global_industrial_1s

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First Half 2011 | INDUSTRIAL

GLOBAL INDUSTRIAL

HIGHLIGHTS

Industrial Real Estate Markets Holding Up Despite Softening Global Economy Ross J. Moore Chief Economist | USA Europe, Middle East, Africa (EMEA)

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

June 2011

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

4.40 6.00 5.89 4.70 6.20 6.00 6.90 6.80 6.90 7.20 8.76 8.00 8.00 8.00 8.25 5.25 8.50 8.99 9.50 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)

June 2011 6-MONTH (USD PSF)

Hong Kong 1,339.62 Tokyo 511.60 Singapore 94.62 London - Heathrow 62.65 Seoul 52.24 Shanghai 43.14 Melbourne 28.92 Beijing 19.37 Antwerp 18.89 Milan 17.27 Hamburg 16.19 Leeds 11.08 Toronto 10.80 Los Angeles - Inland Empire 10.15 Helsinki 9.45 Paris 8.77 Lyon 7.42 Chicago 5.75 Dallas - Fort Worth 1.60 Atlanta 1.25

CHANGE* (%)

29.12 (0.67) 11.83 6.18 0.00 30.43 15.08 2.28 (6.67) 2.40 0.00 0.19 5.36 9.97 4.48 0.00 0.00 9.52 0.00 25.00

*Local Currency

www.colliers.com

Despite widespread concerns over the effect of the sovereign debt crisis, European, Middle Eastern and African warehouse leasing markets largely maintained occupancies during the first half of 2011. Greece, Hungary, Ireland, Spain, and the Baltic states in particular remained key areas of weakness. Even though signs of growth were evident in some parts of the region, various markets were still characterized by sluggish leasing activity and little expansion. Warehouse rents again mostly held steady during the first half of 2011; however, lower rents were recorded in Athens, Dublin, Madrid, Minsk, Sofia and Zagreb. London’s Heathrow submarket continued to hold the title for the most expensive warehouse space in the region at $20.11 USD/£12.96 GBP per square foot per year. Within the EMEA region, industrial land values in London’s Heathrow submarket remained far in excess of any other market in the region. At midyear, Heathrow land values averaged $62.65/£39.00 GBP per square foot, an increase of 6.2% from the end of 2010 (local currency).

North America American and Canadian warehouse markets enjoyed a relatively robust six-month period with a healthy increase in occupancies and slight down-tick in vacancy levels. Solid demand for warehouse space in many markets coupled with minimal construction led to a modest decline in vacancies in many markets. Despite the increase in occupancy, warehouse rents registered a modest decrease, continuing a three-and-a-half-year trend. The outlook for the second half of 2011 is not so upbeat. With the economy decelerating and continued unease concerning the European sovereign debt crisis, many businesses are likely to delay expansion and reduce aggregate demand for warehouse space in the coming months. In spite of relatively robust exports (July yearover-year growth of 17 percent) and considerable growth in manufacturing, the macroeconomic

GLOBAL TOP TEN INDUSTRIAL WAREHOUSE RENTS RENT

MARKET Tokyo London (Heathrow) Zurich Hong Kong Geneva Singapore Oslo São Paulo Helsinki Marseilles

6-MONTH CHANGE

(USD/ PSF/Year)

(Local Currency, %)

22.81 20.88 19.88 18.97 18.77 18.57 17.28 17.06 16.19 16.19

0.0 0.0 0.0 10.8 0.0 12.4 0.0 4.2 2.6 8.7

environment has cooled significantly relative to the latter half of 2010.This will likely cause leasing activity to pull back in the coming months. All indications are that the manufacturing sector will stay relatively robust, but not enough to sustain the same growth in occupancy experienced over the last few quarters. During the first half of 2011, U.S. rents fell 0.3% while Canadian rents registered a very mild increase.

Asia Pacific Asia Pacific remained the most robust region in the Asia Pacific remained the bright spot within the world economy, with exports staying relatively strong and domestic spending holding up reasonably well. With the region still registering healthy economic growth, and exporters working through the effects of the earthquake and subsequent tsunami in Sendai in northern Japan, industrial leasing markets somewhat surprisingly suffered little adverse effect. Rents were steady or up in most markets during the first half of the year. With a number of central banks reigning in monetary policy to combat rising price pressures, leasing markets are expected to moderate in the coming months, but the long-term trend of elevated demand for warehouse space is unchanged. Tokyo, Hong Kong and Singapore warehouse rents all ranked in the top ten ,with Tokyo lease rates the most expensive in the world at $22.81 USD per square foot, per annum/¥1,650.00 JPY per square meter, per month.


highlights | First Half 2011 | industrial | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY rents

MEASURE MARKET

COUNTRY

QUOTED CURRENCY

UNIT

TIME PERIOD

PRIME WAREHOUSE RENT (LOCAL MEASURE/ CURRENCY)

PRIME WAREHOUSE RENT, 6-MONTH CHANGE (%)

PRIME BULK RENT (LOCAL MEASURE/ CURRENCY)

PRIME LAND VALUE (LOCAL MEASURE/ CURRENCY)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

Vienna

Austria

EUR

SM

Month

5.50

0.00

5.00

Minsk

Belarus

EUR

SM

Month

8.00

(20.00)

6.50

240.00

Antwerp

Belgium

EUR

SM

Month

3.70

0.00

3.20

140.00

Brussels

Belgium

EUR

SM

Month

3.70

(2.63)

3.20

150.00

Sofia

Bulgaria

EUR

SM

Month

4.00

(11.11)

3.50

58.91

Zagreb

Croatia

EUR

SM

Month

5.00

(16.67)

4.50

55.00

Prague

Czech Republic

EUR

SM

Month

Copenhagen

Denmark

DKK

SM

Year

4.30

(4.44)

3.80

76.00

450.00

0.00

450.00

800.00

Tallinn

Estonia

EUR

SM

Month

4.50

12.50

3.80

32.00

Helsinki

Finland

EUR

SM

Month

10.00

2.56

7.50

70.00

Bordeaux

France

EUR

SM

Month

6.25

(3.85)

3.50

52.00

Lille

France

EUR

SM

Month

4.60

0.00

3.50

45.00

Lyon

France

EUR

SM

Month

6.25

0.00

3.50

55.00

Marseilles

France

EUR

SM

Month

10.00

8.70

3.50

58.00

Paris

France

EUR

SM

Month

10.00

0.00

4.40

65.00

Toulouse

France

EUR

SM

Month

6.25

0.00

3.50

48.00

Berlin

Germany

EUR

SM

Month

5.70

1.79

4.30

110.00

D端sseldorf

Germany

EUR

SM

Month

5.00

0.00

4.40

160.00

Frankfurt

Germany

EUR

SM

Month

5.30

0.00

6.00

Hamburg

Germany

EUR

SM

Month

5.70

3.64

5.70

Munich

Germany

EUR

SM

Month

6.20

(1.59)

5.25

120.00

Stuttgart

Germany

EUR

SM

Month

5.30

0.00

6.00

Athens

Greece

EUR

SM

Month

5.00

(9.09)

3.00

Budapest

Hungary

EUR

SM

Month

4.00

0.00

3.60

64.00

Milan

Italy

EUR

SM

Month

4.90

0.00

4.80

128.00

150.00

Rome

Italy

EUR

SM

Month

5.00

0.00

5.00

50.00

Riga

Latvia

EUR

SM

Month

3.50

0.00

3.20

20.00

Vilnius

Lithuania

EUR

SM

Month

3.90

0.00

3.20

17.00

Amsterdam

Netherlands

EUR

SM

Month

7.90

0.00

3.80

375.00 1,350.00

Oslo

Norway

NOK

SM

Month

83.33

0.04

75.00

Warsaw

Poland

EUR

SM

Month

6.00

9.09

5.00

96.00

Lisbon

Portugal

EUR

SM

Month

5.50

0.00

3.50

125.00

Dublin

Republic of Ireland

EUR

SM

Month

5.00

(25.37)

4.50

50.00

Bucharest

Romania

EUR

SM

Month

4.40

0.00

4.00

35.00

Moscow

Russia

USD

SM

Month

14.00

16.67

12.00

100.00

Saint Petersburg

Russia

USD

SM

Month

9.17

(0.36)

8.10

100.00

Belgrade

Serbia

EUR

SM

Month

5.00

0.00

4.00

51.00

Bratislava

Slovakia

EUR

SM

Month

3.90

0.00

3.60

66.07

Cape Town

South Africa

ZAR

SM

Month

50.00

0.00

45.00

1,326.00

Durban

South Africa

ZAR

SM

Month

45.00

0.00

42.00

1,500.00 700.00

Johannesburg

South Africa

ZAR

SM

Month

55.00

0.00

50.00

Madrid

Spain

EUR

SM

Month

5.50

(8.33)

3.50

300.00

Stockholm

Sweden

SEK

SM

Year

870.00

8.75

575.00

600.00 350.00

Geneva

Switzerland

CHF

SM

Month

14.17

0.00

10.83

Zurich

Switzerland

CHF

SM

Month

15.00

0.00

13.33

Istanbul

Turkey

USD

SM

Month

6.00

0.00

6.00

Kyiv

Ukraine

USD

SM

Month

7.00

16.67

5.80

Belfast

United Kingdom

GBP

SF

Year

4.00

0.00

4.00

6.30

Birmingham

United Kingdom

GBP

SF

Year

5.75

9.52

5.50

6.90

30.00

Bristol

United Kingdom

GBP

SF

Year

7.00

(6.67)

5.50

6.30

Edinburgh

United Kingdom

GBP

SF

Year

7.00

0.00

4.50

5.75

Glasgow

United Kingdom

GBP

SF

Year

6.00

0.00

5.00

3.45

Leeds

United Kingdom

GBP

SF

Year

5.50

0.00

5.00

6.90

p. 2

| Colliers International


highlights | First Half 2011 | industrial | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY rents

MARKET

COUNTRY

QUOTED CURRENCY

UNIT

TIME PERIOD

PRIME WAREHOUSE RENT (LOCAL MEASURE/ CURRENCY)

PRIME WAREHOUSE RENT, 6-MONTH CHANGE (%)

PRIME BULK RENT(LOCAL MEASURE/ CURRENCY)

PRIME LAND VALUE (LOCAL MEASURE/ CURRENCY)

EUROPE, MIDDLE EAST AND AFRICA (EMEA) continued

London (Heathrow)

United Kingdom

GBP

SF

Year

13.00

0.00

12.00

39.00

Manchester

United Kingdom

GBP

SF

Year

5.75

0.00

4.25

6.30

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 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 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 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 Year Year Year Year Year

7.75 7.25 4.74 7.50 4.25 7.50 9.00 9.50 4.81 7.40 12.00 3.93 3.21 4.00 5.43 4.50 4.50 3.85 3.28 4.48 2.88 3.42 3.75 2.56 3.00 3.50 3.92 5.62 2.40 6.47 4.14 2.90 4.05 10.96 5.05 3.00 3.75 3.15 4.81 2.68 8.06 5.64 3.84 3.34 3.01 6.90 4.59 3.12 4.43 5.83

0.00 6.62

6.25 6.00 4.74 5.50 4.00 6.50 7.00 8.00 4.40

NORTH AMERICA Calgary Edmonton Guelph Halifax Montreal Ottawa Regina Saskatoon Toronto Vancouver Victoria Waterloo Region Atlanta Bakersfield Baltimore Boise Boston Charleston Charlotte Chicago Cincinnati Cleveland Columbia Columbus Dallas-Ft. Worth Denver Detroit Fairfield Fresno Ft. Lauderdale-Broward Grand Rapids Greenville/Spartanburg Hartford Honolulu Houston Indianapolis Jacksonville Kansas City Las Vegas Little Rock Long Island Los Angeles Los Angeles - Inland Empire Louisville Memphis Miami Minneapolis Nashville New Jersey - Central New Jersey - Northern

7.14 6.25 3.45 5.88 5.56 (3.41) 13.85 0.00 (3.44) 4.22 0.00 16.52 0.00 0.00 5.48 (1.80) 16.67 (1.71) (1.16) 0.00 2.81 0.00 0.00 (1.26) 6.44 0.00 (3.00) 5.45 (5.37) (7.74) 1.81 (19.14) 7.14 (20.65) 0.21 0.37 0.00 6.67 0.00 18.50 1.47 (21.80) (4.94) (1.69)

14.13 8.03 5.00 11.00 5.05 9.11 10.41

11.00 2.77 2.84 3.42 4.60 4.50 4.75 4.20

25.00 6.88 1.25 2.75

2.93 2.88

5.75 1.72

3.75 2.19 2.70 3.25 3.69 5.71 2.28 6.19 2.80 2.95 4.28

1.15 1.39 1.60 5.00

4.24 2.80 3.10 3.03 4.82 2.74 14.25 5.52 3.72 2.48 4.93 4.23 4.49 3.70 5.85

1.25 3.75 2.75

4.17 2.00

0.90 1.49 29.00 3.93 1.46

5.16 0.95 12.78 18.60 10.15 1.00 11.50 1.18 7.57 11.92

Colliers International |

p. 3


highlights | First Half 2011 | industrial | GLOBAL

INDUSTRIAL SURVEY | LOCAL MEASURE/CURRENCY rents

MARKET

COUNTRY

QUOTED CURRENCY

UNIT

TIME PERIOD

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

Oakland Omaha Orange County Orlando Philadelphia

United States United States United States United States United States

USD USD USD USD USD

SF SF SF SF SF

Year Year Year Year Year

4.56 4.85 6.72 4.49 4.00

Phoenix Pittsburgh Pleasanton/Walnut Creek Portland Raleigh Reno Sacramento San Diego San Francisco Peninsula San Jose/Silicon Valley Savannah Seattle/Puget Sound St. Louis

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

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

5.17 4.29 5.04 5.19 3.63 3.60 4.44 7.68 9.24 5.55 3.95 5.60 3.88

St. Paul

United States

USD

SF

Year

4.40

5.56 (3.45) (1.75) 0.00 (4.61) 5.00 4.43 (8.10) 3.45 0.68 (3.03) 0.00 25.00 0.00 (0.36) (1.27)

3.16 5.34 5.52 4.26 3.75

12.55 22.95 3.10

4.08 3.75 3.87 4.84 3.83 3.20 3.75 6.96 9.24 5.03 3.75 4.92

1.50 2.47 19.69 5.94 4.00 1.00 2.00 12.00

2.00 1.43

4.10

Stockton/San Joaquin County

United States

USD

SF

Year

3.72

(6.06)

3.66

Tampa Bay

United States

USD

SF

Year

4.21

0.24

4.23

Washington DC

United States

USD

SF

Year

7.64

(1.29)

West Palm Beach

United States

USD

SF

Year

6.76

(5.32)

6.35

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

115.00 115.00 90.00 115.00 133.00 36.80 28.00 12.30 33.55 35.00 29,778.00 1,650.00 107.00 86.00 83.00 1.90 12,000.00 155.00 4.25

4.55 4.55 4.65 4.55 0.00 21.89 7.69 10.81 5.07 9.38 1.37 0.00 3.88 3.61 2.47 12.43 0.00 3.33 (15.00)

85.00 90.00 90.00 90.00 101.00 33.00 26.00 10.04 28.98 30.00

Argentina Brazil Chile Colombia Costa Rica Mexico Peru

USD USD USD USD USD USD USD

SM SM SM SM SM SM SM

Month Month Month Month Month Month Month

6.60 15.30 6.03 11.00 5.50 5.60 5.50

3.50

9.50

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

1.37 12,000.00 110.00 3.00

500.00 300.00 290.00 500.00 416.00 1,347.00 602.00 10,424.00 3,000.00 4,000.00 917,162.00 444,000.00 290.00 255.00 250.00 116.15 600,000.00 2,679.00 147.50

6.20 13.10 5.11 10.00 6.75 5.60 4.50

90.00 281.00 123.12 200.00 100.00 180.00 120.00

1,700.00

LATIN AMERICA Buenos Aires São Paulo Santiago Bogotá San José Mexico city Lima

p. 4

| Colliers International

4.76 4.17 9.84 (4.35) (15.38) 3.70 (8.33)


highlights | First Half 2011 | industrial | GLOBAL

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

MARKET

COUNTRY

exchange rate (USD) June 2011

PRIME WAREHOUSE PRIME PRIME RENT BULK RENT LAND VALUE (usd/ (usd/sf/year) (usd/sf/year) sf)

vacancy rate (%) June 2011

prime yield/ Cap rate (%)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

Vienna

Austria

0.6887

8.91

8.10

32.39

Minsk Antwerp Brussels Sofia Zagreb Prague Copenhagen Tallinn Helsinki Bordeaux Lille Lyon Marseilles Paris Toulouse Berlin D端sseldorf Frankfurt Hamburg Munich Stuttgart Athens Budapest

Belarus Belgium Belgium Bulgaria Croatia Czech Republic Denmark Estonia Finland France France France France France France Germany Germany Germany Germany Germany Germany Greece Hungary

0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 5.1370 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887 0.6887

12.95 5.99 5.99 6.48 8.10 6.96 8.14 7.29 16.19 10.12 7.45 10.12 16.19 16.19 10.12 9.23 8.10 8.58 9.23 10.04 8.58 8.10 6.48

10.53 5.18 5.18 5.67 7.29 6.15 8.14 6.15 12.14 5.67 5.67 5.67 5.67 7.12 5.67 6.96 7.12 9.72 9.23 8.50 9.72 4.86 5.83

0.00 18.89 20.24 7.95 7.42 10.26 14.47 4.32 9.45 7.02 6.07 7.42 7.83 8.77 6.48 14.84 21.59 0.00 16.19 0.00 0.00 20.24 8.64

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 Edinburgh

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 United Kingdom

0.6887 0.6887 0.6887 0.6887 0.6887 5.3773 0.6887 0.6887 0.6887 0.6887 1.0000 1.0000 0.6887 0.6887 6.7568 6.7568 6.7568 0.6887 6.3035 0.8416 0.8416 1.0000 1.0000 0.6225 0.6225 0.6225 0.6225

7.93 8.10 5.67 6.32 12.79 17.28 9.72 8.91 8.10 7.12 15.61 10.22 8.10 6.32 8.25 7.43 9.08 8.91 12.83 18.77 19.88 6.69 7.81 6.43 9.24 11.24 11.24

7.77 8.10 5.18 5.18 6.15 15.55 8.10 5.67 7.29 6.48 13.38 9.03 6.48 5.83 7.43 6.93 8.25 5.67 8.48 14.36 17.67 6.69 6.47 6.43 8.84 8.84 7.23

17.27 6.75 2.70 2.29 50.60 23.33 12.95 16.87 6.75 4.72 9.29 9.29 6.88 8.92 18.24 20.63 9.63 40.48 8.85 38.65 0.00 0.00 2.79 10.12 11.08 10.12 9.24

Glasgow Leeds

United Kingdom United Kingdom

0.6225 0.6225

9.64 8.84

8.03 8.03

5.54 11.08

* Central & Eastern European quoted vacancy rates based on A+B class stock only

8.75 8.71 5.80 5.80 23.00 11.00 9.90 16.00 5.00 7.00 7.50 8.00 7.50 10.00 6.50

2.50 9.00 21.66 8.50

17.00 7.05 6.90 11.00 10.00 8.50 7.50 9.00 7.75 7.50 7.20 7.20 7.20 6.80 7.50 7.40 7.50 7.10 7.20 6.90 7.10 8.75 9.00

8.30 7.49 6.20

8.00 8.00 10.00 11.00 7.50 6.50 8.00 8.00 9.00 10.00 11.00 13.00 11.00 9.00 9.25 12.00 9.50 8.00 6.50 7.30 7.50 9.00 14.00 6.75 7.50 7.50 7.75

10.38 8.22

7.75 7.75

21.40 14.00 9.00 19.29 17.00 13.21 4.44 12.83 1.54 10.50 6.60

14.00

Colliers International |

p. 5


highlights | First Half 2011 | industrial | GLOBAL

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

MARKET

COUNTRY

exchange rate (USD) June 2011

PRIME PRIME WAREHOUSE RENT BULK RENT (usd/sf/year) (usd/sf/year)

PRIME LAND VALUE (usd/sf)

vacancy rate (%) June 2011

prime yield/ Cap rate (%)

EUROPE, MIDDLE EAST AND AFRICA (EMEA) continued

London (Heathrow) Manchester

United Kingdom United Kingdom

0.6225 0.6225

20.88 9.24

19.28 6.83

62.65 10.12

13.05 8.18

6.00 7.00

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 United States United States United States United States United States

0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 0.9643 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

8.04 7.52 4.92 7.78 4.41 7.78 9.33 9.85 4.99 7.67 12.44 4.08 3.21 4.00 5.43 4.50 4.50 3.85 3.28 4.48 2.88 3.42 3.75 2.56 3.00 3.50 3.92 5.62 2.40 6.47 4.14 2.90 4.05 10.96 5.05 3.00 3.75 3.15 4.81 2.68 8.06 5.64 3.84 3.34 3.01 6.90 4.59 3.12 4.43 5.83

6.48 6.22 4.92 5.70 4.15 6.74 7.26 8.30 4.56

0.00 14.65 8.33 5.19 11.41 0.00 5.24 9.45 10.80

11.41 2.87 2.84 3.42 4.60 4.50 4.75 4.20

25.93 7.13 1.25 2.75 0.00 1.25 3.75 2.75

7.00 6.70 8.22 7.75 8.50 8.25 7.50 7.50 6.90 6.00 6.66 8.22 8.99 10.00 8.43

2.93 2.88

5.75 1.72

3.75 2.19 2.70 3.25 3.69 5.71 2.28 6.19 2.80 2.95 4.28

1.15 1.39 1.60 5.00 0.00 4.17 2.00 0.00 0.00 0.90 1.49 29.00 3.93 1.46 0.00 0.00 5.16 0.95 12.78 18.60 10.15 0.00 1.00 11.50 1.18 0.00 7.57 11.92

4.96 3.41 3.53 6.92 5.45 7.10 0.91 4.02 4.97 4.07 3.37 6.01 14.10 9.51 10.63 11.12 20.83 10.83 13.28 11.77 8.83 9.69 7.88 12.30 11.52 7.71 13.95 12.85 12.00 10.92 8.86 9.96 9.22 4.74 5.70 7.06 10.95 7.25 16.25 14.89 5.63 5.23 9.42 11.24 12.34 8.57 13.09 13.68 9.79 8.18

NORTH AMERICA Calgary Edmonton Guelph Halifax Montreal Ottawa Regina Saskatoon Toronto Vancouver Victoria Waterloo Region Atlanta Bakersfield Baltimore Boise Boston Charleston Charlotte Chicago Cincinnati Cleveland Columbia Columbus Dallas-Ft. Worth Denver Detroit Fairfield Fresno Ft. Lauderdale-Broward Grand Rapids Greenville/Spartanburg Hartford Honolulu Houston Indianapolis Jacksonville Kansas City Las Vegas Little Rock Long Island Los Angeles Los Angeles - Inland Empire Louisville Memphis Miami Minneapolis Nashville New Jersey - Central New Jersey - Northern

p. 6

| Colliers International

4.24 2.80 3.10 3.03 4.82 2.74 14.25 5.52 3.72 2.48 4.93 4.23 4.49 3.70 5.85

8.50 7.75 6.90 8.00

8.00 8.00 8.00 6.10 9.00 10.00 10.30 8.50 9.50 8.50 8.20 8.75 9.00 8.40 6.50 5.25 9.75

6.10 5.89


highlights | First Half 2011 | industrial | GLOBAL

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

MARKET

COUNTRY

exchange rate (USD) June 2011

PRIME PRIME WAREHOUSE RENT BULK RENT (usd/sf/year) (usd/sf/year)

PRIME LAND VALUE (usd/sf)

vacancy rate (%) June 2011

prime yield/ Cap rate (%)

NORTH AMERICA continued

Oakland Omaha Orange County Orlando Philadelphia Phoenix Pittsburgh Pleasanton/Walnut Creek Portland Raleigh Reno Sacramento San Diego San Francisco Peninsula San Jose/Silicon Valley Savannah Seattle/Puget Sound St. Louis St. Paul Stockton/San Joaquin County Tampa Bay 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 United States

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

4.56 4.85 6.72 4.49 4.00 5.17 4.29 5.04 5.19 3.63 3.60 4.44 7.68 9.24 5.55 3.95 5.60 3.88 4.40 3.72 4.21 7.64 6.76

3.16 5.34 5.52 4.26 3.75 4.08 3.75 3.87 4.84 3.83 3.20 3.75 6.96 9.24 5.03 3.75 4.92

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

0.9319 0.9319 0.9319 0.9319 0.9319 6.4635 6.4635 7.7813 6.4635 44.6000 8,570.00 80.6571 1.2073 1.2073 1.2073 1.2276 1,067.35 30.7200 1.0000

11.47 11.47 8.98 11.47 13.26 6.35 4.83 18.97 5.79 9.42 3.88 22.81 8.24 6.62 6.39 18.57 12.54 5.63 4.74

8.48 8.98 8.98 8.98 10.07 5.69 4.49 15.48 5.00 8.07

13.39 12.54 3.99 3.35

49.86 29.92 28.92 49.86 41.49 19.37 8.66 1,339.62 43.14 89.69 9.95 511.60 22.32 19.63 19.24 94.62 52.24 8.10 13.71

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

7.36 17.06 6.72 12.27 6.13 6.25 6.13

6.91 14.61 5.70 11.15 7.53 6.25 5.02

8.36 26.12 11.44 18.59 9.29 16.73 11.15

4.10 3.66 4.23 6.35

12.55 0.00 22.95 0.00 3.10 1.50 2.47 19.69 5.94 4.00 1.00 2.00 12.00 0.00 0.00 2.00 1.43 0.00 0.00 3.50 0.00 0.00 9.50

8.76 6.01 5.04 12.20 9.53 15.22 7.02 11.33 9.08 12.25 14.68 13.07 11.45 8.94 13.14 15.22 7.53 8.48 8.68 15.42 10.56 12.34 9.76

7.00 6.50 8.25 8.50 9.20 7.50 6.00 8.25

7.00 8.50 8.70

7.00 8.40

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

23.51

3.00 17.40 5.30

7.70

8.25 8.40 8.25 8.50 8.25 9.30 6.80 4.40 8.76 8.00 8.13 6.20 8.20 8.70 8.00 4.70 8.00

26.50 10.00

LATIN AMERICA Buenos Aires São Paulo Santiago Bogotá San José Mexico city Lima

Argentina Brazil Chile Colombia Costa Rica Mexico Peru

2.00 9.00 1.90 7.90 7.80

15.00 11.00 11.50 9.50 11.00 9.50 11.00

Colliers International |

p. 7


highlights | First Half 2011 | industrial | GLOBAL

512 offices in 61 countries on 6 continents United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95 • $1.55

billion in annual revenue

million sf square feet under management

• 979

• Over

12,500 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

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. 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 SM = Square Metres

www.colliers.com

Ross Moore USA ross.moore@colliers.com Ian McCulloch Canada ian.mcculloch@colliers.com

Europe, Middle East and Africa Thomas Grounds EMEA thomas.grounds@colliers.com Mark Charlton United Kingdom mark.charlton@colliers.com Damian Harrington Central and Eastern Europe damian.harrington@colliers.com

Europe, Middle East and Africa Thomas Grounds EMEA thomas.grounds@colliers.com

Mark Charlton United Kingdom mark.charlton@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.

Damian Harrington Central and Eastern Europe damian.harrington@colliers.com Renaud Roger France rroger@colliers-ufgpm.fr Andreas Trumpp Germany andreas.trumpp@colliers.com

Asia Pacific Simon Lo Asia simon.lo@colliers.com Amit Oberoi India amit.oberoi@colliers.com Nerida Conisbee Australia/New Zealand nerida.conisbee@colliers.com Yumiko Yasuda Japan yumiko.yasuda@colliers.com

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