Chicago industrial market Overview
First Quarter 2013
Inside…
Executive Summary .................................................... 2
1Q13 Chicago Industrial Statistics................................ 3
Leasing Markets...........................................................
4
Investment Sales & Capital Markets ...........................
5
O’Hare.........................................................................
6
I-55 Corridor.................................................................
7
I-80 Corridor.................................................................
8
I-88 Corridor.................................................................
9
Far North..................................................................... 10
Additional Submarket Highlights................................. 11
Contact Information...................................................... 12
…and more!
first quarter 2013: executive summary
Industrial real estate traditionally has been the least glamorous commercial property
category – unadorned boxes relegated to the corners of town where land values are
lowest. However, the market’s recent performance belies industrial’s basic, no-nonsense
reputation. The U.S. vacancy rate fell in the first quarter to 8.3%, down from 8.5% in
the fourth quarter of 2012, and the lowest level since the third quarter of 2008. Tenants
and owner-users absorbed 32.4 million square feet in the first quarter. This fell short of
the robust fourth-quarter expansion totaling 43.8 million square feet, but it is consistent
with other recent quarters since the recovery cycle took hold in late 2010. Absorption
handily outpaced completions, which totaled 11.4 million square feet in the first quarter.
The construction pipeline remains muted with 53 million square feet under way, about
one-third the pipeline volume at the height of the previous expansion cycle.
Despite Illinois’ daunting financial challenges and Chicago’s competitiveness when it
comes to attracting and retaining business, the local industrial market has sustained a
positive pace of improvement in recent quarters. In the first quarter of 2013, 3.3 million
square feet were absorbed and vacancy fell 20 basis points to 9.5%. This was the 12th
consecutive quarter of positive net absorption. Rents have increased at a modest rate,
but developers have 4.4 million square feet of construction, the majority build-to-suit or
owner-built, underway to counter the tightening market.
The outlook for the local and national market is good. If the economy can escape the
effects of the sequester-mandated spending cuts and higher payroll taxes, businesses
should feel confident enough to (a) rebuild lean inventories and (b) continue pursuing
strategies to squeeze costs out of their supply chains – trends that will boost demand for
distribution centers both in the U.S. and Chicago.
Bob Bach, National Director, Market Analytics, Newmark Grubb Knight Frank
Tim Van Noord, Chicago Research Manager, Newmark Grubb Knight Frank
Newmark Grubb Knight Frank U.S. Offices
2
1q13 chicago industrial statistics
Under
Construction
Inventory SF
Total
Vacancy %
From
4Q12
1Q13 Net
Absorption
YTD Net
Absorption
Manufacturing
Asking Rent
From
4Q12
WH/Dist
Asking Rent
1
Central/North DuPage
80,121,683
66,617
7.9 %
320,076
320,076
$4.76
$4.08
2
Far North
100,596,144
158,306
10.5 %
465,437
465,437
$4.82
$4.33
3
Fox Valley/North Kane
29,382,087
545,837
8.0 %
-24,358
-24,358
$4.14
$4.53
4
I-39 Corridor
31,923,690
1,600,000
13.6 %
-93,200
-93,200
$2.86
$2.50
5
I-55 Corridor
91,073,407
-
7.3 %
706,894
706,894
$4.57
$3.80
6
I-80 Corridor
62,448,937
1,697,084
13.3 %
955,024
955,024
$3.83
$3.05
7
I-88 Corridor
64,879,385
-
5.7 %
199,218
199,218
$4.55
$3.69
8
McHenry
18,290,768
-
12.1 %
-6,860
-6,860
$4.59
$3.86
9
Near North
54,969,670
-
8.2 %
-226,787
-226,787
$5.59
$5.31
10
North City
82,383,160
-
9.3 %
77,711
77,711
$6.31
$4.86
11
Northwest
31,988,567
-
10.6 %
-35,859
-35,859
$5.47
$5.00
12
NW Indiana
22,705,541
-
12.2 %
47,434
47,434
$3.05
$3.12
13
O'Hare
120,167,022
317,677
10.3 %
539,809
539,809
$5.15
$4.47
14
South City
108,361,056
-
9.5 %
267,527
267,527
$3.31
$5.54
15
South Cook
74,915,892
-
10.1 %
11,085
11,085
$3.66
$3.36
16
South DuPage
8,126,988
-
8.8 %
3,399
3,399
$5.71
$4.38
17
West Cook I
67,781,242
-
8.0 %
119,299
119,299
$3.89
$4.06
18
West Cook II
<─>
<─>
9,612,764
-
12.7 %
-5,000
-5,000
$4.50
1,059,728,003
3,996,621
9.5 %
3,320,849
3,320,849
$4.18
General Industrial
372,592,293
273,746
9.1%
847,638
847,638
Incubator
43,559,048
-
3.1%
35,531
35,531
Totals
R&D/Flex
58,032,073
-
13.0%
77,573
77,573
Warehouse/Distribution
585,544,589
3,722,875
9.8%
2,360,107
2,360,107
1,059,728,003
4,385,521
9.5%
3,320,849
3,320,849
Totals
<─>
From
4Q12
$5.46
$4.10
Suburban Chicago Industrial Submarket Map
Newmark Grubb Knight Frank’s Metro Chicago
industrial submarket boundaries are based
upon a combination of natural, man-made and
economic factors. Each submarket outlines
a continuous geographic area that does not
overlap other submarkets. This provides a
precise theoretical framework to analyze real
estate supply and demand metrics at the micro
level. We have carefully tracked these areas for
over a decade, and continuously monitor new
areas for possible future inclusion.
WISCONSIN
South Beloit
McHENRY CO.
LAKE CO.
Harvard
Gurnee
8
2
Grayslake
Woodstock
Marengo
Rockford
SUBURBAN CHICAGO
INDUSTRIAL SUBMARKET MAP
Waukegan
McHenry
Libertyville
Wauconda
Mundelein
Vernon Hills
Crystal Lake
90
94
Lake Zurich
COOK CO.
KANE CO.
Hampshire
Palatine
11
Schaumburg
Streamwood
3
DuPAGE CO.
4
St. Charles Bartlett
Elburn
Roselle
Bloomingdale
1
Geneva
88
Sugar Grove
Aurora
Lisle
Lombard
Rosemont
13
Skokie
17
90|94
18
Cicero
Berwyn
14
Bedford Park
Burbank
5
294
55
Yorkville
Lemont
Romeoville
15
90
Oak Lawn
WILL CO.
Plano
Chicago
Oak Park
290
Westchester
Burr Ridge
Bolingbrook
10
Norridge
Franklin Park
Melrose Park
Oak Brook
Downers Grove
16
Naperville
7
Oswego
Itasca
Addison
Elmhurst
Batavia
88
Evanston
Niles
Elk Grove Village
Carol Stream
West Chicago
Rochelle
Arlington
Northbrook
Heights
Rolling Meadows
9
Hoffman Estates
90
Elgin
KENDALL CO.
Deerfield
Barrington
Huntley
Ogle
Highland Park
Lincolnshire
Algonquin
94
Dolton
Crest Hill
Joliet
57
80
Minooka
Hammond
Tinley Park
6
Frankfort
Munster
Flossmoor
Matteson
80
Hobart
12
Chicago Heights
Crete
INDIANA
Griffith
Elwood
Gary
Calumet City
355
Newark
94
Midlothian
Orland Park
65
Merrillville
3
first quarter 2013: leasing market
LEASING
Historical Vacancy
Metro Chicago
Historical Vacancy
Metro Chicago
Historical Vacancy
Metro Chicago
16%
Chicago’s 1.1-billion-square-foot industrial market
experienced 3.3 million square feet of positive net absorption
in the first quarter of 2013, helping lower vacancy 20 basis
points to 9.5%.
16%
11.7%
12%
16%
12%
12th
10.3%
8.9%
8%
12%
This marked the 12th consecutive quarter of positive net
absorption – the longest positive streak since the recordbreaking 25 consecutive quarter stretch from 2002 to 2008.
10.3%
8.9%
8%
10.5%
9.5%
11.7%
11.7%
10.5%
9.5%
10.5%
10.3%
9.5%
8.9%
8.7%
8.3%
8.7%
8.3%
8.7%
8.3%
4%
8%
8.8%
8.8%
11.3%
11.3%
11.3%
11.9%
10.9%
10.6%
11.9%
9.5%
10.9%
10.6%
11.9%
10.9%
9.5%
10.6%
9.5%
8.8%
4%
$4.44
While market-wide average asking rental rates increased
10% from 2002 to 2008, rates during the most recent
12-quarter stretch of positive net absorption have increased
less than 1%, ending the first quarter at $4.44/sf, triple net.
0%
4%
The constrained supply is driving new construction. Elk
Grove Village is located in the O’Hare submarket – and has
posted four consecutive quarters of positive net absorption.
In comparison, the 12.1% vacant McHenry submarket
experienced negative net absorption in three of the past
four quarters, and has not seen construction since 2009.
2/3
Warehouse properties drove the first quarter overall
improvement, accounting for over two thirds of net
absorption and 93% of new construction.
2003
OUTLOOK
2007
2006
2007
2008
2008
2009
2010
2011
2012
1Q13
2002
2003
2004
2009
2010
2011
2012
1Q13
2002
2003
2004
2005 2006
2007 2008 2009
Historical
Net Absorption
2010
2011
2012
1Q13
Metro Chicago
Historical Net Absorption
Metro Chicago
Historical Net Absorption
22.6
22.6
Metro Chicago
16.3
30
20
10
20
10
0
16.6
16.3
16.6
16.3
16.6
22.6
22.6
22.6
22.6
14.1
9.8
9.8
9.8
-0.4
-2.4
0
-10
-20
3.3
3.3
-6.4
-0.4
-2.4
14.1
7.8
5.1
-6.4
14.1
3.3
7.8
5.1
3.3
3.3
-0.4
-2.4
7.8
5.1
3.3
-6.4 2010
2011 2012 1Q13
-10 2001 2002 2003 2004 2005 2006 2007 2008 2009
-20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13
-20
2001
2003 Historical
2004 2005Average
2006 2007
2008Rents
2009 2010 2011 2012 1Q13
Source: Newmark
Grubb 2002
Knight Frank
Asking
Metro Chicago
Historical Average Asking Rents
Metro Chicago
Historical Average Asking Rents
Metro Chicago
$5.00
$/SF/Yr., NNN
$/SF/Yr.,
$/SF/Yr.,
NNN NNN
SC Johnson’s 975,000-square-foot renewal in Pleasant
Prairie, WI and a new 515,000-square-foot lease in Carol
Stream, IL by medical products supplier Owens & Minor
headlined the warehouse/distribution sector’s robust
quarterly performance.
2005
2006
2001
30
20
10
0
-10
2005
2001
$5.00
largest lease
2004
30
Millions of SF
Millions
Millions
of SFof SF
o’Hare
2002
Source: 0%
Newmark Grubb Knight Frank
4.4 Million SF
Despite tepid rental rate appreciation, 4.4 million square
feet of construction – 65% of which is build-to-suit or ownerbuilt – is underway to counter the lack of existing suitable
choices.
2001
0%
$5.00
$4.50
$4.50
$4.50
$4.00
$4.00
$4.00
$3.50
2001
2002
$3.50
2001
$3.50
2001
increased velocity
As concerns over the fiscal cliff and sequester cuts fade
away, expect increased real estate decision making to aid
improvement in coming quarters.
2003
2004
2005
2002
Manufacturing
2003
2004
2005
2002
2003 Manufacturing
2004
2005
2006
2007
2008
2009
2010
2011
2012
1Q13
2006
Warehouse/Distribution
2007
2008
2009
2010
2011
2012
1Q13
2006
2007
Warehouse/Distribution
2008
2009
2010
2011
2012
1Q13
Manufacturing
Warehouse/Distribution
Source: Newmark Grubb Knight Frank
hot & cold
Constrained supply will cause construction activity to
sustain; the volume will likely reach the trailing 10-year
average of 6.0 million square feet by year-end 2013.
Submarkets such as I-88/55, Far North and O’Hare – which
include towns offering attractive Class 6B tax exemptions,
ample amounts of developable land and desirable locations
– will see the most activity.
logistics
Foreign exchange rate fluctuations and fundamental
changes to supply chain logistics, such as the widening of
the Panama Canal, are issues expected to play a larger role
in real estate decisions in coming quarters.
TENANT
BUILDING
SUBMARKET
SQUARE FEET
SC Johnson (R)
9800 72nd Ave.,
Pleasant Prairie, WI
Far North
975,000
Owens & Minor (L)
437-515 Tower Blvd.,
Carol Stream, IL
Central/North DuPage
515,000
Ta Chen International (L)
Lakeview Corporate Park,
Pleasant Prairie, WI
Far North
471,000
Sleepy's (L)
99 N. Pinnacle Dr.,
Romeoville, IL
I-55 Corridor
282,000
Creative Werks (L)
1470 Brummel Dr.,
Elk Grove Village, IL
O'Hare
254,000
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
4
investment sales and capital markets
1Q10
1Q10
1Q11
1Q11
1Q12
1Q12
1Q13
1Q13
1Q10
1Q11
1Q12
1Q13
$/SF
$/SF
$1,310
$1,310 $1,310
$873
$526
1Q06
1Q06
Volume
Volume
$2,549
$2,549 $2,549
1Q09
1Q05
1Q05
$25
$25
$813
$813
1Q08
1Q04
1Q04
$873
$873
$0
Source: Newmark Grubb
Frank, Real
Capital 1Q06
Analytics 1Q07
1Q03 Knight
1Q04
1Q05
$526
$526
1Q09
1Q09
1Q03
1Q03
$58
$37
1Q08
1Q08
$0
$0
$54
$75
$50
$50
$50
1Q07
1Q07
$1,000
$37
$37
$51
$813
$42
$2,342
$2,342 $2,342
$1,000
$1,000
$41
$56
$52
$48
$58
$58
$363
$363
$42
$61
$54
$54
$51
$51
Chicago Metro investment sales volume totaled $250 million
in the first quarter of 2013. This amount represents 19%
of 2012 total volume. The average price per square foot
remained flat from the fourth quarter near $60.
$75
$75
$363
$2,000
$42
$42
$41
$41
$56
$56
$61
$52
$52
$48
$48
$2,415
$2,415 $2,415
$42
$42
$1,880
$1,880 $1,880
$2,000
$2,000
$1,154
$1,154 $1,154
Millions
Millions
Millions
$3,000
$2,125
$2,125 $2,125
$3,000
$3,000
1Q13 CAPITAL MARKETS
$/SF
$/SF $/SF
Historical Trailing 4-Quarter Sale Volume & Average $/SF
Historical Trailing 4-Quarter
Sale Volume & Average $/SF
Metro Chicago
Metro Chicago
Historical Trailing 4-Quarter Sale Volume & Average $/SF
Metro Chicago
$61
$25
$0
$0
$0
Volume 4-Quarter Average Cap
$/SF Rates
Historical Trailing
Historical Trailing
4-Quarter
Average Cap Rates
U.S. &
Metro Chicago
U.S. & Metro Chicago
Historical Trailing 4-Quarter Average Cap Rates
U.S. & Metro Chicago
10%
10%
9%
8%
8%
8%
7%
7%
1Q04
1Q04
1Q05
1Q05
1Q06
1Q06
1Q07
1Q07
1Q08
1Q08
6%
1Q03
1Q04
1Q05
1Q06
1Q07
Source: Newmark Grubb Knight Frank, Real Capital Analytics
1Q08
U.S.
U.S.
Millions
Millions
Millions
$300
$200
$200
$0
1Q11
1Q11
1Q12
1Q12
1Q13
1Q13
1Q09
1Q10
1Q11
1Q12
1Q13
$384.0
$400
$300
$300
$100
$0
$0
1Q10
1Q10
U.S.
Metro
Chicago
Industrial
CMBS Maturity
Volume
Industrial Metro
CMBSChicago
Maturity Volume
Metro Chicago
$384.0
Industrial CMBS
Maturity Volume
$384.0
Metro Chicago
$400
$400
$200
$100
$100
1Q09
1Q09
Metro Chicago
Metro Chicago
$111.4
$111.4
$162.6
$29.6
$29.6
$98.5
2013
$29.6
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2020
$22.8
2020
2013
2014
2015
2016
2017
2018
2020
$111.4
$0.2
$0.2
$0.2
$22.8
$22.8
$32.0
$32.0
$36.1
$36.1
2021
2021
$10.8
2022
$32.0
2022
2023
$36.1
2023
2021
2022
2023
$10.8
$10.8
Source: Newmark Grubb Knight Frank, Trepp
BUILDING
SUBMARKET
3050 Corporate Dr.,
Dekalb (I)
0.02 Basis Points
The positive quarterly news comes as low interest rates
have kept borrowing money cheap. The federal funds rate
ended the first quarter at 0.14% — down 0.02 basis points
from the fourth quarter of 2012 and comfortably below the
cyclical high of 5.26% in 2007.
Headlining the quarter’s performance was the
650,760-square-foot warehouse sale at 3050 Corporate
Drive in Dekalb. The property traded hands when American
Realty Capital Trust was acquired for $2.95 billion by Realty
Income Corporation. The facility in Dekalb – one of 593
properties Realty Income acquired – was 100% leased to
3M Company on a long-term basis. The largest user-sale
took place in Cicero where Cook County purchased the
260,725-square-foot, Class A warehouse located at 1330 S
54th Avenue from The Opus Group for $15.7 million.
$1.4 billion
According to Real Capital Analytics, Chicago had the fourth
largest amount of cyclical industrial distress volume in the
U.S. through the end of the first quarter of 2013 as new
inflows to distress were up 11.0% from one year ago to
$1.4 billion. Chicago had only 42% of distressed industrial
assets resolved through the first quarter – an improvement
from the first quarter of 2012 when 32% were resolved.
4.489%
$162.6
$162.6
$98.5
$98.5
This marked the largest first quarter volume total since
2008 when $373 million worth of industrial properties traded
hands in the Metro Chicago area. First quarter investment
sales volume has now increased four consecutive years.
650,760 SF
10%
9%
9%
7%
6%
6%1Q03
1Q03
2008
An Elk Grove Village industrial building received a new $9.5
million CMBS loan being serviced by Midland. The 10-year
loan was locked in at a 4.489% fixed rate.
OUTLOOK
Tepid Volume
Despite a late 2012 volume surge as owners acted to avoid
increasing capital gains taxes, expect 2013 investment
sales activity to remain near 2012’s total of $1.3 billion.
Climbing 10-year treasury yields will force overall cap rate
compression to subside as liquidity requirements compel
investors to move out on the risk spectrum.
SQUARE FEET
PRICE/SF
I-88 Corridor
650,760
Not Disclosed
Liberty Point Corporate Ctr.,
Libertyville (I)
Far North
359,910
$60.57
1330 S. 54th Ave.,
Cicero (O)
West Cook II
260,725
$60.00
Core properties will trade in the 5-6% cap rate range, while
user purchasing will remain an attractive alternative for
good-credit tenants seeking to invest cash.
720 Frontenac Rd.,
Naperville (O)
I-88 Corridor
171,935
$34.00
FASB
1085 N. Peace Rd.,
Dekalb (I)
I-88 Corridor
145,404
$44.00
(I) Investment (O) Owner-User
5-6%
Pending FASB/IASB lease accounting changes will play a
key role in corporate lease vs. buy analysis; expect this to
increase future user sale volume. The pending changes will
likely spur land sale activity as a growing number of tenants
explore owner-built options.
5
first quarter 2013: o’hare submarket
201,000 SF
ŠŠ 1465-1499 Hamilton Pky., Itasca
100% of building
197,000 SF
ŠŠ 1501 N. Michael Dr., Wood Dale
100% of building
174,000 SF
4.0
Bridge/Hillwood
Development
Corp.*
212,400 SF
N/A
◆ 2475 Touhy Ave.,
Bridge/Hillwood
Development
Corp.*
181,400 SF
N/A
◆ 345 E Green St.,
Village of
Bensenville*
46,045 SF
$39/SF
Private*
43,706 SF
$40/SF
Bensenville (O)
◆ 2450 Lunt Ave.,
Elk Grove Village
(O)
(I) Investment
(O) Owner-User
*Buyer
NOTABLE 1Q13 TRANSACTIONS
ŠŠ Cloud Packaging (R)
2401 Lunt Ave., Elk Grove Village
309,000 SF
ŠŠ Wholesale Interiors (L)
971-91 Supreme Dr., Bensenville
264,000 SF
ŠŠ Creative Werks (R)
254,000 SF
1470 Brummel Dr., Elk Grove Village
ŠŠ Coaster Company of America (S)
255 Wille Rd., Des Plaines
253,000 SF
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
12%
0.0
8%
-2.0
4%
2001
2003
2005
2007
Net Absorption
2009
2011
Completions
1Q13
0%
Vacancy
Average Asking Rental Rates
O'Hare
16%
$8.00
Nypro occupied 200,000 square feet at
2.0
801
West Bryn Mawr Avenue in Itasca,12%
and Champion Container Corporation
0.0
absorbed
90,000 square feet at 14558%
Michael Drive in Wood Dale.
-2.0
$3.4
Billion
2.0
Source: Newmark Grubb Knight Frank
$7.00
Millions of SF
◆ 2201 Lunt Ave.,
Elk Grove Village
(Portfolio) (I)
Manufacturing average asking rental rates
have increased three straight quarters;
warehouse rents have gone up four
consecutive
indicating
improving
Vacancy,quarters
Net Absorption
& Completions
O'Hare
optimism on behalf of
landlords.
200,000 SF
16%
-4.0
$/SF/Yr., NNN
225,000 SF
220,000 SF
80,000 SF
60,000 SF
NOTABLE 1Q13 SALES
Elk Grove Village
(Portfolio) (I)
Vacancy lowered 50 basis points to 10.2%
— 260 basis points lower than the cyclical
high of 12.8% in 2010.
Optimism
NOTABLE USERS IN THE MARKET
Transportation Firm
Textile Manufacturer
Cargo Firm
Industrial Equipment Manufacturer
10.2%
4.0
$6.00
$5.00
4%
The $3.4 billion Elgin O’Hare West
-4.0
Access
(EOWA) project is approved and0%
2001 2003 2005 2007 2009 2011 1Q13
is deemed a “Project of National and
Net Absorption
Completions
Vacancy
Regional
Significance”
by the USDOT.
A 2013 — 2025 construction plan has
been outlined, and work beginning in
2013 will be the Elmhurst Road/I-90 full
interchange and the Rohlwing Road
bridge over Thorndale Avenue (extending
Elgin O’Hare)
$4.00
2001
2003
2005
Manufacturing
2007
2009
2011
1Q13
Warehouse/Distribution
Source: Newmark Grubb Knight Frank
FastFact O’Hare
Des Plaines will always be a point of pronunciation debate
between denizens and foreigners. But, what isn’t debatable
is the fact that Des Plaines is the home of the first
McDonald’s. Yes, the first golden arches opened its doors in
1955 at 400 North Lee Street.
2010
Build-to-suit projects for Yusen Logistics
(1300 Busse Road) and Weiss-Rohlig
(1601 Busse Road) will deliver this year.
These will be the first new buildings in the
O’Hare submarket since 2010.
NEW DEVELOPMENTS
ŠŠ
ŠŠ
ŠŠ
ŠŠ
1300 Busse Rd., Elk Grove Village (B) 230,000 SF
Developer: Duke Realty
1925 Busse Rd., Elk Grove Village (B) 208,000 SF
Panattoni Development Co.
2475 Touhy Ave., Elk Grove Village (B)124,000 SF
Bridge Development
1601 Busse Rd., Elk Grove Village (S) 88,000 SF
Developer: Weiss-Rohling
(B) Build-to-Suit
(O) Owner-Built
(S) Speculative
O’HARE SUBMARKET: MARKET STATISTICS
1Q13 Net
Absorption
$/SF/Yr., NNN
6.9%
212,493
$5.15
-
65,184,929
12.3%
214,560
$4.47
317,677
R&D/Flex
9,129,170
16.4%
95,271
$7.64
-
Incubator
9,784,011
3.0%
23,454
$6.88
-
119,980,557
10.2%
545,778
$5.06
317,677
Inventory SF
Vacancy
Manufacturing
35,882,447
Warehouse/
Distribution
Totals
6
From
4Q12
From
4Q12
Under
Construction
$8.0
$7.0
$/SF/Yr., NNN
ŠŠ 940-990 Supreme Dr., Bensenville
100% of building
Tenants absorbed 576,000 square feet
in the first quarter of 2013, marking the
fourth consecutive quarter of positive net
absorption.
Millions of SF
ŠŠ 2801 S. Busse Rd., Elk Grove Village 251,000 SF
100% of building
ŠŠ
ŠŠ
ŠŠ
ŠŠ
Vacancy, Net Absorption & Completions
O'Hare
4th
LARGEST CONTIGUOUS BLOCKS
$6.0
$5.0
$4.0
i-55 corridor
7.0
18%
3.5
14%
0.0
-3.5
10%
2001
2003
2005
Net Absorption
2007
2009
Completions
2011
1Q13
6%
$5.00
$5.00
10%
10%
6%
13 6%
13
$4.00
$4.00
$3.50
$3.50
$3.00
$3.002001
2001
The warehouse/distribution sector has
$3.50
recorded 13 consecutive quarters of
positive net absorption.
$3.00
2001
2003
2005
2007
2009
2011
1Q13
DCT Industrial
Trust
$4.50
$4.50
$/SF/Yr.,
NNN
$/SF/Yr.,
NNN
14%
14%
$4.00
13
Manufacturing
Despite
net gainsWarehouse/Distribution
in occupancy, the
overall vacancy rate ticked up 10 basis
points to 7.3%.
Average Asking Rental Rates
Average I-55
Asking
Rental Rates
Corridor
I-55 Corridor
18%
18%
LARGEST CONTIGUOUS BLOCKS
Positive
quarterly net absorption of
$5.00
707,000 square feet marked the fourth
straight
quarter tenants occupied more
$4.50
space than they vacated.
7.3%
Vacancy
Source: Newmark Grubb Knight Frank
s
s
y
y
Average Asking Rental Rates
707,000 I-55
SFCorridor
$/SF/Yr., NNN
Millions of SF
Vacancy, Net Absorption & Completions
I-55 Corridor
2003
2003
2005
2005
Manufacturing
Manufacturing
Source: Newmark Grubb Knight Frank
2007
2007
2009
2009
2011
2011
1Q13
1Q13
Warehouse/Distribution
Warehouse/Distribution
FastFact I-55
Originally built in the late 1950s by Oliver Boyd Clow to
fly his 1948 Model A Navion airplane, Clow International
Airport in Bolingbrook became home to the Illinois Aviation
Museum in 2004 while still handling over 70,000 landings
and take-offs every year. Current plans include expansion
and enhancements to the runway and facilities.
ŠŠ 901 Carlow Dr., Bolingbrook
100% of building
747,000 SF
ŠŠ 1070 Windham Pky., Romeoville
100% of building
723,000 SF
ŠŠ 1300 Naperville Dr., Romeoville
100% of building
648,000 SF
ŠŠ 1160 W. Crossroads Pky., Romeoville 604,000 SF
100% of building
NOTABLE USERS IN THE MARKET
ŠŠ Automotive Components Manufacturer
ŠŠ Display Products Manufacturer
400,000 SF
200,000 SF
NOTABLE 1Q13 SALES
The increase in vacancy is attributed to
the delivery of a 604,000-square-foot
speculative warehouse in Romeoville.
The building, constructed by DCT
Industrial Trust and located at 1160 West
Crossroads, is the largest block of existing
Class A available space in the I-55
Corridor submarket.
Rent Appreciation
Over-the-year average asking rents for
manufacturing and warehouse space are
up 18.2% and 2.8%, respectively.
Romeoville
FedEx moved into all 238,000 square feet
of the newly constructed building located
at 920 West Taylor Road in Romeoville.
Also in Romeoville, Excel Logistics
occupied 184,000 square feet at 1075
West Taylor Road.
◆
◆
◆
24210 W 143rd St.,
Plainfield (I)
Muehlstein
Holding
Corp.*
142,000 SF
$28/SF
8690 Joliet Rd.,
McCook (O)
Compass
Management
Inc.*
35,524 SF
$34/SF
7725 S Grant St.,
Burr Ridge (O)
Scribes Inc.*
18,000 SF
$69/SF
(O) Owner-User
*Buyer
(I) Investment
NOTABLE 1Q13 TRANSACTIONS
ŠŠ
ŠŠ
ŠŠ
ŠŠ
Fairrington Transportation (R)
553 S. Joliet Rd., Bolingbrook
Lennox Industries (S) 860 W. Crossroads Pky., Romeoville
Sleepy’s
99 N. Pinnacle Dr., Romeoville
RTC Industries
335 Crossroads Pky., Bolingbrook
(S) Sublease
(E) Expansion
417,000 SF
312,000 SF
282,000 SF
190,000 SF
(R) Renewal
NEW DEVELOPMENTS
ŠŠ 1160 W. Crossroads, Romeoville (S) 605,000 SF
Developer: DCT Industrial Trust
I-55 CORRIDOR: MARKET STATISTICS
1Q13 Net
Absorption
$/SF/Yr., NNN
6.4%
(4,661)
$4.57
-
70,676,178
7.4%
710,493
$3.80
-
R&D/Flex
2,431,880
12.2%
441
$8.82
-
Incubator
1,121,396
4.6%
621
$10.86
-
Totals
91,073,407
7.3%
706,894
$4.27
-
Inventory SF
Vacancy
Manufacturing
16,843,953
Warehouse/
Distribution
From
4Q12
From
4Q12
Under
Construction
(B) Build-to-Suit
(O) Owner-Built
(S) Speculative
7
first quarter 2013: 1-80 corridor
850,000SF ŠŠ 3451 S. Chicago St., Joliet
100% of building
575,000 SF ŠŠ 4100 Rock Creek Blvd., Joliet
100% of building
509,000 SF 1250 basis points
Vacancy fell 150 basis points to 13.3% in
the first quarter. Among the 18 Chicago
Metro submarkets, the I-80 Corridor
has recovered faster than any other
submarket as vacancy fell 1250 basis
points from the 2008 high of 25.8%.
NOTABLE USERS IN THE MARKET
ŠŠ Third-Party Logistics Firm
ŠŠ Pipe Supply Firm
Cost-Friendly
200,000 SF
100,000 SF
◆
601 Maple Rd.,
Joliet (O)
Canadian
National Railway
Company*
24,000 SF
$83/SF
2130 Gould Ct.,
Joliet (O)
Litmax
Multiservice Inc.*
7,500 SF
$72/SF
Millions of SF
◆
30%
8.0
25%
6.0
20%
4.0
15%
2.0
10%
0.0
Average Asking Rental Rates
I-80 Corridor
$6.00
20%
Ninety-five percent of I-80 Corridor’s
15% in
first quarter net absorption took place
warehouse/distribution product.
4.0
$4.00
$3.00
10%
Wilton Industries
5%
*Buyer
NOTABLE 1Q13 TRANSACTIONS
ŠŠ NewStream Enterprises (L)
1151 E. Laraway Rd., Joliet
134,000 SF
ŠŠ A&R Logistics (L)
4001 Olympic Blvd., Joliet
121,000 SF
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
Vacancy
Source: Newmark Grubb Knight Frank
$2.00
2001
0.0
(O) Owner-User
Completions
5%
$5.00
95%
6.0
2.0
(I) Investment
2001 2003 2005 2007 2009 2011 1Q13
Net Absorption
Below-market average asking rents
continueNet
to make
the I-80
Corridor a costVacancy,
Absorpion
& Completions
I-80Warehouse
Corridor
friendly option.
rents fell $0.04
in
the
first
quarter
to
$3.05/sf,
triple30%net;
10.0
manufacturing rents were flat at $3.83/sf,
triple net.
8.0
25%
NOTABLE 1Q13 SALES
10.0
Wilton
Industries
into1Q13
493,000
2001 2003
2005 2007moved
2009 2011
square feet at 21228 Frontage Road in
Net Absorption
Completions
Vacancy
Shorewood and Saddle Creek Corporate
absorbed 175,000 square feet at 20901
Wes Walter Strawn Drive in Elwood.
trader joe’s
Speculative construction of the 1.0-millionsquare-foot warehouse in Clarius Park
Joliet will complete in the second quarter.
Through first quarter-end, the property
remains 100% available. Meanwhile,
Trader Joe’s two building complex
consisting of 695,900 SF is currently
under contruction in Minooka.
2003
2005
Manufacturing
2007
2009
2011 1Q13
Warehouse/Distribution
Source: Newmark Grubb Knight Frank
FastFact I-80
The 1.5 mile oval raceway, formally known as the
Chicagoland Speedway, has hosted numerous NASCAR
and IndyCar races since its opening in the spring of 2001.
The track – located in Joliet, IL – cost $130 million to build
and sits on 930 acres of land.
NEW DEVELOPMENTS
ŠŠ
ŠŠ
3851 Youngs Rd., Joliet (S)
Developer: Clarius Partners, LLC Internationale Centre South
Business Park (B)
Developer: FCL Builders, LLC
(B) Build-to-Suit
(O) Owner-Built
1,001,000 SF
I-80 CORRIDOR: MARKET STATISTICS
695,900 SF
(S) Speculative
1Q13 Net
Absorption
$/SF/Yr., NNN
19.0%
51,212
$3.83
-
44,750,073
11.5%
910,106
$3.05
1,697,084
R&D/Flex
955,958
6.1%
(6,294)
$5.77
-
Incubator
487,805
0.5%
-
$7.30
-
62,448,937
13.3%
955,024
$3.38
1,697,084
Inventory SF
Vacancy
Manufacturing
16,255,101
Warehouse/
Distribution
Totals
8
From
4Q12
From
4Q12
Under
Construction
$/SF/Yr., NNN
ŠŠ 501 International Pky., Minooka
85% of building
Millions of SF
The I-80 Corridor led demand among all
submarkets, registering 955,000 square
feet of positive first quarter net absorption.
1,001,000 SF $/SF/Yr., NNN
ŠŠ 3851 Youngs Rd., Joliet
100% of building
Vacancy, Net Absorpion & Completions
I-80 Corridor
955,000 SF
LARGEST CONTIGUOUS BLOCKS
I-88 Corridor
3.0
16%
2.0
12%
1.0
8%
-1.0
4%
2001
2003
2005
Net Absorption
2007
2009
2011
Completions
1Q13
0%
Vacancy
Average Asking Rental Rates
I-88 Corridor
$8.00
Twelve consecutive quarters of positive
net absorption totaling 4.7 million square
feet
is the longest positive streak in this
$2.00
2001
2003
2005
2007
2009
2011 1Q13
submarket’s
history.
$4.55
Manufacturing
Warehouse/Distribution
pipeline
$/SF/Yr., NNN
The construction pipeline has now
remained empty for over three years.
$6.00
184,000 SF
$4.00
%
%
$4.00
Average asking rental rates for warehouse
space dipped 3.7% to $3.69/sf, triple net,
while manufacturing rents soared 11% to
$4.55/sf, triple net.
Source: Newmark Grubb Knight Frank
%
%
Tenants absorbed 199,000 square feet
$8.00
in the first quarter, lowering vacancy 30
basis points to 5.7%. This makes the I-88
Corridor
the tightest submarket in the
$6.00
Chicago Metro area in terms of vacancy.
12
0.0
%
Average Asking Rental Rates
I-88 Corridor
5.7%
$/SF/Yr., NNN
Millions of SF
Vacancy, Net Absorption & Completions
I-88 Corridor
$2.00
2001
2003
2005
Manufacturing
2007
2009
2011
1Q13
Warehouse/Distribution
Source: Newmark Grubb Knight Frank
KeyStone Paper & Packaging Corporation
occupied 184,000 square feet at
2759 North Eola Road in Aurora. The
505,000-square-foot building owned by
Liberty Property Trust is now fully leased
and occupied.
I-88 vs. I-55
FastFact I-88
In October 2006, the city of Naperville opened the first
public-private automobile test track in the U.S. The track is
situated on a 9-acre course, and cost $1.5 million.
At 320,000 square feet, the largest
existing available block of space in the
I-88 Corridor market would be the eighth
largest in the neighboring I-55 Corridor
submarket.
LARGEST CONTIGUOUS BLOCKS
ŠŠ 2413 Prospect Dr., Aurora
100% of building
320,000 SF
ŠŠ 1203 Bilter Rd., Aurora
100% of building
295,000 SF
ŠŠ 2707 Eola Rd., Aurora
100% of building
252,000 SF
ŠŠ 140 Ambassador Dr., Naperville
100% of building
204,000 SF
NOTABLE USERS IN THE MARKET
ŠŠ Print-Related Services Firm
ŠŠ Plastics Packing & Distribution Firm
ŠŠ Mailing & Postal Processing Firm
225,000 SF
100,000 SF
100,000 SF
NOTABLE 1Q13 SALES
◆ 3050 Corporate Dr.,
Realty
Income
Corp.*
650,760 SF
N/A
◆ 720 Frontenac Rd.,
Reebie
Storage &
Moving Co.*
171,935 SF
$34/SF
◆ 1085 N Peace Rd.,
STAG
Industrial*
145,404 SF
$44/SF
Dekalb (I)
Naperville (O)
Dekalb (I)
◆ 1047-51 Douglas Rd., MSG
Batavia (O)
(I) Investment
Marketing*
124,800 SF
$29/SF
(O) Owner-User
*Buyer
NOTABLE 1Q13 TRANSACTIONS
ŠŠ Leviton Manufacturing Co. (R)
417 Stone Dr., St. Charles
30,000 SF
ŠŠ Importing Business (L)
3S324 Rockwell St., Warrenville
16,000 SF
Historical
Record
At 61.2 million square feet, I-88 Corridor
occupancy reached a new all-time high in
the first quarter of 2013.
1Q13 Net
Absorption
$/SF/Yr., NNN
4.1%
201,671
$4.55
-
39,117,355
6.2%
9,695
$3.69
-
Vacancy
Manufacturing
21,011,973
Warehouse/
Distribution
NEW DEVELOPMENTS
Nothing to report. I-88 CORRIDOR: MARKET STATISTICS
Inventory SF
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
From
4Q12
From
4Q12
Under
Construction
R&D/Flex
3,221,571
11.9%
(12,148)
$7.43
-
Incubator
1,528,486
2.4%
-
$4.54
-
Totals
64,879,385
5.7%
199,218
$4.09
-
(B) Build-to-Suit
(O) Owner-Built
(S) Speculative
9
first quarter 2013: far north
ŠŠ 3818 Grandville Ave., Gurnee
100% of building
345,232 SF
Vacancy ended the first quarter at 10.5% —
a 30 basis point decline from the previous
quarter on 465,000 square feet of positive net
absorption.
ŠŠ 601 N Skokie Hwy., North Chicago
60% of building
326,033 SF
APL Logistics
ŠŠ 10100 58th Pl., Kenosha
50% of building
314,249 SF
APL Logistics occupied 134,000 square feet at
8123 116th Street in Pleasant Prairie, Wisc.,
and Ludlow Manufacturing absorbed 72,000
square feet at 3801 Hawthorne in Waukegan,
IL.
NOTABLE USERS IN THE MARKET
Finishing touches were completed on Kubota
Engine’s new 100,000-square-foot buildto-suit
expansion
at 505 &Schelter
Road in
Vacancy,
Net Absorption
Completions
Far North
Lincolnshire.
3.0
◆
1500 Franklin Blvd.,
Libertyville (O)
Commonwealth
Edison Co.*
154,481 SF
$57/SF
◆
1400 Harris Rd.,
Libertyville
(Portfolio) (I)
The Silverman
Group*
142,290 SF
N/A
◆
600 Corporate
Woods Pky., Vernon
Hills (Portfolio) (I)
Hillwood
Development
Corp.*
(I) Investment
(O) Owner-User
Meridian Design Build commenced construction
an 88,000-square-foot expansion to12%a
215,000-square-foot distribution center at
8%
0.01260 Rowena Road in Grayslake. The original
structure was completed on a build-to-suit
basis in 2011 for FedEx and sits on 30 acres
4%
-1.5of land.
3.2 Million
-3.0
109,066 SF
N/A
*Buyer
NOTABLE 1Q13 TRANSACTIONS
ŠŠ TA Chen International (L)
471,000 SF
Lakeview Corporate Park, Pleasant Prairie, WI
ŠŠ Cornfields Inc. (E)
3898 Sunset Ave., Waukegan
159,000 SF
ŠŠ HydraForce (L)
700 Woodlands Pky., Vernon Hills
142,000 SF
ŠŠ APL Logistics (L)
134,000 SF
8123 116th St., Pleasant Prairie, WI
12%
$
0.0
8%
-1.5
4%
$
0%
$
0%
2001 2003from
2005
2011 to
1Q13
Benefiting
its 2007
close 2009
proximity
some
of Net
theAbsorption
region’s bestCompletions
schools and Vacancy
popular
neighborhoods for “C-Suite” executives, the
Far North has absorbed over 3.2 million square
feet of industrial space in the past two years.
At $4.82/sf, triple net, average asking rental
rates for manufacturing space are at the same
level as first quarter of 2011. Warehouse/
distribution rents are now $0.10 lower than
they were two years ago, ending the first
quarter of 2013 at $4.33/sf, triple net.
Completions
Vacancy
$4.00
$3.00
2001
2003
2005
Manufacturing
2007
2009
2011
1Q13
Warehouse/Distribution
Source: Newmark Grubb Knight Frank
Gurnee became a place to test fears in 1976 when
Marriott’s Great America opened what is now Six Flags
Theme Park. The park became Six Flags’ seventh park
when it was purchased in 1984. Today, the park spans 304
acres, including a 16-acre water park, and offers over 50
rides for the entire family.
7/8
1Q13 Net
Absorption
$/SF/Yr., NNN
11.4%
138,567
$4.82
70,529
60,023,777
10.1%
328,364
$4.33
87,777
R&D/Flex
6,802,553
14.4%
146
$8.44
-
Incubator
3,823,637
2.4%
(1,640)
$6.49
-
100,596,144
10.5%
465,437
$4.95
158,306
Inventory SF
Vacancy
Manufacturing
29,946,177
Warehouse/
Distribution
Totals
10
2011 1Q13
FastFact Far North
rental rates
71,000 SF
(S) Speculative
2009
$5.00
FAR NORTH SUBMARKET: MARKET STATISTICS
(O) Owner-Built
2007
$6.00
ŠŠ 1260 Rowena Rd., Grayslake (B)
88,000 SF
Developer: Meridian Design Build LLC
(B) Build-to-Suit
2005
$7.00
NEW DEVELOPMENTS
ŠŠ 2400 Commerce, Libertyville (B)
Developer: Laser Precision
2003
Average Asking Rental Rates
Far North
The warehouse/distribution sector led the
quarterly demand surge, posting its seventh
quarter of positive net absorption out of the
previous eight quarters.
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
2001
Source: Newmark Grubb Knight Frank
$/SF/Yr., NNN
217,620 SF
N/A
1.5
Net Absorption
1.5on
Millions of SF
The Silverman
Group*
$
-3.0
16%
88,000 SF
NOTABLE 1Q13 SALES
1500 Harris Rd.,
Libertyville
(Portfolio) (I)
16%
Build-to-Suit
400,000 SF
300,000 SF
◆
3.0
From
4Q12
From
4Q12
Under
Construction
$/SF/Yr., NNN
363,468 SF
Millions of SF
ŠŠ 9201 Wilmot Rd., Pleasant Prairie
100% of building
ŠŠ Wireless Services Provider
ŠŠ Aerospace & Energy Provider
Vacancy, Net Absorption & Completions
Far North
10.5%
LARGEST CONTIGUOUS BLOCKS
$
additional submarket highlights
Central/North DuPage
Nine consecutive quarters of positive net absorption in the the Central/North DuPage submarket
have lowered vacancy 400 basis points to 7.9%.
tenant move-ins
COM2 Computer Recycling Solutions occupied 175,000 square feet at 500 Kehoe Boulevard in
Carol Stream, Demar Logistics occupied 114,000 square feet at 301 Gary Avenue – also in Carol
Stream, and Jacobson Warehouse occupied 108,000 square feet at 21399 Torrence Avenue in
Sauk Village.
Near North
After six consecutive quarters of positive net absorption, tenants vacated 227,000 net square feet
in the Near North submarket. Despite the loss of occupancy, rents have risen in this submarket six
of the last eight quarters, ending the first quarter of 2013 at $5.59/sf, triple net.
I-39 Corridor
Four of five quarters with net occupancy losses in the I-39 Corridor’s warehouse sector have
notched overall vacancy up 270 basis points to 6.0%. However, the losses are not expected to
sustain as the 1.6-million-square-foot Centerpoint Intermodal Center in Joliet delivers on a build-tosuit basis for FedEx in the summer of 2013.
Quality Space
Of the remaining 13 submarkets, properties constructed since 2004 have recorded five consecutive
quarters of positive net absorption demonstrating tenants’ desire for quality space. The overall
vacancy rate for the 34.3 million square feet that fit these criteria was 16.7% at the end of the first
quarter.
LARGEST CONTIGUOUS BLOCKS
ŠŠ 2001 N. Division St., Harvard
100% of building
975,000 SF
ŠŠ Route 38, Rochelle
56% of building
842,000 SF
ŠŠ 2600 W. 35th St., Chicago
96% of building
657,000 SF
ŠŠ 9200 Calumet Ave., Munster, IN
100% of building
650,000 SF
NOTABLE USERS IN THE MARKET
ŠŠ Packaging Food Company
ŠŠ Technology Products Wholesale
Supplier
1,000,000 SF
1,000,000 SF
NOTABLE 1Q13 SALES
◆
1330 S. 54th Ave.,
Cicero(O)
Cook County*
260,725 SF
$60/SF
◆
2089 Pillsbury Dr.,
Geneva (I)
Realty
Income
Corp.*
266,000 SF
Not
Disclosed
Class B & Class C
As demand for “core” industrial facilities grows, filling vacancies of older Class B and C warehouse
and industrial buildings will become more challenging. Rail and air transportation accessibility
remains a key importance to future buyers and tenants.
(I) Investment
(O) Owner-User
*Buyer
NOTABLE 1Q13 TRANSACTIONS
10.6 %
10.5 %
10.3 %
9.5 %
9.5 %
9.3 %
8.8 %
8.2 %
8.0 %
8.0 %
7.9 %
10.1 %
13.6 %
13.3 %
12.7 %
12.1 %
5%
5.7 %
7.3 %
10%
12.2 %
Submarket Vacancy Comparison
Metro Chicago
15%
ŠŠ Owens & Minor (L)
437-515 Tower Blvd., Carol Stream
515,000 SF
ŠŠ Revolution Inc. (L)
6100 W. Howard St., Niles
153,000 SF
ŠŠ Jacobson Warehouse Co. (E)
21399 Torrence Ave., Sauk Village
109,000 SF
ŠŠ Delta Steel Inc. (R)
2521 State St., Chicago Heights
100,000 SF
(R) Renewal (S) Sublease (E) Expansion (L) New Lease
NEW DEVELOPMENTS
ŠŠ Centerpoint Intermodal Center (B)
Developer: CenterPoint Properties
1,600,000 SF
ŠŠ Randall Point Business Park, Elgin (S) 343,000 SF
Developer: PanCor Construction & Development
ŠŠ 41-56 Prairie Pky., Gilberts (S) Developer: Interstate Partners
0%
203,000 SF
ŠŠ 1580 Hecht Ct., Bartlett (B) 64,000 SF
Developer: PREMIER Design + Build Group
(B) Build-to-Suit
(O) Owner-Built
(S) Speculative
Source: Newmark Grubb Knight Frank
11
Chicago
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Chicago, IL 60661
312.698.6700
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773.957.1400
Tim Van Noord
Research Manager
312.224.3144
tvannoord@ngkf.com
Michelle Greenspoon
Senior Marketing Manager
312.224.3969
mgreenspoon@ngkf.com
North America
Canada
Mexico
United States
Europe
Austria
Belgium
Czech Republic
France
Germany
Ireland
Italy
Netherlands
Poland
Portugal
Romania
Russia
Spain
Switzerland
Ukraine
United Kingdom
Asia-Pacific
Australia
Cambodia
China
Hong Kong
India
Indonesia
Malaysia
New Zealand
Singapore
South Korea
Thailand
Vietnam
Africa
Botswana
Kenya
Malawi
Nigeria
South Africa
Tanzania
Uganda
Zambia
Zimbabwe
Middle East
Bahrain
Qatar
United Arab Emirates
INDUSTRIAL TERMS AND DEFINITIONS
Total SF: Industrial inventory includes all multi-tenant, single-tenant and owner-occupied buildings at least 10,000 square feet.
Industrial Buildings Classifications: Industrial buildings are categorized as warehouse/distribution, general industrial, R&D/flex and
incubator based on their physical characteristics including percent of office build-out, clear height, typical bay depth, typical suite size, type
of loading and typical uses.
Vacancy and Availability: The vacancy rate is the amount of physically vacant space divided by the inventory and includes direct and
sublease vacant. The availability rate is the amount of space available for lease divided by the inventory.
Net Absorption: The net change in physically occupied space over a period of time.
Asking Rent: The dollar amount asked by landlords for available space expressed in dollars per square foot per year in most parts of the
country, and dollars per square foot per month in areas of California and selected other markets. Industrial rents are expressed as triple net
where all costs including, but not limited to, real estate taxes, insurance and common area maintenance are borne by the tenant on a pro rata
basis. The asking rent for each building in the market is weighed by the amount of available space in the building.
Newmark Grubb Knight Frank statistics are audited annually and may result in revisions to previously reported quarterly and final year-end
figures.
Reproduction in whole or part is permitted only with the written consent of Newmark Grubb Knight Frank. Some of the data in this report has
been gathered from third-party sources and has not been independently verified by Newmark Grubb Knight Frank. Newmark Grubb Knight
Frank makes no warranties or representations as to the completeness or accuracy thereof.
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to verify any underlying assumptions used in the report, some assumptions may not transpire and unforeseen events and circumstances
may arise which may affect any such projections; (d) Although all information furnished in the report are from sources Newmark deems as
reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof
and it is submitted subject to errors, omissions, change of price, rental or other conditions; (e) All proprietary information, which may include
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