East Bay Industrial Market Breaks Records in 2016

Transcription

1 Research & Forecast Report OAKLAND METROPOLITAN AREA INDUSTRIAL Q4 East Bay Industrial Market Breaks Records in > > Gross Absorption is 7,065,533 square feet year to date. > > Vacancy this quarter was 1.6 percent compared to 2.0 percent last quarter > > Net absorption (current quarter) is positive 642,340 square feet The East Bay industrial market continued its historic bullish streak into the home stretch of as growing e-commerce sales and competition for the last mile in delivery services helped sustain strong demand, low vacancies, and continued upward pressure on lease rates. The I-880 Corridor has benefited greatly from a flourishing warehouse/distribution market and continues to see strong demand, but the lack of space and planned industrial land has pushed companies to markets such as the Central Valley, which have large blocks of modern warehouse/distribution space for lower prices. I-80/I-880 Corridor Overall Industrial Market $1.20 $1.08 $0.96 $0.84 $0.72 Overall vacancy decreased by 0. in the fourth quarter of ; rental rates increased dramatically from $0.92 to $1.12. Following the increase from third quarter to fourth quarter, we expect rents to stabilize with the potential of a moderate increase. Overall vacancy rate should remain low and stable, as has been the trend for the past several quarters. Market Indicators United States Unemployment Rate 4.7% Summary Statistics I-80/I-880 Corridor Industrial Market 10-Year Nominal Interest Rate 2.45 Previous Quarter Current Quarter Overall Vacancy Net Absorption -296, ,340 Construction Completed - 41,365 Under Construction 637, ,168 Overall Asking Rents* Overall Industrial Asking Rents Overall Warehouse Asking Rents Overall R&D Flex Asking Rents *Asking Rents Reported Monthly U.S. National Economic Indicators Unemployment Rate % Labor Force Participation Rate 62.9% 62.7% Consumer Price Index 2.41% 2.41% Interest Rate - 10 Yr Treasury % Business Confidence Consumer Confidence * Data Source: EDD Labor Market Information Division Consumer Confidence Market Trends Relative to prior period Q4 Q1 2017* Vacancy Rental Rate Net Absorption Construction *Projected 113.7

2 Amazon, FedEx, Smuckers, and Medline took a combined 3.3 million square feet of space in the International Park of Commerce ( IPC ) in Tracy. IPC is the closest location in the Central Valley to the Port of Oakland, and is ideally situated to serve the coveted San Francisco Bay Area consumer base while leveraging the benefits of the Central Valley s large and diverse labor force. According to Colliers Chief Economist Andrew Nelson, favorable conditions in the industrial market will continue on the strength of e-commerce, despite uncertainty in the national industrial market and the overall economy stemming from the effects of Presidentelect Trump s anticipated economic proposals. At best, we can predict mixed implications from the Trump Administration s agenda. Decreased trade flows, increased domestic manufacturing, investment in infrastructure (wherein warehouses would store raw materials), and deregulation of the energy sector are just some of the issues that could have counterbalancing effects on the broader industrial sector. All this withstanding, momentum will largely be dictated by the shift to e-commerce and a modernized logistics network of companies operating in the United States....the lack of space and planned industrial land has pushed companies to markets such as the Central Valley, which have large blocks of modern warehouse/distribution space for lower prices. The fourth quarter of saw the East Bay s vacancy drop across the board. Overall vacancy fell from 2.0 percent in the third quarter to 1.6 percent, warehouse/distribution product decreased from 1.5 percent to 1.1 percent and industrial (which encompasses all product besides warehouse/distribution and R&D/flex) product has decreased from 1.9 percent to 1.2 percent. The total amount of available space is 2,244,487 square feet, a historical low. Overall average asking triple net (NNN) rental rates started the year at per square foot per month and ended at $1.12 per square foot per month, a historical high. Warehouse product NNN asking rates also surged to a record high of $0.71 per square foot per month. Lack of space and development means leasing activity will not have much room to grow in the short-term. However, healthy labor market growth, consumer spending, and low interest rates contribute to a favorable outlook for continued tenant demand moving forward, with continued spillover into secondary and tertiary markets. We are only seeing a fraction of the e-commerce market potential, which is poised to take an even larger share than the 9.3 percent of total retail sales it currently controls. As the internet retail economy grows, there will be plenty of opportunity for more companies to exist in the ecosystem. Institutional investor interest remains high and industrial real estate remains an attractive investment opportunity. With strong fundamentals and the proliferation of e-commerce, all indicators point to another booming industrial market in the new year. OAKLAND GLOBAL LOGISTICS CENTER, OAKLAND Due to its central location in the Bay Area, it also has the unprecedented ability to reach 10 million consumers faster than any other logistics facility within the region.

3 Richmond With a ready workforce, acres of space for businesses to locate and expand, great transportation connections, and a growing economy, Richmond is quickly becoming the bulls-eye location for on-demand delivery-based businesses. In addition to the well-connected interstate highway system, the BN, Union Pacific, and Richmond Pacific railways all serve the Port of Richmond and ensure that whatever the destination or point of origin, cargo can be transported to and from the port. Richmond s appeal as a residential destination is also growing, helping to propel the labor force and economic growth. Shoreline homes, trails, views over the San Francisco Bay, and the convenient Richmond Multi-Modal Station are just some of the factors contributing to this appeal. A development pipeline including 1,300 residential units and the Richmond Ferry Terminal Project reflect ongoing projects designed to grow and propel the community even further. This quarter, Prologis sold a 515,000 square foot portfolio at Pinole Point Business Park currently fully leased to Amazon, Sangamo BioSciences, and Williams-Sonoma for $85,000,000 to LaSalle Investment Management, while Sutherland Company completed a sale-leaseback of 110,000 square feet of warehouse at 1015 Chesley Avenue. Leasing activity was strong this year, finishing with 445,693 square feet of net absorption, with figures similar to those at the end of. Vacancy remained relatively stable with minor increases: overall vacancy went from 1.2 percent in the third quarter to 1.9 percent in the fourth, warehouse/distribution crept up from 1.0 percent to 1.2 percent, and industrial product (which includes light industrial and manufacturing) saw a quarterly increase from 2.5 percent to 3.0 percent. New available spaces should be taken quickly. The vacancy will likely drop in 2017 due to strong demand and shortage of product, with older obsolete product making up much of the remaining vacancy. Overall rents have gone up to $0.75 per square foot per month compared to a year ago, when they sat at $0.67 per square foot per month, and are still much lower than those in Marin County, Emeryville, and Berkeley. Due to strong demand, we expect rents to rise over the coming six months. Richmond Light Industrial Richmond Warehouse/Distribution Richmond R&D/Flex $0.40 $0.30 $0.40 $0.30 $1.10 $1.00 $0.90 There is strong investor activity on land, with many large properties tied up with developers planning to develop speculative warehouse product. Sacramento-based developer LDK Ventures LLC began construction on a 707,000 square foot speculative warehouse with an institutional investor, while other projects are going through entitlements. Overall, Richmond looks well positioned to continue reaping the benefits of future growth in online retail in Oakland Research & Forecast Report Q4 Industrial Colliers International

4 Oakland Oakland and Alameda Vacancy for Oakland s industrial product type (everything besides warehouse/distribution and R&D/flex) is even tighter compared to a year ago, compressing from 1.3 percent to 0.4 percent. There is zero vacancy in Oakland s Class A industrial space and tenants have been driven away either to other markets or to any remaining lower quality spaces. Warehouse vacancy has loosened up from 1.4 percent to 2.1 percent over the past year, but is still a very tight market. Following the passage of Proposition 64, which legalizes recreational marijuana for those 21 years or older under California state law, several building owners have put their buildings up for sale to test the market for marijuana related operations. Expectations are high but there is no historical data to show that the asking prices are justified. 955 Kennedy has come on the market, but, like many other buildings still on the market, lacks modern features and amenities. As such, even though asking rates are currently comparable to surrounding markets, users gravitate south to find better product and building features. Warehouse asking rates have stayed relatively consistent, increasing by just a cent to $0.59 per square foot per month year over year, while industrial product rose from $0.58 to $0.74 per square foot per month year over year. Asking rates are expected to grow gradually over the next six months due to the economics of low supply and strong demand. Another segment expected to increase is warehouse rental rates, which could see an uptick due in part to local restrictions that limit the number of locations allowed for marijuana related operations. The increasing shift of brick-and-mortar retailers towards e-commerce could also play a role in pushing up demand and rent prices. In the meantime, all eyes are on the redevelopment of the former US Army Base on Oakland s western half. Prologis broke ground on the Oakland Global Logistics Center in November and is expected to complete phase one of the project, a 256,136 square foot state-of-theart warehouse/distribution building, in mid-year of 2017, with phase two and three adding a second and third building to eventually deliver another combined 420,000 square feet of Class A industrial space. Sitting adjacent to the Port of Oakland, the Oakland Global Logistics Center sits one block from the fifth busiest container port in the United States. Due to its central location in the Bay Area, it also has the unprecedented ability to reach 10 million consumers faster than any other logistics facility within the region. Sale side transactions in the fourth quarter were mostly investments: Blackstone purchased 7500 Edgewater Drive from LBA Realty for $30,900,000 as part of a 49 property portfolio, 11West Partners, LLC purchased a 259,332 square foot warehouse/manufacturing building at 1960 Mandela Parkway for $29,000,000, and Amelia Oakland LLC bought a 75,000 square foot warehouse/distribution property at 8410 Amelia Street for just $5,800,000, or $77 per square foot. YTD net absorption was a modest 182,946 square feet. Looking ahead, we expect net absorption to remain relatively flat due to the lack of available inventory and the strong demand for any new available space. Oakland Light Industrial Oakland Warehouse/Distribution $1.00 $0.90 $0.40 $ Oakland Research & Forecast Report Q4 Industrial Colliers International

5 San Leandro San Leandro Light Industrial $1.10 San Leandro and San Lorenzo $0.98 $0.86 San Leandro finished the year off strong with vacancy dropping from an already low 2.2 to just 1.2 percent quarter over quarter, with the strongest fourth quarter net absorption of any industrial submarket in the I-880 Corridor at 258,974 square feet Williams Street and West 140th Avenue two spaces among the dozen or so remaining account for almost half of the square footage still available. Depending on how quickly they lease or sell, vacancies could fall even further. However, any new spaces coming available on the market could negate the decrease in vacancy. As such, we forecast vacancy rates to remain the same or rise slightly, all within a small margin in an extremely tight market. San Leandro Warehouse/Distribution $0.74 $0.62 With less available space, larger remaining spaces have a bigger impact on weighted rents. In this quarter, all asking rates were higher than $0.75 NNN, with some surpassing $1.00 NNN, producing a large quarterly jump from $0.67 to $0.90 per square foot per month quarter over quarter. $0.74 $0.68 $0.62 $0.56 Several major industrial sites are proposed for redevelopment, including 2000 Marina Boulevard, where existing buildings could potentially be demolished for a new 300,000 square foot industrial building geared towards manufacturing. A 152,000 square foot Class A industrial building is also proposed to replace the outdated building at 2756 Alvarado Street. These developments, among others, could be the first Class A industrial development in the city in decades, and would involve not only the modernization of buildings, but also improved aesthetics of the community through utility undergrounding, new landscaping, and street widening. San Leandro R&D/Flex $1.00 $0.92 Sale transactions this quarter have been primarily investments: DCT Industrial Trust, a public REIT, bought a 66,000 square foot industrial property at 1400 Business Center Drive for approximately $14 million, or $212 per square foot, from Norman Properties. Blackstone acquired both a 301,372 square foot warehouse at Polvorosa Drive and a 276,035 square foot industrial building at Alvarado Street in its portfolio deal with LBA Realty. $0.84 $0.76 $0.68 Notable lease transactions include Anchor Distribution Services Inc. taking 100,000 square feet of space at 2050 Williams Street and Dal-Tile Corporation renewing 57,862 square feet at Merced Street. Amidst the leasing and sales activity is Lit San Leandro, the city s highspeed fiber optic loop, and a distinguishing feature of the city s business friendly environment. Almost 20 miles of underground conduit offers businesses internet speeds thousands of times faster than the average U.S. internet connection, and provides the city with a competitive advantage in attracting and supporting businesses like advanced manufacturing, which rely on efficient communications and data management. Heading into 2017, the city will continue to advance projects and programs to promote economic development and to transform San Leandro into a center for innovation MARINA BLVD, SAN LEANDRO ±13.1 Acre Industrial Development sold to Overton Moore. 5 Oakland Research & Forecast Report Q4 Industrial Colliers International

6 Hayward Overall vacancy rates dropped from 2.5 percent in the third quarter to 2.0 percent in the fourth. Industrial product, which includes light industrial and manufacturing, dropped from 2.8 percent to 1.6 percent vacancy, while warehouse vacancy dropped from 1.6 percent to 0.9 percent. R&D/flex rose from 6.0 to 8.4 percent but was not enough to keep the overall rate from descending even further. With more than twenty spaces each offering over 10,000 square feet and one block of space offering over 100,000 square feet, Hayward still has the most amount of product available among submarkets along the I-880 Corridor. There were several significant leases that took place in the fourth quarter: apparel company Landway subleased 70,503 square feet at 2368 Lincoln Avenue, Optiscan Biomedical Corporation renewed 50,400 square feet at Clawiter Road, Siemens Building Technologies renewed 54,860 square feet at Industrial Boulevard, and BART subleased 75,328 square feet at Hayman Street. Hayward registered the highest net absorption for with 591,207 square feet, and leasing activity in the next six months is expected to continue its momentum, remaining strong. Hayward Light Industrial Hayward Warehouse/Distribution $0.74 $0.68 $0.62 $0.56 $0.72 $0.64 $0.56 On the sale side, private equity giant Blackstone purchased 2425 Whipple Road from LBA Realty as part of a larger portfolio deal targeting West Coast warehouses, which are increasingly more attractive to investors due to strong tenant demand and rising warehouse asking rents. Black Mountain Properties LLC bought 3521 Investment Boulevard from Industry Capital Advisors for $13,845,000, or approximately $136 per square foot. The overall NNN asking rate has risen from $0.79 to $0.95 per square foot per month quarter on quarter and from $0.67 to $0.95 a 42.0 percent increase year on year. R&D/flex is largely responsible for the quarterly jump with weighted rents being affected by four large blocks of R&D/flex space with over $1.50 per square foot per month NNN asking rates. Proximity to the I-580, I-880, and Highway 92 (San Mateo Bridge) provides easy access to transportation for businesses in the city. In addition, Hayward is moving forward with plans for a 20-mile, fiber-optic loop to provide high speed internet to attract advanced industries from different business sectors, similar to what San Leandro has already done. The new internet infrastructure may be ready within three years. In the meantime, accommodative tax policies for businesses, access to transportation, and relative availability of space will continue to make Hayward a sought-after location Hayward R&D/Flex $0.48 $0.40 $1.30 $1.18 $1.06 $0.94 $ Oakland Research & Forecast Report Q4 Industrial Colliers International

7 Union City Union City s vacancy has declined from 0.9 percent in the third quarter to an even lower 0.6 percent to end the year, the lowest vacancy of any submarket along I-880. There are ten available spaces still on the market, including a ±47,912 square foot warehouse/production facility at the Willowbrook Business Center. With little room for vacancy to decline further, vacancy rates should remain relatively stable for the next six months. Union City Light Industrial $0.90 $0.82 $0.74 $0.66 A good economy and low vacancy levels have driven overall asking NNN rates up, from $0.98 to $1.05 per square foot per month. Rents are very comparable with neighboring submarkets and should remain level, as both vacancy and inventory are expected to do the same. However, due to a lack of space, leasing activity has gone down even with continued demand for space from both existing tenants on the I-880 Corridor and tenants migrating from the Peninsula. Net absorption for was 235,163 square feet, which is modest compared to the 450,871 square feet of net absorption for. Union City Warehouse/Distribution $0.58 $2.00 $1.70 Several large sales transactions took place this quarter: WinWin LLC bought a 57,175 square foot manufacturing/warehouse building at 1205 Atlantic Street, Blackstone purchased an 85,584 square foot flex/distribution property at Western Avenue as part of the wider portfolio bought from LBA Realty, LAKI Capital LLC bought a 36,000 square foot warehouse at 701 Bradford Street, and UC Properties LLC bought 26,800 square feet at th Street. On the leasing side, Green Packaging renewed 57,600 square feet of space at Ahern Street. Meanwhile, Comstock Industrial Center, a 300,000 square foot warehouse, will be vacant and available in the first quarter of Investors would love to buy/develop in Union City, but there is no land available. Located in the heart of the San Francisco Bay Area, the city provides easy access to international trade channels, a business friendly environment, a well-developed economy, and a skilled labor force. Due to its proximity to the Port of Oakland, the Foreign Trade Zone, interstate highways, and three international airports, Union City is able to provide streamlined shipping and logistics. The challenge at this point continues to be one of finding available space to occupy Union City R&D/Flex $1.40 $1.10 $1.40 $1.28 $1.16 $1.04 $ Oakland Research & Forecast Report Q4 Industrial Colliers International

8 Newark Newark is the smallest East Bay submarket along the I-880 Corridor and is uniquely located due to its position by the Dumbarton Bridge, which connects it to Silicon Valley. Business activity is centered around the construction, e-commerce, logistics, engineering and tech solution industries Union City Light Industrial $1.00 $0.90 Rental rates have seen a huge jump from a year ago primarily due to the increase in the R&D/flex rates at the Pacific Research Center. The overall average asking NNN rental rate saw an increase from $1.14 to $2.26 per square foot per month nearly a 100 percent increase year over year, making Newark s rent much higher compared to its neighbors to the north. Warehouse NNN rents have gone up from $0.65 to $0.75 per square foot per month a 15 percent uptick from the fourth quarter of. Industrial NNN rents went from $0.79 to $0.97 per square foot per month a 23 percent jump over the same period, while warehouse and industrial product rents are expected to remain steady. Meanwhile, R&D/flex product surged from $1.25 to $2.76 a massive 120 percent increase year over year. Union City Warehouse/Distribution $0.74 $0.68 Despite the highest overall rents in any submarket of the I-880 Corridor, there remain affordable spaces that continue to attract tenants from the Peninsula and the South Bay. Companies in the construction industry that have ties to or provide ancillary services for major companies like Tesla, Facebook, and Google are attracted to Newark. $0.62 $0.56 Tesla supplier Futuris Automotive Inc., for example, located its manufacturing facility in Newark, about 15 minutes away from Tesla s Fremont factory. More recently, SAS Automotive signed a long term lease in 142,188 square feet at Eureka Drive, where they will manufacture and supply dashboard subassemblies for Tesla. There is continued interest in the market, particularly after Tesla submitted plans for a 4.6 million square foot expansion to its existing factory in Fremont in October. 3 25% 2 15% Union City R&D/Flex $2.90 $2.53 $2.17 $1.80 On the sale side, Bill Isackson purchased a 4.77 acre leased investment property at Cherry Street for $35 per square foot on the land. Development is mostly quiet. Of note is the Mission Linen Supply Building, a 118,390 square foot commercial laundry facility, which is under construction at 6590 Central Avenue. 5% $1.43 $1.07 Turning the corner in the new year, leasing activity should remain the same, with few new developments and stable tenant demand. Like in other submarkets along the I-880 Corridor, there is high developer interest but very limited options. Overall vacancy rates remain unchanged from the third quarter at 3.8 percent, and should continue to remain stable with the potential for a slight uptick if tenant demand cools off. 8 Oakland Research & Forecast Report Q4 Industrial Colliers International

9 Significant Lease Activity Anchor Distribution Services, Inc 2050 Williams Street, San Leandro November 100,000 Square Foot Direct 80 OAKLAND Dal-Tile Corporation Merced Street, San Leandro November 57,862 Square Foot Renewal Landway International Corporation 2368 Lincoln Avenue, Hayward October 70,503 Square Foot Sublease SAN LEANDRO 580 Optiscan Biomedical Corporation Clawiter Road, Hayward October 50,400 Square Foot Renewal SAN FRANCISCO BAY HAYWARD Siemens Building Technologies Industrial Boulevard, Hayward October 54,860 Square Foot Renewal UNION CITY BART Hayman Street, Hayward November 75,328 Square Foot Sublease NEWARK ABC Bus Company 8100 Enterprise Drive, Newark December 87,120 Square Foot Direct SAS Automotive Eureka Drive, Newark October 142,188 Square Foot Direct Significant Sale Activity PROPERTY ADDRESS SALE DATE SIZE BUYER TYPE Portfolio Purchase November 1,080,352 The Blackstone Group LP Investment 1960 Mandela Pkwy, Oakland November 259,332 11West Partners, LLC Investment 1015 Chesley Ave, Suite Warehouse 1-3, Richmond November 110,000 SJ Foods User 1 W Barrett Ave, Richmond December 108,000 Eddie Orton Investment 2000 Marina Blvd, San Leandro December 13.1 Acres Overton Moore Land/Development 9 Oakland Research & Forecast Report Q4 Industrial Colliers International

10 Market Comparisons INDUSTRIAL MARKET SUBTYPE BLDGS TOTAL INVENTORY DIRECT VACANT DIRECT VACANCY RATE SUBLEASE VACANT SUBLEASE VACANCY RATE TOTAL VACANT VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR NET ABSORPTION YTD COMPLETED CURRENT QTR UNDER CONSTRUCTION LEASING ACTIVITY CURRENT QTR AVG ASKING NNN RICHMOND Industrial 233 4,920, , % 4, % 148, % (25,378) 55, ,400 $0.65 Warehouse 48 4,899,075 59, , , ,237 41, $0.73 R&D/Flex 53 3,393,153 18, % 22, % 41, (5,900) 158, ,499 $1.01 Total ,212, , % 27, , % 1.5% (2,363) 445,693 41,365-10,899 $0.73 OAKLAND Industrial ,664,359 80, , , , ,511 $0.74 Warehouse ,990, , % , % 1.1% (116,678) (41,483) - 256,136 98,429 $0.59 R&D/Flex Total 1,034 33,655, , % , % 1.5% 175, , , ,940 $0.63 SAN LEANDRO Industrial ,661, , , % (58,199) (120,929) ,560 $0.98 Warehouse ,543,408 47, % 62, , ,183 (15,632) - 161, ,183 $0.75 R&D/Flex ,380 5, , ,990 11, ,030 $0.65 Total ,052, , , , ,974 (124,946) - 161, ,773 $0.90 HAYWARD Industrial ,581, , % 6, , , , ,475 $0.73 Warehouse ,078, , % 49, , % , , ,595 63,842 $0.71 R&D/Flex 109 4,502, , , , (108,249) (188,971) ,863 $1.22 Total 1,125 42,162, , % 109, % 822, % 251, , , ,180 $0.95 UNION CITY Industrial 168 7,883,678 75, , % 42,101 37, ,136 $0.83 Warehouse 87 7,488,110 18, % , % 0.3% - 121, $1.85 R&D/Flex ,672 10, , , ,637 $1.22 Total ,242, , , % 42, , ,773 $1.05 NEWARK Industrial 86 4,119,474 55, % 1, , % 27,380 (11,520) - 143,373 75,552 $0.97 Warehouse 32 3,923,778 55, , % (30,022) (35,614) ,464 $0.75 R&D/Flex 40 3,082, , % 13, , % 10. 3,948 (73,102) - - 9,509 $2.76 Total ,125, , % 15, % 424, ,306 (120,235) - 143, ,525 $2.26 MARKET TOTAL Industrial 2,626 67,831, , , , % 486, , , ,634 $0.81 Warehouse ,923, , % 112, , % 1.5% 333, ,349 41, , ,918 $0.71 R&D/Flex ,696, , , % 744, % 5.1% (93,211) (15,595) ,538 $1.85 Total 3, ,451,188 2,029, , ,244, ,306 1,209,828 41, ,168 1,252,090 $1.12 QUARTERLY COMPARISONS AND TOTALS Q4-16 3, ,451,188 2,029, , ,244, ,306 1,209,828 41, ,168 1,252,090 $1.12 Q3-16 3, ,409,822 2,570, , % 2,930, (344,849) 482, ,938 1,916,693 $0.92 Q2-16 3, ,409,822 2,387, % 198, % 2,585, % 431, , ,938 2,056,544 $0.92 Q1-16 3, ,409,822 2,794, % 221, ,016, % , , ,938 1,823,354 Q4-15 3, ,409,822 3,309, % 103, % 3,412, ,027,550-1,345,758 1,356,744 $0.71 Q3-15 3, ,409,822 4,188, % 182, % 4,371, ,069, ,024 1,202,385 - $0.68 Q2-15 3, ,233,909 4,821, , ,147, % - 1,116, , ,024 - $0.65 Q1-15 3, ,563,820 4,628, , ,552, % 3.9% - 42,088-1,107,634 - $0.65 MARKET CONTACTS: Ken Meyersieck Executive Vice President Managing Director Oakland ken.meyersieck@colliers.com CA License No Russell Chang, CPRC Research Analyst I Oakland russell.chang@colliers.com Andrew Xie, CPRC Research Coordinator Oakland andrew.xie@colliers.com Copyright 2017 Colliers International. Colliers International Oakland The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has 1999 Harrison Street, Suite 1750 been made to ensure its accuracy, we cannot guarantee it. Oakland, CA United States No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. colliers.com/oakland 10 Oakland North American Research Research & Forecast & Forecast Report Report Q4 Q Industrial Office Colliers Market International Outlook Colliers International