VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 2.1% Overall Vacancy 2.4% Lease Rate NNN $.7 Gross Absorption Under Construction MARKET TRENDS Current Quarter 1,332,957 SF 774,362 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The County industrial market witnessed vacancy rates decrease from 3.1% to 2.4%, during the quarter. Average asking rents increased 2.9%, year over year, moving from $.68nnn to $.7nnn. Gross absorption finished the quarter with 1.3 million square feet of activity, while net absorption finished with a gain of 555, square feet of occupied space. Under construction activity moved lower during the quarter with 774, square feet currently underway, as the market delivered 152, square feet of new space for the year. Unemployment rates have declined from 4.8% to 3.8%, year over year, and is below California (4.2%) and the U.S. at 3.9%. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 totals and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in County remains very strong, as median prices increased 14.8% year over year, and the total transaction volume recorded its second highest total. The capital markets remain active with plenty of liquidity, but we do expect to see further interest rate hikes in the coming year. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 3% to 5% range with a decent amount of new construction coming online, and we expect rents to rise another 3% to 4% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 3.8% 4.8% Rate (MSA) Change in # -1 +5,7 Of Jobs (MSA) % Change for -.% +1.9% Jobs (MSA) 8, 7, 6, 5, 4, 3, 2, 1, (1,) (2,) (3,) Net Absorption SF Overall Vacancy 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.%
VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% $.72 $.7 $.68 $.66 $.64 $.62 $.6 $.58 1. 9. 8. 7. 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall Vacancy Overall vacancy rates (including sublease space) decreased from 3.1% to 2.4%, during the quarter. Of the six (6) submarkets within the County market, the Conejo submarket ended the quarter with the lowest total vacancy of 1.2%, followed by /Simi at 1.6%, Oxnard/ at 1.7%, North County at 2.7%, at 3.5%, and finishing the quarter at 4.2%. Since the fourth quarter of 216, overall vacancy rates have decreased from 3.7% to 2.4%, and remains at its lowest level in more than a decade. Avg. Rent (NNN) Time on Market (Months) Standard industrial rental rates increased 3.%, year over year, moving from $.68nnn to $.7nnn. Of the six (6) submarkets within the County market, the Conejo submarket ended the quarter with the highest standard industrial rental rate of $1.1nnn, followed by /Simi at $.92nnn, at $.72nnn, at $.63nnn, with Oxnard/ at $.61nnn, with the North County submarket finishing the quarter at $.6nnn. Average industrial asking rents increased 1.5% from the previous quarter, moving from $.69nnn to $.7nnn. ABSORPTION CONSTRUCTION ACTIVITY 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, (2,) 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, (4,) Net Absorption SF Gross Absorption SF During the quarter, gross absorption totaled 1.3 million square feet, up 17% compared to the previous quarter, and higher by 14% compared to a year ago. Net absorption finished the quarter with a gain of 555, square feet and gained more than 1. million square feet for the year. During 216, the market gained 298, square feet, after gaining 1.6 million square feet in 214, +1.1 million square feet during 214, and a gain of 38, square feet in 213. We expect overall activity levels to remain similar to 217, and will be reliant on the new space being delivered to continue to see further growth in the coming quarters as available space remains very tight. SF Newly Completed SF Under Construction During the quarter, under construction activity decreased with 774, square feet currently underway, as the market delivered 152, square feet of new space for the year. In 216, the market added 64, square feet, after delivering 93, square feet in 215. The market did not deliver any new space in 213 or 214. During the past five years, the market has averaged approximately 62, square feet of new deliveries, annually. New construction levels are expected to decline in the coming quarters, as the limited amount of available land for industrial development remains scarce throughout the county.
VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate 11,419,415 474,644 4.2% 478,286 4.2% Conejo - VC Only 7,889,13 71,281.9% 92,664 1.2% North V.C. 2,623,551 71,884 2.7% 71,884 2.7% Oxnard / 23,53,97 379,586 1.6% 4,218 1.7% 12,262,477 151,89 1.2% 193,826 1.6% 11,22,983 314,944 2.9% 387,195 3.5% County Totals 68,747,536 1,463,428 2.1% 1,624,73 2.4% Industrial Market Inventory Industrial Vacancy Rates 18% 16% 17% Conejo 12% Oxnard / 34% North V.C. 4% 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Conejo - VC Only North V.C. Oxnard / Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter $.63 $.85 82,364 22,163 Conejo - VC Only $1.1 $1.27 579,878 6,665 North V.C. $.6 NA 17,53 Oxnard / $.61 $.8 453,666 $.92 $.95 151,991 68,484 488,597 $.72 $.84 43,636 92,363 County Totals $.7 $.82 151,991 774,362 1,332,957 $1.4 $1.2 $1. $.8 $.6 $.4 $.2 $. Industrial Rental Rates Conejo - VC Only North V.C. Oxnard / County Totals 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, New Construction Activity Conejo - VC Only North V.C. Oxnard / County Totals Average Industrial Rent Square Feet Built in 217 Square Feet Under Construction
VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.
Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%
VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% s of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties
VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.