Industrial Insights - October Newsletter
Opening Commentary
The industrial real estate market is experiencing unprecedented demand. CEO Hamid Moghadam of Prologis stated that industrial space is "effectively sold out." Competition is intense across all property sizes, with new lease terms emerging including annual rent increases of 4-5% and longer deal timelines.
Investment Opportunity
3501 W Segerstrom Ave, Santa Ana, CA
A 66,600 square-foot freestanding industrial building in South Coast Metro is available for $21,000,000. The property offers multiple strategies: purchase and hold, renovation and repositioning, expansion to 90,000 SF, or construction of a new Class-A distribution center. Offers are due November 5th at 5 PM PST.
1031 Exchange Transactions
A long-standing client successfully exchanged a portfolio of 7 Southern California industrial properties into 10 properties in business-friendly states. Recent closings include properties in San Antonio (Texas), Aurora (Colorado), and Beaver Dam (Wisconsin) with lease terms ranging from 20-25 years and cap rates between 6-6.33%.
Team Addition
Chris Vassilian has joined as a new team member. He holds a business administration degree from UC Irvine and is pursuing a Master of Finance degree while focusing on business development and off-market industrial deals.
Resources
Market reports available for Los Angeles County, Orange County, Inland Empire, San Diego, and nationwide industrial markets. The team's book and podcast series on industrial real estate are also available.