Submarket Snapshot_4Q2023_Industrial_Interactive

AIRPORT INDUSTRIAL 4Q23 SUBMARKET SNAPSHOT

AIRPORT MARKET

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

77,723,894

82,176,468

79,429,076

Under Construction (SF)

2,785,920

5,023,550

4,334,745

Direct Vacancy (all product types)

7.3%

7.7%

6.9%

Direct Vacancy – Warehouse/ Distribution

7.6%

8.0%

7.3%

Direct Vacancy – Flex

3.3%

3.2%

3.2%

Sublease Availability

684,369

825,406

710,354

Avg. Direct NNN Asking Rate (all product types)

$6.86

$6.83

$7.05

Avg. Direct NNN Asking Rate – Warehouse/Distribution

$6.77

$6.48

$6.77

Avg. Direct NNN Asking Rate – Flex

$9.80

$13.04

$11.90

Net Absorption – Current Qtr. (SF)

354,932

1,537,386

757,654

Net Absorption – YTD (SF)

3,178,624

3,222,993

1,685,607

Leasing Activity – Current Qtr. (SF)

938,305

1,055,127

226,428

Leasing Activity – YTD (SF)

5,933,069

4,379,725

3,324,598

RENTAL RATE VS. VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

3,500,000

$5.00 $6.00 $7.00 $8.00 $9.00

4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

2,500,000

1,500,000

500,000

(500,000)

Direct Rental Rate (NNN)

Overall Rental Rate (NNN)

Leasing Activity Net Absorption

Direct Vacancy

Overall Vacancy