MARKET WATCH HOUSTON INDUSTRIAL AUGUST 0 RECENT INDUSTRIAL LEASES East-Southeast Far :: Packwell,000 SF renewal and expansion at Bayport Distribution Center Northwest Near :: Dal-Tile Distribution 37,9 SF renewal and expansion at Hempstead Highway Distribution Sugar Land :: Sanita Footwear 50,000 SF renewal at Westhollow Distribution Center INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.75 $.50 $.5 $.00 RECENT INDUSTRIAL SALES East-Southeast Far :: Ellington Trade Center 53,000 SF total, 3 building portfolio Buyer: Lincoln Property Seller: KDC and Harbert Real Estate Fund joint venture 4.0% 3.5% 3.0% Q 3 Q3 3 Q4 3 Q 4 Q 4 Q3 4 Q4 4 Q 5 Q 5 Q3 5 Q4 5 Q Q $5.75 $5.50 $5.5 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER Q 0 CONSTRUCTION NET ABSORPTION Central Business District 30,,43,,07 5.% 5.9% - (,000) East-Southeast Far 4,53,3 3,54,55 7.3% 7.4% 3,9,95 333,000 North Far 4,,073 7,5,03.%.% 49,75 (7,000) North Near 7,94,40,50,97.4% 7.0% 35,000 (9,000) Northeast Far,04,70 - - - - - Northeast Near 30,5,3 550,55.%.% - 3,000 Northwest Far 3,9,9 4,4,305.7%.9% 5,4,95 39,000 Northwest Near 7,,44 3,97,35 4.5% 5.0% - (44,000) South Far 9,57,34 73,57.5%.% 3,00 7,000 South Near,54,33 3,949.%.% - 9,000 Southeast Near 30,734,3 509,749.7%.7% -,000 Southwest Far 9,,7 775,9.0%.0%,409,7 (,000) Southwest Near 39,507,,935, 4.9% 5.% 495,0 39,000 Sugar Land 9,93,0,3,.9%.9% -,000 TOTAL 45,,09,35,3 5.%.%,33,9 0,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics QUARTER TO DATE HOUSTON MSA LAST QUARTER (Q 0) TRAILING MONTHS LAST QUARTER (Q 0) UNITED STATES TRAILING MONTHS Volume ($ Mil) $37.0 $.4 $,370. $,53. $,054.3 No. Of Properties,33,570 Houston Industrial Submarkets CLICK MAP BELOW TO EXPAND N 49 NW NE Total SF 575,074,0,444,747,9 57,3,4 934,334,435 0 CBD 0 0 Average Price/SF N/A $5 $7 $0 $77 Average Cap Rate (Yield) N/A.0% 7.7%.7%.% SW SE Source: Real Capital Analytics S
AUGUST 0 49 0 0 3 35 CENTRAL. Houston CBD SOUTHWEST. Southwest Near. Southwest Far 3. Sugar Land SOUTHEAST. Southeast Near. East-Southeast Far SOUTH. South Near. South Far NORTHWEST. Northwest Near. Northwest Far NORTH. North Near. North Far NORTHEAST. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET AUGUST 0
AUGUST 0 ABOUT TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 3 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON INDUSTRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Carter Thurmond Associate 73.7.54 carter.thurmond@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com CONTACT Rachel Andrae Research Analyst 73.7. Rachel.Andrae@transwestern.com Kevin Roberts President, Southwest 73.70.3347 Kevin.Roberts@transwestern.com METHODOLOGY The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 0 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MARKET WATCH HOUSTON INDUSTRIAL MAY 0 RECENT INDUSTRIAL LEASES East-Southeast Far :: American Packing & Crafting 40,7 SF renewal at 404 N Witter INDUSTRIAL LEASE STATISTICS Overall Vacancy Rates Asking Rental Rates (NNN) South Near :: CRC Warehousing 7,5 SF new lease at 00 Griggs RECENT INDUSTRIAL SALES Northwest Near :: West Loop I & II 5,5 SF total, two building portfolio Buyer: Western General Seller: EastGroup Properties Northwest Near :: America Plaza,400 SF warehouse building Buyer: Travelers Insurance Seller: EastGroup Properties.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% Q 3 Q 3 Q3 3 Q4 3 Q 4 Q 4 Q3 4 Q4 4 Q 5 Q 5 Q3 5 Q4 5 Q $.75 $.50 $.5 $.00 $5.75 $5.50 $5.5 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q 0 NET ABSORPTION Central Business District 30,,43,,5 5.3% 5.% - (4,000) East-Southeast Far 4,4,97 3,4,3.5%.7% 3,4,5 34,000 North Far,9,77,3,334 0.0% 0.%,,5 37,000 North Near 7,94,40,0, 5.9%.% 35,000 7,000 Northeast Far,04,70 - - - - - Northeast Near 30,7,7 34,74.0%.4% - 7,000 Northwest Far 3,757,39 4,4,9 7.% 7.% 4,93,40 9,000 Northwest Near 7,5,00 3,493,449 4.0% 4.4% - (5,000) South Far 9,30,794 7,37.7%.7% 0,000 (,000) South Near,54,33 435,5 3.% 3.% - (4,000) Southeast Near 30,734,3 5,05.7%.7% -,000 Southwest Far 9,,7 75,33 7.% 7.9%,407,000 Southwest Near 39,04,575,9, 5.0% 5.0% 730,95 43,000 Sugar Land 9,07,0,07,9.3%.5% 0,000 54,000 TOTAL 4,573,9,7,9 5.4% 5.%,5,,,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics QUARTER TO DATE HOUSTON MSA LAST QUARTER (Q 0) TRAILING MONTHS LAST QUARTER (Q 0) UNITED STATES TRAILING MONTHS Volume ($ Mil) $5. $. $,5.5 $,5. $9,70.9 No. Of Properties 4 0 43,5,93 Houston Industrial Submarkets CLICK MAP BELOW TO EXPAND N 49 NW NE Total SF 47,3,03,57 0,405,97 43,5,73,005,09,739 0 CBD 0 0 Average Price/SF $50 $4 $4 $0 $74 Average Cap Rate (Yield) N/A N/A 7.% 7.5%.9% SW SE Source: Real Capital Analytics S
MAY 0 49 0 0 3 35 CENTRAL. Houston CBD SOUTHWEST. Southwest Near. Southwest Far 3. Sugar Land SOUTHEAST. Southeast Near. East-Southeast Far SOUTH. South Near. South Far NORTHWEST. Northwest Near. Northwest Far NORTH. North Near. North Far NORTHEAST. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET MAY 0
MAY 0 ABOUT TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 3 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON INDUSTRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Carter Thurmond Associate 73.7.54 carter.thurmond@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com CONTACT Rachel Alexander Director of Market Research 73.70.3344 Rachel.Alexander@transwestern.com Kevin Roberts President, Southwest 73.70.3347 Kevin.Roberts@transwestern.com METHODOLOGY The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 0 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MARKET WATCH HOUSTON INDUSTRIAL AUGUST 05 RECENT INDUSTRIAL LEASES East-Southeast Far :: Modern Polymer Products 300,000 SF renewal at 304-3053 SH 5 North Far :: General Cable 5,750 SF renewal at Prologis Business Park Northwest Near :: Custom Form Transportation 7,000 SF renewal at 7 N Post Oak Rd RECENT INDUSTRIAL SALES Southwest Near :: 705 Oliver St 750,000 SF manufacturing property Buyer: Gulf Coast Commercial Group Seller: Tarkett, Inc INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% 4.0% 3.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 $.00 $5.75 $5.50 $5.5 3.0% Q Q3 Q4 Q 3 Q 3 Q3 3 Q4 3 Q 4 Q 4 Q3 4 Q4 4 Q 5 Q 5 $5.00 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q 05 NET ABSORPTION Central Business District 30,,43,44,53 4.% 4.% - (5,000) East-Southeast Far 4,44,0,49,0 5.4% 5.4% 5,37,07,000 North Far 0,4,5 4,4,5.%.4%,739,9 533,000 North Near 7,70,540,07,4.%.3% 75,00 (5,000) Northeast Far,04,70-0.0% 0.0% - - Northeast Near 30,0,7 339,.%.% 70,000 7,000 Northwest Far 0,4,750 3,97,075 5.4% 5.4%,04, 7,000 Northwest Near 7,095,,50,9 3.0% 3.3% 53, 3,000 South Far 9,0,794 44,77.%.9% -,000 South Near,54,33 3,7 3.% 3.% - 43,000 Southeast Near 30,734,3 50,9.%.7% - (74,000) Southwest Far 9,534,5 3,0.5%.%,750,000 Southwest Near 3,9,794,33,7 3.5% 3.5% 43,79 47,000 Sugar Land 7,97,5 54,33 3.% 3.7% 50,000 4,000 TOTAL 473,409,407 0,,55 4.4% 4.4%,03,4 3,354,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics QUARTER TO DATE HOUSTON MSA LAST QUARTER (Q 05) TRAILING MONTHS LAST QUARTER (Q 05) UNITED STATES TRAILING MONTHS Volume ($ Mil) $9.5 $330. $,43. $,74.7 $3,3. No. Of Properties 0 3 57,5,470 Houston Industrial Submarkets CLICK MAP BELOW TO EXPAND N 49 NW NE Total SF,4, 4,7,9,743,5,574,70 97,057,5 0 CBD 0 0 Average Price/SF N/A $4 $ $7 $73 Average Cap Rate (Yield) N/A.3% 7.%.% 7.0% SW SE Source: Real Capital Analytics S
AUGUST 05 49 0 0 3 35 CENTRAL. Houston CBD SOUTHWEST. Southwest Near. Southwest Far 3. Sugar Land SOUTHEAST. Southeast Near. East-Southeast Far SOUTH. South Near. South Far NORTHWEST. Northwest Near. Northwest Far NORTH. North Near. North Far NORTHEAST. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET AUGUST 05
AUGUST 05 ABOUT TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 3 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON INDUSTRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com CONTACT Rachel Alexander Director of Market Research 73.70.3344 Rachel.Alexander@transwestern.com Kevin Roberts President, Southwest 73.70.3347 Kevin.Roberts@transwestern.com METHODOLOGY The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 05 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
Market WATCh HOUSTON INDUSTRIAL June 05 Recent Industrial Leases East-Southeast Far :: Gulf Intermodal Services 3,000 SF new lease at Underwood East-Southeast Far :: Abrasive Products & Equipment 0,50 SF new lease at 3009 State Hwy 5 INDUSTRIAL LEASE STATISTICS.0% 5.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 North Far :: Pathmark Transportation 7,34 SF new lease at 40 North Freeway 5.0% $.00 Recent Industrial sales North Far :: Beltway North Commerce Center 35,0 SF Buyer: TIAA-CREF Seller: Amstar & Davis Commercial Development joint venture 4.5% 4.0% 3.5% 3.0% Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 Q4 3Q4 4Q4 Q5 $5.75 $5.50 $5.5 $5.00 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q 05 NET ABSORPTION Central Business District 30,,43,37,0 4.4% 4.4% - 7,000 East-Southeast Far,530,,,039 5.7% 5.7%,93,4 35,000 North Far 0,0,3 4,77,09 7.9%.%,74,943,7,000 North Near 7,70,540,05,3 5.9% 5.9% 4,00 0,000 Northeast Far,04,70-0.0% 0.0% - - Northeast Near 30,0,7 35,79.%.% 0,000 39,000 Northwest Far,540,34,39,947 4.% 4.% 3,03,9 5,000 Northwest Near,9,30,70,4 3.% 3.%,07 (39,000) South Far 9,0,9 5,4 3.0% 3.% 4,75 (,000) South Near,54,33 49, 3.5% 3.% - 7,000 Southeast Near 30,734,3 4,075.4%.4% - (0,000) Southwest Far 9,35,35 4,9 5.3% 5.4% 443,30 47,000 Southwest Near 3,9,794,33,53 3.% 3.% 37,9,000 Sugar Land 7,97,5 77,54 4.3% 4.4% 50,000 3,000 TOTAL 49,44,44 0,055,44 4.3% 4.3%,5,00,3,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics QUARTER to DATE Houston MSA Last QUARTER (Q5) Trailing Months Last QUARTER (Q5) United STATES Trailing Months Volume ($ Mil) $3. $53.4 $,35.0 $,370. $3,75.0 No. Of Properties 35 47,9,43 Houston Industrial Submarkets Click Map below to Expand N 49 NW NE Total SF 3,935,,4,5 0,5,403 5,44, 3,,34 0 CBD 0 0 Average Price/SF N/A $93 $ $ $75 Average Cap Rate (Yield) N/A N/A 7.7% 7.0% 7.% SW SE Source: Real Capital Analytics S
JUNe 05 49 0 0 3 35 central. Houston CBD Southwest. Southwest Near. Southwest Far 3. Sugar Land Southeast. Southeast Near. East-Southeast Far south. South Near. South Far northwest. Northwest Near. Northwest Far north. North Near. North Far northeast. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET June 05
JUNe 05 ABout TRanswesteRN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 3 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON IndustRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com Contact Rachel Alexander Director of Market Research 73.70.3344 rachel.alexander@transwestern.com Methodology The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 05 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MarkET WATCh HOUSTON INDUSTRIAL MARch 05 Recent IndustRIal Leases Sugar Land :: Professional Packing Systems 7,000 SF new lease at Sugar Land Interchange Distribution Center East-Southeast Far :: Eugene B. Smith & Co. 0,000 SF new lease at Bay Area Business Park Northwest Near :: Wilsonart,0 SF renewal and expansion at Pine Forest Business Park INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 $.00 $5.75 Recent IndustRIal sales East-Southeast Far :: Bayport North Distribution Center 55,000 SF warehouse/distribution property Buyer: Industrial Property Trust Seller: Carson Cos Industrial Market Indicators 4.0% 3.5% 3.0% 4Q Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 Q4 3Q4 4Q4 $5.50 $5.5 $5.00 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION 04 NET ABSORPTION Central Business District 30,,43,434,77 4.7% 4.7% -,000 East-Southeast Far,,0,7,3.%.%,,93,5,000 North Far 5,94,575 4,9,5.3%.5%,07,754,307,000 North Near 7,4,44,,7.%.7% 4,00 4,000 Northeast Far,04,70-0.0% 0.0% - 4,000 Northeast Near 30,0,7 405,700.3%.3% 0,000 5,000 Northwest Far 5,0,937,44,3 4.% 4.% 3,305,3,5,000 Northwest Near,9,30,504,7.9% 3.0%,47,,000 South Far 9,39,7,379.%.% 9,4 4,000 South Near,54,33 55,4 4.% 4.% -,000 Southeast Near 30,734,3 407,5.3%.3% - 49,000 Southwest Far 9,095,35 49,4 5.4% 5.4% 40,30 43,000 Southwest Near 3,5,794,44,7 3.7% 3.7% 37,9,000 Sugar Land 7,9,5,030,97 5.7% 5.%,000 00,000 TOTAL 4,5,7 0,00,4 4.3% 4.4%,,30,95,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics Quarter to Date Houston MSA Last Quarter (4Q4) Trailing Months Last Quarter (4Q4) United States Trailing Months Houston Industrial Submarkets Click Map below to Expand N 49 Volume ($ Mil) $40. $35.9 $,05. $,.4 $5,7.4 No. Of Properties 0 49 34,93 5,4 NW NE Total SF,77,07,43,04 7,3,30 50,440,30 773,4,5 0 CBD 0 0 Average Price/SF N/A $49 $4 $75 $7 Average Cap Rate (Yield) N/A N/A 7.5% 7.0% 7.% SW SE Source: Real Capital Analytics S
MARch 05 49 0 0 3 35 central. Houston CBD Southwest. Southwest Near. Southwest Far 3. Sugar Land Southeast. Southeast Near. East-Southeast Far south. South Near. South Far northwest. Northwest Near. Northwest Far north. North Near. North Far northeast. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET march 05
MARch 05 ABout TRanswesteRN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 3 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON IndustRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com Contact Rachel Alexander Director of Market Research 73.70.3344 rachel.alexander@transwestern.com Methodology The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 05 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MarkET WATCh HOUSTON INDUSTRIAL FebRUARy 05 recent Industrial Leases Northwest Near :: Banta 0,00 SF renewal at West by Northwest Business Park Northeast Near :: FXI, Inc. 5,700 SF renewal at Eastwood 4 North Near :: SRS Distribution 30,000 SF new lease at Udelson Industrial Park recent Industrial sales Southwest Near :: Freeport SW Business Park,0 SF manufacturing property Buyer: Satake USA, Inc. Seller: Sherman Family Trust INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% 4.0% 3.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 $.00 $5.75 $5.50 $5.5 3.0% 4Q Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 Q4 3Q4 4Q4 $5.00 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION 04 NET ABSORPTION Central Business District 30,,43,434,77 4.7% 4.7% -,000 East-Southeast Far,,0,7,3.%.%,,93,5,000 North Far 5,94,575 4,9,5.3%.5%,07,754,307,000 North Near 7,4,44,,7.%.7% 4,00 4,000 Northeast Far,04,70-0.0% 0.0% - 4,000 Northeast Near 30,0,7 405,700.3%.3% 0,000 5,000 Northwest Far 5,0,937,44,3 4.% 4.% 3,305,3,5,000 Northwest Near,9,30,504,7.9% 3.0%,47,,000 South Far 9,39,7,379.%.% 9,4 4,000 South Near,54,33 55,4 4.% 4.% -,000 Southeast Near 30,734,3 407,5.3%.3% - 49,000 Southwest Far 9,095,35 49,4 5.4% 5.4% 40,30 43,000 Southwest Near 3,5,794,44,7 3.7% 3.7% 37,9,000 Sugar Land 7,9,5,030,97 5.7% 5.%,000 00,000 TOTAL 4,5,7 0,00,4 4.3% 4.4%,,30,95,000 Source: Transwestern analysis of Costar data, includes buildings 5,000 SF RBA and greater, excluding government owned buildings Industrial Sales Statistics Quarter to Date Houston MSA Last Quarter (4Q4) Trailing Months Last Quarter (4Q4) United States Trailing Months Houston Industrial Submarkets Click Map below to Expand N 49 Volume ($ Mil) $.5 $303.0 $7.7 $,7. $53,4.0 No. of Properties 3 4 3,94 5,9 NW NE Total SF 40,47 5,575,0,44,97 4,,30 7,440,97 0 CBD 0 0 Average Price/SF N/A $44 $4 $75 $7 Average Cap Rate (Yield) N/A N/A 7.5% 7.0% 7.% SW SE Source: Real Capital Analytics S
FebRUARy 05 49 0 0 3 35 central. Houston CBD Southwest. Southwest Near. Southwest Far 3. Sugar Land Southeast. Southeast Near. East-Southeast Far south. South Near. South Far northwest. Northwest Near. Northwest Far north. North Near. North Far northeast. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET FEBRUARY 05
FebRUARy 05 ABout TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 3 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON IndustrIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@transwestern.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com Contact Rachel Alexander Director of Market Research 73.70.3344 rachel.alexander@transwestern.com Methodology The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 05 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MarkET WATCh HOUSTON INDUSTRIAL December 04 recent Industrial Leases Northeast Near :: Atlantic Clothing, Inc. 03,950 SF new lease at 05 City Park Loop Northwest Near :: Veritrust Corp. 7,000 SF renewal & expansion at 000 Afton Road North Far :: Hunting Energy Services,000 SF renewal at 4400 N Sam Houston Pkwy recent Industrial sales Northwest Near :: 500 Jensen Dr 7,40 SF warehouse/distribution property Buyer: En-Fab Holdings LLC Seller: Goodwill Industries of Houston INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% 4.0% 3.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 $.00 $5.75 $5.50 $5.5 3.0% 3Q 4Q Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 Q4 3Q4 $5.00 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION 3Q04 NET ABSORPTION Central Business District 30,,43,535,94 5.% 5.%,000 East-Southeast Far 44,77,0 3,50,37.0%.0% 7,334 757,000 North Far 5,5,7 4,74,7 7.4% 7.4%,,93 (9,000) North Near 7,504,44,5,93.%.% 0,000 3,000 Northeast Far,04,70 0.0% 0.0% Northeast Near 30,0,7 53,934.7%.7% 40,000 3,000 Northwest Far 5,334,34,447,53 4.% 4.%,9,79 440,000 Northwest Near,9,30 3,3,34 3.% 3.7% 9,000 South Far 9,349,34 47,.%.3% 9,4 33,000 South Near,54,33 57, 4.7% 4.7% 4,000 Southeast Near 30,734,3 509,7.7%.7%,000 Southwest Far 9,095,35 4,4 5.4% 5.4%,50 (5,000) Southwest Near 3,5,794,40,4 3.% 3.%,000 7,000 Sugar Land 7,9,5,3,4.%.% 3,000 (3,000) TOTAL 44,33,,3,03 4.% 4.% 5,,0,30,000 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Sales Statistics Quarter to Date Houston MSA Last Quarter (3Q4) Trailing Months Last Quarter (3Q4) United States Trailing Months Houston Industrial Submarkets Click Map below to Expand N 49 Volume ($ Mil) $4. $9.3 $,03.3 $,795. $5,9.4 No. of Properties 0 3 3,35 5,03 NW NE Total SF,337,03 3,00,544 7,3,34 70,39,50 7,9, 0 CBD 0 0 Average Price/SF N/A $ $3 $77 $70 Average Cap Rate (Yield) N/A 7.0% 7.% 7.% 7.3% SW SE Source: Real Capital Analytics S
december 04 49 0 0 3 35 central. Houston CBD Southwest. Southwest Near. Southwest Far 3. Sugar Land Southeast. Southeast Near. East-Southeast Far south. South Near. South Far northwest. Northwest Near. Northwest Far north. North Near. North Far northeast. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET december 04
DecemBer 04 ABout TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 0 offices in 3 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 35 team members and has been an innovator in the Houston market for 3 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON IndustrIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@tramswesterm.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com Contact Rachel Alexander Director of Market Research 73.70.3344 rachel.alexander@transwestern.com Methodology The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 04 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MARKET WATCH HOUSTON INDUSTRIAL SEPTEMBER 04 RECENT INDUSTRIAL LEASES North Far :: DB Schenker 50,000 SF at Kenswick AirFreight & LogisticsCentre South Far :: Office Furniture Connection 5,7 SF at 30 Almeda Rd South Far :: Composite Advanced Technologies 0,5 SF at 744 E Orem Dr RECENT INDUSTRIAL SALES Sugar Land :: 0 Gillingham Ln 39,34 SF warehouse/distribution property Buyer: Dalfen America Corp Seller: Northstar Commercial partners INDUSTRIAL LEASE STATISTICS.0% 5.5% 5.0% 4.5% 4.0% 3.5% Overall Vacancy Rates Asking Rental Rates (NNN) $.50 $.5 $.00 $5.75 $5.50 $5.5 3.0% Q 3Q 4Q Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 Q4 $5.00 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q04 NET ABSORPTION Central Business District 30,,43,547,4 5.% 5.% East-Southeast Far 44,733,0 4,7,93 9.5% 9.5% 5,334 74,000 North Far 57,,5 4,, 7.% 7.%,43,3 74,000 North Near 7,504,44,4,9.%.% 0,000 03,000 Northeast Far,04,70 0.0% 0.0% Northeast Near 30,,9 0,79.7% 3.% 39,000 Northwest Far 57,54,79,,4 3.% 3.%,355,05 395,000 Northwest Near,53,30 3,40, 3.9% 4.%,000 5,000 South Far 9,,557 9,0.% 3.0% 309, 3,000 South Near,54,33 5,33 5.4% 5.4% 50,000 Southeast Near 30,734,3 5,9.0%.% 3,000 Southwest Far 9,095,35 4,03 5.3% 5.3% (,000) Southwest Near 3,5,794,5,033 4.% 4.%,000 (0,000) Sugar Land 7,9,5 5,9 4.% 4.9% 3,000 (,000) TOTAL 43,79,50,54,00 4.9% 5.0% 4,50,5,309,000 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Sales Statistics QUARTER TO DATE HOUSTON MSA LAST QUARTER (Q4) TRAILING MONTHS LAST QUARTER (Q4) UNITED STATES TRAILING MONTHS Houston Industrial Submarkets CLICK MAP BELOW TO EXPAND N 49 Volume ($ Mil) $9. $47. $,5.7 $,047. $54,5.5 No. of Properties 4 30 3,3 5,00 NW NE Total SF,4,035 4,05,09,3,5 7,,3 0,44,370 0 CBD 0 0 Average Price/SF N/A $5 $3 $ $7 Average Cap Rate (Yield) N/A.% 7.9% 7.% 7.4% Source: Real Capital Analytics SW S SE
SEPTEMBER 04 49 0 0 3 35 CENTRAL. Houston CBD SOUTHWEST. Southwest Near. Southwest Far 3. Sugar Land SOUTHEAST. Southeast Near. East-Southeast Far SOUTH. South Near. South Far NORTHWEST. Northwest Near. Northwest Far NORTH. North Near. North Far NORTHEAST. Northeast Near. Northeast Far MARKET WATCH HOUSTON INDUSTRIAL MARKET SEPTEMBER 04
SEPTEMBER 04 ABOUT TRANSWESTERN Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. Transwestern was founded in Houston, Texas in 97, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern s Houston office currently employs over 35 team members and has been an innovator in the Houston market for 3 years. SEATTLE MINNEAPOLIS BOSTON SAN FRANCISCO SILICON VALLEY WALNUT CREEK SALT LAKE DENVER MILWAUKEE CHICAGO ST. LOUIS DETROIT BETHESDA WASHINGTON DC GREENWICH NEW YORK NEW JERSEY BALTIMORE NORTHERN VIRGINIA LOS ANGELES ORANGE COUNTY SAN DIEGO PHOENIX OKLAHOMA FORT DALLAS WORTH ATLANTA TRANSWESTERN LOCATIONS AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE HOUSTON INDUSTRIAL TEAM Brian Gammill Managing Director 73.70.33 brian.gammill@transwestern.com Darryl Noon Senior Vice President 73.70.335 darryl.noon@transwestern.com Jude Filippone Vice President 73.70.33 jude.filippone@transwestern.com Vince Strake Associate 73.4.374 vince.strake@transwestern.com Micheal Palmer Senior Vice President - Tenant Advisory 73.3.7 micheal.palmer@tramswesterm.com Michael Snodgrass 73.70.334 michael.snodgrass@transwestern.com Jan Sparks 73.70.339 jan.sparks@transwestern.com CONTACT Rachel Alexander Director of Market Research 73.70.3344 rachel.alexander@transwestern.com METHODOLOGY The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources. 0 West Loop South, Suite 300 Houston, Texas 7707 T 73.70.7700 F 73.70.5 www.transwestern.net/houston Copyright 04 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
MarkET WATCh HOUSTON INDUSTRIAL JULY 04 Recent industrial Leases Northwest Far :: Lenox International,000 SF in DCT Northwest Crossroads Logistics Centre INDUSTRIAL LEASE STATISTICS Overall Vacancy Rates Asking Rental Rates (NNN) North Far :: Bunzl 34,30 SF in Northpark Central.0% 5.5% $.50 $.5 Northeast Near :: RL Building Supply 3,35 SF at 5 North Loop East 5.0% $.00 Recent industrial Sales Northwest Near :: Alliance Tire Americas 3,4 SF warehouse property Buyer: 9700 West Wingfoot LLC Seller: SSJ Investments Ltd 4.5% 4.0% 3.5% 3.0% Q Q 3Q 4Q Q Q 3Q 4Q Q3 Q3 3Q3 4Q3 Q4 $5.75 $5.50 $5.5 $5.00 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q04 NET ABSORPTION Central Business District 33,4,5,7,735 5.4% 5.4% (,000) East-Southeast Far 5,4,50 4,7,053 7.% 7.% 00, 7,000 North Far 7,9,0 3,0,9 5.7% 5.7%,930,744 509,000 North Near 0,504,3,07,007 5.0% 5.% 47,50 50,000 Northeast Far,7,79 7,3 0.4% 0.4% 4,000 Northeast Near 33,9,9,0.% 3.0% 0,50 (4,000) Northwest Far 9,,34,357,35 3.4% 3.5%,70,4 0,000 Northwest Near 04,05,474 3,9,774 3.% 3.7% 4,93 5,000 South Far 3,05,0,04,709.%.% 40,3 5,000 South Near 4,9,0 7,50 5.4% 5.4%,000 Southeast Near 40,04,07 75,5.0%.0% 0,000 Southwest Far 3,04,353 5,75 4.3% 4.3%,50,000 Southwest Near 54,,4,75,3 3.% 3.% 0,00 (57,000) Sugar Land,,4,39 3.9% 4.0% 5,000 70,000 TOTAL 579,30,50 4,9,74 4.% 4.% 5,3,439,5,000 Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings. Industrial Sales Statistics Quarter to Date Houston MSA Last Quarter (Q4) Trailing Months Last Quarter (Q4) United States Trailing Months Houston Industrial Submarkets Click Map below to Expand N 49 Volume ($ Mil) $. $35. $,53. $,. $5,. No. of Properties 9 7,9 5,35 NW NE Total SF,,45 3,09,43,0,9 7,579,43 7,,0 0 CBD 0 0 Average Price/SF N/A $7 $7 $7 Average Cap Rate (Yield) N/A N/A N/A 7.4% 7.5% SW SE Source: Real Capital Analytics S