27Oct

The 3rd quarter Industrial Real Estate Market report for Orange County.

The demand for industrial space from tenants in the third quarter showed a continuous decline, with the Orange County Industrial Market experiencing a negative net absorption of 848,736 square feet. This negative absorption is the most significant since the first quarter of 2019. Furthermore, it marks the third consecutive quarter of contraction, resulting in a total negative absorption of 1.8 million square feet for the year. Countywide, the vacancy rate increased by 40 basis points, reaching 3%, the highest it has been in the past 10 quarters. 

Despite these challenging trends, the average rent for industrial spaces has seen an 11% year-over-year increase. However, Lee & Associates' agents have observed a growing trend of landlords offering concessions on new lease agreements and lease renewals. This shift in landlord behavior suggests that they are becoming more attuned to the weakening demand in the market. 

While it may appear that leasing activity is on the decline, the industrial real estate market remains active. There is a notable presence of prospective buyer-users who remain undeterred by the rising interest rates. This indicates that even with the challenges posed by increased vacancies and negative net absorption, there is still considerable interest and activity in the market from those looking to purchase and utilize industrial spaces, especially in Orange County.

24Oct

The 3rd quarter, 2023 Los Angeles - Long Beach Industrial Real Estate Market Report shows an uptick in vacancy.

A prevalent and unifying trend has emerged in the industrial markets of Greater Los Angeles & Long Beach, Orange County, and the Inland Empire during the third quarter of 2023: an uptick in vacancy rates. This development has undoubtedly captured the attention of real estate observers, raising questions about the resilience of these markets amidst evolving economic conditions.

While it's true that asking lease rates and sale prices have moderated from their previous peaks, they continue to hover at historically elevated levels. This is particularly noteworthy in the realm of leasing, where the prevailing rates are higher than what has been observed in the past. The apparent contrast between increased vacancies and persistent high asking rates creates an intriguing narrative within these markets.

The question that naturally arises is whether this shift in vacancy rates is a direct consequence of the recent Federal Reserve interest rate hikes or if it's a temporary slowdown in the market's momentum. The answer to this query remains somewhat elusive, and much like the economic outlook itself, it is subject to ongoing observation and analysis.

One plausible hypothesis is that the impact of the Federal Reserve's interest rate hikes has yet to fully materialize. These hikes may have prompted businesses and investors to reevaluate their strategies, potentially leading to a pause in leasing and purchasing activities. The full ramifications of such monetary policy decisions often take time to ripple through the real estate sector.

On the other hand, it is equally plausible that the observed increase in vacancy rates is a transient phenomenon. Industrial markets are influenced by a myriad of factors, including supply and demand dynamics, economic cycles, and regional conditions. Short-term fluctuations are not uncommon, and they may not necessarily indicate a fundamental shift in the health of these markets.

As we move forward, close monitoring and analysis of these markets will be essential to provide a more definitive answer. Factors such as employment trends, trade activity, and consumer behavior will play a pivotal role in shaping the trajectory of these industrial markets. Whether the current situation is a harbinger of sustained change or a brief pause in the continued growth of these markets will be revealed in the coming quarters, offering valuable insights into the ever-evolving real estate landscape.

29Jan

Leasing Activity more than doubled in the San Gabriel Valley Industrial Market in the 4th Quarter of 2020.

An impressive comeback was led by the 3PLs, retailers, fast-food and automotive in the 4th Quarter of 2020 in the San Gabriel Valley Industrial Real Estate Market.  Click below for full report

27Jan

Industrial Real Estate was strong once again in the 4th Quarter of 2020 in Orange County.

Orange County posted the most annual tenant growth in five years as Industrial Real Estate continues to thrive despite the economic challenges of COVID.  Ecommerce continues to be a big driver, click below for full report.

30Oct

The 3rd Quarter of 2020 featured an increase commercial real estate sales and leasing activity.

Sales in the 3rd quarter of 2020 almost tripled in the Los Angeles/Long Beach Industrial Market and leasing activity picked up decreasing vacancy rates by 25%.  E-commerce will continue to pressure the availability of Industrial properties and warehouses for sale and for lease as the COVID-19 pandemic quickened the pace of change with consumer preferences.  Click here for full report.

23Oct

The 3rd quarter of 2020 saw continued rental rate growth and further reductions in the inventory levels in the San Gabriel Valley Industrial Market.

The vacancy rate continued its downward trend in the San Gabriel Valley, a submarket of the Los Angeles Industrial Real Estate Market, since peaking in Q1 of 2020.    Rent growth also continued its upward trend since dropping in Q4 of 2019.  Industrial Real Estate inventory levels remain low as interest rates continue to spur buying activity and COVID related consumer preference changes drive space demand from brick & mortar to e commerce & warehouse.  Click here for full report.

21Oct

The Orange County Industrial Real Estate Market bounced back in Q3 from the pandemic lows of the 2nd Quarter.

With the effects of the pandemic easing, activity bounced back in the 3rd quarter of 2020.  It remains a sellers market with the demand for purchasing industrial and warehouse space at all time high levels due in part to e commerce growth and low interest rates.  Leasing and rent growth continue to on an upward trend, albeit at lower growth levels than the past few years. Click here for more information.

30Jul

E-Commerce is one of the segments faring well in these times of COVID-19 as explained in the 2nd Quarter 2020 Long Beach - Los Angeles Industrial Real Estate Market Report.

While many parts of the economy are down right now, manufacturing, e-commerce and cold storage appear to be the segments doing well in Industrial Real Estate.  Though  vacancy rates remain at historic lows, there was a slight uptick from Q1 to Q2.  Lease rates however remained unchanged, CLICK HERE FOR FULL REPORT

30Jul

The COVID-19 pandemic has led to lower activity volumes and rates in the Orange County Industrial Market in the 2nd quarter of 2020.

COVID-19 drastically slowed Orange County Industrial Real Estate Market activity in the 2nd quarter of 2020.  Vacancy rates ticked up and a slight decrease in lease rates was experienced.  CLICK HERE FOR FULL REPORT

30Jul

The San Gabriel Valley Industrial Real Estate Market still saw an increase in lease rates in the 2nd Quarter of 2020.

Despite the situation with COVID-19, the San Gabriel Valley Industrial Real Estate Market saw a decrease in vacancy rates and an increase in lease rates with Industrial Properties in the 2nd Quarter of 2020.  The upward trend in rates is expected to continue as the effects of the virus subsides, but some re-trading is expected in the 3rd Quarter with Industrial Users.  CLICK HERE FOR FULL REPORT

24Apr

Recap of the 2020 1st quarter Commercial Industrial Real Estate Market activity for the Los Angeles - Long Beach area in Southern California.

COVID-19 has impacted the Los Angeles/Long Beach Industrial markets on the heels of another record breaking year in 2019.  Q1 saw a slight increase in the vacancy rate, but also an increase in the average asking lease rate.  Congress passed the Payroll Protection Program (PPP) and other programs designed to provide relief and 1031 exchange buyers received extended deadlines.  CLICK HERE TO READ THE FULL REPORT

23Apr

INDUSTRIAL REAL ESTATE MARKET OVERVIEW - Q1 2020

The vacancy rate rose in the San Gabriel Valley Industrial Market in first quarter of 2020.  New construction brought additional square footage to the marketplace adding over one million square feet.  It will be interesting to see how this new supply is absorbed as situation regarding COVID-19 continues to unfold.  Click here for more details.