Industrial Real Estate - Owner/User Market Update
Owner/users are business owners who own industrial real estate specifically for their primary business. This method of buying property for your business operations is the classic move for business owners with a stable footprint, excess capital, and mission-critical facilities. Mission critical often means headquarters and manufacturing plants. The golden parachute for many business owners is to sell their business one day, keep the industrial property they purchased, and lease it out to the company that once ran. This outcome provides for the ultimate tenant and retirement in that you are familiar with the business in the building, and you have passive income on a triple net lease.
In today's market cycle, most institutional buyers are sidelined because they cannot forecast rent growth and exit caps. This tepid institutional demand is due to a modest leasing market and a drop in lease rates. This lack of institutional acquisition velocity represents an opportunity for you, the business owner, to find and purchase a property for your business. Below is the list of industrial properties that came to market just this month for sale, primarily for owners/users. That means that prices are more affordable and there are more options available. While this list looks long, it is still modest for a market of some 2 billion square feet. That said, lenders are still more bullish on industrial than virtually every asset class, and the appetite of the SBA for first-time buyers is strong.
Industrial For Sale - New Listings in March
Industrial Lease Comps - New Comps in March
For those business owners, who continue to lease, it's important to stay on the pulse of the leasing market. Lease deals are happening despite the headlines and there are countless more lease renewals that are taking place that are not public or reflected in this month's numbers. Below are this month's newest lease comps.
What's your next move? Whether you are looking to buy, sell, lease or renewal your next property, we can help. Email me back with what you need so we can prepare a high level strategy for you and start digging up new property opportunities.
Best Regards,
Justin
Justin Smith, SIOR
jbsmith@lee (mailto:jbsmith@lee-associates.com) irvine.com (mailto:jbsmith@leeirvine.com?subject=Newsletter%20Follow%20Up)
949.400.4786
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