.00

5.0 2.2 21.5 5.5 -7.1 10.2 20.0

6.00 20.50 4.58 10.00 8.50 5.40 5.00

70.00 320.00 119.99 190.00 80.00 179.00 250.00

ASIA PACIFIC

Adelaide Brisbane Melbourne Perth Sydney Beijing Guangzhou Hong Kong Shanghai-Pudong Delhi Jakarta Tokyo Auckland Christchurch Wellington Singapore Seoul Chonburi Province Ho Chi Minh City LATIN AMERICA

Buenos Aires São Paulo Santiago Bogotá San José Mexico City Lima

P. 4

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HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | U.S. DOLLAR RENTS | VACANCY RATES | INVESTMENT RATES

MARKET

COUNTRY

EXCHANGE RATE (USD) DEC. 31, 2010

PRIME WAREHOUSE RENT (USD/SF/YEAR)

PRIME BULK RENT (USD/SF/YEAR)

PRIME LAND VALUE (USD/SF)

8.13 14.78 5.47 5.62 6.65 8.87 6.50 7.44 5.91 14.41 6.80 6.80 7.69 7.09 11.08 7.69 8.28 7.39 9.61 8.13 9.31 7.83 8.13 5.91 12.55 7.24 7.39 5.17 5.76 11.08 15.75 8.13 8.13 9.90 6.50 13.38 10.26 7.39 5.76 8.39 7.55 9.23 8.87 10.96 16.79 17.78 6.69 6.69 6.19 8.12 11.60

7.39 10.35 4.88 4.88 5.17 8.13 5.32 7.44 5.32 11.08 5.17 5.17 5.32 5.02 6.50 5.17 6.21 6.50 8.72 8.13 7.76 8.87 6.65 5.32 10.98 6.77 7.39 4.73 4.73 7.98 14.17 6.65 5.54 8.87 6.28 11.71 9.03 5.91 4.73 7.55 7.05 8.05 5.17 7.88 12.84 15.81 6.69 6.13 6.19 7.73 8.51

30.79 – 18.47 19.71 7.27 10.10 9.11 13.23 3.08 8.25 6.40 5.54 6.77 7.14 8.01 5.91 13.55 19.71 27.10 14.78 24.63 30.79 11.21 7.88 – 15.40 6.16 2.46 2.09 46.19 20.47 11.82 15.40 8.62 7.76 14.59 8.83 8.01 8.13 18.54 19.58 9.79 46.19 8.22 34.57 – – 5.76 9.77 9.77 9.77

VACANCY RATE (%) DEC. 2010

PRIME YIELD/ 10-YEAR CAP RATE GOVT. BOND (%) RATE (%)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

Vienna Minsk Antwerp Brussels Sofia Zagreb Prague Copenhagen Tallinn Helsinki Bordeaux Lille Lyon Marseilles Paris Toulouse Berlin Düsseldorf Frankfurt Hamburg Munich Stuttgart Athens Budapest Tel Aviv Milan Rome Riga Vilnius Amsterdam Oslo Warsaw Lisbon Dublin Bucharest Moscow Saint Petersburg Belgrade Bratislava Cape Town Durban Johannesburg Madrid Stockholm Geneva Zurich Istanbul Kyiv Belfast Birmingham Bristol

Austria Belarus Belgium Belgium Bulgaria Croatia Czech Republic Denmark Estonia Finland France France France France France France Germany Germany Germany Germany Germany Germany Greece Hungary Israel Italy Italy Latvia Lithuania Netherlands Norway Poland Portugal Republic of Ireland Romania Russia Russia Serbia Slovakia South Africa South Africa South Africa Spain Sweden Switzerland Switzerland Turkey Ukraine United Kingdom United Kingdom United Kingdom

* Indicates quoted vacancy rate based on A+B class stock only

0.75 0.75 0.75 0.75 0.75 0.75 0.75 5.62 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 3.55 0.75 0.75 0.75 0.75 0.75 5.90 0.75 0.75 0.75 0.75 1.00 1.00 0.75 0.75 6.65 6.65 6.65 0.75 6.78 0.94 0.94 1.00 1.00 0.65 0.65 0.65

– 6.0* 6.0 5.5 16.0* 15.0* 18.0* 5.8 19.0 4.7 8.0 7.5 8.0 7.5 7.0 7.0 – – 4.0 – 2.6 – 9.0* 20.8* – 8.5 – 34.0 9.5 13.4 – 22.0* – 17.0 15.4* 6.0* 21.9* 15.0* 7.7* 7.0 – 7.0 – – – – – 19.0* – – –

8.50 17.00 7.10 7.00 11.00 10.50 9.00 7.50 9.50 8.00 7.75 7.20 7.20 7.20 7.00 7.75 7.70 7.50 6.75 7.20 7.00 7.30 8.75 9.00 8.75 8.00 8.00 11.25 11.00 7.50 6.50 8.25 7.75 8.50 10.00 11.00 14.00 11.00 8.50 9.25 12.00 9.50 8.25 6.75 7.25 7.50 9.00 14.00 6.75 7.50 7.50

3.65 – 4.23 4.23 – – 3.98 3.52 – 3.51 3.67 3.67 3.67 3.67 3.67 3.67 3.31 3.31 3.31 3.31 3.31 3.31 11.16 7.41 4.11 4.75 4.75 – – 3.49 – 6.28 7.26 8.5 – 5.48 5.48 – 3.75 8.44 8.44 8.44 5.29 3.46 1.87 1.87 9.26 3.97 – 3.97 3.97

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HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | U.S. DOLLAR RENTS | VACANCY RATES | INVESTMENT RATES

MARKET

COUNTRY

EXCHANGE RATE (USD) DEC. 31, 2010

PRIME WAREHOUSE RENT (USD/SF/YEAR)

PRIME BULK RENT (USD/SF/YEAR)

PRIME LAND VALUE (USD/SF)

VACANCY RATE (%) DEC. 2010

PRIME YIELD/ 10-YEAR CAP RATE GOVT. BOND (%) RATE (%)

EUROPE, MIDDLE EAST AND AFRICA (EMEA) continued

Edinburgh Glasgow Leeds London – Heathrow Manchester

United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom

0.65 0.65 0.65 0.65 0.65

10.83 9.28 8.51 20.11 8.89

6.96 7.73 7.73 18.56 6.57

8.88 5.33 10.65 56.82 9.77

– – – – –

7.50 7.50 7.50 6.00 7.00

3.97 3.97 3.97 3.97 3.97

Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

7.75 6.80 7.00 4.00 7.25 8.50 9.00 4.98 6.50 12.00 4.07 4.50 3.08 4.00 4.66 4.50 4.50 3.65 3.34 3.84 2.93 3.46 3.75 2.49 3.00 3.50 3.97 5.28 2.40 6.67 2.75 4.28 11.88 4.96 3.71 3.50 3.97 4.80 2.67 5.64 3.60 3.34 2.54 6.80 3.99

6.50 6.15 5.50 4.00 6.25 6.50 8.00 4.56 5.75 10.00 3.54 4.00 2.84 3.92 – 4.50 4.95 4.00 – 2.69 2.93 – 3.75 2.46 2.70 3.25 3.52 – 2.28 6.43 2.95 4.28 – 4.32 2.96 3.00 4.19 4.71 2.74 5.28 3.48 – 2.49 7.04 3.13

12.05 14.60 4.25 11.00 6.75 5.75 9.11 9.88 22.50 – 7.46 11.40 1.00 2.50 – 1.75 3.75 2.65 – 5.25 1.72 – 1.10 1.84 1.60 5.00 – 7.00 2.00 – 0.86 1.49 – 2.50 1.96 – – 5.29 6.10 16.81 9.23 – 1.25 14.07 –

5.4 4.1 5.0 6.2 5.8 1.3 2.7 6.0 4.1 – 8.4 3.0 14.0 9.7 10.6 10.9 21.4 11.2 14.0 11.7 8.1 9.5 7.0 12.7 11.6 7.7 15.4 15.8 7.9 9.4 10.6 9.3 4.7 6.2 9.0 11.1 7.0 15.8 14.0 5.2 11.1 12.2 13.3 9.1 13.9

7.00 – 8.10 8.25 8.10 7.80 7.50 7.00 6.50 – 7.50 7.25 9.00 9.50 – – – 7.75 – 7.15 8.00 – – 7.90 8.30 8.50 8.00 7.50 9.00 – 10.00 8.50 – 9.95 – 8.20 – – 9.00 7.75 8.50 – 9.50 7.50 9.00

3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.54 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64

NORTH AMERICA

Calgary Edmonton Halifax Montreal Ottawa Regina Saskatoon Toronto Vancouver Victoria Waterloo Region Winnipeg Atlanta Bakersfield Baltimore Boise Boston Charleston Charlotte Chicago Cincinnati Cleveland Columbia Columbus Dallas-Ft. Worth Denver Detroit Fairfield Fresno Ft. Lauderdale-Broward County Greenville Hartford Honolulu Houston Indianapolis Jacksonville Kansas City Las Vegas Little Rock Los Angeles Los Angeles – Inland Empire Louisville Memphis Miami Nashville

P. 6

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HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

INDUSTRIAL SURVEY | U.S. DOLLAR RENTS | VACANCY RATES | INVESTMENT RATES

MARKET

COUNTRY

EXCHANGE RATE (USD) DEC. 31, 2010

PRIME WAREHOUSE RENT (USD/SF/YEAR)

PRIME BULK RENT (USD/SF/YEAR)

PRIME LAND VALUE (USD/SF)

VACANCY RATE (%) DEC. 2010

PRIME YIELD/ 10-YEAR CAP RATE GOVT. BOND (%) RATE (%)

NORTH AMERICA continued

New Jersey – Central New Jersey – Northern Oakland Orange County Orlando Philadelphia Phoenix Pleasanton/Walnut Creek Portland Raleigh Reno Sacramento San Diego San Francisco Peninsula San Jose/Silicon Valley Savannah Seattle/Puget Sound St. Louis Stockton/San Joaquin County Tampa Washington, DC West Palm Beach

United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

4.66 5.93 4.32 6.96 4.57 4.00 5.42 4.80 4.97 3.95 3.48 4.41 7.92 9.24 4.44 3.95 5.62 3.93 3.96 4.20 7.74 7.14

3.77 5.63 2.88 5.76 4.11 3.75 4.18 4.20 4.64 – 3.20 3.77 7.08 9.24 5.04 3.75 – – 3.48 3.96 – 6.40

11.25 13.45 12.95 18.00 – 3.10 2.30 6.80 1.50 – 2.38 8.00 7.08 – – 2.00 4.70 – 3.50 – – 6.00

10.8 7.6 9.5 5.8 12.4 9.4 17.2 11.2 8.1 12.4 14.9 13.3 11.3 9.7 13.0 19.3 7.8 7.9 17.9 11.2 12.8 10.3

– 6.00 7.00 7.00 – 8.50 9.50 – 8.45 – – 8.25 – 7.00 – 8.50 7.45 – 8.00 7.70 – 6.45

3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64 3.64

Australia Australia Australia Australia Australia China China China China India Indonesia Japan New Zealand New Zealand New Zealand Singapore South Korea Thailand Vietnam

1.02 1.02 1.02 1.02 1.02 6.61 6.61 7.80 6.61 45.55 9107.47 81.55 1.30 1.30 1.30 1.29 1133.79 30.19 1.00

10.06 10.06 7.86 10.06 12.16 5.09 4.39 17.08 5.39 8.43 3.60 22.56 7.36 5.93 5.79 15.71 11.80 5.54 5.58

7.77 7.77 7.86 7.32 8.78 4.57 4.39 13.91 4.62 7.90 – 23.25 – – – 12.08 11.80 3.69 3.90

45.27 25.15 23.04 50.30 35.66 18.51 8.43 1,035.00 32.33 87.82 8.37 509.39 20.72 16.07 19.65 80.43 49.18 7.87 13.94

– – – – – – – – 7.0 – 23.9 – 6.2 8.9 7.2 8.6 – 26.5 –

8.25 8.50 8.25 8.25 8.30 8.45 6.90 4.50 7.25 8.00 8.20 6.20 8.10 8.20 8.00 6.00 8.00 – 13.00

5.75 5.75 5.75 5.75 5.75 4.01 4.01 4.01 4.01 8.36 4.92 1.32 5.58 5.58 5.58 2.61 4.72 3.63 –

1.00 1.67 1.00 1.00 1.00 1.00 1.00

7.03 15.69 6.12 12.83 7.25 6.02 6.69

6.69 13.69 5.11 11.15 9.48 6.02 5.58

6.51 17.80 11.15 17.66 7.43 16.64 23.23

2.0 2.8 1.7 – 7.2 8.2 –

15.00 11.50 11.50 9.50 10.25 9.20 11.00

– 6.16 2.90 4.79 – 7.44 –

ASIA PACIFIC

Adelaide Brisbane Melbourne Perth Sydney Beijing Guangzhou Hong Kong Shanghai-Pudong Delhi Jakarta Tokyo Auckland Christchurch Wellington Singapore Seoul Chonburi Province Ho Chi Minh City LATIN AMERICA

Buenos Aires São Paulo Santiago Bogotá San José Mexico City Lima

Argentina Brazil Chile Colombia Costa Rica Mexico Peru

COLLIERS INTERNATIONAL |

P. 7


HIGHLIGHTS | SECOND HALF 2010 | INDUSTRIAL | GLOBAL

480 offices in 61 countries on 6 continents United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95 • $1.9

billion in annual revenue

billion square feet under management

• 2.4

• Over

15,000 professionals

COLLIERS INTERNATIONAL 601 Union Street, Suite 4800 Seattle, WA 98101 USA TEL +1 206 695 4200

Copyright © 2011 Colliers International.

GLOSSARY

GLOBAL RESEARCH CONTACTS

Bulk Space – 10,000 SM/100,000 SF or more with up to 10 percent office space, the balance being general industrial/ logistics/distribution space with 6 to 12 metre/18 to 36 SF ceiling heights. All loading is dock-height. Built in 1990 or later and standing in a prime industrial location.

AMERICAS

ASIA PACIFIC

Ross Moore USA ross.moore@colliers.com

Simon Lo Asia simon.lo@colliers.com

EUROPE, MIDDLE EAST AND AFRICA

Warehouse Space – 2,000 SM/20,000 SF or more with up to 15 percent office space, the balance being general industrial/logistics/ distribution space with 6 to 10 metre/18 to 30 SF ceiling heights. All loading is dock-height. Built in 1990 or later and standing in a prime industrial location.

Thomas Grounds EMEA thomas.grounds@colliers.com

Amit Oberoi India amit.oberoi@colliers.com

Land Value – Land values are based on prime logistics/ industrial locations and are based on approximately 3 acres/1.2 hectares/12,140 square metre/130,680 SF of serviced land. Prime Yield/Cap Rate – The yield for a prime logistics/ industrial property. Rent figures should be estimates of achievable open market rents for each location. SF = Square Feet

Mark Charlton United Kingdom mark.charlton@colliers.com Damian Harrington Central and Eastern Europe damian.harrington@colliers. com

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Nerida Conisbee Australia/New Zealand nerida.conisbee@colliers.com Yumiko Yasuda Japan yumiko.yasuda@colliers.com

Renaud Roger France rroger@colliers-ufgpm.fr Andreas Trumpp Germany andreas.trumpp@colliers.com

SM = Square Metres

Accelerating success.

WWW.COLLIERS.COM


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