Industrial vacancy rate continues to rise

August 11, 2010

The problems of the manufacturing and wholesale distribution sectors of the nation's economy continued to weigh heavily upon the demand for industrial space into the fall of last year. The national availability rate for industrial space increased from 8.8 percent during the second quarter to 9.5 percent in the third quarter. The vacancy rate increased an identical 0.7 percent between the first and second quarters of the year.

The July-September 2001 industrial vacancy rate was 1.8 percent higher than that recorded during the third quarter of 2000. A CB Richard Ellis survey measures the supply of available space in manufacturing plants and warehouse buildings of 100,000 square feet or larger. Vacancy rates for industrial space during the third quarter of 2001 ranged from lows of 1.8 percent in Albuquerque, N.M.; 4 percent on Long Island, N.Y.; and just under 6 percent in Palm Beach, Fla., and San Diego to a high of 25.7 percent in the Jacksonville, Fla., metropolitan area.

Between the second and third quarters of last year, the industrial vacancy rate in both the Baltimore and Long Island, N.Y., markets declined by 2.7 percent. At the same time, increases of more than 3 percent were recorded in Portland, Ore. (+3.7 percent); Indianapolis (+4.0 percent), and Charlotte, N.C. (+4.5 percent).

Market industrial vacancy rates (Percentage of industrial space available)

Source: C.B. Richard Ellis
Five highest
Jacksonville. Fla. 25.7%
Baltimore 17.2
Washington, D.C. 14.7
Tucson, Ariz. 13.9
Columbus, Ohio 13.5
Five lowest
Albuquerque, N.M. 1.8%
Long Island, N.Y. 4.0
Palm Beach, Fla. 5.4
San Diego 5.6
Kansas City 6.4

Cost comparisons per square foot in select metro markets

Office 2-4 stories Office 5-10 stories Office 11-20 stories Medical office
NOTE: Costs are for the basic building and do not include sitework, land, development, specialty finishes or equipment. Square foot costs vary significantly from project to project because of quality, complexity and economic climate. For a detailed list of building components included in these figures, see Means Square Foot Costs. R.S. Means Co., P.O. Box 800, Kingston, MA 02364, (781) 585-7880, (800) 448-8182 For more data, visit R.S. Means on the Web at www.rsmeans.com. To use an interactive tool that helps estimate costs, visit www.buildingteam.com.
'02 '01 % chg. '02 '01 % chg. '02 '01 % chg. '02 '01 % chg.
Atlanta 95.56 93.56 2.1 84.45 82.64 2.2 81.49 79.43 2.6 111.46 106.79 4.4
Baltimore 97.58 96.50 1.1 86.24 85.24 1.2 83.22 81.93 1.6 113.83 110.14 3.3
Boston 122.65 120.75 1.6 108.39 106.06 1.6 104.59 102.52 2.0 143.06 137.83 3.8
Chicago 119.45 116.97 2.1 105.56 103.32 2.2 101.86 99.31 2.6 139.33 133.51 4.4
Cleveland 109.53 108.05 1.4 96.79 95.44 1.4 93.41 91.74 1.8 127.76 123.33 3.6
Dallas 90.87 89.25 1.8 80.30 78.84 1.9 77.49 75.78 2.3 105.99 102.61 3.3
Denver 101.64 99.96 1.7 89.82 88.30 1.7 86.68 84.87 2.1 118.55 114.10 3.9
Detroit 113.58 111.51 1.9 100.38 98.50 1.9 96.86 94.68 2.3 132.49 127.28 4.1
Houston 94.17 92.09 2.3 83.22 81.34 2.3 80.31 78.18 2.7 109.85 105.69 3.9
Kansas City 107.40 105.00 2.3 94.91 92.75 2.3 91.59 89.15 2.7 125.27 119.85 4.5
Los Angeles 115.50 113.93 1.4 102.07 100.63 1.4 98.50 96.73 1.8 134.73 130.04 3.6
Miami 90.76 90.41 0.4 80.21 79.86 0.4 77.40 76.76 0.8 105.86 103.19 2.6
Minneapolis 117.32 117.18 0.1 103.68 103.51 0.2 100.05 99.49 0.6 135.47 133.75 1.3
New Orleans 91.19 89.99 1.3 80.58 79.49 1.4 77.76 76.40 1.8 106.36 102.71 3.6
New York City 143.55 141.23 1.6 126.86 124.75 1.7 122.42 119.91 2.1 167.44 161.20 3.9
Philadelphia 118.59 116.97 1.4 104.81 103.32 1.4 101.14 99.31 1.8 138.33 133.51 3.6
Phoenix 95.35 93.77 1.7 84.26 82.83 1.7 81.31 79.61 2.1 111.21 107.03 3.9
Pittsburgh 108.46 106.47 1.9 95.85 94.05 1.9 92.50 90.40 2.3 126.51 121.53 4.1
Portland 112.84 112.04 0.7 99.72 98.96 0.8 96.23 95.12 1.2 131.62 127.88 2.9
St. Louis 109.85 108.36 1.4 97.08 95.72 1.4 93.68 92.00 1.8 128.13 123.69 3.6
San Diego 112.84 111.62 1.1 99.72 98.59 1.1 96.23 94.77 1.5 131.62 127.40 3.3
San Francisco 132.67 128.73 3.1 117.25 113.71 3.1 113.14 109.30 3.5 154.75 146.94 5.3
Seattle 112.41 109.62 2.5 99.34 96.83 2.6 95.86 93.07 3.0 131.12 125.12 4.8
Washington, D.C. 100.78 99.54 1.3 89.07 87.93 1.3 85.95 84.51 1.7 117.56 113.62 3.5
Winston/Salem 80.41 79.70 0.9 71.06 70.40 0.9 68.58 67.66 1.3 93.80 90.97 3.1
         
 

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