Industrial Insights – October 2019 – LA/OC/IE

Market Reports

Happy days as kids get back in school, the temperatures decrease and everybody is focused and making progress.

Q3 Trends

Industrial Sale Comps – Lee & Associates is the top Sales company overall this quarter! Bread and butter deals are trending around $200 PSF, $2,200,000 and cap rates have compressed where 6% caps are hard to come by now and the norm is a 5% cap.

Industrial Lease Comps – 505 industrial leases this last 90 days. 18,000 SF in the airport will run you $1.15-$1.25 PSF based on the leases I’ve been working on last week. Building out office space and renovating old office space to modern is coming in around $65 if you are starting from shell.

Office Sale Comps – 89 office properties sold within the last 90 days. PSF is all over the map with properties trading in the $200, $300, $400 and $500 PSF ranges depending on size, location and condition. Cap rates are still hovering in the 6-7% range based on older stock that is in need of renovation.

Office Lease Comps – 875 office leases signed this last 90 days. Most properties I’m seeing are Class B two story office leases ranging around $2.25 PSF Full Service Gross and Class A mid rise office properties running around $3.10 PSF Full Service Gross.

Medical Lease Comps – Only 65 medical leases within the last 90 days. This is typical as the medical office leasing inventory is smaller, slower and has longer term commitments. Class B 2-3 story product is ranging from $2.00-$2.50 Full Service / Modified Gross. Brand new construction is leasing around $3.25 NNN.


Gensler Design Guide

Every year Gensler and many of the top architectural firms release design guides for brokers to stay on the cutting edge of workplace design. I love looking through this every year for inspiration for office designs. Get you guide here. The moral of the story is that using your office design as a tool to help build a positive culture and attract talent continues.

Done Deals

I’m happy to report we signed the lease on the 2752 Walnut Ave, Tustin property. We were able to get the credit company the family partnership was seeking, with a corporate guarantee from a Fortune 1000 company. for a 5 year term. This was another great example of being in the middle of multiple generations, layers of corporate management, working through space planning, architectural design, contractor bids, outside counsels, in house counsels, finance departments, cooperating brokers, city planners, and lease comments and finding a way to thread the needle so that everybody wins. Construction begins immediately.

Active Listings

Here is a quick recap of my current listings and links to all follow up brochures, information, floor plans, etc.:

We have a few industrial office market opportunities for sale at present from $5,000,000-$12,000,000. Let me know if you are a player in this space.

Marathon – Golden Ultra 50k

If you’ve made it this far into the newsletter you might feel as though you’ve ran a marathon. I ran my second trail marathon this year on the 21st of September in Golden, British Columbia, Canada. You can see photos and details here: This was 31 miles up, around and down a beautiful section of the Canadian Rockies. Official race photos will be available next week. This was another great opportunity to practice mental toughness, to stay focused on a goal, and mostly to be active in the great outdoors. Happy to share race stories!

Let me know if I can be of assistance with your properties, leases and real estate matters. I’m happy to help!