Industrial vacancy rate drops in five straight quarters

August 11, 2010

The national availability rate for industrial space declined from 7.1 percent during the first quarter of 2000 to 6.7 percent between April and June this year-the lowest rate in over four years. This marks the fifth consecutive quarterly decline in the sector.

The second-quarter 2000 industrial vacancy rate was 0.8 percent lower than during the same quarter of 1999.

This Torto Wheaton Research survey measures the supply of available space in manufacturing plants and warehouse buildings. Vacancy rates as of the middle of this year ranged from lows of 1.9 percent to 11.7 percent.

NOTE: Costs as shown are for the basic building and do not include: 1. sitework (site clearing and grading, utilities, paving, landscaping, site improvements); 2. land costs; 3. development costs; 4. specialty finishes or equipment. Square foot costs vary significantly from project to project due to quality, complexity and economic climate. Each project should be examined individually. 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 atwww.rsmeans.com.To estimate project costs, visitwww.buildingteam.com.

Rental vacancy rates lowest in Northeast, West (Percent of all rental units available for occupancy)



Second quarter 1999 Second quarter 2000

U.S. average

8.1%

8.0%

Inside metro areas

7.9

7.6

Outside metro areas

9.2

10.1

Northeast

7.0

5.8

Midwest

8.2

8.3

South

10.2

10.5

West

6.1

6.0



Source: U.S. Department of Commerce

Market industrial vacancy rates (Second quarter 2000)



Five highest

Westchester County (NY)

11.7%

Miami

10.5

Sacramento

10.1

Ventura County (CA)

10.0

Hartford (CT)

9.9

Five lowest

San José (CA)

1.9%

Austin (TX)

2.1

San Francisco

2.2

Minneapolis

3.6

West Palm Beach (FL)

4.7



Source: Torto Wheaton Research

Commercial, industrial & institutional (CII) construction spending (Billions of current dollars)



Spending in July 2000 Percent change from July 1999 Spending in Jan.-July 2000 Percent change from Jan.-July 1999 1999 total spending Annual percent change 1999 2000 2001

CII total

$26.11

9.1

$169.35

9.8

$273.47

3.6

6.7

3.4

Commercial

11.37

10.9

74.21

9.7

119.65

8.1

5.6

0.4

Office

4.43

15.7

29.88

12.9

46.57

10.3

8.8

5.1

Retail

5.51

8.9

34.59

9.4

57.14

6.6

5.6

-4.0

Hotel/motel

1.43

4.5

9.75

1.8

15.94

7.6

-3.7

2.0

Industrial

3.26

7.5

21.63

5.6

34.90

-13.8

7.7

5.0

Institutional

11.49

7.8

72.51

11.1

118.92

5.4

7.6

6.0

Health care

1.67

17.1

11.07

11.3

17.59

-0.6

7.1

2.8

Education

5.32

10.0

31.61

15.8

49.51

7.8

11.0

8.0

Other institutional

4.50

2.4

30.83

6.7

51.82

5.3

4.6

5.1

Multifamily

2.33

-2.1

16.29

4.5

27.26

10.9

2.0

4.4



Source: U.S. Dept. of Commerce; forecast: Cahners Economics

Cost comparisons per square foot in select metro markets



Hospital, 2-3 stories '00 '99 % chg. Hospital, 4-8 stories '00 '99 % chg. Nursing home '00 '99 % chg. Apartment building, 8-24 stories '00 '99 % chg.

Atlanta

128.51

115.80

11.0

108.60

100.13

8.5

80.01

74.17

7.9

96.15

86.97

10.6

Baltimore

131.23

118.89

10.4

110.89

102.80

7.9

81.70

76.16

7.3

98.18

89.30

9.9

Boston

167.25

151.65

10.3

141.34

131.12

7.8

104.13

97.14

7.2

125.13

113.90

9.9

Chicago

158.67

143.91

10.3

134.09

124.43

7.8

98.79

92.18

7.2

118.71

108.08

9.8

Cleveland

147.81

133.21

11.0

124.91

115.18

8.4

92.03

85.33

7.9

110.59

100.05

10.5

Dallas

124.65

112.83

10.5

105.34

97.56

8.0

77.61

72.28

7.4

93.26

84.74

10.0

Denver

136.23

122.50

11.2

115.12

105.93

8.7

84.82

78.47

8.1

101.92

92.01

10.8

Detroit

151.53

136.94

10.6

128.05

118.41

8.1

94.34

87.82

7.5

113.37

102.85

10.2

Houston

128.51

116.18

10.6

108.60

100.46

8.1

80.01

74.42

7.5

96.15

87.26

10.2

Kansas City

142.81

127.92

11.6

120.68

110.61

9.1

88.91

81.94

8.5

106.84

96.08

11.2

Los Angeles

157.25

143.26

9.8

132.88

123.88

7.3

97.90

91.77

6.7

117.65

107.60

9.3

Miami

124.51

113.09

10.1

105.22

97.79

7.6

77.52

72.44

7.0

93.15

84.94

9.7

Minneapolis

159.25

143.39

11.1

134.57

123.99

8.5

99.15

91.85

7.9

119.14

107.70

10.6

New Orleans

124.08

111.15

11.6

104.85

96.11

9.1

77.25

71.20

8.5

92.83

83.48

11.2

New York City

193.70

173.82

11.4

163.68

150.30

8.9

120.60

111.34

8.3

144.92

130.55

11.0

Philadelphia

160.39

144.42

11.1

135.54

124.88

8.5

99.86

92.51

7.9

120.00

108.47

10.6

Phoenix

129.08

116.44

10.9

109.08

100.68

8.3

80.37

74.59

7.7

96.58

88.06

9.7

Pittsburgh

147.38

133.08

10.7

124.54

115.07

8.2

91.76

85.24

7.6

110.27

99.95

10.3

Portland

154.53

137.85

12.1

130.58

119.19

9.6

96.21

88.30

9.0

115.61

103.53

11.7

St. Louis

148.10

133.59

10.9

125.15

115.51

8.3

92.20

85.57

7.7

110.80

100.34

10.4

San Diego

153.39

138.49

10.8

129.62

119.75

8.2

95.50

88.71

7.6

114.76

104.02

10.3

San Francisco

177.26

160.93

10.1

149.79

139.15

7.6

110.36

103.08

7.1

132.62

120.87

9.7

Seattle

151.81

137.46

10.4

128.29

118.86

7.9

94.52

88.05

7.3

113.58

103.24

10.0

Washington, D.C.

137.66

124.44

10.6

116.33

107.60

8.1

85.71

79.71

7.5

102.99

93.46

10.2

Winston/Salem

110.07

101.10

8.99

3.02

87.42

6.46

8.53

64.76

5.88

2.35

75.93

8.5

         
 

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