Colliers International 4Q 2010 North American Industrial Highlights

1. Q4 2010 | INDUSTRIAL
NORTH AMERICA
HIGHLIGHTS
U.S. Industrial Market
Finishes 2010 on a High Note
Further Gains Anticipated in 2011
ROss J. MOORE Chief Economist | USA
MARkET INdICATORs
Relative to prior period The U.S. industrial market finished 2010 with a notable surge capping off three consecutive quarters of
positive absorption. Solid demand for warehouse space in most regions coupled with minimal construction
Q4 Q1
2010 2011* created the conditions for a sudden reversal in vacancy, and almost certainly heralds the beginning of the
next cycle. The vacancy rate dropped nationally by nearly a quarter of a percentage point during the
VACANCy quarter—significantly more in select markets. Despite newfound optimism and a noticeable pick-up in
leasing activity, warehouse rents fell over the quarter, dropping by 2.1 percent to $4.60 per square foot.
NET ABsORPTION
With the economy registering healthy growth in the fourth quarter, and similar expansion anticipated in
CONsTRuCTION coming quarters, demand for warehouse space is expected to increase as the year progresses. A giant
positive for industrial markets is the continued rise in import and export activity which continues to benefit
RENTAl RATE not only key port markets, but also any distribution nodes that are part of the supply chain. Another positive
for warehouse markets is manufacturing, which continues to show surprising growth as measured by the
*Projected
Institute for Supply Management (ISM) manufacturing index. For January the ISM manufacturing index
registered 60.8—the highest level in nearly seven years and well above the critical 50 level that indicates
expansion. As 2011 unfolds the industrial market is expected to improve on the back of a thriving
manufacturing sector and further increases in global trade.
u.s. INdusTRIAl MARkET Although signs of a true rebound in the warehouse market are still a few quarters away, almost all economic
suMMARy sTATIsTICs, Q4 2010 indicators suggest demand for warehouse space will only increase during 2011. With almost no new
warehouse construction coming onto the market, even a modest bounce-back in demand will quickly
Vacancy Rate: 10.74%
Change from Q3 2010: –0.22
u.s. INdusTRIAl MARkET Q4 2009 – Q4 2010 continued on page 7
Absorption:
28.6 Million Square Feet 30 12 Over the last three
quarters, occupied
Vacancy (%)
New Construction: space has increased
Million Square Feet
20 11
by 42.7 million square
9.4 Million Square Feet
feet, however, during
10 10
the period Q2 2008
under Construction: and Q1 2010 occupied
22.7 Million Square Feet 0 9 space shrank by 209.9
million square feet.
Asking Rents Per square Foot: -10 8
Average Warehouse/
-20 7
Distribution Center: $4.60 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
Change from Q3 2010: –2.11%
Absorption Completions Vacancy
www.COllIERs.COM

2. hIghLIghTS | Q4 2010 | industrial | north america
uNITEd sTATEs | INdusTRIAl suRVEy
EXIsTING INVENTORy (sF) NEw CONsTRuCTION NEw CONsTRuCTION CuRRENTly uNdER
MARkET dEC. 31, 2010 Q4 2010 (sF) yTd 2010 (sF) CONsTRuCTION (sF)
Atlanta, GA 588,384,000 0 2,900,000 1,632,000
Bakersfield, CA 31,466,000 0 530,000 487,000
Baltimore, MD 224,045,000 1,515,000 386,000 61,000
Boise, ID 31,909,000 0 131,000 0
Boston, MA 155,986,000 0 0 170,000
Charleston, SC 32,024,000 10,000 1,440,000 240,000
Charlotte, NC 282,509,000 51,000 201,000 39,000
Chicago, IL 1,312,700,000 549,000 2,667,000 3,728,000
Cincinnati, OH 254,878,000 156,000 156,000 175,000
Cleveland, OH 418,008,000 14,000 571,000 35,000
Columbia, SC 35,509,000 0 206,000 1,000,000
Columbus, OH 205,421,000 0 47,000 1,470,000
Dallas/Ft. Worth, TX 750,421,000 0 0 559,000
Denver, CO 277,478,000 13,000 890,000 153,000
Detroit, MI 480,580,000 240,000 301,000 0
Fairfield, CA 38,904,000 0 363,000 0
Fresno, CA 48,600,000 0 0 0
Ft. Lauderdale/Broward County, FL 126,385,000 0 69,000 63,000
Greenville/Spartanburg, SC 170,450,000 127,000 0 0
Hartford, CT 96,975,000 0 0 0
Honolulu, HI 38,530,000 0 0 0
Houston, TX 474,722,000 207,000 2,225,000 207,000
Indianapolis, IN 274,027,000 1,329,000 1,580,000 250,000
Jacksonville, FL 120,450,000 240,000 240,000 483,000
Kansas City, MO-KS 174,061,000 50,000 50,000 1,087,000
Las Vegas, NV 107,554,000 0 341,000 72,000
Little Rock, AR 45,056,000 0 253,000 570,000
Los Angeles – Inland Empire, CA 379,098,000 667,000 667,000 2,300,000
Los Angeles, CA 879,573,000 200,000 510,000 750,000
Louisville, KY 167,562,000 0 0 0
Memphis, TN 196,788,000 32,000 470,000 725,000
Miami, FL 226,047,000 62,000 407,000 0
Nashville, TN 158,293,000 2,045,000 924,000 2,045,000
New Jersey – Central 357,793,000 176,000 844,000 440,000
New Jersey – Northern 373,657,000 0 0 83,000
Oakland, CA 131,233,000 0 0 26,000
Orange County, CA 200,950,000 375,000 495,000 0
Orlando, FL 144,357,000 0 0 0
Philadelphia, PA 421,082,000 46,000 926,000 1,124,000
Phoenix, AZ 245,457,000 391,000 1,763,000 147,000
Pleasanton/Walnut Creek, CA 32,225,000 0 74,000 0
Portland, OR 174,413,000 60,000 60,000 60,000
Raleigh, NC 101,500,000 30,000 97,000 76,000
Reno, NV 73,732,000 0 0 0
Sacramento, CA 182,249,000 0 53,000 36,000
San Diego, CA 188,521,000 54,000 311,000 212,000
San Francisco Peninsula, CA 40,808,000 0 0 0
San Jose/Silicon Valley, CA 253,311,000 0 0 609,000
Savannah, GA 43,511,000 538,000 538,000 172,000
Seattle/Puget Sound, WA 291,496,000 0 0 0
St. Louis, MO 261,205,000 0 148,000 11,000
Stockton/San Joaquin County, CA 92,563,000 0 16,000 0
Tampa Bay, FL 214,839,000 0 0 0
Washington, DC 206,729,000 147,000 475,000 1,391,000
West Palm Beach, FL 58,796,000 30,000 30,000 34,000
u.s. TOTAl 12,894,820,000 9,354,000 24,355,000 22,722,000
P. 2 | COllIERs INTERNATIONAl

3. hIghLIghTS | Q4 2010 | industrial | north america
uNITEd sTATEs | INdusTRIAl suRVEy
ABsORPTION ABsORPTION VACANCy RATE VACANCy RATE
MARkET Q4 2010 (sF) yTd 2010 (sF) sEP. 30, 2010 (%) dEC. 31, 2010 (%)
Atlanta, GA 931,000 934,000 14.2 14.0
Bakersfield, CA (76,000) 3,000 9.6 9.7
Baltimore, MD 935,000 2,328,000 10.6 10.6
Boise, ID 113,000 477,000 11.1 10.9
Boston, MA 142,000 167,000 21.5 21.4
Charleston, SC 1,516,000 2,621,000 12.8 11.2
Charlotte, NC 177,000 (3,076,000) 14.1 14.0
Chicago, IL 2,132,000 (2,380,000) 12.0 11.7
Cincinnati, OH 1,414,000 2,226,000 8.7 8.1
Cleveland, OH 939,000 (1,737,000) 9.7 9.5
Columbia, SC 203,000 663,000 6.4 7.0
Columbus, OH 744,000 (767,000) 13.2 12.7
Dallas/Ft. Worth, TX 1,740,000 902,000 11.8 11.6
Denver, CO 373,000 3,142,000 7.8 7.7
Detroit, MI (3,685,000) (3,895,000) 14.4 15.4
Fairfield, CA (367,000) (662,000) 14.8 15.8
Fresno, CA 100,000 215,000 8.1 7.9
Ft. Lauderdale/Broward County, FL 232,000 1,035,000 9.5 9.4
Greenville/Spartanburg, SC 137,000 (119,000) 10.9 10.6
Hartford, CT 6,000 6,000 9.3 9.3
Honolulu, HI (152,000) 6,000 4.4 4.7
Houston, TX 354,000 4,761,000 6.8 6.2
Indianapolis, IN (459,000) (1,822,000) 8.9 9.0
Jacksonville, FL 403,000 (32,000) 11.3 11.1
Kansas City, MO-KS 859,000 48,000 7.5 7.0
Las Vegas, NV (377,000) (1,177,000) 15.5 15.8
Little Rock, AR 1,254,000 1,344,000 16.8 14.0
Los Angeles – Inland Empire, CA 6,756,000 12,981,000 12.3 11.1
Los Angeles, CA 1,501,000 (4,885,000) 5.3 5.2
Louisville, KY 76,000 (2,005,000) 12.2 12.2
Memphis, TN (367,000) 875,000 13.1 13.3
Miami, FL 395,000 2,706,000 9.3 9.1
Nashville, TN (479,000) (1,451,000) 14.0 13.9
New Jersey – Central 1,927,000 1,787,000 11.3 10.8
New Jersey – Northern 847,000 2,005,000 7.8 7.6
Oakland, CA (118,000) (1,486,000) 9.5 9.5
Orange County, CA 662,000 (68,000) 6.2 5.8
Orlando, FL 534,000 1,115,000 12.8 12.4
Philadelphia, PA 1,808,000 3,301,000 9.9 9.4
Phoenix, AZ 1,393,000 4,687,000 17.7 17.2
Pleasanton/Walnut Creek, CA 401,000 866,000 12.5 11.2
Portland, OR 346,000 728,000 8.0 8.1
Raleigh, NC (74,000) (220,000) 12.5 12.4
Reno, NV 274,000 282,000 15.2 14.9
Sacramento, CA (339,000) (1,632,000) 13.1 13.3
San Diego, CA 820,000 1,278,000 11.6 11.3
San Francisco Peninsula, CA 374,000 27,000 10.6 9.7
San Jose/Silicon Valley, CA 699,000 (3,869,000) 13.8 13.0
Savannah, GA 1,118,000 (237,000) 21.4 19.3
Seattle/Puget Sound, WA 703,000 (241,000) 8.0 7.8
St. Louis, MO 353,000 2,560,000 8.0 7.9
Stockton/San Joaquin County, CA (552,000) (1,324,000) 17.3 17.9
Tampa Bay, FL (225,000) (611,000) 11.1 11.2
Washington, DC (34,000) 512,000 12.7 12.8
West Palm Beach, FL 177,000 771,000 10.5 10.3
u.s. TOTAl/AVERAGE 28,564,000 23,663,000 10.95 10.74
COllIERs INTERNATIONAl | P. 3

4. hIghLIghTS | Q4 2010 | industrial | north america
uNITEd sTATEs | INdusTRIAl suRVEy | sAlEs PRICE, CAP RATE ANd lANd PRICE As OF dECEMBER 2010
sAlEs PRICE CAP lANd PRICE lANd PRICE VACANCy FORECAsT ABsORPTION FORECAsT RENT FORECAsT
MARkET (usd PsF) RATE (%) (usd PsF) suBMARkET (3 MONTHs) (3 MONTHs) (3 MONTHs)
Atlanta, GA 35.37 9.00 1.00 Northeast Atlanta Down Up Same
Bakersfield, CA 48.00 9.50 2.50 Bakersfield-North Same Same Same
Boise, ID 45.00 1.75 Caldwell Same Same Same
Boston, MA 40.00 3.75 Route 495 Down Up Same
Charleston, SC 45.50 7.75 2.65 Ladson Down Up Up
Chicago, IL 43.00 7.15 5.25 I-55 Corridor Same Down Same
Cincinnati, OH 43.40 8.00 1.72 Airport Down Up Up
Columbia, SC – – 1.10 Lexington Down Up Up
Columbus, OH 25.00 7.90 0.38 Southeast Same Same Same
Dallas/Ft. Worth, TX 50.00 8.30 1.60 South Dallas Down Up Up
Denver, CO 42.00 8.50 5.00 Northwest Down Up Same
Detroit, MI 30.00 8.00 – – Up Up Down
Fairfield, CA 75.00 7.50 7.00 Napa, CA Up Same Down
Fresno, CA 38.00 9.00 2.00 Southwest Down Up Same
Ft. Lauderdale/Broward Co., FL – – – – Same Up Same
Greenville/Spartanburg, SC 30.00 10.00 0.86 – Down Up Up
Hartford, CT 40.00 8.50 1.49 North of Hartford Same Same Same
Honolulu, HI – – – – Same Same Same
Houston, TX 66.12 9.95 2.50 Northwest Down Same Up
Indianapolis, IN 40.27 – 1.96 Park 100 Down Up Same
Jacksonville, FL 45.00 8.20 – – Down Up Same
Kansas City, MO-KS – – – – Same Same Same
Las Vegas, NV – – 5.29 North Las Vegas Up Same Down
Little Rock, AR 65.45 9.00 0.95 Port Industrial District Down Up Same
Los Angeles – Inland Empire, CA 57.00 8.50 9.23 Riverside Down Up Up
Los Angeles, CA 87.00 7.75 16.81 Industry Same Same Same
Memphis, TN 25.00 9.50 1.25 DeSoto County Down Up Same
Miami, FL 43.88 7.50 14.07 Various Same Up Same
Nashville, TN 32.00 9.00 – – Up Same Down
New Jersey – Central 47.87 – 11.25 Exit 8A Up Same Down
New Jersey – Northern 48.09 6.00 13.45 Hudson Waterfront Same Same Down
Oakland, CA 62.94 7.00 12.95 Oakland, CA Same Same Same
Orange County, CA 112.00 7.00 18.00 Central Down Up Same
Orlando, FL 36.77 – – – Same Up Down
Philadelphia, PA 57.00 8.50 3.10 Lehigh Valley Down Up Same
Phoenix, AZ 71.00 9.50 2.30 West I-10 Down Up Down
Pleasanton/Walnut Creek, CA – – 6.80 Livermore Same Same Same
Portland, OR 67.27 8.45 14.98 – Down Up Up
Reno, NV 24.92 – 2.38 TRIC Down Same Same
Sacramento, CA 50.00 8.25 2.22 Roseville/Rocklin Same Same Same
San Diego, CA 133.82 – 15.25 Poway Down Same Same
San Francisco Peninsula, CA 175.00 7.00 – – Same Same Same
San Jose/Silicon Valley, CA – – – – Same Same Same
Savannah, GA 40.00 8.50 2.00 Westside Down Same Same
Seattle/Puget Sound, WA 193.74 7.43 4.70 Seattle/Puget Sound Down Up Same
Stockton/San Joaquin County, CA 53.00 8.00 3.50 Stockton Up Down Down
Tampa Bay, FL 49.01 7.70 – – Same Up Same
Washington, DC – – – – Same Same Up
West Palm Beach, FL – 6.43 13.78 Various Same Same Same
u.s. AVERAGE 57.86 8.18
P. 4 | COllIERs INTERNATIONAl

5. hIghLIghTS | Q4 2010 | industrial | north america
uNITEd sTATEs | INdusTRIAl suRVEy | RENTs As OF dECEMBER 2010
wAREHOusE/dIsTRIBuTION Bulk sPACE FlEX/sERVICE sPACE TECH/R&d sPACE
MARkET sPACE (usd PsF) (usd PsF) (usd PsF) (usd PsF)
Atlanta, GA 3.08 2.84 7.29 7.33
Bakersfield, CA 4.00 3.92 7.00 –
Baltimore, MD 4.66 – 9.91 –
Boise, ID 4.50 4.50 6.30 6.30
Boston, MA 4.50 4.95 7.50 9.50
Charleston, SC 3.65 4.00 6.00 16.25
Charlotte, NC 3.34 8.64
Chicago, IL 3.84 2.69 8.30 –
Cincinnati, OH 2.93 2.93 6.12 6.12
Cleveland, OH 3.46 – 8.09 –
Columbia, SC 3.75 3.75 – 9.50
Columbus, OH 2.49 2.46 4.68 4.68
Dallas/Ft. Worth, TX 3.00 2.70 6.80 8.40
Denver, CO 3.50 3.25 8.50 9.50
Detroit, MI 3.97 3.52 8.17 –
Fairfield, CA 5.28 – 10.92 –
Fresno, CA 2.40 2.28 4.00 5.50
Ft. Lauderdale/Broward County, FL 6.67 6.43 9.40 9.75
Greenville/Spartanburg, SC 2.75 2.95 7.00 17.00
Hartford, CT 4.28 4.28 6.75 6.75
Honolulu, HI 11.88 – – –
Houston, TX 4.96 4.32 6.79 8.40
Indianapolis, IN 3.71 2.96 8.77 –
Jacksonville, FL 3.50 3.00 9.00 –
Kansas City, MO-KS 3.97 4.19 7.04 7.04
Las Vegas, NV 4.80 4.71 6.48 10.56
Little Rock, AR 2.67 2.74 7.35 –
Los Angeles – Inland Empire, CA 3.60 3.48 6.66 10.00
Los Angeles, CA 5.64 5.28 11.20 13.15
Louisville, KY 3.34 – 7.33 7.33
Memphis, TN 2.54 2.49 7.35 10.00
Miami, FL 6.80 7.04 11.20 11.92
Nashville, TN 3.99 3.13 7.38 –
New Jersey – Central 4.66 3.77 11.90 12.89
New Jersey – Northern 5.93 5.63 10.89 5.94
Oakland, CA 4.32 2.88 4.80 8.04
Orange County, CA 6.96 5.76 12.95 13.75
Orlando, FL 4.57 4.11 8.68 8.94
Philadelphia, PA 4.00 3.75 7.00 11.00
Phoenix, AZ 5.42 4.18 10.98 10.73
Pleasanton/Walnut Creek, CA 4.80 4.20 12.60 –
Portland, OR 4.97 4.64 8.88 5.95
Raleigh, NC 3.95 – 9.13 –
Reno, NV 3.48 3.20 6.24 9.84
Sacramento, CA 4.41 3.77 8.40 9.84
San Diego, CA 7.92 7.08 11.40 14.28
San Francisco Peninsula, CA 9.24 9.24 21.24 21.24
San Jose/Silicon Valley, CA 4.44 5.04 6.84 10.92
Savannah, GA 3.95 3.75 7.00 10.00
Seattle/Puget Sound, WA 5.62 – 10.12 –
St. Louis, MO 3.93 – 9.66 –
Stockton/San Joaquin County, CA 3.96 3.48 5.52 7.44
Tampa Bay, FL 4.20 3.96 8.24 9.36
Washington, DC 7.74 – 12.03 –
West Palm Beach, FL 7.14 6.40 10.36 14.71
u.s. AVERAGE 4.60 4.13 8.54 10.00
Quarterly Change -2.10% -2.02% 0.51% -2.10%
COllIERs INTERNATIONAl | P. 5

6. hIghLIghTS | Q4 2010 | industrial | north america
CANAdA | INdusTRIAl suRVEy
EXIsTING INVENTORy (sF) NEw CONsTRuCTION NEw CONsTRuCTION CuRRENTly uNdER
MARkET dEC. 31, 2010 Q4 2010 (sF) yTd 2010 (sF) CONsTRuCTION (sF)
Calgary, AB 122,107,000 0 740,000 957,000
Edmonton, AB 77,072,000 230,000 730,000 113,000
Halifax, NS 7,075,000 5,000 102,000 0
Montreal, QC 347,771,000 0 180,000 24,000
Ottawa, ON 28,027,000 75,000 176,000 75,000
Regina, SK 16,175,000 0 600,000 532,000
Saskatoon, SK 19,700,000 60,000 190,000 170,000
Toronto, ON 760,332,000 120,000 1,551,000 958,000
Vancouver, BC 178,640,000 0 0 1,702,000
Waterloo Region, ON 61,180,000 0 223,000 135,000
Winnipeg, MB 79,308,000 – 118,000 136,000
CANAdA TOTAl 1,697,387,000 490,000 4,610,000 4,802,000
CANAdA | INdusTRIAl suRVEy
ABsORPTION ABsORPTION VACANCy RATE VACANCy RATE
MARkET Q4 2010 (sF) yTd 2010 (sF) sEP. 30, 2010 (%) dEC. 31, 2010 (%)
Calgary, AB (778,000) 3,743,000 4.7 5.4
Edmonton, AB 401,000 1,691,000 4.3 4.1
Halifax, NS 34,000 227,000 5.4 5.0
Montreal, QC 878,000 1,905,000 6.4 6.2
Ottawa, ON 140,000 148,000 6.3 5.8
Regina, SK 58,000 1,255,000 1.7 1.3
Saskatoon, SK (32,000) 420,000 2.5 2.7
Toronto, ON (1,484,000) 4,092,000 5.8 6.0
Vancouver, BC 449,000 3,331,000 4.0 4.1
Waterloo Region, ON 498,000 (336,000) 9.4 8.4
Winnipeg, MB – 303,000 – 3.0
CANAdA TOTAl/AVERAGE 164,000 16,779,000 5.52 5.56
CANAdA | INdusTRIAl suRVEy | sAlEs PRICE, CAP RATE ANd lANd PRICE As OF dECEMBER 2010
sAlEs PRICE CAP lANd PRICE lANd PRICE VACANCy FORECAsT ABsORPTION FORECAsT RENT FORECAsT
MARkET (CAd PsF) RATE (%) (CAd PsF) suBMARkET (3 MONTHs) (3 MONTHs) (3 MONTHs)
Calgary, AB 105.00 7.00 12.05 Great Plains (SE) Up Up Up
Edmonton, AB – – 14.60 Southeast Down Up Same
Halifax, NS 86.00 8.13 4.25 Burnside Industrial Park Down Up Up
Montreal, QC 85.00 8.25 11.00 St-Laurent Down Up Up
Ottawa, ON 85.00 8.13 6.75 Central Ottawa Same Same Up
Regina, SK 73.00 7.80 5.75 Ross Industrial Park Same Same Up
Saskatoon, SK 110.00 7.50 9.11 Marquis Up Up Same
Toronto, ON 64.52 6.98 9.88 Caledon Down Same Up
Vancouver, BC 125.00 6.50 22.50 Metro Vancouver Same Up Same
Waterloo Region, ON 65.00 7.50 7.46 Cambridge Down Up Up
Winnipeg, MB 75.00 7.75 11.40 Southwest Down Up Same
CANAdA AVERAGE 87.35 7.55 10.43
CANAdA | INdusTRIAl suRVEy | RENTs As OF dECEMBER 2010
wAREHOusE/dIsTRIBuTION Bulk sPACE FlEX/sERVICE sPACE TECH/R&d sPACE
MARkET sPACE (CAd PsF) (CAd PsF) (CAd PsF) (CAd PsF)
Calgary, AB 7.75 6.50 9.50 10.50
Edmonton, AB 6.80 6.15 8.15 8.40
Halifax, NS 7.00 5.50 8.95 13.95
Montreal, QC 4.00 4.00 6.50 8.50
Ottawa, ON 7.25 6.25 8.25 11.00
Regina, SK 8.50 6.50 12.00 14.00
Saskatoon, SK 9.00 8.00 11.00 13.00
Toronto, ON 4.98 4.56 7.15 7.75
Vancouver, BC 6.50 5.75 8.50 9.25
Victoria, BC 12.00 10.00 13.00 13.00
Waterloo Region, ON 4.07 3.54 8.33 8.33
Winnipeg, MB 4.50 4.00 7.00 8.00
CANAdA AVERAGE 6.86 6.07 9.21 10.70
Quarterly Change 0.77% -0.85% 0.90% 0.93%
P. 6 | COllIERs INTERNATIONAl

7. hIghLIghTS | Q4 2010 | industrial | north america
u.s. INdusTRIAl sPACE uNdER CONsTRuCTION By TyPE – Q4 2010 U.S. Industrial Market
Square Feet Finishes 2010 on a High Note
0 1,000,000 2,000,000 3,000,000 4,000,000
Continued from page 1
Chicago, IL
Los Angeles – Inland Empire, CA translate into stronger fundamentals. Rents, however, are unlikely to firm
Nashville, TN up until vacancies drop below 10.0 percent, which should occur by year-
Atlanta, GA end. For most landlords and investors, the best that can be hoped for is
Columbus, OH rising occupancy and fewer incentives. For tenants, 2011 is an opportune
Washington, DC Spec
time to sign a new lease, as 2012 will almost certainly be the inflection
Philadelphia, PA Build-to-Suit period when warehouse rents begin their upward march.
Kansas City, MO-KS
Columbia, SC Occupancies rise for third consecutive quarter. For the third consecutive
Los Angeles, CA three-month period, industrial markets registered an increase in occupied
Memphis, TN space. For the fourth quarter, net absorption totaled 28.6 million square
San Jose/Silicon Valley, CA
feet (MSF)—a large increase from the third quarter, when occupied space
Little Rock, AR
increased by just 3.6 MSF, and in sharp contrast to the 17.6 MSF of
Dallas/Ft. Worth, TX
industrial space returned to the market in the Q4 2009. For the year,
Bakers eld, CA
Jacksonville, FL
absorption totaled 23.7 MSF compared with –160.7 MSF in 2009. Of the
New Jersey – Central 55 markets tracked in the U.S., 33 reported positive absorption during the
Indianapolis, IN fourth quarter; however, sizeable gains in four (Inland Empire, New
Charleston, SC Jersey, Chicago and Dallas) of the Big Five markets drove up the national
San Diego, CA number. Canadian markets ended the year on a somewhat muted note,
Houston, TX however, full-year absorption totaled 16.7 MSF, a stark turnaround from
Cincinnati, OH 2009 when occupied space shrank by 700,000 square feet.
Savannah, GA
Boston, MA warehouse construction still at low levels but up from previous
Denver, CO quarter. Fourth quarter completions totaled 9.4 MSF, a substantial
Phoenix, AZ increase from the third quarter when 4.4 MSF were delivered to the
New Jersey – Northern market, and a modest increase from 7.0 MSF completed in Q4 2009. Of
Raleigh, NC the 9.4 MSF delivered, 71 percent was build-to-suit and 29 percent was
Las Vegas, NV speculative construction. In the coming quarters construction is
Ft. Lauderdale/Broward Co., FL anticipated to be largely build-to-suit, with only 15 percent under
Baltimore, MD construction at year-end classified as speculative. Quarter-end
Portland, OR
construction activity totaled 22.7 MSF, a modest increase from 18.6 MSF
Charlotte, NC
underway at the end of the third quarter but well below the 107.0 MSF
Sacramento, CA
recorded two years ago. Canadian construction remained subdued with
Cleveland, OH
West Palm Beach, FL merely 500,000 square feet completed in Q4 bringing annual construction
Oakland, CA to 4.6 MSF. In 2009 Canadian warehouse construction totaled 15.7 MSF.
St. Louis, MO
u.s. industrial vacancy rate registers sharp drop during the quarter.
The U.S. industrial warehouse vacancy rate dropped 22 basis points
during the fourth quarter to register 10.74 percent. After a very slight
increase in the third quarter, this brings the national vacancy rate back to
CANAdA INdusTRIAl sPACE uNdER CONsTRuCTION By TyPE – Q4 2010 where it began the year. Vacancies in many markets appear to have
peaked and are expected to drift lower over the coming quarters. About
Square Feet three of every four tracked U.S. markets (41 out of 55) saw vacancy
0 1,000,000 2,000,000 3,000,000 4,000,000 decrease in Q4 while the balance registered no change or a modest
Vancouver, BC increase. Canadian warehouse vacancies were little changed, increasing
Toronto, ON Spec by just 4 basis points during the quarter to average 5.56 percent.
Calgary, AB Build-to-Suit Rents continue to go lower despite a pick-up in demand. In spite of
Regina, SK improvements in demand for industrial warehouse space, industrial rents
Saskatoon, SK moved lower during the fourth quarter. Warehouse rents fell 2.1 percent
Winnipeg, MB to register $4.60 per square foot while bulk rents dropped 2.0 percent to
Waterloo Region, ON average $4.13 per square foot, flex rents marginally increased $0.04 to
Edmonton, AB $8.54 per square foot and R&D rents slipped $0.21 to $10.00 per square
Ottawa, ON
foot. Canadian industrial rents largely held steady during the quarter with
warehouse, bulk, R&D and flex all registering increases/decreases of less
Montreal, QC
than 1.0 percent.
COllIERs INTERNATIONAl | P. 7

8. hIghLIghTS | Q4 2010 | industrial | north america
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
• 2.4 billion square feet under
management
• over 15,000 professionals
COllIERs INTERNATIONAl
601 Union Street, Suite 4800
Seattle, WA 98101
TEl +1 206 695 4200
FOR MORE INFORMATION
Ross J. Moore
Chief Economist | USA
TEl +1 617 722 0221
Glossary EMAIl ross.moore@colliers.com
Absorption—Net change in leased space over a one side and dock-height loading or grade level
Copyright © 2011 Colliers International.
given period of time. roll-up doors on the other. Less than 15 percent
The information contained herein has been obtained
office.
Bulk space—100,000 square feet or more with up from sources deemed reliable. While every reasonable
effort has been made to ensure its accuracy, we cannot
to 10 percent office space, the balance being Tech/R&d—One- and two-story, 10- to 15-foot guarantee it. No responsibility is assumed for any
general warehouse space with 20- to 36-foot ceiling heights with up to 50 percent office/dry lab inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the
ceiling heights. All loading is dock-height. space (remainder in wet lab, workshop, storage material contained in this report.
and other support), with dock-height and floor-
Flex space—Single-story buildings having 10- to
height loading.
18-foot ceilings with both floor-height and
dock-height loading. Includes wide variation in Triple Net Rent—Includes rent payable to the
office space utilization, ranging from retail and landlord and does not include additional expenses
personal service through distribution, light such as taxes, insurance, maintenance, janitorial
industrial and occasional heavy industrial use. and utilities. All industrial and high-tech/R&D rents
in this report are quoted on an annual, triple net
Inventory—Includes all existing multi- or single-
per square foot basis in U.S. dollars.
tenant leased and owner-occupied industrial
warehouse, light manufacturing, flex and R&D Vacancy Rate—Percentage of total inventory
properties greater than or equal to 10,000 square available (both vacant and occupied) at the survey
feet. date including direct vacant and sublease space.
New Construction—Includes completed warehouse—50,000 square feet or more with up
speculative and build-to-suit construction. New to 15 percent office space, the balance being
construction quoted on a net basis after any general warehouse space with 18- to 30- foot
demolitions or conversions. ceiling heights. All loading is dock height.
service space—Single-story (or mezzanine) with
10- to 16-foot ceilings with frontage treatment on Accelerating success.
www.COllIERs.COM