Industrial Report - ctbt.com 3Q Cassidy Turley... · Industrial Report Sacramento Valley ... Our sources tell us that the price is in the ... Cassidy Turley Industrial Market Snapshot

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City, State Year

Industrial Report

Sacramento Valley Third Quarter 2013

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

2009 2010 2011 2012 YTD-13

www.cassidyturley.com

10%

11%

12%

13%

14%

15%

2009 2010 2011 2012 2013

Squ

are

Feet

(0

00s)

Net Absorption

Vacancy

10-Year Average

Market Performs Well Despite Campbell’s Soup Hit

Though the overall Sacramento industrial marketplace performed well in Q3 2013 witheleven of 15 submarkets recording occupancy growth, this was not enough to offset just onesignificant vacancy that came to market in South Sacramento. Campbell’s Soup officiallyvacated their 1.6 million square foot plant on Franklin Boulevard during the quarter and asa result, regional vacancy increased from 12.5% to 12.8%. Overall occupancy growth wasnegative to the tune of 426,000 square feet, despite the fact that nearly all of the region’sindividual trade areas posted gains—some of which were substantial. In fact, takeCampbell’s out of the mix and the market would have posted roughly 1.2 million square feetof positive net absorption.

Campbell’s announced the closure of the plant in September of 2012, and began layoffs inwaves, starting at the beginning of the year and finishing in July. However, despite itsimpact on regional industrial vacancy, there is some good news for local landlords in regardsto the Campbell’s plant. The facility is currently in the process of being sold to a yetunnamed investor and the deal is in contract. Our sources tell us that the price is in the$15 per square foot range and though the buyer has yet to be named, our understanding isthat it is an investor that has a history of redeveloping properties. The deal is reportedlypartially contingent upon the local municipality continuing to provide six to eight milliongallons of water a month to the site, and so it is unclear how long it will take for this deal toclose escrow. However, we anticipate that the new owners will almost certainly demolishlarge portions of the facility to make way for either new industrial or other types ofdevelopment. Though there are a few more modern food processing buildings on the sitethat would likely be marketed to new users, up to one million square feet of the entire plantconsists of facilities built as far back as the 1950s. As a result, we suspect that the majorityof the 1.6 million square feet of space that Campbell’s vacated will not be returning to themarket as competitive space and will likely be demolished sometime next year after the dealcloses. Ultimately, we anticipate a new industrial park at the site and/or potentially somelimited new multifamily or retail/commercial development along key frontage points alongFranklin Boulevard. In other words, this quarter’s uptick in industrial vacancy will likely beshort-lived and have no impact on the region’s competitive environment. Excluding theCampbell’s plant from quarterly numbers, the current regional vacancy rate is closer to11.7%. Q3 saw strong occupancy gains in a few key submarkets. The Davis/Woodlandsubmarket was the biggest winner, posting 753,000 square feet of occupancy growth, as itsvacancy rate plummeted from 16.6% to 12.0%. Most of this came from an owner/user saleof two 400,000 square foot buildings – 2222 E Beamer Street and 221 Hanson Way. E&ETrading purchased and took occupancy of the buildings in July, accounting for the highestlevel of single quarter growth this trade area has seen since the recession.

Industrial Market SnapshotSacramento Valley • Third Quarter 2013

Economic Indicators

Q3 13 Q3 12

Sacramento Valley Employment

954K 940K

Sacramento Valley Unemployment

8.45% 9.71%

U.S. Unemployment 7.4% 8.0%

U.S. CCI 80.8 65.0

Vacancy12.8%

Net Absorption(426,744) SF

Deliveries0 SF

Asking Rent$0.37 NNN

Market Tracker*Arrows = Current Qtr Trend

Highlights:

• Vacancy increases to 12.8% – Campbell’s Soup vacancy is the main culprit.

• Despite the Campbell’s Soup vacancy, the market performed well overall, with11 of the region’s submarkets posting occupancy gains.

• The average asking rent stands at $0.37 PSF NNN. Rental rate growth is notanticipated any time soon.

• While demand is still there, touring activity has slowed going into the secondhalf of the year.

SACRAMENTO VALLEY INDUSTRIAL


SACRAMENTO VALLEY INDUSTRIAL

The Natomas/Northgate submarket also experienced moderate growth in Q3, posting127,000 square feet of positive net absorption as its vacancy rate dropped from 14.0% to12.9%. This marks one of the lowest, post-recession vacancy rates this submarket has seen.Two recent occupancies accounted for the bulk of this growth; Penske Logistics took57,000 square feet on Vista Park Court while Ashley Furniture took 39,000 square feet onSouth Market Court. Finally, the West Sacramento submarket also experienced notablegrowth, recording 114,000 square feet of positive net absorption, as its vacancy rate fellfrom 8.7% to 8.0%. West Sacramento has typically been one of the Sacramento region’sstrongest submarkets, with vacancy rates consistently falling under the 10% mark. The8.0% rate recorded this quarter is the lowest this market has seen since Q3 2010.

With the exception of the Campbell’s vacancy, which drove vacancy in the SouthSacramento submarket from a tight 2.9% to 43.6% (this submarket now has the distinctionof having the highest vacancy rate in the region), few submarkets experienced any notablelosses. Northeast Sacramento, Sunrise and Richards all posted minimal losses during thequarter, none of which exceeded 25,000 square feet.

Though the industrial market has experienced some notable gains in the last few months, itappears the momentum experienced during the first half of the year is beginning to slow.While active space requirements are still holding at roughly the same levels that we trackedat this time last year, our brokers report that touring activity has slowed. The sense ofurgency that was apparent in tenants during the first and second quarters seems to havedissipated in Q3. This may be due to an increased interest in buying rather than renting andtenants are holding out to see which is the better deal.

The current average asking rental rate for industrial space in the region is $0.37 per squarefoot (on a monthly triple net basis). This metric stood in exactly the same place one yearago. Though local vacancy levels have been gradually heading downward since peaking inQ1 2011 at 14.0%, rents have yet to show signs of recovery. They have consistentlyhovered between $0.35 and $0.38 per square foot for the last three years. The localaverage asking rate had peaked prior to the recession at $0.49 per square foot in Q1 2008.Though we anticipate that rental rate growth will strengthen somewhat in 2014, we are stilllikely at least two years away, if not longer, from anything approaching a return to pre-downturn asking rates. Regardless, the market should be approaching 10.0% vacancy levelssometime within the next year assuming economic recovery is not derailed by ourpolicymakers.

Industrial Market SnapshotSacramento Valley • Third Quarter 2013

$0.30

$0.35

$0.40

$0.45

2009 2010 2011 2012 2013

Average Asking Rate

Availabilities by Size (SF)

0-10K 10-25K 25-50K 50K+

0

20

40

60

80

100

120

$0

$20

$40

$60

$80

$100

$120

$140

$160

2009 2010 2011 2012 2013

Sales Volume, $Mil # Bldgs Sold

Industrial Sales

Key Lease Transactions Third Quarter 2013

PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET

4109 S Market Ct 39,722 Ashley Furniture New Lease Natomas/Northgate

1534 N Market Blvd 29,222 Rexel Pacific Electric New Lease Natomas/Northgate

4518 Kilzer Ave 18,364 STL Transport New Lease McClellan

8845 Elder Creek Rd 18,000 Eisenbeiss New Lease Power Inn

1400 Enterprise Blvd 16,800 Fitguard New Lease West Sacramento

1940 Railroad Dr 16,049 Ryan Transport New Lease NE Sacramento

11375 Sunrise Park Dr 14,525 DH Motor Sport New Lease Sunrise

3132 Dwight Rd 12,322 Steamworks New Lease Elk Grove/Laguna

Cassidy Turley Industrial Market SnapshotSacramento Valley • Third Quarter 2013


Abby FriedmanResearch Analyst

520 Capitol MallFifth FloorSacramento, CA 95814Tel: 916.617.4266Fax: 916.376.8840

Managing Editor:

Garrick BrownDirector of [email protected]

The information contained within this report is gatheredfrom multiple sources considered to be reliable. Theinformation may contain errors or omissions and ispresented without any warranty or representations as to itsaccuracy.

Copyright © 2013 Cassidy Turley.All rights reserved.

Key Industrial Sale Transactions Third Quarter 2013

PROPERTY SF BUYER CITY SALE PRICE

890 Embarcadero Dr 164,330 Bayer Crop Science West Sacramento $10,360,000

8120 Power Ridge Dr 105,200 Aitchison II Sacramento Sacramento $4,600,000

4350 Warehouse Ct 96,000 GEB Properties North Highlands $3,143,000

859 F St 55,000 Metropolitan Atlas Moving West Sacramento $2,500,000

6001 88th St 48,000 Colonial Van & Storage Sacramento $1,920,000

8141 Elder Creek Rd 76,000 Levin’s Auto Supply Sacramento $1,700,000

2425 Mercantile Dr 23,064 Urata & Sons Rancho Cordova $1,499,160

TOTALBLDGS

INVENTORY SUBLET VACANT DIRECT VACANTVACANCY

RATECURRENT NET ABSORPTION

YTD NET ABSORPTION

UNDER CONSTRUC-

TION

AVERAGE ASKING RENT

Submarket

Auburn/Newcastle 80 2,051,033 600 111,678 5.5% 36,075 42,120 0 $0.58

Davis/Woodland 185 16,393,080 0 1,974,644 12.0% 752,956 519,587 0 $0.25

Downtown Sacramento 86 2,664,253 0 148,655 5.6% 17,178 15,578 0 $0.57

East Sacramento 23 510,830 0 28,200 5.5% 0 17,040 0 $0.62

Elk Grove/Laguna 102 4,976,291 0 476,768 9.6% 62,977 136,217 0 $0.35

Folsom/El Dorado Hills 94 2,213,046 0 119,992 5.4% 28,963 91,384 0 $0.73

Mather 121 3,664,076 18,000 554,390 15.6% 28,650 (11,738) 0 $0.39

McClellan 288 13,710,648 142,978 2,547,352 19.6% 16,060 409,086 0 $0.42

Natomas/Northgate 200 11,632,523 0 1,500,611 12.9% 126,886 542,031 0 $0.37

Northeast Sacramento 195 5,025,232 0 441,258 8.8% (24,741) (61,553) 0 $0.40

Power Inn 556 24,010,248 34,400 2,384,808 10.1% 46,441 86,319 0 $0.32

Richards 90 4,224,791 0 278,681 6.6% (5,345) 51,789 0 $0.38

Roseville/Rocklin 270 15,633,290 0 2,769,397 17.7% 27,703 32,686 0 $0.38

South Sacramento 123 4,005,544 0 1,746,931 43.6% (1,631,964) (1,596,621) 0 $0.39

Sunrise 327 9,261,162 8,040 886,128 9.7% (22,851) 76,958 0 $0.40

West Sacramento 305 15,510,556 0 1,233,402 8.0% 114,268 423,282 0 $0.40

TOTAL 3,045 135,486,603 204,018 17,202,895 12.8% (476,744) 774,165 0 $0.37

*Industrial asking rates converted to NNN

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Market SummaryBuilding Building Vacancy Rate

Base Count Direct Sublease Total Q3-13 Q3-12

Auburn / New Castle 2,051,033 80 111,678 600 112,278 5.5% 7.4% $0.58

Davis / Woodland 16,393,080 0 1,974,644 0 1,974,644 12.0% 15.7% $0.25

Downtown Sacramento 2,664,253 86 148,655 0 148,655 5.6% 6.1% $0.57

East Sacramento 510,830 23 28,200 0 28,200 5.5% 8.5% $0.62

Elk Grove / Laguna 4,976,291 102 476,768 0 476,768 9.6% 14.2% $0.35

Folsom / El Dorado Hills 2,213,046 94 119,992 0 119,992 5.4% 10.0% $0.73

Mather 3,664,076 121 554,390 18,000 572,390 15.6% 13.5% $0.39

McClellan 13,710,648 288 2,547,352 142,978 2,690,330 19.6% 23.1% $0.42

Natomas / Northgate 11,632,523 200 1,500,611 0 1,500,611 12.9% 17.5% $0.37

Northeast Sacramento 5,025,232 195 441,258 0 441,258 8.8% 7.4% $0.40

Power Inn 24,010,248 556 2,384,808 34,400 2,419,208 10.1% 10.6% $0.32

Richards 4,224,791 90 278,681 0 278,681 6.6% 8.5% $0.38

Roseville / Rocklin 15,633,290 270 2,769,397 0 2,769,397 17.7% 18.0% $0.38

South Sacramento 4,005,544 123 1,746,931 0 1,746,931 43.6% 4.3% $0.39

Sunrise 9,261,162 327 886,128 8,040 894,168 9.7% 11.4% $0.40

West Sacramento 15,510,556 305 1,233,402 0 1,233,402 8.0% 9.6% $0.40

Total Market 135,486,603 2,860 17,202,895 204,018 17,406,913 12.8% 13.6% $0.37

Vacancy by Area

Market Rent Ranges & Average Asking Rate NNN


SubmarketAvg. Asking Rate (NNN)

Vacant Space

5.5%

12.0%

5.6% 5.5%

9.6%

5.4%

15.6%

19.6%

12.9%

8.8%10.1%

6.6%

17.7%

43.6%

9.7%8.0%7.4%

15.7%

6.1%8.5%

14.2%

10.0%

13.5%

23.1%

17.5%

7.4%

10.6%

8.5%

18.0%

4.3%

11.4%9.6%

0%

10%

20%

30%

40%

50%

Auburn / NewCastle

Davis /Woodland

DowntownSacramento

EastSacramento

Elk Grove /Laguna

Folsom / ElDorado Hills

Mather McClellan Natomas /Northgate

NortheastSacramento

Power Inn Richards Roseville /Rocklin

SouthSacramento

Sunrise WestSacramento

Q3-13 Q3-12

$0.58

$0.25

$0.57

$0.62

$0.35

$0.73

$0.39 $0.42

$0.37 $0.40

$0.32

$0.38 $0.38 $0.39 $0.40 $0.40

$0.56

$0.25

$0.41

$0.55

$0.38

$0.69

$0.36 $0.41

$0.33 $0.36

$0.33 $0.29

$0.41 $0.40 $0.39 $0.41

$-

$0.25

$0.50

$0.75

Auburn / NewCastle

Davis /Woodland

DowntownSacramento

EastSacramento

Elk Grove /Laguna

Folsom / ElDorado Hills

Mather McClellan Natomas /Northgate

NortheastSacramento

Power Inn Richards Roseville /Rocklin

SouthSacramento

Sunrise WestSacramento

Q3-13 Q3-12

Sacramento Valley Industrial ReportThird Quarter 2013

Total MarketQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Total Building Base: 135,285,398 135,285,398 135,355,398 135,486,609 135,486,603Total Buildings: 3,043 3,043 3,044 3,045 2,860

Direct Vacant: 17,330,515 16,945,203 17,825,919 16,765,765 17,202,895Sublease Vacant: 1,017,065 1,034,670 271,675 214,410 204,018Total Vacant: 18,347,580 17,979,873 18,097,594 16,980,175 17,406,913Total Occupied SF 116,937,818 117,305,525 117,257,804 118,506,434 118,079,690

Vacancy: 13.6% 13.3% 13.4% 12.5% 12.8%

Gross Absorption: 1,772,657 1,748,490 2,219,228 2,403,737 2,195,756Net Absorption: 411,679 367,707 -47,721 1,248,630 -426,744YTD Net Absorption 45,048 412,755 -47,721 1,200,909 774,165Growth Rate (%) 0.2% 0.3% -0.1% 0.8% -0.3%Total New Construction: 200,000 0 70,000 131,211 0

Avg Asking Rate (NNN): $0.37 $0.38 $0.36 $0.36 $0.37

Vacancy & Average Asking Rate Trend


13.5%

13.8%

14.0%13.9%

13.3% 13.5%

13.0%

13.7%13.6%

13.3%13.4%

12.5% 12.8%

$0.00

$0.10

$0.20

$0.30

$0.40

9%

12%

15%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthV

acan

cy

Vacancy Avg. Asking Rate


Auburn / NewcastleQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Total Building Base: 2,051,033 2,051,033 2,051,033 2,051,033 2,051,033Total Buildings: 80 80 80 80 80

Direct Vacant: 150,753 153,798 143,038 147,753 111,678Sublease Vacant: 0 600 600 600 600Total Vacant: 150,753 154,398 143,638 148,353 112,278Total Occupied SF 1,900,280 1,896,635 1,907,395 1,902,680 1,938,755

Vacancy: 7.4% 7.5% 7.0% 7.2% 5.5%

Gross Absorption: 30,040 23,015 26,270 0 36,106Net Absorption 22,365 -3,645 10,760 -4,715 36,075YTD Net Absorption 18,207 14,562 10,760 6,045 42,120Growth Rate (%) 1.1% -0.2% 0.5% -0.2% 1.8%Total New Construction: 0 0 0 0 0




4.5%4.8%

5.7% 6.0%

8.2%8.2%

7.8%8.4%

7.4% 7.5%7.0% 7.2%

5.5%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



Davis / WoodlandQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 2,578,793 2,494,231 2,719,901 2,727,600 1,974,644Sublease Vacant: 0 0 0 0 0Total Vacant: 2,578,793 2,494,231 2,719,901 2,727,600 1,974,644Total Occupied SF 13,814,287 13,898,849 13,673,179 13,665,480 14,418,436

Vacancy: 15.7% 15.2% 16.6% 16.6% 12.0%

Gross Absorption: 454,301 507,376 60,736 62,589 871,319Net Absorption 439,649 84,562 -225,670 -7,699 752,956YTD Net Absorption -172,224 -87,662 -225,670 -233,369 519,587Growth Rate (%) 1.5% 0.5% -1.4% 0.0% 4.6%Total New Construction: 200,000 0 0 0 0




15.4%

16.7%

18.0%

15.9%

14.4%13.6%

11.0%

17.4%

15.7%15.2%

16.6% 16.6%

12.0%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

4%

8%

12%

16%

20%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

on

thVa

can

cy



Downtown SacramentoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13



Vacancy: 6.1% 6.2% 6.2% 6.2% 5.6%

Gross Absorption: 5,000 0 10,000 0 17,200Net Absorption -22,200 -1,480 0 -1,600 17,178YTD Net Absorption 12,066 10,586 0 -1,600 15,578Growth Rate (%) -0.8% -0.1% 0.0% -0.1% 0.6%Total New Construction: 0 0 0 0 0




4.6%5.3%

6.6%

5.1%

6.1% 6.6%

5.5%5.3%

6.1% 6.2% 6.2% 6.2%

5.6%

$0.00

$0.20

$0.40

$0.60

$0.80

0%

1%

2%

3%

4%

5%

6%

7%

8%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthV

acan

cy



East SacramentoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Total Building Base: 510,830 510,830 510,830 510,830 510,830Total Buildings: 23 23 23 23 23

Direct Vacant: 43,200 45,240 41,200 28,200 28,200Sublease Vacant: 0 0 0 0 0Total Vacant: 43,200 45,240 41,200 28,200 28,200Total Occupied SF 467,630 465,590 469,630 482,630 482,630

Vacancy: 8.5% 8.9% 8.1% 5.5% 5.5%

Gross Absorption: 0 0 6,000 13,000 0Net Absorption -13,200 -2,040 4,040 13,000 0YTD Net Absorption -7,130 -9,170 4,040 17,040 17,040Growth Rate (%) -2.6% -0.4% 0.8% 2.5% 0.0%Total New Construction: 0 0 0 0 0




0.7% 0.7%

6.5%

3.3% 3.3%

7.1%

6.3%5.9%

8.5%8.9%

8.1%

5.5% 5.5%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

0%

2%

4%

6%

8%

10%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthV

acan

cy



Elk Grove / LagunaQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q2-13


Direct Vacant: 700,159 606,691 600,665 539,751 476,768Sublease Vacant: 6,300 6,300 6,300 0 0Total Vacant: 706,459 612,991 606,965 539,751 476,768Total Occupied SF 4,269,838 4,363,306 4,369,332 4,436,546 4,499,523

Vacancy: 14.2% 12.3% 12.2% 10.8% 9.6%

Gross Absorption: 20,900 103,320 46,171 115,499 86,809Net Absorption -4,209 93,468 6,026 67,214 62,977YTD Net Absorption -23,148 70,320 6,026 73,240 136,217Growth Rate (%) -0.1% 1.9% 0.1% 1.4% 1.3%Total New Construction: 0 0 0 0 0




17.5%16.9%

14.3% 14.3%13.6% 13.7% 13.9% 14.1% 14.2%

12.3% 12.2%

10.8%9.6%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

0%

4%

8%

12%

16%

20%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthV

acan

cy



Folsom / El DoradoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13



Vacancy: 10.0% 9.6% 9.6% 6.7% 5.4%

Gross Absorption: 11,843 42,290 56,496 87,808 36,334Net Absorption -63,349 10,101 -47 62,468 28,963YTD Net Absorption -94,783 -84,682 -47 62,421 91,384Growth Rate (%) -2.9% 0.5% 0.0% 2.8% 1.3%Total New Construction: 0 0 0 0 0




5.3%

7.2% 6.9%

5.3% 4.9%

5.7% 6.3%

7.1%

10.0%9.6% 9.6%

6.7%

5.4%

$0.00

$0.25

$0.50

$0.75

$1.00

0%

2%

4%

6%

8%

10%

12%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



MatherQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 495,218 542,652 618,435 583,040 554,390Sublease Vacant: 0 18,000 18,000 18,000 18,000Total Vacant: 495,218 560,652 636,435 601,040 572,390Total Occupied SF 3,168,858 3,103,424 3,027,641 3,063,036 3,091,686

Vacancy: 13.5% 15.3% 17.4% 16.4% 15.6%

Gross Absorption: 78,999 13,326 37,832 73,859 28,650Net Absorption 19,459 -65,434 -75,783 35,395 28,650YTD Net Absorption 10,532 -54,902 -75,783 -40,388 -11,738Growth Rate (%) 0.5% -1.8% -2.1% 1.0% 0.8%Total New Construction: 0 0 0 0 0




14.9%14.6% 14.0% 13.5% 13.1%

13.8% 13.9% 14.0%13.5%

15.3%

17.4%16.4%

15.6%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

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McClellanQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 2,309,616 2,240,183 2,861,246 2,555,412 2,547,352Sublease Vacant: 859,233 859,233 145,978 150,978 142,978Total Vacant: 3,168,849 3,099,416 3,007,224 2,706,390 2,690,330Total Occupied SF 10,541,799 10,611,232 10,703,424 11,004,258 11,020,318

Vacancy: 23.1% 22.6% 21.9% 19.7% 19.6%

Gross Absorption: 121,504 205,999 895,041 573,527 55,853Net Absorption -214,314 69,433 92,192 300,834 16,060YTD Net Absorption -127,464 -58,031 92,192 393,026 409,086Growth Rate (%) -1.6% 0.5% 0.7% 2.2% 0.1%Total New Construction: 0 0 0 0 0




20.0%20.5%

22.0%22.7% 22.9% 22.2% 22.2%

21.5%23.1% 22.6% 21.9%

19.7%19.6%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

5%

10%

15%

20%

25%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



Natomas / NorthgateQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 1,913,120 1,939,802 1,891,689 1,627,497 1,500,611Sublease Vacant: 122,840 102,840 43,500 0 0Total Vacant: 2,035,960 2,042,642 1,935,189 1,627,497 1,500,611Total Occupied SF 9,596,563 9,589,881 9,697,334 10,005,026 10,131,912

Vacancy: 17.5% 17.6% 16.6% 14.0% 12.9%

Gross Absorption: 218,849 84,694 188,429 362,101 214,738Net Absorption 18,531 -6,682 107,453 307,692 126,886YTD Net Absorption -145,716 -152,398 107,453 415,145 542,031Growth Rate (%) 0.2% -0.1% 0.9% 2.6% 1.1%Total New Construction: 0 0 0 0 0




16.6%15.8% 15.5% 16.0% 16.2% 16.2%

16.6%17.7% 17.5% 17.6%

16.6%

14.0%

12.9%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

5%

10%

15%

20%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

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Northeast SacramentoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13



Vacancy: 7.4% 7.6% 9.4% 8.3% 8.8%

Gross Absorption: 90,710 55,543 63,156 62,995 51,102Net Absorption 60,366 -7,942 -90,951 54,139 -24,741YTD Net Absorption 90,775 82,833 -90,951 -36,812 -61,553Growth Rate (%) 1.2% -0.2% -1.8% 1.1% -0.5%Total New Construction: 0 0 0 0 0




12.4%

9.6% 9.8%10.5% 10.8%

9.2% 9.2%8.6%

7.4% 7.6%

9.4%

8.3%8.8%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

2%

4%

6%

8%

10%

12%

14%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

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Power InnQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 2,546,475 2,505,527 2,504,569 2,451,249 2,384,808Sublease Vacant: 0 0 14,400 14,400 34,400Total Vacant: 2,546,475 2,505,527 2,518,969 2,465,649 2,419,208Total Occupied SF 21,463,773 21,504,721 21,491,279 21,544,599 21,591,040

Vacancy: 10.6% 10.4% 10.5% 10.3% 10.1%

Gross Absorption: 310,092 262,596 255,415 289,081 240,782Net Absorption 176,163 40,948 -13,442 53,320 46,441YTD Net Absorption 641,849 682,797 -13,442 39,878 86,319Growth Rate (%) 0.7% 0.2% -0.1% 0.2% 0.2%Total New Construction: 0 0 0 0 0




12.5% 12.6%13.4%

12.6%13.3% 13.3%

12.0%11.3%

10.6% 10.4% 10.5% 10.3%10.1%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

3%

5%

8%

10%

13%

15%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



RichardsQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13



Vacancy: 8.5% 7.8% 7.5% 6.5% 6.6%

Gross Absorption: 32,117 29,400 14,242 87,961 23,186Net Absorption -11,083 27,320 14,242 42,892 -5,345YTD Net Absorption -9,568 17,752 14,242 57,134 51,789Growth Rate (%) -0.3% 0.6% 0.3% 1.0% -0.1%Total New Construction: 0 0 0 0 0




8.7% 8.8%

10.3% 9.9%9.5%

8.2% 8.2% 8.2% 8.5%7.8%

7.5%

6.5% 6.6%

$0.00

$0.10

$0.20

$0.30

$0.40

0%

5%

10%

15%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



Quarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 2,798,660 2,759,186 2,701,981 2,774,708 2,769,397Sublease Vacant: 22,392 42,897 42,897 22,392 0Total Vacant: 2,821,052 2,802,083 2,744,878 2,797,100 2,769,397Total Occupied SF 12,812,238 12,831,207 12,888,412 12,836,190 12,863,893

Vacancy: 18.0% 17.9% 17.6% 17.9% 17.7%

Gross Absorption: 57,682 189,195 261,762 77,119 163,757Net Absorption -14,944 18,969 57,205 -52,222 27,703YTD Net Absorption -50,691 -31,722 57,205 4,983 32,686Growth Rate (%) -0.1% 0.1% 0.4% -0.3% 0.2%Total New Construction: 0 0 0 0 0




Roseville/Rocklin(Also includes Loomis & Lincoln)

17.5%

18.2% 17.5%17.8% 17.4% 17.7%

18.4%17.9% 18.0% 17.9% 17.6% 17.9% 17.7%

$0.00

$0.15

$0.30

$0.45

$0.60

0%

4%

8%

12%

16%

20%

24%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

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South SacramentoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 170,323 150,310 157,544 114,967 1,746,931Sublease Vacant: 0 0 0 0 0Total Vacant: 170,323 150,310 157,544 114,967 1,746,931Total Occupied SF 3,835,221 3,855,234 3,848,000 3,890,577 2,258,613

Vacancy: 4.3% 3.8% 3.9% 2.9% 43.6%

Gross Absorption: 15,700 37,105 10,836 53,540 22,955Net Absorption 4,800 20,013 -7,234 42,577 -1,631,964YTD Net Absorption -8,932 11,081 -7,234 35,343 -1,596,621Growth Rate (%) 0.1% 0.5% -0.2% 1.1% -40.7%Total New Construction: 0 0 0 0 0




4.2% 4.7% 4.8% 4.8%4.4% 4.0% 4.0% 4.4%

4.3% 3.8% 3.9%2.9%

43.6%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

0%

10%

20%

30%

40%

50%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

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SunriseQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 1,047,125 966,326 895,491 863,277 886,128Sublease Vacant: 4,800 4,800 0 8,040 8,040Total Vacant: 1,051,925 971,126 895,491 871,317 894,168Total Occupied SF 8,209,237 8,290,036 8,365,671 8,389,845 8,366,994

Vacancy: 11.4% 10.5% 9.7% 9.4% 9.7%

Gross Absorption: 155,838 22,610 199,233 85,450 130,775Net Absorption 13,645 80,799 75,635 24,174 -22,851YTD Net Absorption 137,147 217,946 75,635 99,809 76,958Growth Rate (%) 0.1% 0.9% 0.8% 0.3% -0.2%Total New Construction: 0 0 0 0 0




14.1% 14.1%14.5%

13.2%

11.7%

12.8%12.1%

11.5% 11.4%10.5% 9.7% 9.4%

9.7%

$0.00

$0.20

$0.40

$0.60

0%

4%

8%

12%

16%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthVac

ancy



West SacramentoQuarter Q3-12 Q4-12 Q1-13 Q2-13 Q3-13


Direct Vacant: 1,475,820 1,455,473 1,527,620 1,347,670 1,233,402Sublease Vacant: 1,500 0 0 0 0Total Vacant: 1,477,320 1,455,473 1,527,620 1,347,670 1,233,402Total Occupied SF 13,832,025 13,853,872 13,851,725 14,162,886 14,277,154

Vacancy: 9.6% 9.5% 9.9% 8.7% 8.0%

Gross Absorption: 169,082 172,021 87,609 459,208 216,190Net Absorption -12,530 21,847 -2,147 311,161 114,268YTD Net Absorption -238,402 -216,555 -2,147 309,014 423,282Growth Rate (%) -0.1% 0.1% -0.5% 1.2% 0.7%Total New Construction: 0 0 70,000 131,211 0




8.1% 8.4%8.2%

9.0%

7.7%8.1% 8.2%

9.6% 9.6%9.5%

9.9%

8.7%

8.0%

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

0%

2%

4%

6%

8%

10%

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

NN

N/M

onthV

acan

cy



Disclaimer: The information contained herein while not guaranteed has been secured by sources we deem reliable. All information should be verified prior to lease or sale.


Industrial Market Report

Sacramento Valley

Definitions

Manufacturing ProductBuildings typically used for industrial purposes (Less than (3/1000 parking, clear height less than 18’, three sides of concrete and one side of glass, usually 6%–15% office build out).

Warehouse ProductBuildings typically used for bulk warehouse purposes (2/1000 parking or less, clear height minimum of 18’, limited glass, dock and/or grade doors, and minimal build-out).

Total Building BaseTotal warehouse buildings over 10,000 square feet in size.

Direct AvailabilitiesTotal square footage being marketed for lease by landlord available within 90 days. This may include availabilities with pending leases.

Sublease Availabilities Total square footage being marketed for lease by sublessor.

VacancyTotal available square footage (direct & sublease) divided by Total Building Base.

Net AbsorptionChange in occupied building square footage in a given time period.

Avg. Asking RateWeighted Average NNN Rate (by available square footage) of available spaces with Gross rates converted to NNN rates.

Historical ContinuityCassidy Turley maintains a building by building historical record. Comparing previous reports to this report may show different building size numbers and statistics. Changes are caused by reclassification of buildings and revised building sizes. Historical comparisons should be made from this report only as Cassidy Turley adjusts the historical record accordingly.

SourceData is tracked and tallied from information provided by The Costar Group.

Report Published By:

Cassidy Turley Sacramento520 Capitol Mall Suite 500Sacramento, CA 95814Tel 916 375 1500Fax 916 376 8840

49

88

WoodlandNorth Highlands

Elk Grove

Davis

Rio Linda

Fair Oaks

Arden

Arcade

Laguna West

Florin

CitrusHeights

WestSacramento

Plymouth

Roseville

Parkway

FolsomOrangevale

Loomis

New Castle

Rocklin

AuburnLincoln

ShingleSprings

Placerville

El Dorado Hills

Camino

RanchoCordova

Winters

Vacaville

Carmichael1

2

13

14

11

12

10

8

97

5SACRAMENTO

4

3 6

Davis/Woodland

Natomas/Northgate

West Sacramento

Downtown

East Sacramento

South Sacramento

Power Inn

Elk Grove/Laguna

Mather

Sunrise

Folsom/El Dorado Hills

McClellan

Roseville/Rocklin

Auburn/New Castle

LEGEND1

2

3

4

5

6

7

8

9

10

11

12

13

14

80

80

80

5

505

5

99

99

70

65

50

49

Industrial Report - ctbt.com 3Q Cassidy Turley... · Industrial Report Sacramento Valley ... Our sources tell us that the price is in the ... Cassidy Turley Industrial Market Snapshot

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