2009-2013 YTD AVERAGE LAND SALE PRICE PSF* (2+ ACRES)
- Industrial development accelerated at a rapid pace in many U.S. markets over the past year. Over 65.3 msf of industrial product was under construction at the end of first quarter 2013. Newly constructed product also increased, finishing first quarter at 14.5 msf. Both of these marks are nearly double this time last year.
- Dallas leads the way with most sf under construction at 9.6 msf. However, when looking at just speculative development, the Inland Empire market in Southern California still dominates the market and accounted for 29.1% of the speculative construction that delivered this quarter.
- These two markets aren’t alone with large amount of construction. At the end of first quarter Chicago, Central New Jersey, Greater Los Angeles, Indianapolis, Phoenix, San Antonio, Atlanta, Houston, and the Pennsylvania I-81/I-78 Industrial Corridor all had over 2.0 msf under development.
- With increased development, there has been a significant increase in land values. The U.S. average price for closed land deals 2 acres and higher was $8.41 psf, over 9.5% higher than year-end 2012, and up 17.8% from year-end 2009.
- Every major industrial market posted increases in land value since 2009 and Atlanta had the largest increase over this time period with a 161% increase. Land value in land-constrained market such as Greater Los Angeles is the highest in the nation. This port market, together with the Oakland/East Bay market, posted the largest taking price in the nation, with an average of over $20 psf.
*Taking price. Sources – Cushman & Wakefield, Costar, RCA. Analysis includes markets tracked by C&W and Alliance offices.