Real Estate Overview - 2nd quarter 2012

El Paso’s industrial real estate market is comprised of 54.5 MSF stretching from Santa Teresa, New Mexico in the west to Socorro, Texas in the east. The main industrial areas follow Interstate 10 and are clustered around the three main Ports of entry into Cd. Juarez, Mexico and the El Paso International Airport. The market is comprised of a 70/30 mix of warehouse and manufacturing operations, most with a direct relationship to the maquiladora industry across the border.

El Paso’s economy continues to perform well, driven by the growth of Ft. Bliss and the rebound in the manufacturing industry in Cd. Juarez, Mexico. There are several large infrastructure projects underway in the city including two interstate interchanges on the west and east ends of El Paso, the Guadalupe/Tornillo international Bridge in Fabens, TX and Union Pacific’s intermodal switch yard in Santa Teresa, NM.
 

Gross absorption was a healthy 874KSF, which compares favorably to recent quarters and well above the 646 KSF gross absorption figure from the first quarter of this year and the quarterly average of 513 KSF in 2011. Demand for industrial real estate came from many industries in the second quarter but the vast majority of leases were for warehouse and logistics use.

 

Industrial Market Statistics

Market

Rentable Area SF

Vacancy Rate %

Availability Rate %

Net Absorption SF

Under Construction SF

NNN Average Asking Lease

Rate $/PSF/YR

West

7,365,204

2.7%

5.5%

46,000

0

$3.70

Northeast

9,002,447

23.8%

27.5%

(30,689)

0

$3.25

Central

13,768,564

7.0%

8.3%

0

0

$3.10

East

18,155,160

17.6%

18.9%

(100,307)

0

$3.75

Lower Valley

6,252,169

25.2%

25.4%

(29,129)

0

$3.75

Totals

54,543,544

14.4%

16.6%

(114,125)

0

$3.50

 

El Paso’s industrial real estate market recorded the highest gross absorption figure in the second quarter since the fourth quarter of 2008. There was a total of 874 KSF of space absobed in the last three months.

 

Source: 2012 2nd Quarter Market Summary El Paso, Texas / Cd. Juárez, México. CB Richard Ellis
Updated: October 2012.

OCCUPANCY STATISTICS

Industrial Property Statistics 2006-2011

 

2006

2007

2008

2009

2010

2011

Inventory (Square feet)

57,850,000

58,690,500

59,800,250

56,800,000

57,167,967

57,520,650

Occupancy (in percent)

92.6%

93.8%

91.5%

90.5%

87.5%

85.5%

Net Absorption

1,250,000

1,560,000

1,026,000

1,758,000

723,661

570,000

Rental Range (per square foot)

$3.30-$6

$3.45-$6

$3.45-$5.85

$2.75-$4.20

$2.75-$4.15

$2.55-$4.10

Source: Sonny Brown Associates, LLC.

Updated: February 2012.

 

Office Property Statistics 2006-2011

 

2006

2007

2008

2009

2010

2011

Central Business District (CBD)

Inventory

2,862,888

3,120,560

3,368,325

3,930,650

3,975,450

4,135,000

Occupancy (in percent)

72.4%

76.0%

80.3%

76.0%

82.0%

85%

Net Absorption

62,000

85,000

135,000

65,000

78,000

55,600

Outside CBD

Inventory

6,175,320

6,585,500

6,785,000

7,485,500

7,682,087

7,765,350

Occupancy (in percent)

82.5%

91.0%

89.7%

89.0%

90.0%

91%

Net Absorption

165,700

220,000

195,350

175,440

186,000

164,565

Total

Inventory

9,038,208

9,706,060

10,153,325

11,416,150

11,612,737

11,891,350

Occupancy (in percent)

74.8%

80.9%

81.3%

82.3%

84.0%

88%

Net Absorption

42,920

223,000

330,000

187,000

224,690

194,400

Rental Range (per square foot)

$10-$18

$12-$20

$12-$22

$12-$23

$12-$22

$12-$22

Source: Sonny Brown Associates LLC.

Updated: February 2012.

 

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