Industrial vacancy rate drops in five straight quarters

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