Report Shows Increase in Vacancy Rates, Steady Rental Rates
SANTA ANA, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced that recent trends show that while vacancy rates for logistic properties have risen, asking rental rates have decreased very little, according to the company’s inaugural logistics research report, Logistic Market Trends, Qtr 4 2008.
The report states that at year-end 2008, the national average asking rental rates for logistic properties was $4.16 per square-foot per year triple net, 3 percent less than the cyclical peak of $4.29 in fourth quarter 2007.
SANTA ANA, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced that recent trends show that while vacancy rates for logistic properties have risen, asking rental rates have decreased very little, according to the company’s inaugural logistics research report, Logistic Market Trends, Qtr 4 2008.
The report states that at year-end 2008, the national average asking rental rates for logistic properties was $4.16 per square-foot per year triple net, 3 percent less than the cyclical peak of $4.29 in fourth quarter 2007.
Gaining 260 basis points, the vacancy rate ended 2008 at 11.7 percent.
“Although market conditions are expected to soften over the next few quarters, when the economy slows, the demand for logistic space still tends to hold up well,” said Bob Bach, (top right photo) senior vice president and chief economist, Grubb & Ellis.
“Although market conditions are expected to soften over the next few quarters, when the economy slows, the demand for logistic space still tends to hold up well,” said Bob Bach, (top right photo) senior vice president and chief economist, Grubb & Ellis.
“Manufacturers need to store excess inventories while their sales slow, in turn boosting demand for warehouse space.”
On a long-term basis, businesses look at logistics space as a productivity enhancer, an integral part of their supply chain strategies, the report states.
On a long-term basis, businesses look at logistics space as a productivity enhancer, an integral part of their supply chain strategies, the report states.
Construction pipeline for logistics space is emptying rapidly, compared to the 98 million square feet of logistics space delivered to the market in 2008.
One of the country’s largest consumer markets, Southern California is a critical link in the supply chain. The area’s ports handle more than 40 percent of all U.S. container imports, and 14 million consumers can be reached within a two-hour truck trip from the twin ports of Los Angeles and Long Beach.
The report also identifies the nation’s top 10 logistics markets:
One of the country’s largest consumer markets, Southern California is a critical link in the supply chain. The area’s ports handle more than 40 percent of all U.S. container imports, and 14 million consumers can be reached within a two-hour truck trip from the twin ports of Los Angeles and Long Beach.
The report also identifies the nation’s top 10 logistics markets:
Chicago; Inland Empire, Calif.; Atlanta; Dallas/Fort Worth; Los Angeles; north and central New Jersey; east and central Pennsylvania; Houston; Columbus, Ohio; and Indianapolis.
For a complete copy of the report, please contact:
Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com
Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com
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