CB RICHARD ELLIS NAIOP TAMPA BAY ANNUAL BROKER UPDATE :: 2011 Industrial Market Overview Gary A. Bauler, LEED AP First Vice President CB Richard Ellis
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CB RICHARD ELLIS
NAIOP TAMPA BAYANNUAL BROKER UPDATE :: 2011Industrial Market Overview
Gary A. Bauler, LEED APFirst Vice PresidentCB Richard Ellis
DEMAND FOR INDUSTRIAL SPACE IS DRIVEN BY:
International Trade - Import and Export
Manufacturing and Trade Inventories
Industrial Production
Source: American Association of Port Authorities
CONTAINER TRAFFIC AT US PORTS TEU’s 1990 to 2010
Source: Federal Reserve
TOTAL INDUSTRIAL PRODUCTION, CAPACITY & UTILIZATION
Source: US Census Bureau
MANUFACTURING AND TRADE INVENTORIES AND SALES
BUSINESS FORMATIONS
Source: CBRE Research, US Bureau of Labor Statistics
TAMPA BAY INDUSTRIAL SUBMARKETS
NET ABSORPTION (SF)
Source: CBRE Research
SAMPLE OF 3rd QUARTER ACTIVITY IN MARKET
Business type Requirement
VF Corp230,000 sf. Upgrade of facility and increased efficiencies
Core Mark 260,000 sf. Consolidation of Orlando and Tampa
Xpedx 215,000 sf. Upgrade and expansion
Thomas Cooley Law School 130,000 sf. Alternative use of a dock high building
Light Manufacture 75,000 sf. building purchase Pending
Injection Molding Company 123,000 sf. building purchase and expansion Pending
CONSTRUCTION (SF)
Source: CBRE Research
VACANCY
Source: CBRE Research
Source: CBRE Research
VACANCY BY BUILDING SIZE :: Tampa MSA
AVERAGE ASKING LEASE RATE
Source: CBRE Research
Source: Real Capital Analytics
INDUSTRIAL AVERAGE SALES PRICE PSF
Source: Real Capital Analytics, Inc.
DISTRESSED ASSETS BY PROPERTY TYPE
26% 28%
9%
16%
13%
6%2%
TENANT/OCCUPIER TRENDS
Portfolio optimization, more but smaller locations closer to the consumer as a result of higher fuel prices and the need for quicker deliveries
Tenants are moving up in quality and at reduced costs
Tenants are looking to restructure leases to lock in today’s rates
Tenants are checking Landlords/Developers credit for stability
Good deals for tenants/buyers with motivated owners
Lenders/special servicers holding up deals and are reluctant to face reality
LANDLORD/DEVELOPER TRENDS
Planned projects have been put on hold
Tighter credit restrictions by Landlords for requested tenant improvements
Landlords attempting to hold asking rates, but offering aggressive proposals
Landlords will to do longer term leases as they don’t expect short term improvement in rates
Owners that are upside down not willing to put money in TI’s or commissions
TAMPA BAYINDUSTRIAL MARKET
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