The Hundred's Report
We are seeing increasing activity in the 100,000 - 200,000 SF range throughout the Southern California market, with both expansions, subleases, consolidations and divestitures. The common perception is that Southern California Industrial is on sale this year. Maybe not an outlet mall or distressed sale, but a reversion to the mean at a minimum, and select bargains for those astute players. As a result we have focused on producing a market report solely for this size range across the major Southern California industrial markets for clients and look for your feedback to make these reports increasingly helpful for you. Download The Hundreds Report - Southern California Industrial - April 2025.pd f .
Submarket Dashboards
Here are hand crafted dashboards for each of the three major markets. Some of the biggest takeaways are the
Notable Deal
It was a huge honor to represent one of our longest standing customers in their Southern California expansion. We represent them across the United States in their 16 locations and performed an exhaustive search here where we were able to find suitable options in Southeast LA County, in North Orange County and in the Inland Empire West for both new and second generation construction. We were able to negotiate with all of the major landlords, some of which are our existing landlords elsewhere in the country, and arrive a finding the ideal location for serving customers, inbound cargo, proximity to team members and economically. A win all around. Here we secured a 5 year lease, with 8 months of half rent, $7 PSF tenant improvement package that results in the ideal work environment for office personnel, warehouse personnel and truck drivers alike.
Sizing Up Your Needs
Now knowing how to get the best combination of location, labor, transportation and inventory optimization is the never ending challenge. To help with that we are including insights from our partner Greg Hanoian of Raymond West. This can help us together figure out if it is worth stretching location to go from 30' to 36' clearance, or the other way around to get closer to the ports, at a risk adjusted rental rate. Here are three tables we put together in order to help you start to contemplate the initial size requirements for your next warehouse.
Looking Forward
What is next for you? We pride ourselves on relentless pursuit of excellence and love finding ways to bring executives visions to life. Whether you know exactly what you need and want in your next lease contract or property purchase, or you need a guide to help you uncover what size, pallet position count, throughput, which 3PL to work with, acquisition price, IRR or return metric, we're prepared to provide you with the tools, resources, and relationships necessary to make the most informed decision possible. Give us a shout!
P.S. We'll be reporting on the Prologis, Rexford and First Industrial earnings calls that are to take place Wednesday and Thursday this week.
Best Regards,
Justin Smith, SIOR MBA, MRED, MCR, MSCM Candidate Senior Vice President | Principal Lee & Associates | Irvine
D 949.790.3151 C 949.400.4786 O 949.727.1200 jbsmith@lee-associates.com (mailto:jbsmith@lee-associates.com) ____________________________________
Corporate ID 0104791 | License ID 01504494 9838 Research Dr. Irvine, CA 92618
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