gary bauler, industrial overview
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CB RICHARD ELLIS
NAIOP TAMPA BAYANNUAL BROKER UPDATE :: 2011Industrial Market Overview
Gary A. Bauler, LEED APFirst Vice PresidentCB Richard Ellis
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DEMAND FOR INDUSTRIAL SPACE IS DRIVEN BY:
International Trade - Import and Export
Manufacturing and Trade Inventories
Industrial Production
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Source: American Association of Port Authorities
CONTAINER TRAFFIC AT US PORTS TEU’s 1990 to 2010
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Source: Federal Reserve
TOTAL INDUSTRIAL PRODUCTION, CAPACITY & UTILIZATION
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Source: US Census Bureau
MANUFACTURING AND TRADE INVENTORIES AND SALES
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BUSINESS FORMATIONS
Source: CBRE Research, US Bureau of Labor Statistics
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TAMPA BAY INDUSTRIAL SUBMARKETS
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NET ABSORPTION (SF)
Source: CBRE Research
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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
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CONSTRUCTION (SF)
Source: CBRE Research
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VACANCY
Source: CBRE Research
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Source: CBRE Research
VACANCY BY BUILDING SIZE :: Tampa MSA
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AVERAGE ASKING LEASE RATE
Source: CBRE Research
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Source: Real Capital Analytics
INDUSTRIAL AVERAGE SALES PRICE PSF
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Source: Real Capital Analytics, Inc.
DISTRESSED ASSETS BY PROPERTY TYPE
26% 28%
9%
16%
13%
6%2%
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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
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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
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TAMPA BAYINDUSTRIAL MARKET