US Investment Sales vs. Direct Rents

1. U.S INVE
S. ESTME
ENT SA
ALES VS DIRE
S. ECT RE
ENTS
KEY FACTS
Y
• The ability to proje increasin rent rolls remains a k determinant of inve
ect ng key estment
decisions. The thr years im
ree preceding th market’s early 2008 peak
mmediately p he
asking rent of $6.8 per squar foot contr
84 re lmost half of the decade’s total
ributed to al
investm
ment volume while the period’s gre
e, eatest year-over-year decline in as
sking
rents in 2009 coinc
n cided with th lowest an
he nnual total o product tr
of ransacted.
• encing early 2011, five consecutive quarters o moderate rental rate growth
Comme y e of
have co
ontributed to a surge in demand am
o n mong invest
tors for high quality ass
h sets in
core loc
cations. In 2
2011, 153.3 msf of inve duct change hands, higher
estment prod ed
than all but the thre previous
l ee 005-2007) a comparable to
sly-reference years (20
ed and
2009 an 2010 com
nd mbined. Thi year is on pace to mirror 2011 le
is n evels at 76.1
1msf
year-to-date.
• 2011 and a 2.9% year-
Following a 0.2% increase in 2 growth at mid-year,
-over-year g
the indu
ustrial secto should be entering a period of su
or e ustained ren appreciation
ntal
healthy leve of demand and general lack of n
due to h el d new product. With pock
kets of
investo reportedl now willin to slowly venture bey
ors ly ng yond a few select mark
kets and
ultra-sa rent rolls - and free rent and concessions c
afe s continuing to erode -
o
investm
ment activity should con
y ntinue its upswing over the next few years.
w
Neil.Hamilton@
@cushwake.com 407-5
541-4417
Source: Cushman & Wakef field Research. Only m
markets track by Cush
ked hman & Wakefield
office are includ in this a
es ded analysis. MY annual growth is 2
Y12 2Q2012 vs. 2Q2011
INDUSTRIAL FACT TE
L EAM
Tina Arambulo Ted Harris
son Jared Jacobs
d
Los A
Angeles Phoenix Philad
delphia
Jame Breeze
es Steve Harr
ris Aman Ortiz
nda
Los A
Angeles Dallas Chica
ago
Neil Hamilton Robert Ho
oefer
Orlan
ndo Houston
www
w.cushmanw
wakefield.c
com