Happy New Year. There are quite a few new developments in the market of note. Let me know how I can help.
OC / LA Industrial Market Update
In Orange County, competition is high among companies in search of a sizable footprint, as the inventory skews smaller than in neighboring Inland Empire and L.A., which can both accommodate a more significant industrial presence. While a few sizable projects have recently delivered, there is little left in the pipeline that could accommodate a large user.
- The former Kimberly Clark Site in Fullerton is the next largest new industrial development in the OC/LA market delivering three +/-300,000 SF Class A warehouses that can be subdivided as needed. The 65 acre project isn’t expected to be delivered until 2021 but is open to negotiations now and is ideal for last mile e-commerce.
- The former JP Penny site in Buena Park was the only 1,000,000 SF availability in all of OC/LA County. A lease was just signed on the entire space by UNIS Systems. CubeWork currently has up to 100,000 SF of sublease space available.
- The Shea Business Center has a new project with multiple different size ranges in Santa Ana just north of the 55 freeway in between the 5 and 405. Sizes start at 24,165 and there is a total of 500,000 SF being delivered in March 2020.
- Small multi tenant industrial spaces are being built for the first time in 15 years. The Los Patrones Business Park is located in Rancho Mission Viejo to support all of the new homes being built on Ortega Highway. Sizes start at 1,824 SF up tp 8,383 SF and delivered May 2020.
What’s your building worth for lease or sale? What is the market for renewing your lease? How many buildings are available? Why are rates so high? These are questions I can help you with.
Detailed market report for your download here. Call me for the Industrial Capital Markets report.
OC / LA Office Market Update
Strong leasing and the backfilling of larger spaces has kept vacancies below the historical average where it sits today at 10.0%. WeWork has largely stopped leasing space, is actively selling off it’s recent office service acquisitions and is in some cases giving space back to right size their portfolio. There is no surprise that there was a decrease in their leasing after their recent shakeup as tenant’s were unsure of the outcome but that is expected to resume.
- The Irvine Company is building Phase 2 of the Spectrum Terrace project, with steel in the ground as we speak. Alteryx leased 116,241 SF in Phase 1. Phase 2 consists of two, four story buildings, and one, three story building, each totalling +/-114,000 SF. The food hall and amenities here are first class and unparalleled.
- The Press is the long anticipated conversion of the old LA Times warehouse into an expansive 380,856 SF creative office complex near South Coast Plaza. Deliver is expected March 2020 although if you went there today you would see there is plenty of work to do.
- The Source H2O is a smaller two story development being built by the Irvine Ranch Water District and home to 69,968 SF of creative office. Walls are tilted, roof is on, exterior is partially completed with interior improvements to come. Completion expected April 2020.
Is Class A office worth it in this market? What kind of improvements should I expect in my new space? How much is my rent going to go up? What can I do about it? These are questions I can help you with.
Detailed market report for your download here. Call me for the Office Capital Markets report.
Team Up
I’m working on a content series for clients interviewing all of the top space planners, architects, general contractors, supply chain consultants, material handling consultants, roofers, HVAC vendors and more. These are all people that we team up with when it’s time to help you buy, sell or lease your property. Be on the lookout for the interviews soon as the first 10 are being formatting as we speak.
Let me know what’s on your mind and I’d be happy to connect and collaborate with you. I’m happy to help!
949-790-3151
jbsmith@leeirvine.com
