Industrial Insights - April 2022
Opening Statement
Blackstone is acquiring PS Business Parks' 27 million square foot portfolio across California, Florida, Texas, and Northern Virginia for $7.6 billion. The author notes that larger institutional investors often benefit tenants by facilitating moves within their extensive property holdings.
Successful E-Commerce Assignment Completed
The team assisted a major musical instrument distributor in securing an e-commerce distribution center. The search spanned the Inland Empire, Las Vegas, and Phoenix markets. Using a client portal dashboard, they negotiated "a $3,846,293 tenant improvement allowance" and coordinated with economic development to expedite permits.
1031 Exchanges
A client sold Southern California industrial property for $25 million and reinvested into five properties across California, Arizona, and Texas. The new holdings include single-tenant, triple-net leases with 10-20 year terms and cap rates of 5.75% or higher, featuring fixed 10% rental increases every five years. Three closings occurred that month at Laguna Beach and Scottsdale locations.
New Listing
A 3,843 square foot professional office in Irvine's Santa Ana section listed at $400 per square foot, formerly the startup location of a scaled automotive business.
Market Reports & Media
The team provides market analyses for Los Angeles, Orange County, Inland Empire, San Diego, and national markets. Author Justin Smith published "Industrial Intelligence: The Executive's Guide for Making Informed Commercial Real Estate Decisions," available in audiobook, paperback, and Kindle formats. A second book on industrial investments is underway with executive interviews included.