Market Report ////////// Inland Empire //////////// ///////// Ventura County Industrial
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///////////////////////////////////////// ///////////////Los Angeles///////////// ///////////////////////////////////////// ///////////Orange County/////////// ///////////////////////////////////////// ////////////Ventura///////////////// Q2 | 2019 ///////////////////////////////////////// Market Report ////////// Inland Empire //////////// ///////// Ventura County Industrial ///////////////////////////////////////// /////////Phoeni x///////////////// ///////////////////////////////////////// Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L MARKET Industrial 2019 Ventura County REPORT Q2 MARKET ACTIVITY KEY TAKE AWAYS ECONOMIC OUTLOOK MARKET D • Vacancy Rate: Increases to 3.3%. Q2 was the first Direct Vacancy Net Absorption reading above 3% since Q1 2017. U.S. Employment U6 Rate Net Absorption -353,060 SF • : Continues to be negative. Signs of 3.1% a softening market. 3.6% 7.1% • Gross Absorption: Down from Q1. 2019 YTD gross absorption nearly 800K SF less than same period in V 2018. • Sales: Both pricing & volume were down after Overall Vacancy Gross Absorption impressive Q1. Pricing levels above historic trend. Interest Rate Changing GDP 3.3% 432,329 SF 3.7% (30 year fixed) 1.5% ECONOMIC OUTLOOK Under Construction Rental Rates (NNN) • Interest Rates: The yield curve inverted in Q2. A Port Traffic Y/Y Δ NYSE Performance sign that a potential recession could happen in 134,531 SF $0.72 the future. The Fed is not expected to cut rates 32.5% 3.3% this year. Remains cautious about the economy. • Trade: U.S. talks with China stalled in Q2. After a meeting between the 2 countries at the G20, they agreed to pause additional tariffs & resume Sale Price Change Deal Volume trade talks. Inflation Change 10 Yr. - 2 Yr. Spread • Stock Market: Indexes were volatile in Q2, but -25.1% -56.7% posted positive returns. +1.8% 25 BPS • Oil: Crude Oil was down 5% in Q2. EXPERIENCE IN A CHANGING MARKET ///////////////////////////////////////// @DAUMCOMMERCIAL Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L ///////// Market Report Q2 OVERALL VACANCY NET ABSORPTION INCREASED FOR 4TH CONSECUTIVE QUARTER 3RD STRIAGHT QUARTER OF NEGATIVE READINGS. DOWN FROM Q1 Direct Vacancy Total Vacancy Historical Average Net Absorption SF Direct Overall Vacancy 9.00% 2,500,000 9.00% 8.00% 2,000,000 8.00% 7.00% 7.00% 1,500,000 2019 6.00% 6.00% 5.00% 1,000,000 5.00% Q2 4.00% 500,000 4.00% 3.00% 3.00% 0 2.00% 2.00% //// 1.00% (500,000) 1.00% 0.00% (1,000,000) 0.00% 2001 2002 2003 2004 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2019 2005 2006 2014 2001 2002 2003 2004 2005 2006 2007 2008 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 Industrial GROSS ABORPTION ASKING RENTS | DOWN FROM Q1. REMAINS WELL BELOW HISTORIC AVERAGE FELL BY $0.01 IN Q2 TO $0.72 Gross Absorption SF Total Historical Average NNN Rent Direct Overall Vacancy 3,500,000 $0.80 9.00% 8.00% 3,000,000 $0.70 7.00% 2,500,000 $0.60 6.00% 2,000,000 5.00% CountyVentura $0.50 1,500,000 4.00% $0.40 3.00% 1,000,000 2.00% $0.30 500,000 1.00% 0 $0.20 0.00% 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2008 2017 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L ///////// Market Report Q2 LEASING ACTIVITY CONSTRUCTION ACTIVITY INCREASED FROM Q1 TO JUST UNDER 400K SF UNDER CONSTRUCTION LESS 150K SF AFTER 1 DELIVERY IN Q2 Leasing Activity SF Direct Leasing Activity SF Sublet Under Construction SF 1,600,000 2,000,000 1,400,000 1,800,000 1,600,000 1,200,000 1,400,000 1,000,000 2019 1,200,000 800,000 1,000,000 800,000 Q2 600,000 600,000 400,000 400,000 200,000 200,000 //// 0 0 2001 2002 2003 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2004 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Industrial SALES MEDIAN PRICE PSF IN Q2 WAS $152.42. VOLUME DOWN OVER 56% | Camarillo Conejo Valley North VC Oxnard/Port Hueneme Moorpark/Simi Ventura Med. Price PSF Linear (Med. Price PSF) $200,000,000 $250.00 $180,000,000 $160,000,000 $200.00 $140,000,000 $120,000,000 $150.00 $100,000,000 CountyVentura $80,000,000 $100.00 $60,000,000 $40,000,000 $50.00 $20,000,000 $0 $0.00 2001 2002 2003 2005 2006 2007 2008 2010 2011 2012 2013 2015 2016 2017 2018 2004 2009 2014 2019 Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L ///////// Market Report Q2 SQUARE FOOT BREAKDOWN– 69,604,929 SF MARKET SIZE VACANCY BREAKDOWN Direct Vacancy Rate Overall Vacancy Rate Camarillo 16% 16% 8.00% 7.00% Conejo Valley 6.97% 6.00% 6.64% 5.00% North VC 5.16% 2019 12% 4.00% 4.46% 18% 3.78% Oxnard/ 3.00% 3.46% Q2 Port Hueneme 2.00% 4% 1.90% 1.82% Moorpark/ 1.00% 1.68% //// Simi Valley 0.68% 0.00% Ventura Camarillo Conejo North VC Oxnard/ Moorpark/ Ventura 34% Valley Port Simi Valley Hueneme Industrial | AVERAGE RENT PSF VOLUME BREAKDOWN Average Industrial Rent Sales Volume Price PSF $1.20 $25,000,000.00 $350.00 $300.00 $1.00 $20,000,000.00 $250.00 $0.96 $15,000,000.00 $200.00 $0.80 $0.86 $0.81 $10,000,000.00 $150.00 $0.60 $0.71 $0.70 $100.00 CountyVentura $0.67 $5,000,000.00 $50.00 $0.40 $0.00 $0.00 $0.20 $0.00 Ventura North VC North Camarillo Simi ValleySimi Camarillo Conejo North VC Oxnard/ Moorpark/ Ventura Moorpark/ Valley Port Simi Valley Oxnard/ Conejo Valley Conejo Hueneme PortHueneme Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L ///////////////////////////////////////// ///////////////Los Angeles///////////// ///////////////////////////////////////// ///////////Orange County/////////// ///////////////////////////////////////// ////////////Ventura///////////////// ///////////////////////////////////////// Economic Overview ////////// Inland Empire //////////// ///////// Q2 2019 ///////////////////////////////////////// /////////Phoeni x///////////////// ///////////////////////////////////////// Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L Q2 GDP IN Q1 UPDATED TO 3.1%. Q2 ESTIMATE IS 1.5% PORT ACTIVITY INCREASED IN Q1, GREATER AMOUNT OF EMPTIES Real GDP Average Real GDP Imports Exports Empties 10% 7,000,000 8% 6% 6,000,000 2019 4% 5,000,000 2% 4,000,000 Q2 0% -2% 3,000,000 //// //// -4% 2,000,000 -6% 1,000,000 -8% -10% 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 2009 2010 2011 2012 2013 2014 2015 2016 2017 20182019 *1.5% for 2Q19 based on Fed Reserve Bank of Atlanta "GDP Now" Forecast UNEMPLOYMENT CONTINUES DOWNWARD TREND MOST INDUSTRY SECTORS CONTINUE TO SEE GROWTH Recession U6 Rate Official Rate Government 4 18% Other Services 32 Leisure and Hospitality 75 16% Education and Health Services 172 14% Professional and Business Services 114 12% Financial Activities 26 Information -11 10% Utilities -1.2 Overview National Economic 8% Transportation and Warehousing 3.2 6% Retail Trade -36 Wholesale Trade 18 4% Manufacturing 5 2% Construction 49 0% Mining and Logging 2 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 -50 -25 0 25 50 75 100 125 150 175 200 Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice.