Industrial Insights - September LA/OC
Market Overview
Industrial markets are experiencing peak activity in 2020. Third-party logistics leads transaction volume at 27.8%, followed by e-commerce at 23.8% and general retail/wholesale at 19.4%. Rent growth projections over five years show Los Angeles at 40.6% and Orange County at 33.0%, indicating continued market strength despite pandemic concerns.
Prop 15 California Ballot Initiative
A detailed analysis examines the split-roll tax measure, which would modify Prop 13 protections for commercial properties. The real estate community warns that increased property taxes could be passed to tenants, potentially driving "downsizing, outsourcing, relocation out of state or automation." A comprehensive report breaks down the ballot measure's advantages and disadvantages.
New Activity
12250 Industry St, Garden Grove: An investment sale negotiated an early lease renewal, increasing rates from $0.62 to $0.86 per square foot NNN over five years with annual 3% escalations.
12825 Alondra, Norwalk: A 25,300 SF industrial property is available for sublease through April 2021, accommodating both short-term storage and longer-term arrangements.
2323 W La Palma, Anaheim: A 33,800 SF industrial property commencing January 2021 includes comprehensive renovations—roof replacement, seismic retrofit, new office space, and ADA-compliant restrooms.
10860 6th St, Rancho Cucamonga: PH Dental expanded into 26,506 SF for seven years to "manufacture PPE equipment locally."
Market Reports & Resources
Industry professionals can access detailed market analyses including the Lee National North America report covering 31 markets, Orange County industrial market data identifying major transactions, capital markets reports showing renewed investor activity, and national industrial market perspectives for strategic planning.
Upcoming Book
The Logistics of Leasing: The Tenant's Playbook for Industrial Real Estate seeks beta readers and connections with supply chain and warehouse automation consultants.