Industrial Insights - November LA/OC Newsletter
Opening Message
The author presents forecasted industrial market trends, noting significant variation in rent growth projections. He observes that tenants renewing leases are facing increases of 10-40% amid pandemic conditions. Key demand drivers include e-commerce expansion, omnichannel fulfillment, third-party logistics, warehouse automation, and industrial coworking spaces.
Lease Rates
National market forecasts show surprisingly flat rental rates for the coming year. The author recommends that executives seeking space should consider locking in long-term leases now, potentially securing agreements with modest 3% annual increases before steeper growth emerges.
Sale Prices and Cap Rates
National industrial capital markets project modest price growth ahead. The author identifies a significant value-add opportunity: bringing multi-tenant industrial properties' lease rates up to current market rates. He actively seeks investment partnerships for such projects.
New Activity
2323 W La Palma, Anaheim: Completed a five-year lease on a 33,800 SF property at $0.90 PSF gross with annual increases and two months free rent.
12250 Industry St, Garden Grove: Closed a 46,363 SF single-tenant investment using a 1031 exchange buyer with cash funds.
Market Reports
Recent market analyses highlight strong absorption across major industrial markets including Southern California, Chicago, Dallas-Fort Worth, and New Jersey. Industrial coworking companies continue expanding, leasing large buildings for subdivision into smaller temporary spaces.
Upcoming Book
The author's book on industrial property leasing logistics is scheduled for March 15 release, developed with executives from major logistics firms.