In the course of a recession, one would expect industrial leasing activity to drop. For example, Boston, hit hard by the collapse of the high-tech sector, suffered a noticeable decline in leasing activity in 2001. On the other hand, Houston experienced a dramatic increase that Cushman & Wakefield attributes to several expansions and relocations into the area, as well as the strength of oil prices. Here is a look at those two markets, as well as some other important industrial hubs.
| 2000 | 2001 |
|---|
| Boston | 21.7 million sq. ft. | 13.1 million sq. ft. |
| Houston | 6.9 million sq. ft. | 12.8 million sq. ft. |
| Northern | 13.7 million sq. ft. | 9.7 million sq. ft. |
| New Jersey |
| Chicago | 33.0 million sq. ft. | 30.2 million sq. ft. |
| Philadelphia | 14.1 million sq. ft. | 13.0 million sq. ft. |
| Source: Cushman & Wakefield |
OFFICE/COMPLETIONS ANTICIPATED IN 2002
| Market | Sq. Ft. |
|---|
| Washington, D.C. | 11,784,972 |
| New Jersey | 6,700,000 |
| Atlanta | 5,610,747 |
| Los Angeles | 4,508,460 |
| Boston | 4,170,433 |
| Philadelphia | 2,658,281 |
| New York | 2,508,826 |
| Chicago | 2,222,525 |
| Seatle | 1,845,193 |
| San Francisco | 1,750,200 |
| Note: Numbers include both speculative and build-to-suit space built by owners. |
| Source: Grubb & Ellis |
MULTIFAMILY/HOUSING PERMIT LEADERS
The Atlanta metropolitan area led the nation in apartment construction activity during the February 2001-January 2002 timeframe, according to Dallas-based M/PF Research. More than 15,790 units were approved for construction in Atlanta in those months, about 27% more units than in second-place Denver. Dallas and Denver posted the biggest increases in units approved compared with the preceding year, with increases of 87.3% and 41.4%, respectively.
| Metropolitan Area | Units Approved | Year-Ago Permits | % Change |
|---|
| Atlanta | 15,792 | 15,975 | -1.2% |
| Denver | 12,428 | 8,788 | 41.4% |
| New York | 10,010 | 8,670 | 15.5% |
| Dallas | 9,915 | 5,295 | 87.3% |
| Chicago | 9,256 | 8,983 | 3.0% |
| Washington, D.C. | 8,936 | 8,818 | 14.3% |
| Orlando | 7,566 | 8,431 | -10.3% |
| Phoenix | 7,300 | 9,702 | -24.8% |
| Los Angeles | 7,258 | 8,722 | -16.8% |
| Austin | 6,689 | 6,645 | 0.7% |
| Source: M/PF Research calculations based on data from the U.S. Dept. of Commerce |
SHOPPING CENTER/SPACE
Top 20 MSAs by Gross Leasable Area (GLA) (including any shopping center with 3 or more stores)
| Metropolitan Statistical Areas (MSAs) | GLA/Capita 2001 |
|---|
| Myrtle Beach, S.C. | 44.30 |
| Naples, Fla. | 32.44 |
| Fort Myers-Cape Coral, Fla. | 31.18 |
| Elmira, N.Y. | 29.94 |
| Raleigh-Durham-Chapel Hill, N.C. | 29.83 |
| Hagerstown, Md. | 29.71 |
| West Palm Beach-Boca Raton, Fla. | 28.97 |
| Fort Lauderdale, Fla. | 28.55 |
| Dover, Del. | 28.49 |
| Fort Walton Beach, Fla. | 27.78 |
| Orlando, Fla. | 27.75 |
| Boulder-Longmont, Colo. | 27.73 |
| Omaha, Neb.-IA | 27.65 |
| Atlanta, Ga. | 27.59 |
| Denver, Colo. | 26.69 |
| Macon, Ga. | 26.36 |
| Melbourne-Titusville-Palm Bay, Fla. | 26.13 |
| Kansas City, Mo.-Kan. | 25.54 |
| Trenton, N.J. | 25.29 |
| Sarasota-Bradenton, Fla. | 25.21 |
| Total U.S. | 16.29 |
| Total MSA Locations | 18.30 |
| Total non-MSA Locations | 8.08 |
| Bottom 20 MSAs by Gross Leasable Area (GLA) |
|---|
| New York, N.Y. | 4.91 |
| McAllen-Edinburg-Mission, Texas | 6.43 |
| Corvallis, Ore. | 6.71 |
| Jersey City, N.J. | 7.00 |
| Yuma, Ariz. | 7.23 |
| Longview-Marshall, Texas | 7.51 |
| Yuba City, Calif. | 8.52 |
| Lawton, Okla. | 8.70 |
| Jackson, Mich. | 8.84 |
| St Cloud, Minn. | 9.11 |
| Las Cruces, N.M. | 9.11 |
| Merced, Calif. | 9.60 |
| Hamilton-Middletown, Ohio | 9.66 |
| Yakima, Wash. | 10.02 |
| Anniston, Ala. | 10.06 |
| Sumter, S.C. | 10.07 |
| Sheboygan, Wisc. | 10.10 |
| Steubenville-Weirton, Ohio-West Va. | 10.29 |
| Killeen-Temple, Texas | 10.42 |
| Green Bay, Wisc. | 10.70 |
| Source: National Research Bureau, 2001 |
