1. Industrial Report
North San Diego County
2nd Quarter 2012
PREPARED BY: COLLIERS INTERNATIONAL
Adam Molnar 5901 Priestly Drive, Suite 100
Greg Lewis Carlsbad, CA 92008
Tucker Hohenstein Fax 760 438 8925
Mike Erwin www.colliers.com/carlsbad

2. Q2 2012 | INDUSTRIAL
NORTH COUNTY
AT A GLANCE
OVERVIEW
The North San Diego County industrial market is largely decentralized and comprised of
five cities including Carlsbad, Escondido, Oceanside, San Marcos and Vista. Situated 35
miles north of downtown San Diego and 52 miles south of John Wayne Airport in Orange
Oceanside County, the coastal location is a major factor in the area’s appeal to corporate users and
Vista its 826,985 residents.
The industrial market consists of approximately 52.3 million square feet. By comparison,
San Escondido
Carlsbad Marcos the total San Diego industrial market is 188.3 million square feet. North County
Ocean represents 27% of the total. The following table summarizes the inventory and vacancy
by submarket:
MARKET INDICATORS Submarket Buildings Total Inventory Vacant SF Vacancy Rate
Q2 Q3 Carlsbad 484 14,999,770 2,028,144 13.5%
2012 2012 (forecast)
Escondido 636 7,175,725 402,564 5.6%
VACANCY Oceanside 394 8,014,725 1,128,279 14.1%
NET ABSORPTION San Marcos 491 8,634,579 534,993 6.2%
Vista 530 13,374,822 987,737 7.4%
CONSTRUCTION
Total 2,535 52,199,621 5,081,717 9.8%
RENTAL RATE
LEASE CONCESSIONS North San Diego County is well known for its highly skilled labor force, excellent
transportation network, pro-growth business environment, significant Federal
Government presence, desirable vacation destination including world class beaches,
resorts, golf venues, and abundant employee housing.
The North San Diego County industrial market is home to a diversified mix of users
INDUSTRIAL/R&D VACANCY RATES including defense, telecommunications, software, medical manufacturing, golf and leisure
Q2 2012 sports, life science and technology firms. Corporate neighbors include:
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
Q2 2012
Carlsbad 13.5%
Coca-Cola Isis Pharmaceuticals DJO, Inc.
Escondido 5.6% Medtronic Life Technologies Linear
Oceanside 14.1% Titleist Golf Cobra / Puma Golf Killion Industries
San Marcos 6.2% ViaSat TaylorMade Golf Jeld-Wen Windows and Doors
Covidien Denso Wireless Sumitomo Electric
Vista 7.4%
Abbott Labs US Foods McCain, Inc.
North County 9.8% Genentech Philips Respironics Directed Electronics
0% 5% 10% 15% Callaway Golf Thomson Reuters GIA
L-3 Communications Rockwell Collins Hunter Industries
SAIC John Deere Watkins Manufacturing
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

3. AT A GLANCE | Q2 2012 | INDUSTRIAL | NORTH COUNTY
OVERVIEW
The total vacancy rate for Industrial/R&D product in North NORTH COUNTY HISTORICAL MARKET TRENDS
County has dropped below 10% for the first time since
2008, led by Carlsbad with 116k s.f. and Oceanside with 1,500 14%
105k s.f. of positive absorption in 2Q 2012. Half way 12%
1,000
through the year all five North County submarkets are in 10%
the black and the net absorption has already surpassed the
Vacancy Rate
SF (000s)
500
8%
total for all of 2011. R&D product, which only accounts for
one fifth of the overall inventory, has recorded more positive 0
6%
absorption than Industrial in 2012. This is an encouraging 4%
sign for the market considering that R&D has traditionally -500
2%
lagged behind Industrial.
-1,000 0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
ACTIVITY Q2
Vista led the charge in another impressive quarter for
Net Absorption New Supply Vacancy
leasing activity with 5 transactions totaling 227,000 SF that
included CTDI, Brown Safe, Select Supplements, Electra
Bicycle, and March Plasma. The largest lease deal in 2Q 2012 was Skin Medica’s 81,000 SF expansion and
relocation in Carlsbad. Other significant lease transactions included Crescent Electric in San Marcos and Pillow
Pets in Carlsbad.
Investment sale activity was concentraed in Carlsbad and featured a little bit of everything including a fully
leased property with a partial sale leaseback (2777 Loker Avenue), a 90% vacant REO property (3115 Melrose
Drive), and a tenant in tow transaction (5770 Armada Drive). Owner user sales included Carlsbad Technology,
Inc. at 5928 Farnsworth Court in Carlsbad, Falmat at 1810 Diamond Street in San Marcos, and Buffini at 6349
Palomar Oaks Court in Carlsbad.
The only significant land sale in 2Q 2012 was at Bressi Ranch in Carlsbad where Ryan Companies sold 8.0 acres
to a hotel developer for $13.50/SF.
FORECAST
The majority of distressed assets and land have been purged from the system and values are beginning to
reset. Expect vacancy to continue to trend downward in the second half of 2012 as a result of robust demand,
a dwindling inventory, and no new construction underway or in the planned stages. In particular, there were
very few large Industrial/R&D buildings (above 50,000 SF) developed during the last cycle because of high
land prices and construction costs. The result of this and recent absorption is a severe shortage of functional
buildings in this size range. Users with larger requirements or needs for newer, more functional product will
be forced to look towards Build to Suit options at higher rates or multiple locations. For the handful of functional
spaces that remain, look for upward pressure on lease rates and sale prices to move closer to replacement costs.
This document has been prepared by Colliers International for advertising and general information only. Colliers
prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
TUCKER HOHENSTEIN & MIKE ERWIN, 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes
all liability for loss and damages arising there from.

4. Q2 2012 | INDUSTRIAL
CARLSBAD
AT A GLANCE
OVERVIEW
Half way through 2012 the absorption numbers for Industrial/R&D in Carlsbad are on
pace to surpass those of 2011. R&D product outperformed Industrial for the second
quarter in a row with 161,324 SF of positive absorption, lowering the R&D vacancy
Oceanside rate by more than two percentage points to 13.87%. The 116,164 SF of overall positive
Vista absorption for Industrial/R&D in Q2 2012 was nearly 10 times that of Q1 and resulted in a
combined vacancy rate of 13.52%, down from 14.41% in Q1 2012.
San
Carlsbad Marcos ACTIVITY
Ocean
Leasing activity was led by Skin
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA
Q2 2012
Medica’s choice to relocate and 700 16%
expand into 81,712 SF within
MARKET INDICATORS 600 14%
the Carlsbad submarket. Other 500 12%
Q2 Q3 significant transactions included 400 10%
Vacancy Rate
SF (000s)
2012 2012 (forecast)
Black Box Distribution who 300 8%
VACANCY
signed a 65,000 SF lease with 200 6%
BLT Enterprises as part of a sale 100 4%
NET ABSORPTION leaseback and Pillow Pets who 0 2%
relocated from Oceanside. Others -100 0%
CONSTRUCTION 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
including Linear Corporation and Q2
RENTAL RATE Select Supplements decided to Net Absorption New Supply Vacancy
renew at their current locations.
LEASE CONCESSIONS OCEANSIDE HISTORICAL MARKET TRENDS SAN M
After a first quarter that saw no sales activity, the market for both Investor and Owner
User sales rebounded aggressively in 2Q 2012. There were three significant investment
sales including a fully leased property with a partial sale leaseback (2777 Loker Avenue),
a 90% vacant bank owned property (3115 Melrose Drive), and a tenant in tow transaction
(5770 Armada Drive). On the owner user side there were four transactions, the largest
INDUSTRIAL/R&D VACANCY RATES of which took place at 5928 Farnsworth Court where Carlsbad Technology, Inc. was
Q2 2012
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS building within walking distance of their current facility in the
able to buy a 52,000 SF VISTA HISTORICAL MARKET TRENDS
Q2 2012 Carlsbad Research Center.
Carlsbad
Carlsbad 13.5%
Escondido 5.6%
FORECAST
With no new construction underway or in the planned stages and a significant amount of
Oceanside 14.1% user activity in the market, expect vacancy rates to drop in the second half of 2012. In
San Marcos 6.2% particular, larger users above 75,000 SF face an acute shortage of options. As a result
Vista 7.4%
of this lack of supply there has been an increase in Build to Suit inquiries. However,
lease rates and sale prices for new product based on land and construction costs are
North County 9.8% still considerably higher than existing product. Expect a slight uptick in rents for existing
0% 5% 10% 15% inventory due to these constraints.
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

5. El C
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AT A GLANCE | Q2 2012 | INDUSTRIAL | CARLSBAD
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TRANSACTION ACTIVITY - Q2 2012
SALES ACTIVITY
Rd
Alga
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SIZE SF SALE PRICE PRICE/SF
Ca
# PROPERTY NAME/ADDRESS BUYER TYPE
mi
no
1 2777 Loker Avenue Investor 123,454 $11,500,000 $93.15
Re
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Av
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2 3115 Melrose Drive Investor La Costa Resort 103,547 $8,725,000 $84.26
Av & Spa
3 5770 Armada Drive
iar
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kw
Park Hyatt y
4 5928 Farnsworth Court Owner User 52,853 $4,670,453 $88.36
Aviara Resort
5 6349 Palomar Oaks Court Owner User 27,262 $2,990,000 $109.68
6 1911 Palomar Oaks Way Owner User 23,325 $2,654,000 $113.78
7 5816 Dryden Place Owner User 22,156 $1,713,168 $77.32
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE/SF
8 5770 Armada Drive Skin Medica 81,712 180 months Confidential
9 2777 Loker Avenue BlackBox Distribution 65,412 36 months $0.69 NNN
10 1950 Camino Vida Roble Linear Corp. (renewal) 50,000 72 months $0.95 NNN
11 2045 Corte del Nogal Pillow Pets 36,404 36 months Confidential
12 5800 Newton Drive Select Supplements (renewal) 28,857 60 months $0.79 NNN
13 5817 Dryden Place Weston Solutions 18,760 60 months $0.98 NNN
This document has been prepared by Colliers International for advertising and general information only. Colliers
prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
TUCKER HOHENSTEIN & MIKE ERWIN, 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes
all liability for loss and damages arising there from.

6. Q2 2012 | INDUSTRIAL
ESCONDIDO
AT A GLANCE
OVERVIEW
The Escondido Industrial market continues to rebound strongly from the turbulent last
few years. The industrial market boasts the lowest vacancy in all North County Cities and
it will continue its streak of three consecutive years of positive absorption. The vacancy
Oceanside
Vista
rate peaked in 2009 at 9%, and now is at a healthy 5.6% vacancy rate. Sales prices
have begun to climb for smaller buildings (less than 10k sf), and prices have stabilized
for larger buildings. Lease rates remain low but should begin to climb as the low supply
San Escondido
Carlsbad Marcos begins to effect the increased demand.
Ocean
Regarding significant developments ESCONDIDO HISTORICAL MARKET TRENDS NOR
in Escondido: The Palomar 300 10%
MARKET INDICATORS Pomerado Hospital is near 9%
200
Q2 Q3
completion and we should begin to 8%
100 7%
2012 2012 (forecast) see the Escondido Research and
Vacancy Rate
SF (000s)
6%
0
Technology Center attract medical 5%
VACANCY tenants and supporting distribution -100
4%
3%
NET ABSORPTION
and manufacturing companies. -200
2%
The Nordahl off-ramp and bridge -300
1%
CONSTRUCTION are being widened, as the hospital -400 0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
infrastructure money is allocated Q2
RENTAL RATE
for infrastructure expense around Net Absorption New Supply Vacancy
LEASE CONCESSIONS Escondido, which will improve
access for industrial tenants and truck routes. Also, HISTORICAL MARKET TRENDS begin
NORTH COUNTY Haman construction will
construction on the ~100,000 sf building for Cor-O-van, and Stone Brewery is working
on hotel drawings for submittal to the City.
ACTIVITY
INDUSTRIAL/R&D VACANCY RATES There was more than 30 Escondido Industrial lease transactions in 2Q, with the majority of
Q1 2012 activity occurring in the multi-tenant parks in sizes ranging from 1,000 sf to 4,000sf. There
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS
were only four lease transactions over 10,000 sf, twoHISTORICAL MARKET TRENDS 20,000 sf.
VISTA of these were more than
Q2 2012
Carlsbad
These two larger tenants consisted of GP Strategies leasing the Decratek building on Progress
13.5%
Place and VIT Products leasing 2344 Auto Parkway. Coincidently, the larger and smaller
Escondido 5.6%
Escondido
tenants average lease rates have stabilized at approximately $.65 modified gross.
Oceanside 14.1%
San Marcos
The Sale transactions were also in the smaller range with three sales less than 6,000 sf, with
6.2%
an average price of approximately $103 psf. There was a 10,000 sf short sale at $89 psf on
Vista 7.4% Engle as well as a 7,100 sf building on 2.44 acres of land that closed for $1.7M
North County 9.8%
FORECAST
0% 5% 10% 15%
The Escondido industrial market, which has historically been catagorized as a “mom and pop”
small building market is now beginning to get recognized as a potential destination for quality
tenants along the I-15 corridor. Moreover, it also surrounds a state-of-the-art and the newest
hospital in the nation, which will bring national attention to the city.
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

7. AT A GLANCE | Q2 2012 | INDUSTRIAL | ESCONDIDO
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TRANSACTION ACTIVITY - Q2 2012
SALES ACTIVITY
# PROPERTY NAME/ADDRESS BUYER TYPE SIZE (SF) SALE PRICE PRICE/SF
No building sales above 10,000 square feet
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS TENANT NAME SIZE (SF) TERM EFF RATE/SF
1 2835 Progres Place GP Strategies 23,827 65 Months $0.68 NNN
This document has been prepared by Colliers International for advertising and general information only. Colliers
prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
TUCKER HOHENSTEIN & MIKE ERWIN, 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes
all liability for loss and damages arising there from.

8. Q2 2012 | INDUSTRIAL
OCEANSIDE
AT A GLANCE
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VIST
Q2 2012
OVERVIEW
Oceanside continues to maintain the highest vacancy in North County at 14.08%.
However, the 105,017 SF of positive net absorption during Q2 2012 added to the 115,069
SF in Q1 brings the brings the midyear total of space sold and leased 220,086 SF. This
Oceanside activity has reduced the vacancy from 17.10% to its current level which is a reduction of
Vista
3.02% in 6 months. There is now approximately 1.1m SF of vacant industrial space in the
market.
San
Carlsbad Marcos ACTIVITY
Ocean
Industrial The activity in the OCEANSIDE HISTORICAL MARKET TRENDS SAN
market is picking up. More
800 20%
tenants and buyers are touring
MARKET INDICATORS 18%
the market than in previous 600
16%
Q2
2012
Q3
2012 (forecast)
quarters. Some properties 400
14%
Vacancy Rate
SF (000s)
have been receiving multiple 12%
200 10%
VACANCY
offers to buy and lease which 8%
has allowed owners to be 0
6%
NET ABSORPTION more selective in negotiating -200
4%
transactions. In addition, 2%
CONSTRUCTION -400 0%
there are several large users 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
RENTAL RATE in the market looking at Q2
existing spaces and comparing Net Absorption New Supply Vacancy
LEASE CONCESSIONS those with Build To Suit
opportunities.
There was only one Industrial building sale that closed escrow in Q2. It was a 14,177 SF
bank owned property located at 417 Via Del Monte in the Oceanside Airport area.
INDUSTRIAL/R&D VACANCY RATES Lease activity was excellent in the smaller multi-tenant projects with both new
Q2 2012
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS renewals. The smallerVISTA HISTORICAL MARKET TRENDS is a good
transactions and lease tenants returning to the market
Q2 2012 sign that a broader based recovery is underway despite the challenges with the overall
Carlsbad 13.5% unemployment rate in San Diego and the State. DiMaggio Maintenance signed a 5 year
Escondido 5.6%
lease for 10,000 SF at 3310 Via de la Valle.
Oceanside
Oceanside 14.1% FORECAST
San Marcos 6.2% Oceanside occupancy will be hurt in second half of the year as Genica recently
Vista 7.4%
announced it would be relocating out of 145,000 SF in two buildings in the Prescott
Industrial park and relocating to a 160,000 SF facility they purchased in Temecula. The
North County 9.8% property owners and the City of Oceanside worked hard to keep them but Genica was
0% 5% 10% 15% able to acquire a larger building at a very attractive price and consolidate under one
roof. This increased their efficiency and lowered operating costs. There are a handful of
buildings in escrow now in Oceanside. We are optimistic this activity will help shore up
occupancy to offset the Genica loss.
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

9. AT A GLANCE | Q2 2012 | INDUSTRIAL | OCEANSIDE
TRANSACTION ACTIVITY - Q2 2012
SALES ACTIVITY
# PROPERTY NAME/ADDRESS BUYER TYPE SIZE (SF) SALE PRICE PRICE/SF
1 417 Via Del Monte Lola Gouge 14,177 $1,116,000 $78.72
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS TENANT NAME SIZE (SF) TERM EFF RATE/SF
2 3310 Via de la Valle DiMaggio Maintenance 10,000 60 months $0.58/G
This document has been prepared by Colliers International for advertising and general information only. Colliers
prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
TUCKER HOHENSTEIN & MIKE ERWIN, 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes
all liability for loss and damages arising there from.

10. Q2 2012 | INDUSTRIAL
SAN MARCOS
AT A GLANCE
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
Q2 2012
OVERVIEW
San Marcos posted its fourth consecutive quarter of positive net absorption bringing
industrial vacancy to 6.2%, which is down from 6.9% at the end of Q1 and near the lowest
in North County. Low vacancy and positive absorption has helped stabilize lease and sale
Oceanside prices and positioned San Marcos for rent and price growth. The San Marcos industrial
Vista
market is comprised on 491 buildings totaling 8.6 Million square feet with an average
building size of 17,000 square feet.
San Escondido
Carlsbad Marcos
Ocean
ACTIVITY
The majority of activity during Q2
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
occurred in the smaller spaces with
300 9%
MARKET INDICATORS the average transaction size of 6,000 8%
200
Q2 Q3 square feet and average lease rate of 7%
2012 2012 (forecast) $.68/SF Gross. Crescent Electric’s 100 6%
Vacancy Rate
SF (000s)
5%
lease of 30,000 square feet at 295 0
4%
VACANCY Distribution Street was the only lease -100 3%
NET ABSORPTION
transaction completed above 10,000 -200
2%
square feet. With the completion of 1%
-300 0%
CONSTRUCTION this transaction there are only six 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Q2
available spaces larger than 20,000
RENTAL RATE Net Absorption New Supply Vacancy
square feet in the entire San Marcos
LEASE CONCESSIONS submarket. Falmat purchased a
48,000 square foot building they had been leasing at 1810 Diamond for $88/SF. Action
Auto Collision purchased 9,216 square feet on Rancheros for $102/SF.
The City has drafted an updated industrial zoning ordinance to coincide with the General
Plan that was adopted in February 2012. The new zoning designations are now consistent
INDUSTRIAL/R&D VACANCY RATES with the General Plan and the code better defines allowable uses. The draft code can be
Q2 2012 viewed at http://www.ourcityourfuture.com/working-documents. Additionally, construction
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS
Q1 2012
is near complete on the first phase of student housing located MARKET TRENDS District. The
VISTA HISTORICAL
in the University
Carlsbad
University District is entitled to provide the following uses:
14.4%
Escondido 6.5% 1 Million square feet of street level and big box retail
Oceanside 15.5% 950,000 SF of professional/medical office
San Marcos
San Marcos
2,600 residential housing units
6.9%
800 student housing units
Vista 8.1%
North County 10.6% FORECAST
San Marcos is a supply constrained market that will see rate and price appreciation as a
0% 5% 10% 15% 20%
result of continued demand. Owner-users and developers alike will have to look to vacant
land to satisfy the need for larger blocks of space in San Marcos.
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

11. AT A GLANCE | Q2 2012 | INDUSTRIAL | SAN MARCOS
TRANSACTION ACTIVITY - Q2 2012
SALES ACTIVITY
# PROPERTY NAME/ADDRESS BUYER TYPE SIZE SF SALE PRICE PRICE/SF
1 1810 Diamond Street Owner User 48,298 $4,250,000 $88.00
2 923 Rancheros Owner User 9,216 $945,000 $102.54
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE/SF
3 295 Distribution Street Crescent Electric Supply 30,140 72 months $0.50 NNN
4 1020 Linda Vista Drive Ste B John Hargrove 7,040 60 months $0.60 GRS
5 1365 Grand Ave #100-104 Rampage Brewing Company 6,770 60 months $0.93 GRS
6 220 Bingham Drive #101 World Mission Society Church 6,329 24 months $0.63 GRS
This document has been prepared by Colliers International for advertising and general information only. Colliers
prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
TUCKER HOHENSTEIN & MIKE ERWIN, 760 438 8950 should undertake their own inquiries as to the accuracy of the information. Colliers International excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes
all liability for loss and damages arising there from.

12. Q2 2012 | INDUSTRIAL
VISTA
AT A GLANCE
OVERVIEW
A surge in Q2 tenant activity helps Vista cut its vacancy rate from to 8.1% to 7.39%. Five
leases totaling 227,000 square feet of gross absorption accounted for the majority of Q2
activity and resulted in 75,000 square feet of net absorption. The Vista industrial market
Oceanside is comprised of 530 buildings totaling 13 million square feet with an average building size
Vista
of 25,000 square feet.
San ACTIVITY
Marcos
Ocean
Carlsbad Vista’s leasing activity surpassed all other North County submarkets. Brown Safe led the
way by leasing 65,000 square feet from real estate investment firm Pacifica Enterprises,
Inc., who purchased the building vacant for $58/SF only three months earlier.
MARKET INDICATORS Communications Test Design, Inc. (59K), Select Supplements (39K) and March Plasma
(24K) all expanded or relocated from Carlsbad, while Electra Bicycle, an existing Vista
Q2 Q3 tenant, expanded into 39,000 square feet. Lease rates during Q2 averaged $.55/SF NNN.
2012 2012 (forecast)
Vista is benefited from limited supply in San Marcos and higher prices in Carlsbad. Even
VACANCY though Q2 saw an increase in activity there is still a surplus of space available, 11 spaces
to be exact, between 30-50,000 square feet.
NET ABSORPTION
FORECAST
CONSTRUCTION
Lease rates in the 30-50,000 square foot range will remain flat until occupancy
RENTAL RATE increases, while spaces outside this size range could see more immediate rate increases.
The recent trend of tenant migration from neighboring cities will likely continue as it
LEASE CONCESSIONS becomes increasingly difficult to find space and/or match the value Vista offers. There
has been an increase in build-to-suit inquires from tenants seeking space greater than
50,000 square feet due to lack of available options in North County. We expect pricing on
good quality larger buildings to move closer to replacement cost.
BAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
INDUSTRIAL/R&D VACANCY RATES
Q2 2012
700 10%
INDUSTRIAL/R&D VACANCY RATES CARLSBAD HISTORICAL MARKET TRENDS VISTA HISTORICAL MARKET TRENDS
Q2 2012 600 9%
500 8%
Carlsbad 13.5%
7%
400
Escondido 5.6%
Vacancy Rate
SF (000s)
6%
300
5%
Oceanside 14.1% 200
4%
100
San Marcos 6.2% 3%
0 2%
Vista
Vista 7.4% -100 1%
North County 9.8% -200 0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0% 5% 10% 15% Q2
Net Absorption New Supply Vacancy
SIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
OCEANSIDE HISTORICAL MARKET TRENDS SAN MARCOS HISTORICAL MARKET TRENDS
www.colliers.com/carlsbad

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AT A GLANCE | Q2 2012 | INDUSTRIAL | VISTA
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TRANSACTION ACTIVITY - Q2 2012 ort
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SALES ACTIVITY
# PROPERTY NAME/ADDRESS BUYER TYPE SIZE SF SALE PRICE PRICE/SF
1 2510 Pioneer Avenue Owner User 13,140 $1,025,000 $78.01
Only one sale above 10,000 SF occurred during Q2
LEASING ACTIVITY
# PROPERTY NAME/ADDRESS TENANT NAME SIZE SF TERM EFF RATE/SF
2 1081 Poinsettia Avenue Brown Safe Mfg 65,002 92 months $0.62 NNN
3 995 Joshua Way Ste A CTDI 59,144 36 months $0.51 NNN
4 2390 Oak Ridge Way Select Supplements 39,672 72 months undisclosed
5 3275 Corporate View Drive Electra Bicycle 38,808 60 months $0.61 NNN
6 2370 Oak Ridge Way Ste B March Plasma Systems, Inc. 24,592 60 months $0.54 NNN
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prepared by ADAM MOLNAR, GREG LEWIS International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party
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