National Industrial Markets Canada NORTH AMERICAN INDUSTRIAL - - PowerPoint PPT Presentation

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National Industrial Markets Canada NORTH AMERICAN INDUSTRIAL - - PowerPoint PPT Presentation

Jan 27, 2024 387 likes •537 views

National Industrial Markets Canada NORTH AMERICAN INDUSTRIAL INVENTORIES NATIONAL RESEARCH 10 Largest US Markets & 5 Largest Canadian Markets sf (millions) 1,400 1,200 1,150 1,068 1,000 824 800 600 519 516 426 418 400 355 331

slide-1
SLIDE 1

National Industrial Markets

Canada

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SLIDE 2

NATIONAL RESEARCH 1 CUSHMAN & WAKEFIELD

1,150 1,068 824 519 516 426 418 355 331 327 286 284 190 110 22

200 400 600 800 1,000 1,200 1,400

NORTH AMERICAN INDUSTRIAL INVENTORIES

10 Largest US Markets & 5 Largest Canadian Markets

sf (millions)

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SLIDE 3

NATIONAL RESEARCH 2 CUSHMAN & WAKEFIELD

3.5% 4.3% 4.5% 5.7% 6.1% 7.4% 7.4% 8.1% 8.2% 8.6% 9.0% 9.7% 9.9% 10.6% 13.3%

0% 2% 4% 6% 8% 10% 12% 14%

NORTH AMERICAN INDUSTRIAL VACANCY RATES

10 Largest US Markets & 5 Largest Canadian Markets

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SLIDE 4

<INSERT SERVICE LINE / DEPT NAME> (3 LINES MAXIMUM) 3 CUSHMAN & WAKEFIELD

Canadian Industrial Market

Vacancy Rate vs. New Supply

6.0% 6.8% 4.2% 11.6% 0% 2% 4% 6% 8% 10% 12% 14%

1 9 8 6 1 9 8 7 1 9 8 8 1 9 8 9 1 9 9 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 3 Q 1 2

5 10 15 20 25 30 35

New Supply (millions of sf) Vacancy Rate

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SLIDE 5

NATIONAL RESEARCH 4 CUSHMAN & WAKEFIELD

6.8% 6.0% 11.6%

  • 2%

0% 2% 4% 6% 8% 10% 12% 14%

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

  • 5

5 10 15 20 25 30 35

Absorption (millions of sf) Vacancy Rate

CANADIAN INDUSTRIAL MARKET

Vacancy Rate vs. Absorption

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SLIDE 6

<INSERT SERVICE LINE / DEPT NAME> (3 LINES MAXIMUM) 5 CUSHMAN & WAKEFIELD

3.5 2.2 1.5 0.1 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Q3 2000 Hot Market Q4 2005 Moderate Market Q4 2011 Q3 2012 Toronto Montreal Calgary Ottawa Vancouver Absorption (millions of sf)

INDUSTRIAL DEMAND SOFTENS

CANADATA CONFERENCE

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SLIDE 7

<INSERT SERVICE LINE / DEPT NAME> (3 LINES MAXIMUM) 6 CUSHMAN & WAKEFIELD

$4.82 $5.00 $8.20 $8.37 $7.58 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 Toronto Montreal Calgary Ottawa Vancouver Toronto Montreal Calgary Ottawa Vancouver

INDUSTRIAL RENTAL RATE COMPARISON

CANADATA CONFERENCE

Q3 2012 Average Net Asking Rents – Five Major Markets

slide-8
SLIDE 8

NATIONAL RESEARCH 7 CUSHMAN & WAKEFIELD

6.5% 5.1% 1.7% 3.5% 4.8%

  • 1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

  • 500

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Absorption (thousands of sf) Vacancy Rate

VANCOUVER INDUSTRIAL MARKET

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SLIDE 9

NATIONAL RESEARCH 8 CUSHMAN & WAKEFIELD

2.0% 4.3% 6.2%

  • 8%
  • 4%

0% 4% 8% 12% 16%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

  • 2,000
  • 1,000

1,000 2,000 3,000 4,000

Absorption (thousands of sf) Vacancy Rate

CALGARY INDUSTRIAL MARKET

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SLIDE 10

NATIONAL RESEARCH 9 CUSHMAN & WAKEFIELD

CALGARY DEMAND

Recent shifting momentum patterns

200 400 600 800 1,000 1,200 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Absorption (thousands of sf)

CANADATA CONFERENCE

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SLIDE 11

NATIONAL RESEARCH 10 CUSHMAN & WAKEFIELD

6.1% 13.9%

0% 2% 4% 6% 8% 10% 12% 14% 16%

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

3 6 9 12 15 18 21 24

New Supply (millions of sf) Vacancy Rate

TORONTO INDUSTRIAL MARKET

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SLIDE 12

NATIONAL RESEARCH 11 CUSHMAN & WAKEFIELD

6.9% 6.1%

  • 4%
  • 2%

0% 2% 4% 6% 8% 10% 12% 14% 16%

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

  • 5,000
  • 2,500

2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000

Absorption (thousands of sf) Vacancy Rate

TORONTO INDUSTRIAL MARKET

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SLIDE 13

NATIONAL RESEARCH 12 CUSHMAN & WAKEFIELD

8.2% 13.0% 3.7%

  • 12%
  • 9%
  • 6%
  • 3%

0% 3% 6% 9% 12% 15%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q12

  • 8,000
  • 6,000
  • 4,000
  • 2,000

2,000 4,000 6,000 8,000 10,000

Absorption (thousands of sf) Vacancy Rate

MONTREAL INDUSTRIAL MARKET

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SLIDE 14

NATIONAL RESEARCH 13 CUSHMAN & WAKEFIELD

INDUSTRIAL CAP RATES

Bond yields / cap rates spreads

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

Toronto Industrial Cap Rates

10 yr Cda Bond Yield Industrial Single-Tenant 440 bps 475 bps 172 bps 369 bps

  • For strongest quality assets, cap rates have compressed to near historic lows. This

compression reflects the very low yields available in many other investments and very competitive lending terms. For lesser assets with vacancy or locational or physical

  • bsolescence, however, the investment demand and pricing is much weaker
  • Underlying industrial fundamentals have not improved nearly as much as most other asset

classes and the spread between cap rates and 10-yr bond yields is highest in this asset class.