3Q 2013 Industrial Report

NORTH COUNTY SAN DIEGOINDUSTRIAL MARKET REPORT

Q3 2013

SUPPLY BY SIZESUBMARKET VACANCY

1Industrial Property Report

VACANCY RATE

8.93% 675.5K sfNET ABSORPTION (YTD)

$.75 nnnAVERAGE RENTAL

RATES / SF

$105 AVERAGE SALE

PRICES / SF

52.2M sfMARKET SIZE

OVERVIEW

The North San Diego County industrial market is largely decentralized and comprised of fi ve cities including Carlsbad, Escondido, Oceanside, San

Marcos and Vista. Situated 35 miles north of downtown San Diego and 52 miles south of John Wayne Airport in Orange County, the coastal

location is a major factor in the area’s appeal to corporate users and its 826,985 residents.

MARKET TRENDS BUILDINGS TOTAL INVENTORY VACANT SF VACANCY RATE YTD ABSORPTION

Carlsbad 486 14,958,382 1,773,135 11.85% 305,500

Escondido 638 7,336,330 393,540 5.36% 120,929

Oceanside 393 7,992,771 1,144,085 14.31% <1,110>

San Marcos 488 8,520,535 504,589 5.92% 117,153

Vista 530 13,389,776 843,428 6.30% 133,014

TOTAL 2,535 52,197,794 4,658,777 8.93% 675,486

0

5

10

15

20

25

30

35

40

45

50

55

60

65

5,000 to 9,999 10,000 to

19,999

20,000 to

49,999

50,000 to

99,999

100,000+N

um

ber

of

Spaces

Availa

ble

SPACES AVAILABLE

ANALYSIS BY SIZE

13.5

%

6.0

%

13.1

%

7.0

% 7.9

%

12.3

%

5.7

%

14.5

%

6.7

%

7.5

%

11.9

%

5.4

%

14.3

%

5.9

%

6.3

%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Carlsbad Escondido Oceanside San Marcos Vista

Vacancy (

%)

SUBMARKET INDUSTRIAL DIRECT VACANCY For Lease For Sale

SPACES AVAILABLE

ANALYSIS BY SIZE

YEAR-TO-DATE

Q3 2012

SUBMARKET INDUSTRIAL DIRECT VACANCY

(Yr.-over-Yr.)

Q2 2013 Q3 2013

SUBMARKET INDUSTRIAL DIRECT VACANCY

(Current Qtr.)(Prior Qtr.)


NORTH COUNTY - 3Q 2013

INVENTORY BREAKDOWN VACANCY BY PRODUCT TYPE

Total Future Inventory 634,921

Total Existing Inventory 13,389,776

VISTA INVENTORY DISTRIBUTION

DIST

31.5%

MFG

32.7%

MULTI

12.8%

R&D

23.0%

NORTH COUNTY INVENTORY DISTRIBUTION


Total Future Inventory 3,946,954

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2013 Q3

Distribution Manufacturing Multi-Tenant R&D

NORTH COUNTYTotal Vacancy by Product Type

VISTATotal Vacancy by Product Type



VISTA INVENTORY DISTRIBUTION NORTH COUNTY INVENTORY DISTRIBUTION

DIST 16,425,237

MFG 17,091,555

MULTI 6,698,357

R&D 11,982,645







Under Construction 156,421

Proposed 3,790,533


SIGNIFICANT LEASE TRANSACTIONS

SF Term

Eff ective

Rate

Natural Alternatives (Vista) 162,000 120 $0.73

Hay House (Vista) 109,952 48 $0.61

ViaSat (Carlsbad) 32,245 25 $1.53

RF Surgical (Carlsbad) 23,976 39 $0.86

North American Repower (Oceanside) 21,656 60 $0.71

SIGNIFICANT SALE TRANSACTIONSSF COE Price/SF

2251 Faraday Ave, Carlsbad 56,840 9/10/13 $193

5600 Avenida Encinas, Carlsbad 154,400 7/16/13 $81

207 E Pennsylvania Ave, Escondido 57,140 9/12/13 $120

1081 Poinsettia Ave, Vista 65,002 7/31/13 $86

2751 Auto Park Way, Escondido 32,753 8/6/13 $79


INDUSTRIAL STATS

NORTH COUNTY MARKET TRENDS NORTH COUNTY INDUSTRIAL RENT TRENDS

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

2007 2008 2009 2010 2011 2012 2013 Q3

$/S

F/M

o. (T

riple

Net)


NORTH COUNTYWeighted Monthly Average Asking Rents

VISTAWeighted Monthly Average Asking Rents

ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY NET ABSORPTION TRENDS

5-Yr. Avg. =

203,507 SF

0%

2%

4%

6%

8%

10%

12%

14%

-1,000

-500

0

500

1,000

1,500

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)

Net Absorption New Supply Vacancy

NORTH COUNTY HISTORICAL MARKET TRENDS

Existing Properties Absorption New Supply UC / Proposed

SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

7,289,916Distribution 208 811,274 11.13% 20,184 0.28% 831,458 11.41% 91,493 289,088 59,815 147,548 0 1,425,8350.00%

9,135,321Industrial 687 616,290 6.75% 0 0.00% 616,290 6.75% 38,338 -3,100 0 0 0 425,2460.00%

17,091,555Manufacturing 932 1,365,406 7.99% 0 0.00% 1,365,406 7.99% 148,799 190,144 0 37,050 156,421 148,97827.61%

6,698,357M

Light

ulti-Tenant 364 592,680 8.85% 15,004 0.22% 607,684 9.07% 8,946 108,532 0 0 0 00.00%

2,191 40,215,149 3,385,650 8.42% 35,188 0.09% 584,664 59,815 184,598 156,421 2,000,059287,576 27.61%3,420,838 8.51%Industrial

11,925,338R&D 342 1,170,734 9.82% 9,898 0.08% 1,180,632 9.90% 45,609 90,822 0 0 0 1,790,4740.00%

57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%

344 11,982,645 1,228,041 10.25% 9,898 0.08% 90,822 0 0 0 1,790,47445,609 0.00%1,237,939 10.33%R&D

2,535 52,197,794 4,613,691 8.84% 45,086 0.09% 675,486 59,815 184,598 156,421 3,790,533333,185 27.61%Total 4,658,777 8.93%

NORTH COUNTY - 3Q 2013

CARLSBAD - 3Q 2013



DIST

3.5%MFG

29.0%

MULTI

15.3%

R&D

52.2%

CARLSBAD INVENTORY DISTRIBUTION



ESCONDIDO INVENTORY DISTRIBUTION



OCEANSIDE INVENTORY DISTRIBUTION


SAN MARCOS INVENTORY DISTRIBUTION




ESCONDIDOTotal Vacancy by Product Type

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2013 Q3


CARLSBADTotal Vacancy by Product Type

OCEANSIDETotal Vacancy by Product Type

SAN MARCOSTotal Vacancy by Product Type










DIST 527,340

MFG 4,341,496

MULTI 2,285,360

R&D 7,804,186














Under Construction 0

Proposed 1,839,132



3-POINT SUMMARY

» Lease renewal activity continues to

dominate the offi ce and industrial leasing

market

» Building prices have increased 25% in

the last 18 months

» Strong investor demand

CARLSBAD - 3Q 2013


INDUSTRIAL STATS

CARLSBAD MARKET TRENDS CARLSBAD INDUSTRIAL RENT TRENDS

ESCONDIDOWeighted Monthly Average Asking Rents

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

2007 2008 2009 2010 2011 2012 2013 Q3


CARLSBADWeighted Monthly Average Asking Rents

OCEANSIDEWeighted Monthly Average Asking Rents

SAN MARCOSWeighted Monthly Average Asking Rents

0%

2%

4%

6%

8%

10%

12%

14%

16%

-100

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)



SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

527,340Distribution 6 0 0.00% 0 0.00% 0 0.00% 3,459 3,459 0 0 0 100,0000.00%

4,341,496Manufacturing 156 591,410 13.62% 0 0.00% 591,410 13.62% -25,942 96,380 0 37,050 0 00.00%

2,285,360Multi-Tenant 96 212,335 9.29% 0 0.00% 212,335 9.29% 38,417 77,031 0 0 0 00.00%

258 7,154,196 803,745 11.23% 0 0.00% 176,870 0 37,050 0 100,00015,934 0.00%803,745 11.23%Industrial

7,746,879R&D 226 912,083 11.77% 0 0.00% 912,083 11.77% 45,898 128,630 0 0 0 1,739,1320.00%

57,307Wet Lab 2 57,307 100.00% 0 0.00% 57,307 100.00% 0 0 0 0 0 00.00%

228 7,804,186 969,390 12.42% 0 0.00% 128,630 0 0 0 1,739,13245,898 0.00%969,390 12.42%R&D

486 14,958,382 1,773,135 11.85% 0 0.00% 305,500 0 37,050 0 1,839,13261,832 0.00%Total 1,773,135 11.85%


ESCONDIDO

INVENTORY BREAKDOWN

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2013 Q3






VACANCY BY PRODUCT TYPE


DIST

25.8%

MFG

53.5%

MULTI

16.0%

R&D

4.7%













DIST 1,894,537

MFG 3,926,740

MULTI 1,170,616

R&D 344,436















Proposed 39,500











3-POINT SUMMARY

» Sales and lease demand has increased

» Sales prices have increased 25% in the

last twelve months

» Escondido vacancy is the lowest in North

County San Diego

ESCONDIDO - 3Q 2013


$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

2007 2008 2009 2010 2011 2012 2013 Q3






0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

-400

-300

-200

-100

0

100

200

300

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)


ESCONDIDO HISTORICAL MARKET TRENDS NORTH COUNTY NET ABSORPTION TRENDS

5-Yr. Avg. =

203,507 SF

NORTH COUNTY HISTORICAL MARKET TRENDS

INDUSTRIAL STATS

ESCONDIDO MARKET TRENDS ESCONDIDO INDUSTRIAL RENT TRENDS

ESCONDIDO - 3Q 2013


SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

932,367Distribution 42 94,269 10.11% 0 0.00% 94,269 10.11% 59,898 143,594 59,815 147,548 0 30,0000.00%

962,171Industrial 120 34,593 3.60% 0 0.00% 34,593 3.60% 11,526 1,984 0 0 0 00.00%

3,926,740M

Light

anufacturing 364 179,129 4.56% 0 0.00% 179,129 4.56% 12,860 -39,462 0 0 0 00.00%

1,170,616Multi-Tenant 85 69,142 5.91% 0 0.00% 69,142 5.91% -10,152 23,230 0 0 0 00.00%

611 6,991,894 377,133 5.39% 0 0.00% 129,346 59,815 147,548 0 30,00074,132 0.00%377,133 5.39%Industrial

344,436R&D 27 16,407 4.76% 0 0.00% 16,407 4.76% 6,790 -8,417 0 0 0 9,5000.00%

27 344,436 16,407 4.76% 0 0.00% -8,417 0 0 0 9,5006,790 0.00%16,407 4.76%R&D

638 7,336,330 393,540 5.36% 0 0.00% 120,929 59,815 147,548 0 39,50080,922 0.00%Total 393,540 5.36%


OCEANSIDE



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2007 2008 2009 2010 2011 2012 2013 Q3









DIST

70.6%

MFG

3.2%MULTI

14.3%R&D

11.9%














DIST 5,641,183

MFG 256,997

MULTI 1,140,506

R&D 954,085













Proposed 1,380,401









3-POINT SUMMARY

» Land market and activity for build-to-

suits continues to improve

» Vacancy rate and negative absorption is

highest in North County San Diego

» Availability of large buildings should

draw tenants to this market

OCEANSIDE - 3Q 2013


INDUSTRIAL STATS



$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

2007 2008 2009 2010 2011 2012 2013 Q3




Insufficient data for R&D rents

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-400

-300

-200

-100

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)


OCEANSIDE MARKET TRENDS OCEANSIDE INDUSTRIAL RENT TRENDS

OCEANSIDE - 3Q 2013


SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

1,477,490Distribution 25 555,203 37.58% 19,000 1.29% 574,203 38.86% 0 36,229 0 0 0 1,023,3420.00%

4,163,693Industrial 272 339,696 8.16% 0 0.00% 339,696 8.16% 8,330 5,296 0 0 0 342,0810.00%

256,997M

Light

anufacturing 12 53,382 20.77% 0 0.00% 53,382 20.77% 0 -12,819 0 0 0 14,9780.00%

1,140,506Multi-Tenant 64 119,480 10.48% 5,000 0.44% 124,480 10.91% -5,172 -19,481 0 0 0 00.00%

373 7,038,686 1,067,761 15.17% 24,000 0.34% 9,225 0 0 0 1,380,4013,158 0.00%1,091,761 15.51%Industrial

954,085R&D 20 45,887 4.81% 6,437 0.67% 52,324 5.48% -11,682 -10,335 0 0 0 00.00%

20 954,085 45,887 4.81% 6,437 0.67% -10,335 0 0 0 0-11,682 0.00%52,324 5.48%R&D

393 7,992,771 1,113,648 13.93% 30,437 0.38% -1,110 0 0 0 1,380,401-8,524 0.00%Total 1,144,085 14.31%


SAN MARCOS




0%

5%

10%

15%

20%

25%

30%

35%

2007 2008 2009 2010 2011 2012 2013 Q3











DIST

68.5%

MFG

16.3%MULTI

1.8%

R&D

13.3%













DIST 5,838,680

MFG 1,390,013

MULTI 155,053

R&D 1,136,789


















Proposed 53,000


3-POINT SUMMARY

» Signifi cantly constrained supply above

15,000 square feet

» Three consecutive quarters of net

absorption

» Current overall vacancy of 5.92%

SAN MARCOS - 3Q 2013


INDUSTRIAL STATS




$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

2007 2008 2009 2010 2011 2012 2013 Q3



0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

-300

-250

-200

-150

-100

-50

0

50

100

150

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)


SAN MARCOS MARKET TRENDS SAN MARCOS INDUSTRIAL RENT TRENDS

SAN MARCOS - 3Q 2013


SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

2,332,898Distribution 111 106,354 4.56% 1,184 0.05% 107,538 4.61% 17,865 84,730 0 0 0 00.00%

3,505,782Industrial 259 186,055 5.31% 0 0.00% 186,055 5.31% 11,462 31,938 0 0 0 53,0000.00%

1,390,013M

Light

anufacturing 74 98,775 7.11% 0 0.00% 98,775 7.11% 9,235 16,154 0 0 0 00.00%

155,053Multi-Tenant 9 34,286 22.11% 2,400 1.55% 36,686 23.66% -6,456 -6,251 0 0 0 00.00%

453 7,383,746 425,470 5.76% 3,584 0.05% 126,571 0 0 0 53,00032,106 0.00%429,054 5.81%Industrial

1,136,789R&D 35 72,074 6.34% 3,461 0.30% 75,535 6.64% 1,758 -9,418 0 0 0 00.00%

35 1,136,789 72,074 6.34% 3,461 0.30% -9,418 0 0 0 01,758 0.00%75,535 6.64%R&D

488 8,520,535 497,544 5.84% 7,045 0.08% 117,153 0 0 0 53,00033,864 0.00%Total 504,589 5.92%


VISTA

NORTH COUNTYTotal Vacancy by Product Type

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011 2012 2013 Q3


VISTATotal Vacancy by Product Type


DIST

18.8%

MFG

53.6%

MULTI

14.5%

R&D

13.0%







DIST 2,523,496

MFG 7,176,309

MULTI 1,946,822

R&D 1,743,149






Proposed 478,500






3-POINT SUMMARY

» Limited supply above 15,000 SF is

leading to higher prices

» Distribution space vacancy at 4.4%

makes it diffi cult to fi nd good dock high

loading spaces

» Overall vacancy is at 6.3%

VISTA - 3Q 2013


INDUSTRIAL STATS

NORTH COUNTYWeighted Monthly Average Asking Rents

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

2007 2008 2009 2010 2011 2012 2013 Q3


VISTAWeighted Monthly Average Asking Rents

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

-200

-150

-100

-50

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 Q3

Vacancy R

ate

SF (

00

0s)


VISTA MARKET TRENDS VISTA INDUSTRIAL RENT TRENDS

VISTA - 3Q 2013


SF

Inventory

Total

BldgsType

SF

Vacant

Direct

SF

Vacant

Sublease

SF

Vacant

Total

Rate

Vacancy

Total

Rate

Vacancy

Sublease

Rate

Vacancy

Direct

SF QTR

Absorption

Net

SF YTD

Absorption

Net

SF QTR

Supply

New

SF YTD

Supply

New

SF

Construction

Under

Availability

UC

SF

Proposed

2,019,821Distribution 24 55,448 2.75% 0 0.00% 55,448 2.75% 10,271 21,076 0 0 0 272,4930.00%

503,675Industrial 36 55,946 11.11% 0 0.00% 55,946 11.11% 7,020 -42,318 0 0 0 30,1650.00%

7,176,309M

Light

anufacturing 326 442,710 6.17% 0 0.00% 442,710 6.17% 152,646 129,891 0 0 156,421 134,00027.61%

1,946,822Multi-Tenant 110 157,437 8.09% 7,604 0.39% 165,041 8.48% -7,691 34,003 0 0 0 00.00%

496 11,646,627 711,541 6.11% 7,604 0.07% 142,652 0 0 156,421 436,658162,246 27.61%719,145 6.17%Industrial

1,743,149R&D 34 124,283 7.13% 0 0.00% 124,283 7.13% 2,845 -9,638 0 0 0 41,8420.00%

34 1,743,149 124,283 7.13% 0 0.00% -9,638 0 0 0 41,8422,845 0.00%124,283 7.13%R&D

530 13,389,776 835,824 6.24% 7,604 0.06% 133,014 0 0 156,421 478,500165,091 27.61%Total 843,428 6.30%


This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations

or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any

interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied

terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

Prepared by:

ADAM MOLNAR

TUCKER HOHENSTEIN

MIKE ERWIN

760 438 8950

AIRPORT

BUSINESS

PARK

INDUSTRY STREETSEAGATE

CORPORATE

CENTER

RANCHO DEL ORO

PACIFIC COAST

BUSINESS PARK

OCEAN RANCH

CORPORATE CENTER

OCEANSIDE GATEWAY

OCEAN VISTA

VISTA PACIFIC

WEST CARLSBADCARLSBAD RANCH

CARLSBAD

RESEARCH

CENTER

CARLSBAD

AIRPORT CENTRE

PALOMAR AIRPORT

BUSINESS PARK

GATEWAY

CENTER

PALOMAR

TECH CENTER

CARLSBAD

OAKS NORTH

OAK RIDGE

BUSINESS CENTER II

CARLSBAD

OAKS WEST

NORTH COUNTY

INDUSTRIAL PARK

OAK RIDGE

BUSINESS CENTER I

VENTURE COMMERCE

CENTER

SYCAMORE VISTA

RANCHO

VISTA

BUSINESS

PARK

PALOMAR

CORPORATE

CENTERCARLSBAD

RACEWAY

SAN MARCOS

INDUSTRIAL PARK

TWIN OAKS

INDUSTRIAL

RANCHEROS

DRIVE

ESCONDIDO

AUTO PARK

EAST ESCONDIDO

INDUSTRIAL

LA COSTA MEADOWS

INDUSTRIAL PARK

UNIVERSITY AREA

MEYERS/BARHAM

BUSINESS PARK

ESCONDIDO

RESEARCH &

TECHNOLOGY

CENTERWINERDIGE

BUSINESS PARK

76

78

5

PRESCOTT

BRESSI RANCH

CORPORATE

CENTER

CARLSBAD

CORPORATE

CENTERLIBERTY

GATEWAY

CARLSBAD

OAKS EAST

PALOMAR

FORUM

North County San Diego

Total Industrial Buildings 2,535

Total Square Footage 52.2 M

Total Vacancy 8.93%


Date post:	12-Nov-2014
Category:	Business
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3Q 2013 Industrial Report

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