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Q1 2017 End of 2016 Industrial Report Absorption & Deliveries

Sales Volume & Price

Past 10 Quarters

Based on Industrial Building Sales of 15,000 SF and Larger Sales Volume

Deliveries

Net Absorption

4.0

3.0 2.6

Millions SF

2.5 2.0 1.5

1.2

1.2 0.9

1.0

0.7

0.6

1.4 1.2

1.3

1.2

1.0

0.6

0.9 0.7

0.7 0.5 0.3

0.5

$120

$250

$100

$200

$80

$150

$60

$100

$40

$50

$20

0.1

0.0

0.0

$0

$0 2014 3q

2015 1q

2015 3q

2016 1q

2016 3q

Source: Costar Property

Vacancy Rates by Building Type Flex

2013 1q

2014 1q

2015 1q

2016 1q

2003-2016 Warehouse

Total Market

16% 14%

Vacancy Rate

12% 10% 8% 6% 4% 2% 0% 2008 1q

2009 1q

2010 1q

2011 1q

Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Portland industrial sales figures rose during the third quarter 2016 in terms of dollar volume compared to the second quarter of 2016.

2012 1q

2013 1q

2014 1q

2015 1q

2016 1q

Sales Analysis by Building Size Based on Industrial Bldg Sales From Oct. 2015 - Sept. 2016

In the third quarter, 28 industrial transactions closed with a total volume of $275,936,090. The 28 buildings totaled 2,503,705 square feet and the average price per square foot equated to $110.21 per square foot. That compares to 42 transactions totaling $216,910,558 in the second quarter. The total square footage was 2,666,303 for an average price per square foot of $81.35. Total year-to-date industrial building sales activity in 2016 is up compared to the previous year. In the first nine months of 2016, the market saw 103 industrial sales transactions with a total volume of $657,218,304. The price per square foot has averaged $89.83 this year. In the first nine months of 2015, the market posted 96 transactions with a total volume of $484,776,027. The price per square foot averaged $70.00. Cap rates have been lower in 2016, averaging 6.60%, compared to the first nine months of last year when they averaged 6.66%. Report compiled and edited by: Certified Research Analyst - John D. Walz

For more information please contact: SVN Imbrie Realty at 503-208-9400

Price/SF

Millions of Sales Volume Dollars

3.4

3.5

Price/SF

$300


Jan 2017 industrial flyer