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Listed for Sale by Ron Mgrublian and Jeff Coburn, the ±10,208 SF Long Beach Warehouse property recently sold. 

The Long Beach Industrial Submarket vacancy rates remain 41% below those of the Los Angeles Industrial Market, CoStar has the average Long Beach Market Sale Price at $367 PSF.

Ron Mgrublian is a Commercial Real Estate Broker focusing on Industrial Real Estate and Warehouse Properties with the Lee & Associates Los Angeles – Long Beach, Southern California office.

The unique ±2.55-acre site in Unincorporated San Bernardino County between Pomona, Chino and Ontario, CA leased to a local truck body and van equipment company.

According to CoStar there is little industrial land available in the submarket, leading to less activity in this area than the larger markets to the East.

Ron Mgrublian is a Commercial Real Estate Broker focusing on Industrial Real Estate and Warehouse Properties with Lee & Associates in the Southern California area.

Slowing Inflation and a Growing Economy is a positive sign for Q2-2023.

The San Gabriel Valley Industrial Market remains robust.

Some easing of demand in the 2nd quarter of 2023, see below for more.

Every key metric typically used to measure the health of the economy is performing well right now. GDP grew by 2.0% in Q1, and it is estimated to grow by 2.3% in Q2 by the Atlanta Fed . In terms of employment, over the last year the U.S. added 3.8 million jobs and now has an unemployment rate of 3.6%. With regard to inflation, both headline and core inflation are
trending downward. The Consumer Price Index (CPI) rose by 3% year-over-year in June and 0.2% for the month, below consensus estimates of 3.1% and 0.3%. This was the lowest rate of inflation since March 2021. And core inflation, which excludes food and energy prices, rose by 4.8% year-over-year and 0.2% for the month. The annual core inflation level was
the lowest since October 2021, and its monthly gain was the smallest gain since August 2021.

Most economists, forecasters, and business leaders are anticipating that the Fed will continue to raise rates throughout the year until it reaches its target inflation rate. For this reason, most forecasters still believe a mild and shallow recession is likely within the next twelve months. However, a significant minority are anticipating that the US economy will avoid a recession altogether. For example, in its latest forecast, the National Association of Realtors has the economy growing slowly every quarter throughout 2023 and projects the economy to grow by 1.1% for the whole year. 

Regardless of one’s stance on this issue, it is indisputable that the industrial market is in a favorable position to weather most headwinds the economy might face. Total retail sales grew by 1.6% in May 2023 compared to the same period a year ago , and as a percentage of total sales, e-commerce retail sales (one of the key drivers of the industrial sector) now stand at 15.1% – 3.9 percentage points higher than where it stood at its peak prior to the pandemic in Q4 of 2019. With this said, available space continues to increase and there has been a growing sentiment regarding a shift in negotiating power from Landlords to Tenants

• Fenced yard

• Light Industrial uses

• Water and power available

• Prior Tenant Parked Trucks

• Close to 10 and 210 Freeways

Large Fenced and Paved Gated Yard

Dock High Loading

14'-17' Clear Height

Free Standing Building

High Visibility

Close to 91 & 710 Freeways

• Former Food Facility

• Warehouse Floor Drains

• One (1) Ground Level Doors

• Fenced / Paved Yard

• Licensed Cannabis Use Possible at Higher Lease Rate

• Close Proximity to Freeways and Ports

• Perfect for Contractor Yard

• Light Industrial Uses

• Block Wall to be Built

• Fenced Yard

• Close to 10, 71 and 60 Freeways

• Fenced yard

• Light Industrial uses

• Water and power available

• Prior Tenant Parked Trucks

• Close to 10 and 210 Freeways

For the first time in a long time a change in the market materialized in the 1^st quarter of 2023 in the Los Angeles – Long Beach Industrial Real Estate Market.  It appears that lease rates may have hit their ceiling for now.  The level of leasing activity in Q1 of 2023 dipped to levels not seen since 2006.  Despite the drop in activity demand for Industrial space remains at top levels and a struggle between historically high rates and the need for space is likely to play out over the next 18 or so months.