Industrial vacancy rate drops in five straight quarters

November 01, 2000 |

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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