DTZ_National_Industrial_Report_Q2_15www.dtz.com
Contents
U.S. Industrial Sector Analysis...............................................................................................3-4
U.S. Industrial Sales......................................................................................................................5
NetAbsorption by Metro................................................................................................. ...... 6-7
VacancyRates by Metro.........................................................................................................8-9
Asking Rents by Metro.....................................................................................10-11
Inventoryby Metro..............................................................................................................12-13
Methodology...................................................................................................................................14
Contacts:
Kevin Thorpe
Chief Economist
2101 L Street, NW, Ste. 700
Washington, DC 20037
Kevin.Thorpe@dtz.com
Jennifer Edwards
Research Manager
2101 L Street, NW, Ste. 700
Washington, DC 20037
Jennifer.Edwards@dtz.com
Rebecca Rockey
Economist
2101 L Street, NW, Ste. 700
Washington, DC 20037
Rebecca. Rockey@dtz.com
2 1 DTZ
Economy
It hasn't exactly been smooth sailing so far this year for the U.S. economy. The combination of
cold weather, a stronger dollar and tumbling oil prices pushed real GDP growth into negative
territory in the first quarter of 2015. The second quarter was fraught with anxiety over Greece,
Puerto Rico and China. Despite those choppy waters, the industrial sector seems to have been
unfazed, as it is absorbing space at another record-setting clip.
Market Indicators
Q2 Trend
2015 (from previous Qtr)
Net Absorption 46.1M Akkh�
One barometer of the health of the industrial economy is the supply chain system. Some of its
components—the rail, trucking and general transportation sectors—rebounded in the second Vacancy 7.3% lqw
quarter as consumer spending ticked up in May to 3.4%, its highest year -over -year growth rate
since October of 2006. With current gas prices roughly $1 per gallon lower than a year ago,
we expect consumer spending to continue to grow at a strong pace. That will fuel even greater Asking Rents $5.42 Akkh..
demand for goods and for warehouse space.
Under
E-commerce sales continue to drive much of the activity in supply chains as retailers Construction 122.3M IAL
recalibrate operations with a focus on their online presence. The housing sector is also
showing signs of emerging as a stronger economic engine. From January through May of this
year, existing home sales were up nearly 8% from the same period last year. New homes sales
were up by 23.4% and housing starts by 6.4%. Given that housing -related products typically
account for 10-15% of all warehouse inventories, this will be an important trend to watch going forward.
While the manufacturing component of the industrial sector equation has struggled for most of this year—due primarily to the rising U.S. dollar—
that too now appears to be turning a corner. After declining earlier in the year, the ISM manufacturing index began to stabilize in April and
turned upwards in May and June. New orders are up sharply since bottoming in March, which is a strong indication that the upward trajectory
in manufacturing will continue well into the third quarter. The automobile sector, another key driver of industrial space demand, remains a clear
bright spot. Vehicle sales during the first half of 2015 exceeded 2014 levels, with roughly 8.6 million vehicle sales to date versus 8.2 million last
year.
Industrial Sector
Midway through 2015, demand for industrial space is poised to set another record. In the second quarter, net absorption registered 46.1 million
square feet (msf). This brings the midyear total to 86.5 msf, a 22% increase from a year ago. U.S. industrial vacancy now stands at a cyclical low of
7.3%, lower than at any other point in the cycle before the recession. Of the 60 markets tracked, 19 boast a vacancy below 5%.
This industrial boom is occurring in nearly every region in the U.S. In fact, only 17% of the national market did not absorb industrial space
in the second quarter. Distribution center hubs continue to lead the way. The top five markets—Atlanta, Inland Empire, Dallas, Houston and
Phoenix—account for nearly one-third of all absorption that has occurred since 2014, and the top 10 markets account for half. The second-
quarter data also revealed that tenant demand is spreading beyond modern bulk warehouse space and into smaller, lower -quality product.
Smaller buildings (those containing between 10,000 and 50,000 square feet) are seeing rental appreciation exceed that of larger buildings in all
of the top markets—sometimes by more than double. The "mom-and-pop" and traditional -type tenants that fill these buildings are an important
undercurrent in the industrial market as they pave the way for new development.
U.S. Net Absorption vs. Vacancy
U.S. Asking Rents
60
8.8%
$5.50
6%
i
$5.40
5%
45
8.4%
$5.30
4%
°
@
c
LY $5.20
3%
c
r
30
8.0%
c
CD
Y $5.10
2%
U
o
Q
N
a $5.00
1%
}
15
7.6%
$4.90
0%
0
1 7.2%
$4.80
1
M M c2
aN
M M M v v v v n
N M V N M 7
N
N co V' M V
N
a c� a a d
Q
0 0 0 0 o a o
o a
=Absorption —Vacancy Rate
mAsking Rent —Yr/Yr Change
Source: DTZ Research Source: DTZ Research
dtz.com 1 3
Industrial Sector cont.
Asking Rents
The amount of space under construction surged from 107.3 msf in the first quarter to more
Select Markets, Avg. Rent Q2 2015
than 122.3 msf in the second. The volume of new deliveries continues to creep upwards as
Rents (NNN) Yr/Yr%Chg.
well, totaling 72.8 msf so far this year, one and a half times more than the 47 msf delivered
in the first half of 2014. At this current rate, all new space could be absorbed within three
San Jose -Silicon Valley, CA $8.76 17.7%
quarters -calming any fears of overbuilding. Even as the development pipeline hits the market,
Suburban VA $8.61 0.7%
we anticipate vacancy will continue to tighten through 2016. This tightening will continue to
San Diego, CA $7.80 14.0%
push rents upward at an increasing rate. In the second quarter, average asking rents grew at
their fastest pace since the beginning of 2008, hitting $5.42/NNN. This is up 4.8% from the
Suburban MD $7.78 9.3%
second quarter of 2014, when rents averaged $5.18/NNN.
Denver, co $6.66 17.7%
Northern NJ $6.35 3.4%
Investment sales in the first five months of the year totaled $28.5 billion, up more than 50%
Los Angeles, CA $5.90 -2.1%
from the same period last year. The uptrend in sales has been driven primarily by warehouse
properties. Those properties not only make up the bulk of sales -nearly three-quarters of
Oakland -East Bay, CA $5.89 10.3%
all sales are warehouse assets rather than flex -but the rate of growth in warehouse sales is
Colorado Springs, CO $5.61 2.7%
double that for flex sales. Cap rates averaged 6.9% in the January through May period this
Phoenix, AZ $5.39 2.1%
year, declining 40 bps from the same time last year. Both flex and warehouse cap rates also
Central NJ $5.23 -1.3%
declined over the same period to 7.3% and 6.7%, respectively, down 40 bps from January
Inland Empire, CA $5.16 9.2%
through May of 2014. Prices on industrial assets also continue their upward trajectory. So far
this year, pricing has risen by just under 20%, with flex up 16.6% and warehouse up 19.6%.
Chicago, IL $4.97 9.6%
Houston, TX $4.91 5.2%
Baltimore, MD $4.70 -2.5%
Outlook
Minneapolis, MN $4.70 -4.3%
Despite the recent upsets to the global economy -China's stock market, Greece's default and
Nashville, TN $4.61 7.2%
subsequent near -exit from the Euro, and Puerto Rico's mounting debt burden -the probability
Raleigh, NC $4.55 7.1%
that any of these will sink the U.S. economic expansion is low. The deal reached by Greece's
creditors sent European stock markets into a rally. Puerto Rico's debt, at $72 billion, is just
Tampa, FL $4.20 0.2%
one-quarter of the tax revenue the U.S. collects each month -a fairly paltry amount, also, in
Sacramento, CA $4.20 0.0%
relation to the size of the bond markets. While the decline in stock prices in China presents the
St. Louis, MO $4.20 2.7%
most tenuous and serious threat to the U.S. and global economies, the Chinese are likely to
Charlotte, NC $4.19 1.7%
take extraordinary measures to stabilize their financial markets. More serious concerns include
whether or not the various financial market risks translate into lower demand from the Chinese.
Kansas City, MO $4.12 2.5%
Nevertheless, in times of uncertainty, investors seek safe havens; that tends to drive Treasury
Louisville, KY $4.09 16.2%
rates lower. If the global economic picture worsens, it is not out of the realm of possibility that
Philadelphia, PA $4.09 1.1%
the 10 -year Treasury could dip below 2% again.
Dallas, Tx $4.08 -0.2%
The U.S. economy is rebounding and is expected to expand at a 2.5% rate in 2015, generating
Milwaukee, WI $3.97 1.5%
2.9 million new nonfarm payroll jobs. This will be a more -than -sufficient engine to propel the
Indianapolis, IN $3.83 2.1%
industrial real estate markets forward to new heights. Assuming the economic script holds,
Atlanta, GA $3.81 8.2%
expect industrial demand this year to exceed that of last year and reach nearly 180 msf, vacancy
Columbus, OH $3.30 7.8%
to drop below 7%, and rental rate growth to continue to push upwards more aggressively.
Cincinnati, OH $3.01 2.0%
Dayton, OH $2.57 0.4%
Source: DTZ Research
Net Absorption Net Absorption as % of Inventory
Select Markets, Q2 2015 Select Markets, Q2 2015
4
3
ti
E 1
N N m C X ry N N is N T m y T N N d m m N L Q C O O T
p E
_1m m =V N UE m° mEq o'
y p o
a° J m rn
1a Z m0
-6 o' (/
LL
m
em
U
C g U)
Y m G
m rn M
Source: DTZ Research
4 1 DTZ
0.0% 11111111111111111111111 1 110.
N 0 � 2 c a N N T L X N� w= m t m N T w 0 c:0 C O W O a�
>m min aom'maci°o. >EEmUa°2$,5-mara)i
OmQom E�w`°t ami `°'v oHNm`m Eiiim m p° c' E o
o .lam d =� 0V) W Xa cL 3 c m urL m c0 cQ SOU
-0.5/o O a 0 c 0 U Z O ro y� M m m °m
N �Z Y 'J= 0 m
m tq c
O N
Source: DTZ Research
Industrial Sales
Select Markets, Jan - Jul 2015
$ Volume (Millions) Avg PSF
Los Angeles, CA
Chicago, IL
Northern N1
$2,965.3
$1,797,9
$1,527.0
$146
$54
$86
Dallas, TX
$1,439.3
$66
Inland Empire,"
$1,351.4
Indianapolis, IN
Seattle, WA
$1,279.8
$109
East Bay, CAqlr'
$1,048.5 T
$94
Atlanta, CA
$949.6
$38
Houston, TX
$914.7
$83
San Jose, CA
$910.4
$190
San Francisco, CA i
$818
$299
San Diego, CA
$796.5
$143
$95
Miami, FL
$520.4
$101
$53
$%
$59
Boston, MA
$488.8
$61
U.S. Industrial Sales Volume
$12
$10
$8
U)
C
o $6
m Avg. _ $3.6 B
$4
$o
O O
M U CO
O 2
Source: Real Capital Analytics
0) C:
N
Q Z Q (n li 0
U.S. Industrial Cap Rates
In Warehouse In Flex
II�III
�I�I
�II�I�I����
�ull��llll
Indianapolis, IN
$380.9
$53
0) C:
N
Q Z Q (n li 0
U.S. Industrial Cap Rates
In Warehouse In Flex
Source: Real Capital Analytics
dtz.com 1 5
10%
Indianapolis, IN
$380.9
$53
$357.4
$44
9% -
Nashville, TN
$348.2
$30
343.9
$53
$%
Louisville, KY
$324.0
$50
7%
Cincinnati, OH
$269.6
$33
Milwaukee, WI
$244.3
$47
6%
Sacramento, CA
$225.6
$58
O O N N N
M M
St. Louis, MO
$200.5
$46,
> >
O
Q Q
p
U
>
Tampa, FL
$87.3
$78
(6 O Co :3 O
O Q Z
N
Q (n
0)
LL
N
p
cC
Kansas City, MO
$51. $40
—Warehouse
—Flex
Raleigh, NC
$51.5
$99
Source: Real Capital Analytics
Source: Real Capital Analytics
Industrial Acquisition by Buyer Type
$70
$60
$50
YC' $40
o
$30
m
$20
$10
$0
'01 '02 '03 '04 '05 '06 '07 '08 '09
'10 '11
'12 '13
'14 Q1
Q1
14
15
Cross -Border ■ Inst'I/Eq Fund ■ Listed/REITs
■ Private
User/other
Source: Real Capital Analytics
dtz.com 1 5
United States
Northeast
Midwest
South
West
Albuquerque, NM
Atlanta -Sandy Springs -Marietta, GA
Austin -Round Rock, TX
Baltimore, MD
Birmingham -Hoover, AL
Boston -Cambridge, MA
Buffalo -Niagara Falls, NY
Charleston -North Charleston, SC
Charlotte -Gastonia -Concord, NC -SC
Chicago -Naperville -Joliet, IL
Cincinnati -Middletown, OH -KY -IN
Cleveland -Elyria -Mentor, OH
Colorado Springs, CO
Columbia, SC
Columbus, OH
Dallas -Fort Worth, TX
Dayton, OH
Denver -Aurora, CO
Detroit -Warren -Livonia, MI
Ft. Lauderdale, FL
Greensboro -Winston-Salem, NC
Greenville, SC
Hartford -West Hartford -East Hartford, CT
Honolulu, HI
Houston -Baytown -Sugar Land, TX
Indianapolis, IN
Inland Empire, CA (Riverside -San Bernardino)
Jacksonville, FL
Kansas City, MO -KS
Las Vegas -Paradise, NV
Little Rock -N. Little Rock, AR
Long Island, NY
Los Angeles -Long Beach -Glendale, CA
Louisville, KY -IN
Memphis, TN -MS -AR
Miami -Dade, FL
Milwaukee -Waukesha -West Allis, WI
Minneapolis -St. Paul -Bloomington, MN -WI
Nashville -Davidson -Murfreesboro, TN
Northern New Jersey
Central New Jersey
New York, NY
6 1 DTZ
110,330,000 145,156,000
3,718,000 11,308,000
32,923,000 37,257,000
42,858,000 48,554,000
30,831,000 48,036,000
-404,000 185,000
5,959,000 10,656,000
926,000 962,000
1,625,000 3,576,000
612,000 -73,000
1,011,000 1,775,000
236,000 -973,000
163,000 -470,000
2,100,000 2,849,000
14,703,000 9,136,000
2,384,000 4,760,000
183,000 1,313,000
615,000 320,000
-228,000 367,000
681,000 4,477,000
8,899,000 8,899,000
2,104,000 1,778,000
3,599,000 4,848,000
-36,000 2,729,000
982,000 1,579,000
763,000 -982,000
820,000 453,000
68,000 -459,000
93,000 138,000
5,186,000 3,627,000
4,477,000 2,213,000
6,600,000 16,756,000
466,000 561,000
2,096,000 2,915,000
-226,000 2,059,000
-561,000 51,000
206,000 3,178,000
3,909,000 759,000
802,000 1,681,000
-465,000 3,877,000
2,348,000 2,040,000
3,702,000 4,828,000
2,247,000 1,303,000
6,022,000 3,359,000
793,000 1,427,000
1,659,000 2,962,000
-57,000 26,000
2014
165,861,000
4,181,000
44,240,000
59,076,000
58,364,000
91,000
18,711,000
154,000
3,237,000
557,000
1,466,000
237,000
102,000
2,436,000
8,726,000
4,768,000
411,000
467,000
-28,000
4,122,000
5,647,000
4,843,000
6,063,000
814,000
1,274,000
502,000
395,000
640,000
282,000
7,097,000
5,504,000
10, 947, 000
135,000
3,927,000
1,489,000
-223,000
266,000
8,389,000
2,724,000
2,883,000
2,941,000
4,525,000
934,000
3,764,000
-213,000
1,811,000
13,000
Q2 2014
Q3 2014
Q4 2014
Q1 2015r
Q2 2015p
38,135,000
42,349,000
52,530,000
40,092,000
46,132,000
617,000
603,000
2,923,000
3,686,000
3,344,000
10,144,000
10,191,000
14,306,000
10,377,000
7,767,000
12,576,000
14,777,000
19,399,000
15,399,000
22,010,000
14,798,000
16,778,000
15,901,000
10,630,000
13,011,000
104,000
130,000
77,000
79,000
-5,000
2,640,000
1,232,000
8,766,000
2,490,000
3,829,000
198,000
131,000
353,000
153,000
673,000
213,000
1,637,000
1,440,000
864,000
433,000
98,000
85,000
278,000
259,000
167,000
255,000
362,000
424,000
-249,000
56,000
153,000
177,000
-117,000
246,000
-64,000
-728,000
458,000
107,000
350,000
124,000
908,000
1,199,000
-106,000
-179,000
422,000
1,705,000
1,214,000
4,362,000
690,000
-350,000
1,816,000
632,000
699,000
2,397,000
1,250,000
-54,000
441,000
-31,000
68,000
371,000
25,000
-20,000
210,000
24,000
0
-210,000
-35,000
132,000
123,000
158,000
384,000
1,746,000
-82,000
-501,000
1,402,000
2,060,000
1,374,000
554,000
1,890,000
6,064,000
1,715,000
302,000
2,390,000
32,000
159,000
1,469,000
769,000
1,983,000
819,000
995,000
483,000
-378,000
740,000
991,000
557,000
627,000
271,000
205,000
313,000
-156,000
36,000
39,000
301,000
333,000
276,000
243,000
119,000
161,000
-131,000
700,000
-56,000
271,000
161,000
1,759,000
23,000
135,000
121,000
29,000
20,000
153,000
1,633,000
2,444,000
1,326,000
3,690,000
2,459,000
1,415,000
1,421,000
2,001,000
1,499,000
608,000
922,000
4,581,000
3,948,000
1,071,000
4,837,000
-212,000
9,000
-28,000
20,000
841,000
134,000
1,989,000
947,000
1,468,000
595,000
485,000
450,000
528,000
283,000
1,280,000
-238,000
-38,000
45,000
172,000
-84,000
-120,000
-397,000
667,000
301,000
376,000
2,184,000
1,674,000
2,828,000
2,315,000
368,000
848,000
787,000
895,000
-266,000
1,466,000
-209,000
747,000
2,069,000
448,000
1,180,000
1,250,000
636,000
534,000
1,433,000
706,000
1,219,000
1,259,000
1,326,000
2,847,000
1,231,000
-173,000
524,000
729,000
869,000
514,000
2,200,000
1,676,000
593,000
303,000
816,000
-836,000
118,000
1,138,000
622,000
1,051,000
55,000
-66,000
544,000
320,000
1,917,000
-17,000
41,000
-32,000
-8,000
2,000
LM
2012
2013
2014
Q2 2014
Q3 2014
Q4 2014
Q7 2015r
Q2 2015p
Oakland -East Bay, CA
723,000
4,153,000
4,658,000
1,803,000
1,601,000
639,000
403,000
1,103,000
Oklahoma City, OK
-99,000
555,000
727,000
136,000
-1,000
365,000
1,130,000
-60,000
Omaha, NE -IA
291,000
-73,000
672,000
290,000
152,000
66,000
-133,000
71,000
Orange County, CA (Anaheim -Santa Ana)
407,000
2,302,000
2,361,000
345,000
1,474,000
-65,000
-262,000
1,329,000
Orlando, FL
1,016,000
1,589,000
1,358,000
246,000
607,000
540,000
836,000
-147,000
Philadelphia -Camden -Wilmington, PA -NJ -DE
203,000
1,973,000
-749,000
804,000
-272,000
548,000
-61,000
-74,000
Phoenix -Mesa -Scottsdale, AZ
5,565,000
3,325,000
9,493,000
3,654,000
1,867,000
1,034,000
2,041,000
1,601,000
Pittsburgh, PA
1,409,000
813,000
8,000
225,000
196,000
-660,000
681,000
27,000
Portland -Vancouver -Beaverton, OR -WA
1,778,000
741,000
3,078,000
784,000
997,000
1,040,000
1,067,000
-279,000
Raleigh-Durham, NC
187,000
-16,000
351,000
310,000
-17,000
283,000
252,000
271,000
Sacramento -Arden -Arcade -Roseville, CA
212,000
1,315,000
2,941,000
800,000
1,312,000
465,000
1,030,000
58,000
Saint Louis, MO -IL
91,000
1,880,000
4,993,000
1,212,000
890,000
1,159,000
149,000
1,359,000
Salt Lake City, LIT
253,000
1,352,000
-831,000
-673,000
194,000
-162,000
120,000
460,000
San Antonio, TX
1,642,000
367,000
607,000
-337,000
-526,000
122,000
352,000
583,000
San Diego -Carlsbad -San Marcos, CA
2,710,000
2,327,000
2,347,000
489,000
386,000
1,099,000
908,000
127,000
San Francisco, CA
31,000
264,000
138,000
91,000
-193,000
141,000
-4,000
-210,000
San Jose -Sunnyvale -Santa Clara, CA
-269,000
409,000
820,000
15,000
331,000
503,000
-121,000
212,000
San Mateo County, CA
159,000
1,230,000
428,000
544,000
211,000
102,000
115,000
-48,000
Seattle -Tacoma -Bellevue, WA
3,389,000
2,669,000
3,229,000
907,000
611,000
748,000
350,000
593,000
DC -MD Suburbs
1,226,000
-187,000
-91,000
59,000
19,000
62,000
-103,000
610,000
DC -VA Suburbs
381,000
1,019,000
648,000
331,000
152,000
-94,000
15,000
231,000
Stockton, CA
1,915,000
2,415,000
1,878,000
829,000
210,000
634,000
82,000
435,000
Syracuse, NY
-1,809,000
585,000
702,000
153,000
173,000
250,000
73,000
31,000
Tampa -St. Petersburg -Clearwater, FL
1,304,000
1,424,000
2,614,000
209,000
1,738,000
410,000
184,000
389,000
Tucson, AZ
-227,000
470,000
95,000
-113,000
72,000
120,000
291,000
2,000
Washington, DC
111,000
-21,000
108,000
33,000
5,000
19,000
33,000
-9,000
West Palm Beach -Boca Raton, FL
674,000
812,000
446,000
235,000
28,000
65,000
437,000
66,000
Methodology and data sources explained on page 14
r = revision
p = preliminary
dtz.com 1 7
8 1 DTZ
Q2 2014 Q3 2014 Q4 2014 Q1 2O15r Q2 2O15p
8.0%
2012
2013
2014
7.3%
8.6%
(Quarterly Average)
8.4°%
United States
9.1%
8.5%
7.9%
Northeast
9.1%
8.9%
8.6%
Midwest
9.0%
8.3%
7.8%
South
10.3%
9.5%
9.0%
West
8.1%
7.3%
6.4%
Albuquerque, NM
6.8%
7.6%
7.6%
Atlanta -Sandy Springs -Marietta, GA
17.7%
15.8%
13.1%
Austin -Round Rock, TX
11.1%
8.8%
9.4%
Baltimore, MD
12.3%
11.1%
10.1%
Birmingham -Hoover, AL
8.0%
8.2%
8.0%
Boston -Cambridge, MA
14.2%
13.0%
12.0%
Buffalo -Niagara Falls, NY
7.7%
9.0%
9.4%
Charleston -North Charleston, SC
13.3%
14.4%
16.6%
Charlotte -Gastonia -Concord, NC -SC
8.5%
8.0%
7.8%
Chicago -Naperville -Joliet, IL
10.3%
9.2%
8.9%
Cincinnati -Middletown, OH -KY -IN
9.4%
7.0%
5.5%
Cleveland -Elyria -Mentor, OH
9.4%
9.2%
9.0%
Colorado Springs, CO
11.6%
10.1%
9.6%
Columbia, SC
16.0%
15.8%
15.3%
Columbus, OH
9.6%
8.3%
7.1%
Dallas -Fort Worth, TX
8.5%
7.2%
6.9%
Dayton, OH
13.0%
14.2%
12.7%
Denver -Aurora, CO
7.6%
6.4%
4.9%
Detroit -Warren -Livonia, MI
11.9%
10.9%
10.6%
Ft. Lauderdale, FL
10.6%
9.4%
8.4%
Greensboro -Winston-Salem, NC
9.6%
9.5%
9.8%
Greenville, SC
10.8%
10.2%
10.2%
Hartford -West Hartford -East Hartford, CT
9.7%
9.9%
9.7%
Honolulu, HI
2.4%
2.2%
18%
Houston -Baytown -Sugar Land, TX
6.6%
6.6%
7.1%
Indianapolis, IN
3.9%
3.7%
4.8%
Inland Empire, CA (Riverside -San Bernardino)
7.5%
6.1%
5.5%
Jacksonville, FL
9.8%
8.8%
8.6%
Kansas City, MO -KS
7.9%
7.4%
7.8%
Las Vegas -Paradise, NV
12.2%
11.0%
9.8%
Little Rock -N. Little Rock, AR
8.1%
8.1%
8.8%
Long Island, NY
5.3%
4.4%
4.1%
Los Angeles -Long Beach -Glendale, CA
5.4%
5.6%
4.8%
Louisville, KY -IN
8.1%
6.7%
6.4%
Memphis, TN -MS -AR
15.5%
14.0%
14.4%
Miami -Dade, FL
6.2%
5.6%
4.8%
Milwaukee -Waukesha -West Allis, WI
7.0%
6.7%
5.8%
Minneapolis -St. Paul -Bloomington, MN -WI
12.4%
10.6%
10.0%
Nashville -Davidson -Murfreesboro, TN
9.3%
8.1%
7.4%
Northern New Jersey
8.2%
7.6%
7.9%
Central New Jersey
9.0%
7.8%
6.9%
8 1 DTZ
Q2 2014 Q3 2014 Q4 2014 Q1 2O15r Q2 2O15p
8.0%
7.9%
7.7%
7.5%
7.3%
8.6%
8.6%
8.4°%
8.3°%
8.2%
7.8%
7.7%
7.5%
7.3%
7 7.
9.1°(
8.9%
8.7%
8.7%
8.5%
6.6%
6.3%
6.0%
5.8%
5.6%
7.7%
7.5°%
7.3%
6.7°%
6.7°%
13.5%
13.3%
11.8%
11.6%
11.3%
9.7%
9.2°%
8.5%
8.8°%
7.4°%
10.2%
9.6%
10.5%
10.3%
10.5%
8.1%
8.0°%
7.7%
7.4°%
7.3°%
12.1%
11.8%
11.5%
11.8%
11.7%
9.2%
9.2%
9.4%
8.8°%
8.4°%
17.9%
16.6%
16.3%
16.0%
15.7%
7.6%
7.8°%
8.0°%
8.1°%
7.9°%
8.9%
8.9%
8.7%
8.9%
9.2%
5.4%
5.6%
5.4%
4.6°%
4.4°%
9.1%
8.9°%
8.9°%
8.9°%
8.8°%
9.7%
9.7°%
9.1°%
9.0%
9.0%
15.4%
15.5%
15.2%
14.9%
14.4%
7.4%
7.1%
6.7°%
6.5%
5.5%
6.5%
6.5%
7.6%
8.4%
7.7%
12.4%
12.5%
11.8%
10.0%
9.9°%
5.0%
4.9%
4.4%
4.3%
4.1%
10.5%
10.6%
10.4%
10.1%
10.0%
8.5%
8.1%
7.9%
7.6%
8.0%
9.9%
9.9%
9.7°%
9.5%
9.5%
10.2%
10.0%
9.9%
10.5%
9.9%
9.9%
9.6%
9.5°%
9.0%
9.0°%
1.7%
1.7%
1.7%
1.6%
1.2%
7.3%
6.9°%
6.8°%
8.1°%
7.8°%
4.6%
4.9%
5.1%
S.3%
5.2%0
5.9%
5.8%
5.5°%
5.5°%
4.9°%
8.7%
8.7°%
8.7°%
8.7%
8.0°%
8.0%
7.6%
7.9%
7.4°%
8.0%
10.0%
9.6%
9.1%
8.8%
8.1%
8.9%
8.9%
8.9%
8.5%
8.7°%
4.3%
4.1%
4.0%
3.8%
3.7%
4.9%
4.7°%
4.3°%
4.0°%
4.0°%
6.6%
5.9%
5.7%
6.4%
6.2%
14.6%
14.6%
14.0%
13.5%
14.1%
4.7%
4.7%
4.S%
4.1%
3.7%
5.8%
5.4°%
5.8°%
5.0%
4.6°%
10.4%
10.0%
9.3%
9.9%
9.3%
7.5%
6.8%
6.5%
6.4%
6.2°%
8.1%
8.0%
7.5%
7.3%
6.8%
6.5%
7.3°%
7.1°%
6.9°%
5.9°%
Baltimore, MD vacany rate only reflects direct vacancy
Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
4.0%
2012
2013
2014
4.0%
5.0%
(Quarterly Average)
4.4°%
New York, NY
4.0%
4.3%
3.9%
Oakland -East Bay, CA
9.1%
7.1%
4.9%
Oklahoma City, OK
5.7%
5.8%
5.5%
Omaha, NE -IA
4.2%
4.6%
4.1%
Orange County, CA (Anaheim -Santa Ana)
4.9%
4.5%
3.7%
Orlando, FL
9.0%
7.8%
7.3%
Philadelphia -Camden -Wilmington, PA -NJ -DE
10.0%
10.1%
10.2%
Phoenix -Mesa -Scottsdale, AZ
12.7%
12.5%
11.6%
Pittsburgh, PA
8.3%
7.7%
7.5%
Portland -Vancouver -Beaverton, OR -WA
8.2%
8.3%
7.2%
Raleigh-Durham, NC
7.9%
8.0%
8.0%
Sacramento -Arden -Arcade -Roseville, CA
13.2%
12.4%
11.1%
Saint Louis, MO -IL
8.8%
8.3%
6.9%
Salt Lake City, UT
2.2%
2.2%
2.8%
San Antonio, TX
9.0%
8.7%
10.2%
San Diego -Carlsbad -San Marcos, CA
10.4%
8.7%
7.1%
San Francisco, CA
4.3%
3.4%
2.4%
San Jose -Sunnyvale -Santa Clara, CA
7.1%
6.6%
5.7%
San Mateo County, CA
9.3%
6.1%
4.8%
Seattle -Tacoma -Bellevue, WA
6.0%
5.2%
4.5%
DC -MD Suburbs
11.8%
11.0%
9.8%
DC -VA Suburbs
10.6%
10.0%
8.1%
Stockton, CA
10.3%
9.3%
8.9%
Syracuse, NY
15.1%
15.2%
14.3%
Tampa -St. Petersburg -Clearwater, FL
8.0%
6.4%
5.3%
Tucson, AZ
11.5%
10.5%
9.9%
Washington, DC
18.3%
17.3%
11.3%
West Palm Beach -Boca Raton, FL
7.3%
5.0%
4.1%
Methodology and data sources explained
on page 14
4.9%
4.8%
r = revision
10.2%
10.0%
9.7%
p = preliminary
8.6%
12.1%
12.2%
Baltimore, MD vacany rate only reflects direct vacancy
Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
4.0%
3.7°%
4.0°%
4.0°%
4.0%
5.0%
4.6°%
4.4°%
4.1°%
3.6%
5.5%
5.6%
5.3%
4.9%
5.2%
4.2%
3.9°%
3.8%
4.5%
4.3%
3.8%
3.3%
3.6%
3.6%
3.2%
7.5%
6.8°%
7.6%
6.7%
7.4%
10.1%
10.2%
10.1%
10.4%
11.1%
11.7%
11.2%
11.4%
11.1%
11.2%
7.4%
7.4%
7.7%
7.7%
7.7%
7.6%
6.9%
6.6°%
6.2°%
6.4°%
8.3%
7.6%
7.3%
7.4%
6.6%
11.4%
10.6%
10.4%
9.7%
9.8%
7.1%
6.7%
6.4%
6.5%
6.3%
3.0%
2.8%
3.0%
2.9%
3.0%
10.0%
10.8%
10.7%
10.5%
9.8%
7.2%
7.1%
6.4%
6.0%
5.8%
2.8%
2.1%
2.2%
2.6%
3.1%
5.9%
5.7%
4.9%
4.8%
4.0%
4.8%
4.3%
4.0%
3.7%
3.8%
4.6%
4.6%
4.2%
4.3%
4.4%
10.0%
9.9%
8.9%
9.2%
9.3%
8.0%
7.8%
7.7%
8.3%
7.8%
9.0%
8.8%
8.4%
7.6%
7.3%
14.6%
14.2%
13.6%
13.5%
13.4%
5.6%
5.0%
4.9%
4.8%
4.6%
10.2%
10.0%
9.7%
8.6%
8.6%
12.1%
12.2%
9.4%
8.9%
9.0%
4.0%
4.0%
3.8%
4.6%
4.4%
dtz.com 1 9
United States
Northeast
Midwest
South
West
2012
$4.95
$5.71
$3.72
$4.46
$5.91
2013
(Quarterly Average)
$5.07
$5.71
$3.82
$4.57
$6.18
2014
$5.21
$5.84
$3.85
$4.75
$6.41
Q2 2014
$5.18
$5.84
$3.84
$4.73
$6.29
Q3 2014
$5.23
$5.82
$3.85
$4.75
$6.53
$3.87
$3.90
$3.93
$4.81
$4.87
$4.93
Albuquerque, NM
$6.23
$5.70
$5.54
$5.52
$5.53
Atlanta -Sandy Springs -Marietta, GA
$3.32
$3.35
$3.53
$3.52
$3.52
Austin -Round Rock, TX
$5.63
$5.72
$6.15
$6.06
$6.08
Baltimore, MD
$4.76
$4.86
$4.63
4..82
$4.57
Birmingham -Hoover, AL
$3.15
$3.09
$3.13
$3.12
$3.15
Boston -Cambridge, MA
$4.23
$4.40
$4.44
$4.41
$4.44
Buffalo -Niagara Falls, NY
$4.02
$3.74
$3.75
$3.76
$3.66
Charleston -North Charleston, SC
$4.04
$4.13
$4.18
$4.20
$4.20
Charlotte -Gastonia -Concord, NC -SC
$3.78
$3.93
$4.07
$4.12
$4.05
Chicago- Naperville -Joliet, IL
$4.09
$4.40
$4.65
$4.53
$4.70
Cincinnati -Middletown, OH -KY -IN
$2.74
$2.88
$2.94
$2.95
$2.97
Cleveland -Elyria -Mentor, OH
$3.81
$3.81
$3.86
$3.84
$3.91
Colorado Springs, CO
$5.51
$5.42
$5.54
$5.46
$5.53
Columbia, SC
$3.75
$3.66
$3.54
$3.43
$3.52
Columbus, OH
$2.74
$3.06
$3.05
$3.06
$3.06
Dallas -Fort Worth, TX
$3.65
$3.83
$4.09
$4.09
$4.07
Dayton, OH
$2.75
$2.66
$2.57
$2.56
$2.55
Denver -Aurora, CO
$4.62
$4.88
$5.70
$5.66
$5.78
Detroit -Warren -Livonia, MI
$4.01
$3.99
$4.11
$4.08
$4.08
Ft. Lauderdale, FL
$5.85
$6.00
$6.37
$6.29
$6.42
Greensboro -Winston-Salem, INC
$2.99
$2.94
$2.84
$2.82
$2.83
Greenville, SC
$2.92
$2.88
$3.05
$3.04
$3.08
Hartford -West Hartford -East Hartford, CT
$4.26
$4.06
$4.02
$3.98
$4.04
Honolulu, HI
$10.71
$10.80
$10.94
$10.89
$10.94
Houston -Baytown -Sugar Land, TX
$4.45
$4.53
$4.70
$4.67
$4.65
Indianapolis, IN
$3.51
$3.68
$3.77
$3.75
$3.79
Inland Empire, CA (Riverside -San Bernardino)
$4.29
$4.61
$4.76
$4.73
$4.74
Jacksonville, FL
$3.83
$3.86
$3.82
$3.83
$3.80
Kansas City, MO -KS
$4.00
$4.13
$4.12
$4.02
$4.10
Las Vegas -Paradise, NV
$5.48
$5.51
$5.71
$5.63
$5.83
Little Rock -N. Little Rock, AR
$3.12
$3.29
$3.35
$3.33
$3.37
Long Island, NY
$10.97
$10.98
$11.78
$11.77
$11.88
Los Angeles -Long Beach -Glendale, CA
$5.23
$5.53
$6.01
$6.03
$6.24
Louisville, KY -IN
$3.00
$3.19
$3.64
$3.52
$3.61
Memphis, TN -MS -AR
$2.55
$2.56
$2.61
$2.61
$2.61
Miami -Dade, FL
$7.29
$7.83
$8.34
$8.56
$8.33
Milwaukee -Waukesha -West Allis,Wl
$4.03
$3.96
$3.87
$3.91
$3.80
Minneapolis -St. Paul -Bloomington, MN -WI
$4.30
$4.62
$4.84
$4.91
$4.78
Nashville -Davidson -Murfreesboro, TN
$3.90
$3.94
$4.34
$4.30
$4.30
Northern New Jersey
$5.48
$6.04
$6.28
$6.14
$6.23
Central New Jersey
$4.52
$5.29
$5.31
$5.30
$5.20
10 1 DTZ
Q4 2014 Q1 2015r Q2 2015p
$5.29
$5.35
$5.42
$5.84
$5.88
$5.93
$3.87
$3.90
$3.93
$4.81
$4.87
$4.93
$6.62
$6.74
$6.90
$5.52
$5.54
$5.57
$3.70
$3.81
$3.81
$6.44
$6.60
$6.79
$4.55
4..67
$4.70
$3.16
$3.14
$3.12
$4.46
$4.53
$4.50
$3.83
$3.74
$3.79
$4.21
$4.26
$4.28
$4.15
$4.20
$4.19
$4.87
$4.98
$4.97
$2.91
$2.99
$3.01
$3.89
$3.93
$3.92
$5.72
$5.66
$5.61
$3.57
$3.62
$3.60
$3.09
$3.20
$3.30
$4.14
$4.12
$4.08
$2.58
$2.56
$2.57
$6.08
$6.47
$6.66
$4.08
$4.13
$4.22
$6.54
$6.61
$6.74
$2.89
$2.94
$3.02
$3.12
$3.16
$3.19
$4.02
$4.02
$3.94
$11.03
$11.21
$11.37
$4.76
$4.91
$4.91
$3.81
$3.81
$3.83
$5.04
$4.99
$5.16
$3.80
$3.85
$3.86
$4.21
$4.01
$4.12
$5.88
$5.99
$6.11
$3.41
$3.48
$3.40
$11.85
$12.09
$12.48
$5.94
$5.97
$5,90
$3.88
$3.19
$4.09
$2.61
$2.58
$2.64
$8.12
$8.12
$8.38
$3.87
$3.94
$3.97
$4.78
$4.78
$4.70
$4.48
$4.84
$4.61
$6.24
$6.46
$6.35
$5.22
$5.18
$5.23
2012
New York, NY
$11.98
Oakland -East Bay, CA
$4.52
Oklahoma City, OK
$3.45
Omaha, NE -IA
$4.45
Orange County, CA (Anaheim -Santa Ana)
$6.42
Orlando, FL
$3.95
Philadelphia -Camden -Wilmington, PA -NJ -DE
$4.14
Phoenix -Mesa -Scottsdale, AZ
$4.90
Pittsburgh, PA
$4.79
Portland -Vancouver -Beaverton, OR -WA
$4.36
Raleigh-Durham, NC
$4.15
Sacramento -Arden -Arcade -Roseville, CA
$4.26
Saint Louis, MO -IL
$4.27
Salt Lake City, UT
$4.33
San Antonio, TX
$4.05
San Diego -Carlsbad -San Marcos, CA
$7.14
San Francisco, CA
$10.11
San Jose -Sunnyvale -Santa Clara, CA
$6.79
San Mateo County,. CA
$8.66
Seattle -Tacoma -Bellevue, WA
$5.51
DC -MD Suburbs
$6.69
DC -VA Suburbs
$8.31
Stockton, CA
$3.69
Syracuse, NY
$2.70
Tampa -St. Petersburg -Clearwater, FL
$3.95
Tucson, AZ
$5.44
Washington, DC
$7.71
West Palm Beach -Boca Raton, FL
$6.28
Methodology and data sources explained on
page 14
r = revision
$4.02
p = preliminary
$4.02
2013
2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015r
Q2 2015p
(Quarterly Average)
$11.23
$11.52
$11.84
$11.37
$11.48
$11.48
$11.48
$4.83
$5.33
$5.34
$5.48
$5.57
$5.67
$5.89
$3.50
$3.92
$3.90
$3.91
$4.10
$4.05
$4.00
$4.60
$4.41
$4.40
$4.38
$4.37
$4.39
$4,37
$6.83
$7.27
$7.22
$7.24
$7.51
$7.59
$7.80
$4.05
$4.27
$4.29
$4.25
$4.34
$4.43
$4.48
$4.13
$4.04
$4.04
$4.02
$4.01
$4.02
$4.09
$5.03
$5.25
$5.28
$5.28
$5.28
$5.40
$5.39
$4.60
$4.57
$4.50
$4.63
$4.57
$4.62
$4.68
$4.59
$4.50
$4.44
$4.52
$4.58
$4.67
$4.80
$4.13
$4.32
$4.25
$4.37
$4.38
$4.57
$4.55
$4.20
$4.17
$4.20
$4.20
$4.20
$4.20
$4.20
$4.03
$3.99
$4.09
$4.05
$4.01
$4.03
$4.20
$4.52
$4.58
$4.59
$4.61
$4.59
$4.66
$4.64
$4.24
$4.64
$4.58
$4.71
$4.78
$4.74
$4.72
$6.99
$6.93
$6.84
$6.84
$6.96
$7.44
$7.80
$13.52
$13.41
$11.97
$14.96
$14.88
$13.79
$14.88
$6.86
$7.62
$7.44
$7.68
$8.04
$8.75
$8.76
$8.88
$9.81
59.53
$9.97
$10.33
$11.26
$12.00
$5.71
$5.89
$5.89
$5.88
$5.92
$5.96
$6.04
$7.09
$7.19
$7.12
$7.20
$7.17
$7.58
$7.78
$8.40
$8.53
$8.55
$8.57
$8.49
$8.54
$8.61
$3.67
$3.67
$3.64
$3.68
$3.74
$3.77
$3.79
$2.65
$2.69
$2.68
$2.72
$2.70
$2.71
$2.72
$4.09
$4.17
$4.19
$4.14
$4.17
$4.20
$4.20
$5.46
$5.56
$5.46
$5.59
$5.67
$5.73
$5.72
$7.95
$8.07
$8.06
$8.08
$8.10
$8.16
$8.32
$6.39
$6.68
$6.62
$6.78
$6.86
$6.89
$6.89
dtz.com 1 11
12 1 DTZ
Inventory
Vacant Stock
Inventory Change
U/C
Q2 2015
Q2 2015
(YTD 2015)
(as of Q2 2015)
National Total
11,413,507,000
829,804,000
72,755,000
122,302,000
Albuquerque; NM
46,890,000
3,163,000
0
0
Atlanta -Sandy Springs -Marietta, GA
445,625,000
50,356,000
3,904,000
13,441,000
Austin -Round Rock, TX
35,017,000
2,581,000
458,000
480,000
Baltimore, MD
165,289,000
17,322,000
740,000
1,851,000
Birmingham -Hoover, AL
95,761,000
7,018,000
71,000
0
Boston -Cambridge, MA
117,190,000
13,749,000
35,000
954,000
Buffalo -Niagara Falls, NY
57,912,000
4,886,000
177,000
1,551,000
Charleston -North Charleston, SC
35,222,000
5,533,000
306,000
381,000
Charlotte -Gastonia -Concord, NC -SC
155,258,000
12,265,000
1,283,000
1,003,000
Chicago- Naperville -Joliet, IL
829,292,000
76,633,000
4,847,000
6,475,000
Cincinnati -Middletown, OH -KY -IN
276,765,000
12,095,000
944,000
2,910,000
Cleveland -Elyria -Mentor, OH
323,813,000
28,645,000
144,000
184,000
Colorado Springs, CO
33,259,000
2,993,000
0
0
Columbia, SC
37,484,000
5,411,000
0
350,000
Columbus, OH
240,241,000
13,309,000
3,082,000
2,999,000
Dallas -Fort Worth, TX
510,898,000
39,499,000
9,158,000
10,393,000
Dayton, OH
110,163,000
10,906,000
111,000
934,000
Denver -Aurora, CO
247,230,000
10,136,000
1,219,000
928,000
Detroit -Warren -Livonia, MI
299,333,000
29,813,000
275,000
352,000
Ft. Lauderdale, FL
83,353,000
6,689,000
306,000
771,000
Greensboro -Winston-Salem, NC
198,773,000
18,789,000
100,000
344,000
Greenville, SC
76,190,000
7,530,000
604,000
492,000
Hartford -West Hartford -East Hartford, CT
96,497,000
8,699,000
1,500,000
0
Honolulu, HI
37,171,000
448,000
0
0
Houston -Baytown -Sugar Land, TX
325,471,000
25,547,000
5,863,000
10,982,000
Indianapolis, IN
252,439,000
13,127,000
4,895,000
1,600,000
Inland Empire, CA (Riverside -San Bernardino)
387,390,000
18,809,000
3,598,000
14,451,000
Jacksonville, FL
80,250,000
6,415,000
298,000
649,000
Kansas City, MO -KS
198,698,000
15,836,000
2,472,000
4,376,000
Las Vegas -Paradise, NV
99,952,000
8,092,000
654,000
1,014,000
Little Rock -N. Little Rock, AR
51,085,000
4,439,000
0
0
Long Island, NY
301,103,000
11,116,000
138,000
48,000
Los Angeles -Long Beach -Glendale, CA
572,528,000
23,018,000
1,279,000
1,692,000
Louisville, KY -IN
113,223,000
6,963,000
1,829,000
1,178,000
Memphis, TN -MS -AR
151,801,000
21,362,000
2,290,000
1,217,000
Miami -Dade, FL
164,450,000
6,143,000
978,000
822,000
Milwaukee -Waukesha -West Allis, WI
270,154,000
12,427,000
2,267,000
3,294,000
Minneapolis -St. Paul -Bloomington, MN -WI
104,828,000
9,749,000
1,262,000
1,720,000
Nashville -Davidson -Murfreesboro, TN
196,293,000
12,170,000
371,000
2,559,000
Northern New Jersey
223,416,000
15,192,000
144,000
1,129,000
Central New Jersey
193,144,000
11,395,000
190,000
1,872,000
New York, NY
15,321,000
611,000
0
411,000
Oakland -East Bay, CA
194,012,000
6,984,000
346,000
1,685,000
Oklahoma City, OK
84,995,000
4,399,000
1,036,000
0
Omaha, NE -IA
50,812,000
2,195,000
234,000
421,000
Orange County, CA (Anaheim -Santa Ana)
212,090,000
6,787,000
408,000
833,000
12 1 DTZ
Methodology and data sources explained on page 14
Under construction and inventory change figures are derived from DTZ's proprietary
sample and taken directly from Costar's database for certain markets.
dtz.com 1 13
Inventory
Vacant Stock
Inventory Change
U/C
Q2 2015
Q2 2015
(YTD 2015)
(as of Q2 2015)
Orlando, FL
90,909,000
6,707,000
629,000
671,000
Philadelphia -Camden -Wilmington, PA -NJ -DE
300,531,000
33,270,000
2,153,000
1,425,000
Phoenix -Mesa -Scottsdale, AZ
302,280,000
33,855,000
3,629,000
2,476,000
Pittsburgh, PA
214,116,000
16,387,000
628,000
153,000
Portland -Vancouver -Beaverton, OR -WA
154,140,000
9,851,000
574,000
1,905,000
Raleigh-Durham, NC
49,737,000
3,283,000
50,000
724,000
Sacramento -Arden -Arcade -Roseville, CA
139,375,000
13,659,000
271,000
0
Saint Louis, MO -11L
238,065,000
14,998,000
1,148,000
2,972,000
Salt Lake City, UT
111,069,000
3,307,000
579,000
1,973,000
San Antonio, TX
65,168,000
6,409,000
443,000
1,163,000
San Diego -Carlsbad -San Marcos, CA
159,460,000
9,158,000
41,000
389,000
San Francisco, CA
21,527,000
667,000
0
0
San Jose -Sunnyvale -Santa Clara, CA
83,861,000
3,354,000
0
0
San Mateo County, CA
39,678,000
1,523,000
0
0
Seattle -Tacoma -Bellevue, WA
187,161,000
8,279,000
1,352,000
3,937,000
DC -MD Suburbs
50,618,000
4,707,000
388,000
0
DC -VA Suburbs
38,398,000
2,995,000
143,000
289,000
Stockton, CA
142,942,000
10,413,000
0
4,939,000
Syracuse, NY
45,853,000
6,152,000
0
65,000
Tampa -St. Petersburg -Clearwater, FL
113,020,000
5,143,000
165,000
205,000
Tucson, AZ
27,645,000
2,366,000
0
270,000
Washington, DC
6,648,000
598,000
0
0
West Palm Beach -Boca Raton, FL
33,224,000
1,474,000
746,000
0
Methodology and data sources explained on page 14
Under construction and inventory change figures are derived from DTZ's proprietary
sample and taken directly from Costar's database for certain markets.
dtz.com 1 13
Disclaimer
This report and other research materials may be
found on our website at www.dtz.com. This is a
research document of DTZ in Washington, DC.
Questions related to information herein should
be directed to the Research Department at 202-
463-2100. Information contained herein has been
obtained from sources deemed reliable and no
representation is made as to the accuracy thereof.
About DTZ
DTZ is a global leader in commercial real
estate services providing occupiers, tenants
and investors around the world with a full
spectrum of property solutions. The company's
core capabilities include agency leasing,
tenant representation, corporate and global
occupier services, property management,
facilities management, facility services, capital
markets, investment and asset management,
valuation, research, consulting, and project
and development management. DTZ provides
property management for 1.9 billion square
feet, or 171 million square meters, and facilities
management for 1.3 billion square feet, or 124
million square meters. The company completed
$63 billion in transaction volume globally in 2014
on behalf of institutional, corporate, government
and private clients. Headquartered in Chicago,
DTZ has more than 28,000 employees who
operate across more than 260 offices in 50
countries and represent the company's culture
of excellence, client advocacy, integrity and
collaboration.
DTZ announced an agreement to merge with
Cushman & Wakefield in a May 11 press release.
The new company, which will operate under the
Cushman & Wakefield brand, will have revenues
over $5.5 billion, over 43,000 employees and
will manage more than 4 billion square feet
globally on behalf of institutional, corporate
and private clients. The agreement is subject to
customary closing conditions and is expected
to close before the end of 2015. For further
information, visit: www.dtz.com or follow us on
Twitter @DTZ.
Methodology
DTZ's quarterly estimates are derived from a variety of data sources, including its own
proprietary sample of market activity, historical inventory data from Reis LLC, Bureau of Labor
Statistics Employment data, Costar and other third party data sources. The market statistics
are calculated from a base building inventory made up of Industrial properties deemed to be
competitive in the local Industrial markets. Generally, owner -occupied and federally -owned
buildings are not included. Single -tenant buildings and privately -owned buildings in which the
federal government leases space are included. Older buildings unfit for occupancy or ones that
require substantial renovation before tenancy are generally not included in the competitive
inventory. The inventory is subject to revisions due to resampling. Vacant space is defined
as space that is available immediately or within three months (90 days) after the end of the
quarter. Sublet space still occupied by the tenant is not counted as available space.
The figures provided for the current quarter are preliminary, and all information contained in the
report is subject to correction of errors and revisions based on additional data received.
Explanation of Terms
Total Inventory: The total amount of Industrial space (in buildings greater than 10,000 square
feet) that can be rented by a third party.
Total Space Available: The sum of new, relet, and sublet space that is unoccupied and being
actively marketed.
Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a
percentage of total inventory.
Absorption: The net change in occupied space between two points in time. (Total occupied
space in the present quarter minus total occupied space from the previous quarter, quoted on a
net, not gross, basis.)
Asking Rents: NNN average asking rents.
Regional Map
West
■ Midwest
■ South
■ Northeast
14 1 DTZ
www.dtz.com