Industrial market rebounds.

The first quarter of 2004 marked the long-awaited bottom of the national industrial market with sales up more than 33 percent over the previous year.

In addition, the availability rate held steady over 13 consecutive quarters, and new construction rose significantly during the year beginning at nearly nine million square feet during the first quarter, reaching a fourth quarter high of over 20 million square feet.

These among other findings were revealed in CB Richard Ellis' newly-launched report "Industrial Insights," a bi-annual publication compiled by CBRE Research which tracks the state of the national industrial market.

"The industrial market is unequivocally rebounding," said James Dieter, Executive Managing Director, North American Industrial Services. "In particular, there was increased leasing velocity and sales activity in ports and harbors where warehouses and distribution centers are operating at record capacity due to increased trade with China, retailers tripling their shipment schedules, and insufficient transport vehicles to move the influx of containers."

Other findings in the report include:

* Overall sales volume of industrial properties exceeded $19 billion for the year representing a 33.6 percent increase from 2003;

* Overall employment increased by 606,000 in the fourth quarter, bringing the 2004 total to 2.2 million new jobs, the highest annual increase since 1999;

* New jobs may no longer be the bellwether for the health of the industrial market;

* Significant net absorption occurred during 2004, in spite of forecasts warning otherwise;

* Advances in manufacturing processes and productivity allowed warehouse distribution centers to operate more efficiently without increasing labor costs.

* Leasing/sales activity in Los Angeles, Northern and Central New Jersey and Phoenix were among several markets that reported positive gains in 2004;

* Average prices for and price for warehouse properties were about 20 percent higher in 2004 from 2003.