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MID-YEAR 2017 NATIONALLEE & ASSOCIATES SUPPLY CHAIN & LOGISTICS REPORT
TOP 28 NORTH AMERICAN DISTRIBUTION MARKETS11Seattle / Puget Sound9MinneapolisWESTMIDWEST2717East Bay /OaklandNORTHEAST25Reno / SparksMilwaukeeDetroit27Chicago6a231016New YorkCentral & Northern NJLehigh Valley / on36c1314Kansas CityInland Empire /Los AngelesSt.Louis21Louisville26Norfolk / Hampton Roads1b28Nashville1a24Long Beach /Los Angeles12Oklahoma OUTHSOUTHEAST4Dallas / Fort Worth8Houston22Orlando / Lakeland20Top Tier US MarketsMinneapolis, MNPittsburgh, PAProvidence, RIMiami-Dade County, FLCharlotte, NCColumbia, SCCharleston, SCLas Vegas, NVLos Angeles, CALouisville, KYColumbus, OHSacramento, CAWashington, DCIndianapolis, INTampa, FLJacksonville, FLLong Island, NYGreenville, SCBaltimore, MDGreensboro, NCHartford, CTJackson, MSBirmingham, ALSan Diego, CAMemphis, TNCleveland, OHTulsa, OKSyracuse, NYWilmington, DESecond Tier MarketsThird Tier MarketsLee Nationwide Office locationsCharleston, SCCincinnati, OHColumbus, OHIndianapolis, INDallas, TXNashville, TNCharlotte, NCKansas City, MO/KSDetroit, MIMiami-Dade CountyPhiladelphia, PALas Vegas, NVLouisville, KYDenver, COOrlando, FLPhoenix, AZEXPANSIONDecreasing Vacancy RatesModerate/High New ConstructionModerate/High Employment GrowthMed/High Rental Rate GrowthHigh AbsorptionSalt Lake City, UTSacramento, CASan Jose, CAWashington, DCSavannah, GAInland Empire, CALos Angeles, CANewark, NJSt. Louis, MOHouston, TXRECOVERHYPERSUPPLYDecreasing Vacancy RatesLow New ConstructionLow/Moderate Employment GrowthNeg/Low Rental Rate GrowthModerate AbsorptionIncreasing Vacancy RatesModerate/High New ConstructionModerate/Low Employment GrowthMed/Low Rental Rate GrowthLow/Negative AbsorptionNew York, NYRichmond, VASan Francisco, CAAtlanta, GARECESSIONIncreasing Vacancy RatesModerate/Low New ConstructionLow/Negative Employment GrowthLow/Neg Rental Rate GrowthLow AbsorptionDayton, OHlee-associates.com2
LEE SUPPLY CHAIN: REGIONAL MAP STATS#CityMarket Size *Bulk Market Size *Rental Rate *(Bulk Modern)Vacancy *Under Construction *Absorption *(Q1 & Q2)1a.Los Angeles761,886,350 SF727,292,097 SF 9.481.2%7,983,302 SF100,387 SF1b.Inland Empire392,711,051 SF377,432,058 SF 6.613.31%24,230,530 SF8,255,488 SF2.Chicago1,277,302,383 SF1,205,210,568 SF 4.266.5%16,447,558 SF15,634,491 SF3Northern New Jersey816,662,964 SF753,308,910 SF 7.105.6%12,531,438 SF1,577,152 SF4.Dallas / Ft.Worth864,478,597 SF731,318,582 SF 3.656.5%22,269,488 SF10,599,170 SF5.Atlanta626,454,619 SF474,631,625 SF 3.546.7%16,963,258 SF12,757,657 SF6.Philadelphia1,089,388,733 SF1,002,204,385 SF 4.845.9%15,226,755 SF11,713,693 SF7.Detroit568,656,562 SF516,734,861 SF 5.523.4%4,127,980 SF(259,881 SF)8.Houston586,162,279 SF534,539,256 SF 6.745.6%4,440,619 SF2,942,663 SF9.Minneapolis385,786,544 SF308,467,397 SF 6.634.1%1,632,600 SF242,756 SF10.Seattle300,000,000 SF210,000,000 SF 5.753.3%6,300,000 SF3,650,000 SF12.Phoenix299,334,022 SF161,462,627 SF 4.568.4%3,344,584 SF4,014,033 SF13.Columbus271,735,696 SF59,225,814 SF 3.505.4%4,817,291 SF(268,582 SF)16.Denver298,169,961 SF247,515,179 SF 5.455.0%4,012,307 SF2,267,041 SF17.East Bay / Oakland264,602,399 SF209,886,487 SF 10.003.6%1,692,123 SF1,515,270 SF18.Memphis254,566,458 SF245,212,062 SF 3.487.4%2,378,580 SF892,055 SF19.Charlotte327,959,027 SF297,499,276 SF 4.534.6%3,766,918 SF3,788,184 SF20.St. Louis271,238,015 SF254,789,273 SF 4.416.1%2,900,428 SF2,090,355 SF21.Louisville208,147,451 SF198,042,559 SF 3.896.2%3,944,302 SF(599,969 SF)22.Orlando / Lakeland188,676,779 SF159,993,116 SF 6.434.9%1,655,643 SF1,682,917 SF23.Stockton / Modesto165,000,000 SF80,000,000 SF 4.493.0%3,500,000 SF1,500,000 SF25.Milwaukee323,465,569 SF277,843,438 SF 4.644.5%1,922,510 SF2,126,458 SF26.Norfolk / Hampton114,022,715 SF99,221,827 SF 5.875.1%504,000 SF1,723,260 SF28.Nashville209,482,719 SF193,255,761 SF 4.349.1%3,852,000 SF1,716,468 SF29.Savannah55,747,883 SF54,051,190 SF 4.253.1%4,522,792 SF945,030 SF*3Market Size (SF):PLEASE SEE DEFINITIONS BELOWIncludes shallow bay & flex.Bulk Market Size (SF):Excludes shallow bay & flex.Rental Rates ( ):NNN lease rate for a 200,000 SF, 30’-36’ high modern, and functional building (at the end of Q2 in 2017).Vacancy (%):For warehouse product, excluding shallow bay and flex (at the end of Q2 in 2017).Under Construction (SF):Total industrial including flex (at the end of Q2 in 2017).Absorption (SF):Total industrial including flex. (include net absorption for last 2 quarters)lee-associates.com
RECENT NATIONAL SIGNIFICANT (Mid-Year 2017)SUPPLY CHAIN LOGISTIC TRANSACTIONSSQ. FT.BUYER/TENANTLANDLORD/SELLERCITY/STATESQ. mazonTrammell CrowThornton, CO304,800Elkay PlasticsPrologisSchaumburg, IL1,039,570ASOSMajestic RealtyAtlanta, GA299,810DematicRidge Property TrustFort Worth, TX1,022,554DSC LogisticsLiberty Property TrustElwood, IL270,764Yusen LogisticsPrologisCarson, CA1,014,592Green Door CapitalPrologisColumbus, OH268,905Pinchal & Co.Pizzuti/USAAColumbus, OH1,007,705AmazonGoodman BirtcherMira Loma, CA261,880EssendantLiberty Property TrustPhoenix, AZ1,004,400LindtPanattoniMcDonough, GA250,000Century PlasticsQuadrate DevelopmentMacomb, MI1,002,189AmazonLewisRiverside, CA245,340Summit WarehouseSt. PaulDenver, CO1,000,821UlineAckermanBraselton, GA222,000Capital Logistics20100 Alameda Property Co II LPCompton, CA1,000,000ConairConairGlendale, AZ219,280Simple HumanSores RegisLong Beach, CA1,000,000AmazonAshley CapitalLivonia, MI204,600Liberty Property TrustAEK RealtyMoonachie, NJ915,643M. Block & Sons, Inc.HillwoodTinley Park, IL198,094UnisKings Road Apts.Long Beach, CA900,000AmazonKojainRomulus, MI195,000Fisher IntlGLPSouth Brunswick, NJ822,257AmazonTrammell CrowJefferson, GA181,348Kwal PaintFirst IndustrialAurora, CO800,000UlineIDSLacey, WA180,848West RockPrologisLa Mirada, CA777,620AmazonPrologisRedlands, CA180,000Nippon ExpressPrologisColumbus, OH770,195UPSPrologisTacoma,WA178,370Mars PetCareDuke/CRAAColumbus, OH718,219TargetBridge DevelopmentPerth Amboy, NJ176,031Capital LogisticsNeil J. Curry TrustLong Beach, CA702,668Lifetime BrandsPanattoniRialto, CA173,900System Services of AmericaPrologisTracy, CA652,195Sealy & Co.DHLColumbus, OH170,596LSI (3PL)Ave 55Puyallup, WA646,000IkeaDivco West PropertiesCanyon, CA170,000Systems Services of AmericaPrologisTracy, CA618,350UPSFirst IndustrialPhoenix, AZ168,398Quick Pick ExpressWatson Land CompanyCarson, CA604,852MarsLaSalleAustell, GA160,000FST LogisticsExeterColumbus, OH604,178B. Braun MedicalAlereOntario, CA157,0001 Commerce, LLCJarod RealtyCranford, NJ600,000AmazonIDI GazelyStockton, CA155,800Vie LogisticsZ/A Torrance Associates, LLCTorrance, CA573,899Best BuyJP MorganOntario, CA148,800Classic AccessoriesCenterPointKent, WA552,677Arvato Digital (Microsoft)JP MorganOntario, CA141,790Lasership (Amazon)Duke/CRAAColumbus, OH500,000MedlineMedlineLacey, WA140,000CVSFive StarPhoenix, AZ492,322S&S Activewear, LLCHunt SouthwestFort Worth, TX132,000Home BrandsPrologisPhoenix, AZ479,310Best BuyLA Brickyard LLCCompton, CA130,000Inroe PlasticsGeneral DevelopmentAuburn Hills, MI474,454Office DepotPrologisFremont, CA125,919UPSInternational Airport CentersPuyallup, WA474,235TechstyleCircle IndustrialPerris, CA125,081Uriman CompanyComstock Realty PartnersUnion City, CA474,082AmazonPrologisPhoenix, AZ123,864Wizards of the Coast, Inc.GLPGrand Prairie, TX450,438LKQAEWMira Loma, CA115,200SamsungTranspacific Dev. Co.Coppell, TX447,606ArmadaDuke RealtyEast Point, GA115,000Lennox IndustriesPanattoniFife, WA441,675Radial Logistics (Zara)Thrifty OilRialto, CA112,000Furniture Factory DirectPrincipalFife, WA438,150AmazonRidgeline/CabotCrest Hill, IL110,000CapRockSunChase HoldingsPhoenix, AZ417,125DHLExeterColumbus, OH101,700Coast AluminumIBG Huntwood AssociatesHayward, CA406,625Kuehne Nagel, Inc.Robinson Weeks PartnersEllenwood, GA101,297R E Automated SystemsFour Star Realty, LLCRomeo, MI401,076AmazonWA Capital ManagementSumner, WA92,130DTSMajestic RealtyAurora, CO398,485KubotaDCT Industrial TrustPendergrass, GA91,600D&J CFSPrologisEdison, NJ368,931Atlanta Bonded WarehouseIndustrial Property TrustKennesaw, GA91,000AmazonExeterManteca, CA365,400Auto-ManPrologisSouth Brunswick, NJ90,000Dart ContainerGPS IntlStockton, CA360,709ExpiditorsPrologisRoselle, IL82,000JenoptikBTS-JenoptikRochester Hills, MI357,555UPSConsolidatedAurora, CO64,366Adient US, LLCWKWBattle Creek, MI352,338SamsungLiberty Property TrustBolingbrook, IL64,000TrademarkEastGroupPhoenix, AZ316,320XPO LogisticsExeter Property GroupFairburn, GA60,000ANSEastGroupChandler, AZ310,458ExpiditorsPannatoniFranklin Park, IL55,984Lineage Logistics, LLCOwens Coming Automotive, LLCNovi, MI53,000Pac-CLADColony IndustrialPhoenix, AZLEE & ASSOCIATES TRANSACTIONS ARE HIGHLIGHTED IN GREYlee-associates.com4
INDUSTRIAL OUTLOOKBig Box Distribution:32’ versus 36’ Clear HeightThe industrial development market continues to evolve and we’ve seen building clear heights continue to grow tallerover the last 30 years. In the 1970s most buildings were built with a 20’ clear height or fewer. Today, the big questiondevelopers of big box space are facing is: do you build a 32’ clear or 36’ clear building and what is the cost/benefit analysis of doing so? And what is the size threshold where tenant demand drives the need for a 36’ clear building? The belowhighlights the benefits tenants will receive through a taller clear height and what the impact is on cost.Clear HeightCLEAR HEIGHT45 - PeakRoof HeightRoof36’ ClearRidge ClearHeight 32’ Clear39.8” RoofHeight38.55 RoofHeight37.3’ ClearAssumes a 30” joist36.0’ Clear250”620”Clear Height - Distance from the floor to thelowest-hanging ceiling member or hanging objects,beams, joists or truss work descending down intoa substantial portion of the industrial work area.This is the most important measure of the interiorheight of an industrial building because it definesthe minimum height of usable space within thestructure. (Synonyms: clear headway, clearance), asstated by NAIOP.250”%HQHƓWV For a user that will fully “cube out” the building, they canincrease storage capacity by 10 % to 25%.Increasing the storage capacity allows tenants to lease less squarefootage and reduce their overall rent expense.A taller clear height is more conducive for e-commerce userswith automated racking and/or mezzanine storage needs.&RVWV 7UDGHRIIV 5The main cost factors in constructing a 36’ clear building are thefloor slab thickness, fire protection system and the structuralsteel. In total, these three items will increase the building costssomewhere between 1.25 per square foot and 1.75 per squarefoot.Due to the increased construction cost for a 36’ clear building,to keep the cap rate the same the rental rate would need toincrease by 0.10 - 0.15 psf.Not all users will demand a 36’ clear height.From the available small sampling to date, the investment market is not recognizing a huge difference on a caprate basis between a 32’ clear and 36’ clear building. Term, credit, location and long term functionality of thebuilding BSF TUJMM UIF NBJO ESJWFST JO FTUBCMJTIJOH WBMVF lee-associates.com
SELECT LEE & ASSOCIATES LISTINGS NATIONWIDE1,101,889 SFFOR LEASE2185, 2255 W. Lugonia Ave.Redlands, CA121,295 SFE of NEC Arizona Ave. & PalominoChandler, AZ312,750 SF501 Steward Rd.Rochelle, IL190,400 SFFOR SALE5701 Meadows Dr.Grove City, OH191,000 SF215 N Hill BradyBattle Creek, MI86,900 SF28355 LakeviewLyon Township, MIlee-associates.com120,000 SF1385 Valentine Industrial ParkwayPendergrass, GA106,000 SF17500 Twenty Three Mile Rd.Macomb Township, MI417,600 SF17100 S. Harlan Rd.Lathrop, CA135,200 SFSouthside Industrial ParkwayHapeville, GA90,552 SF9310 S. McKemy St.Tempe, AZ362,670 SF5180 N. Railhead Rd.Fort Worth, TX424,280 SF2800 S. Millers Ferry Rd.Wilmer, TX771,839 SF1300 California Ave.Redlands, CA516,174 SF2235 Spiegel Dr.Groveport, OH73,062 SF17150 Margay Ave.Carson, CA199,069 SF2020 & 2032 E. 220thCarson, CA295,620 SF2001 Baseline Dr.Montgomery, AL6
SELECT LEE & ASSOCIATES LISTINGS NATIONWIDE269,831 SF5900 Meadows Dr.Grove City, OH110,710 SF414,020 SF2255 S. Waterman Ave.San Bernardino, CA151,600 SF225 South 51st St.Phoenix, AZDanview Technology Ct.Shelby Township, MI329,000 SF143,888 SFSanta Anita Ave.Cucamonga, CA549,805 SFWaterman Dist. CenterSan Bernadino, CA159,332 SF1235 Commerce Rd.Morrow, GA7322,000 SF3265 Southpark PlaceGrove City, OH4730 Fite CtStockton, CA485,850 SF7879 Lemont Rd.Darien, IL76,460 SF1840-1880 S. 7th Ave.Phoenix, AZ132,601 SF6455 Kinsley St.Dearborn, MI200,500 SF7405 Graham Rd.Fairburn, GAFOR LEASE408,908 SF5100 West 70th PlaceBedford Park, IL421,405 SFBrewster Creek Blvd.Bartlett, IL203,656 SF2700 S. Millers Ferry Rd.Wilmer, TX172,640 SF5356 Georgia Hwy 85Atlanta, GA96,320 SFSW Corner of Presidio & GreenfieldMesa, AZlee-associates.com
KEY CONTACTSATLANTA / SOUTHEAST3500 Lenox Road, Suite 200Atlanta, GA 30326DETROIT26211 Central Park Blvd., Suite 612Southfield, MI 48076NORTHERN NEW JERSEY669 River Drive, Suite 201Elmwood Park, NJ 07407Brett Chambless, SIOR(404) [email protected] Savoy(248) [email protected] Marchisio(973) [email protected] Sutter(404) [email protected] Buckler(248) IA1104 Fernwood Avenue, Suite 101Camp Hill, PA 17011CHICAGO9450 West Bryn Mawr Ave., Suite 550Rosemont, IL 60018EASTBAY / OAKLAND520 3rd Street, Suite 105Oakland, CA 94607John Van Buskirk, SIOR(610) [email protected] Janda, SIOR(773) [email protected] Hagglund, SIOR(510) [email protected] Knowles(610) [email protected] Parkcenter Avenue, Suite 100Dublin, OH 43017HOUSTON9805 Katy Freeway, Suite 800Houston, Texas 77024PHOENIX3200 East Camelback Rd., Suite 100Phoenix, AZ 85018Mike Spencer, SIOR(614) [email protected] Spears, SIOR, CCIM(713) [email protected] Koss, SIOR(602) [email protected] Hudson(614) [email protected] McGee(713) [email protected] B. Louer, SIOR(602) [email protected] Dallas Parkway, Suite 400Addison, TX 75001INLAND EMPIRE3535 Inland Empire BoulevardOntario, California 91764STOCKTON241 Frank West Circle, Suite 300Stockton, CA 95206Trey Fricke, SIOR(972) [email protected] Smith, SIOR(909) [email protected] Martin, SIOR(209) [email protected] Bassinger, SIOR(972) [email protected] ANGELES5000 E Spring Street, Suite 750Long Beach, CA 90815SEATTLE701 Pike Street, Suite 1025Seattle, WA 98101DENVER1610 Wynkoop Street, Suite 450Denver, CO 80202David Bales(562) [email protected] Mattson(206) [email protected] Webert(303) [email protected] Moultrie(206) 3 Gamble Drive, Suite 106St. Louis Park, MN 55416Chris Garcia(404) [email protected]
Greenville, SC Birmingham, AL San Diego, CA Memphis, TN Cleveland, OH Charleston, SC Las Vegas, NV . Moderate/High New Construction Moderate/High Employment Growt
