Fall Update + CRE Office Design Guide
Q3 Trends
Industrial Sale Comps
Lee & Associates led in sales this quarter. Standard deals hover around $200 per square foot and $2.2 million in value. Cap rates have tightened considerably, with 5% becoming the norm and 6% caps becoming scarce.
Industrial Lease Comps
Five hundred five industrial leases signed in the past 90 days. Airport space near 18,000 SF ranges from $1.15-$1.25 per square foot. "Building out office space and renovating old office space to modern is coming in around $65" per square foot from shell condition.
Office Sale Comps
Eighty-nine office properties sold recently. Pricing varies significantly by size, location, and condition, ranging from $200-$500 per square foot. Cap rates remain in the 6-7% range for older stock needing renovation.
Office Lease Comps
Eight hundred seventy-five office leases closed in 90 days. Class B two-story properties average $2.25 per square foot full service gross. Class A mid-rise properties command approximately $3.10 per square foot full service gross.
Medical Lease Comps
Only 65 medical leases in 90 days, reflecting slower, smaller inventory with longer commitments. Class B space ranges $2.00-$2.50 full service/modified gross. New construction leases at approximately $3.25 NNN.
Gensler Design Guide
Architectural firms annually release design guides highlighting workplace trends. The focus remains on office design as "a tool to help build a positive culture and attract talent."
Done Deals
A lease was completed for 2752 Walnut Ave in Tustin with a Fortune 1000 corporate guarantee for five years. The transaction involved coordinating multiple stakeholders across generations, management layers, design, contractors, legal teams, and city planning.
Active Listings
Industrial, office, medical, retail, and land properties currently available, ranging from small suites to multi-million-dollar assemblages across California and Texas.
Marathon
The author completed a 31-mile trail marathon in Golden, British Columbia, emphasizing mental toughness and outdoor engagement.