Monday, January 17, 2011

A National Industrial Market Review by Region


I provide location advice to owners and occupants of industrial buildings in Southern California. My friend and colleague, Duke Long asked me to participate in a recent podcast which reviews, by market, the industrial activity currently and our predictions for the next few months. I was flattered to be asked and was surrounded by a great deal of talent. You can listen to the entire podcast by clicking here.

Some of the participants and highlights:


What’s happening on-the-ground in the Industrial lease market? Mike Manning of LoopNet and Duke Long of the Duke Long Agency, gathered industrial brokers from Orlando, Chicago, Detroit, Houston, New Jersey and Los Angeles to find out what is happening in their markets. What are the factors that are driving asking rents? What is happening to supply?

Read excerpts of the podcast script below or listen to their ‘in-the-trenches’ perspective.



Overview of LoopNet’s Marketplace Activity

MIKE MANNING: What we’re seeing overall in the LoopNet marketplace in the industrial lease sector is price declines more or less across the board, but with some differences across the market. So we’re seeing our sharpest price declines in Phoenix, San Antonio, Orlando and Miami which are down 8-9% versus the prior year November in terms of average asking price per square foot, whereas on the other end of the spectrum Chicago is holding flat, is actually up slightly, and Philadelphia is close to flat along with Atlanta and Houston. So I will be curious to hear about the differences in perspective from the brokers on the call as to what’s going on in their markets and what’s accounting for the different levels of pricing pressure that they are seeing.

We’re also seeing differences in the change of supply and demand in the market across different geographies, with Houston showing up as having a fairly sharp decline in supply although an increase in demand. However, I think that’s different from John’s experience personally, and so I’m going to be interested in hearing about that. New York is also showing some declines in terms of demand but the supply is up, whereas at the other end of the spectrum Detroit, Orlando and Philadelphia are all seeing significant increases in demand which we’re measuring by search activity on the site.