1. No category

CORONA-NORCO
INDUSTRIAL MARKET
Manufacturing/Distribution
Fourth Quarter 2014 Report
Prepared By:
Lee & Associates - West Riverside
Corporate License ID# 01048055
4193 Flat Rock Drive, Suite 100
Riverside, CA 92505
P: 951.276.3600
F: 951.276.3650
Area Maps & Terminology
Terminology
Gross Absorption:
All lease and sale activity
excluding: investments, options
and renewals.
Base:
Total square feet excluding:
possible divisibility, planned
buildings and build to suits.
Availability Rate:
Total existing available square
feet divided by the base square
feet.
Under Construction:
Buildings that are or have
become under construction
throughout the current quarter
that are not yet complete.
Submarket:
A trade area comprised of one
or more cities. Submarkets in
the Corona/Norco area are as
follows:
♦
City of Corona
♦
City of Norco
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
2014 FOURTH QUARTER
Fourth Quarter 2014 - At A Glance
Absorption
After the outstanding performance of the Corona/Norco market in 2013, 2014
continued the trend with absorption representing 380,353 SF in the fourth quarter
of the year. With the lack of available product, limited new construction and
vacancy rates remaining below the 5% mark, the Corona/Norco market is
exhibiting improving rates and significant increases in sales prices, a trend
which will only continue in 2015.
Total gross absorption for 2014 at 1,258,616 SF represented a decrease over
2013’s figure, however with a limited number of building availabilities, absorption
was considered strong in 2014. Absorption will remain stable in the Corona/
Norco market due to demand from users migrating from neighboring, more
expensive Orange and Los Angeles Counties, where available product is even
harder to find, and larger warehouse and distribution buildings will continue to
be a hot commodity.
Gross Absorption
750,000
500,000
250,000
0
1Q13 2Q13 3Q13 4Q13
1Q14 2Q14 3Q14 4Q14
Vacancy
5%
4%
3%
Total absorption for fourth quarter 2014 within the Corona/Norco market was
represented by 94,186 SF of leasing activity and 286,167 SF of sales activity.
Total absorption for 2014 was represented by 751,789 SF of leasing activity
and 506,827 SF of sales activity.
Vacancy
The vacancy rate in the fourth quarter of 2014 was 3.24%, representing the
14th consecutive quarter that the rate has been below the 5% level, a trend that
has not been seen since 2008. Vacancy rates are expected to remain at record
low levels well into 2015 due to a lack of available supply in the market, and
limited new construction.
Rate Trend
Asking sales prices per SF averaged $129.34, representing a 2.68% increase
over the third quarter of 2014. With a lack of quality buildings available for sale
in the market, asking sales prices will continue to increase in 2015. Asking
lease rates averaged $0.66 GRS and $0.53 NNN in the fourth quarter. GRS
rates increased 0.83% over the third quarter rates, and NNN rates increased
3.35% over the previous quarter. Asking rates will continue to trend upward into
2015 due to high demand and a supply constrained market.
Under Construction
The base for fourth quarter 2014 represented 594,811 SF under construction in
nine buildings. While new construction has increased in 2014, it will remain
limited in 2015, due to the shortage of land available for new industrial
development. Speculative development has returned to this supply constrained
market, but is expected to be absorbed very quickly due to the lack of available
product.
2%
1%
0%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Asking Rate Trend
GRS Lease
NNN Lease
Sale PSF
$0.70
$130
$0.60
$125
$0.50
$120
$0.40
$115
$0.30
$110
$0.20
$105
$0.10
$0.00
$100
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Under Construction
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1Q13 2Q13 3Q13 4Q13
1Q14 2Q14 3Q14 4Q14
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
Market Summary
Bldgs
5-9,999 SF
10-24,999 SF
25-49,999 SF
50-99,999 SF
100,000+ SF
284
331
155
102
61
2,111,072
5,150,213
5,359,746
6,976,951
11,123,978
55,845
347,671
364,325
366,710
1,615,186
Availability
Rate
2.65%
6.75%
6.80%
5.26%
14.52%
Totals
933
30,721,960
2,749,737
8.95%
Gross Absorption*
2008
2009
2010
2011
2012
2013
1,299,460
1,340,447
1,453,728
1,901,717
1,028,338
1,505,856
751,789
152,534
453,383
608,215
471,465
608,541
308,965
506,827
1,451,994
1,793,830
2,061,943
2,373,182
1,636,879
1,814,821
1,258,616
New Leases
New Sales
Totals
Total SF
Available SF
Vacant
Vacancy Rate
Available
16,307
0.77%
84,104
1.63%
123,132
2.30%
133,777
1.92%
639,140
5.75%
Gross
Absorption*
Size
996,460
29,483
62,778
31,068
111,644
145,380
3.24%
380,353
2014
Under Construction vs Planned
Size
Under Const
Count
Planned
Count
5-9,999 SF
10-24,999 SF
25-49,999 SF
50-99,999 SF
100,000+ SF
0
50,982
42,387
153,933
347,509
0
4
1
2
2
0
0
0
0
0
0
0
0
0
0
Totals
594,811
9
0
0
Under Const
Planned
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
5-9,999 SF
10-24,999 SF 25-49,999 SF 50-99,999 SF 100,000+ SF
Availability Rate vs Vacancy Rate
Lease Activity vs Sales Activity
Availability Rate
Vacancy Rate
New Leases
New Sales
2,000,000
16.00%
1,800,000
14.00%
1,600,000
12.00%
1,400,000
1,200,000
10.00%
1,000,000
8.00%
800,000
6.00%
600,000
4.00%
400,000
2.00%
200,000
-
0.00%
2008
2009
2010
2011
2012
2013
2014
5-9,999 SF
10-24,999 SF
25-49,999 SF
50-99,999 SF
100,000+ SF
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
Rate Summary
Total SF
Available SF
Availability
Rate
Vacant
Available
Vacancy Rate
Gross
Absorption*
Size
Bldgs
5-9,999 SF
10-24,999 SF
25-49,999 SF
50-99,999 SF
100,000+ SF
284
331
155
102
61
2,111,072
5,150,213
5,359,746
6,976,951
11,123,978
55,845
347,671
364,325
366,710
1,615,186
2.65%
6.75%
6.80%
5.26%
14.52%
16,307
84,104
123,132
133,777
639,140
0.77%
1.63%
2.30%
1.92%
5.75%
29,483
62,778
31,068
111,644
145,380
Totals
933
30,721,960
2,749,737
8.95%
996,460
3.24%
380,353
Avg. Asking Rates
2008
2009
2010
2011
2012
2013
2014
$0.634
GRS
$0.680
$0.613
$0.417
$0.536
$0.565
$0.587
NNN
$0.559
$0.475
$0.459
$0.413
$0.424
$0.442
$0.517
Sales
$151.79
$125.31
$112.06
$107.42
$102.55
$108.85
$122.45
Inventory By Size Based on Number of Buildings
5-9,999 SF
10-24,999 SF
25-49,999 SF
50-99,999 SF
100,000+ SF
17%
35%
30%
11%
7%
Market Summary (SF)
Average Asking Rate Trend
$0.800
$160.00
$0.700
$140.00
$0.600
$120.00
8,000,000
$0.500
$100.00
6,000,000
$0.400
$80.00
$0.300
$60.00
$0.200
$40.00
$0.100
$20.00
12,000,000
10,000,000
4,000,000
2,000,000
$0.000
5-9,999 SF
10-24,999 SF
Total SF
25-49,999 SF
Available SF
50-99,999 SF
Gross Absorption*
100,000+ SF
$0.00
2008
2009
2010
GRS
2011
2012
NNN
2013
2014
Sales
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
5,000-9,999 SF
Size
5-9,999 SF
Bldgs
Total SF
Available SF
284
2,111,072
55,845
Availability
Rate
2.65%
Vacant
Available
16,307
Vacancy Rate
0.77%
Gross
Absorption*
29,483
Leased vs Sold
2,500,000
2,000,000
300,000
1,500,000
200,000
Sold SF
1,000,000
100,000
Leased SF
500,000
0
2008
2009
2010
2011
2012
2013
2014
0
Total SF
Available SF
Gross Absorption*
Absorption Figures*
Leased SF
Number Leases
Sold SF
Number Sales
Total SF
2008
160,846
21
32,798
4
193,644
2009
275,492
36
46,169
6
321,661
2010
204,144
28
61,051
7
265,195
2011
190,434
26
52,253
6
242,687
2012
180,340
27
91,923
12
272,263
2013
143,538
22
100,226
12
243,764
2014
145,709
21
27,645
4
173,354
Current Average Asking Rates and Sales Prices
GRS
$0.69
NNN
N/A
PSF
$142.41
Current Average Actual Lease Rates and Sales Prices
GRS
$0.63
NNN
N/A
PSF
N/A
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
10,000-24,999 SF
Size
10-24,999 SF
Bldgs
Total SF
Available SF
331
5,150,213
347,671
Availability
Rate
6.75%
Vacant
Available
84,104
Vacancy Rate
1.63%
Gross
Absorption*
62,778
Leased vs Sold
6,000,000
5,000,000
600,000
4,000,000
400,000
3,000,000
Sold SF
200,000
Leased SF
2,000,000
1,000,000
0
2008
2009
2010
2011
2012
2013
0
2014
Total SF
Available SF
Gross Absorption*
Absorption Figures*
Leased SF
Number Leases
Sold SF
Number Sales
Total SF
2008
297,491
20
68,827
5
366,318
2009
285,384
20
85,031
6
370,415
2010
314,123
22
119,152
7
433,275
2011
584,902
36
136,635
8
721,537
2012
302,381
20
146,502
9
448,883
2013
372,202
25
73,787
5
445,989
2014
185,707
12
108,020
7
293,727
Current Average Asking Rates and Sales Prices
GRS
$0.69
NNN
$0.57
PSF
$133.17
Current Average Actual Lease Rates and Sales Prices
GRS
$0.66
NNN
N/A
PSF
$112.68
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
25,000-49,999 SF
Size
25-49,999 SF
Bldgs
Total SF
Available SF
155
5,359,746
364,325
Availability
Rate
6.80%
Vacant
Available
123,132
Vacancy Rate
2.30%
Gross
Absorption*
31,068
Leased vs Sold
6,000,000
5,000,000
400,000
4,000,000
300,000
3,000,000
200,000
Sold SF
100,000
Leased SF
0
2008
2009
2010
2011
2012
2013
2,000,000
1,000,000
0
2014
Total SF
Available SF
Gross Absorption*
Absorption Figures*
Leased SF
Number Leases
Sold SF
Number Sales
Total SF
2008
371,631
10
0
0
371,631
2009
246,165
8
66,836
2
313,001
2010
320,331
9
130,228
4
450,559
2011
282,093
8
79,400
3
361,493
2012
231,025
6
25,707
1
256,732
2013
336,148
10
62,002
2
398,150
2014
235,641
6
116,230
4
351,871
Current Average Asking Rates and Sales Prices
GRS
$0.63
NNN
$0.55
PSF
$127.57
Current Average Actual Lease Rates and Sales Prices
GRS
N/A
NNN
N/A
PSF
$119.09
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
50,000-99,999 SF
Size
50-99,999 SF
Bldgs
Total SF
Available SF
102
6,976,951
366,710
Availability
Rate
5.26%
Vacant
Available
133,777
Vacancy Rate
1.92%
Gross
Absorption*
111,644
Leased vs Sold
7,000,000
6,000,000
500,000
5,000,000
400,000
4,000,000
300,000
Sold SF
200,000
3,000,000
2,000,000
100,000
Leased SF
0
2008
2009
2010
2011
2012
2013
1,000,000
0
2014
Total SF
Available SF
Gross Absorption*
Absorption Figures*
Leased SF
Number Leases
Sold SF
Number Sales
Total SF
2008
336,492
4
50,909
1
387,401
2009
410,768
7
221,743
3
632,511
2010
394,489
6
129,334
2
523,823
2011
155,459
3
203,177
3
358,636
2012
171,491
2
52,758
1
224,249
2013
138,400
2
72,950
1
211,350
2014
184,732
3
109,552
2
294,284
Current Average Asking Rates and Sales Prices
GRS
$0.50
NNN
$0.51
PSF
$118.00
Current Average Actual Lease Rates and Sales Prices
GRS
$0.50
NNN
N/A
PSF
$91.50
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
Industrial Summary Report
Corona/Norco
Manufacturing/Distribution
Fourth Quarter 2014
100,000+ SF
Size
Bldgs
Total SF
Available SF
61
11,123,978
1,615,186
100,000+ SF
Availability
Rate
14.52%
Vacant
Vacancy Rate
Available
639,140
5.75%
Gross
Absorption*
145,380
Leased vs Sold
12,000,000
10,000,000
800,000
8,000,000
600,000
6,000,000
400,000
Sold SF
200,000
Leased SF
4,000,000
2,000,000
0
2008
2009
2010
2011
2012
2013
0
2014
Total SF
Available SF
Gross Absorption*
Absorption Figures*
Leased SF
Number Leases
Sold SF
Number Sales
Total SF
2008
133,000
1
0
0
133,000
2009
122,638
1
115,983
1
238,621
2010
220,641
2
168,450
1
389,091
2011
688,829
3
0
0
688,829
2012
143,101
1
291,651
2
434,752
2013
515,568
3
0
0
515,568
2014
0
0
145,380
1
145,380
Current Average Asking Rates and Sales Prices
GRS
N/A
NNN
$0.50
PSF
$109.23
Current Average Actual Lease Rates and Sales Prices
GRS
N/A
NNN
N/A
PSF
$105.75
Total Available Square Feet Includes Available Existing, Under Construction and Vacant.
*Gross Absorption Represents all Activity Excluding Investments, Options & Renewals From 10/1/2014-12/31/2014.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.