Perspective
Southern California industrial markets are bifurcated again where each part of the LA, OC and IE market is going in a different direction based on micro market dynamics.
Vacancy rates can be highly skewed in the IE as there are multiple 1,000,000 SF properties going vacant and/or being leased in any quarter whereas in the OC it would take 40, 25,000 SF deals to equal one 1,000,000 deal in terms of its effect on vacancy and absorption figures. With all the lack of new construction in the pipeline, now is the time that a lot of investors are thinking that they will be hero's in a few years when we work through the inventory and there are now new building to bouy future upward pressure.
As you'll see below, we have the strongest and weakest market metrics from the across the country and all in our backyard all at the same time. In the graph below you'll see the IE on one end and LA and OC on the other end of health and wellness as far as market metrics go.
Lease Comps
Leases are getting signed right now despite what the news would tell you Here are the top lease comps of the last 30 days. Next month you're likely to see lease comps break the $1.00 PSF barrier on Class B & C buildings in supply saturated pockets in the IEE.
Sale Comps
Owner/users have come back in a major way. Here are the sale comps for the last 30 days above 10,000 SF. There is an equal amount in the under 10,000 SF size range that I can share with you upon request. Smaller buildings can trade anywhere from $350-$1,000 PSF based on location and orientation. Not only that, investors are starting to trade off market opportunities when there are compelling economics.
Your situation is unique. Whether you are buying, selling or leasing, it takes a tailored approach to reach your objectives in today's market. With a little advanced preparation we can help create the outcome you need as seamlessly as possible. Reach out to Grant, Chris or me to discuss how we can start adding value for you today.
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
Charts & visuals
