30Jul

The 2nd quarter economic report features insight on U.S. GDP, employment, monetary policy & global outlook.

GDP Growth: Q2 2024

  • U.S. GDP grew at a 2.8% annual rate in Q2, up from 1.4% in Q1.
  • Growth driven by increased consumer spending, business investment, and inventory growth.
  • Consumer spending rose by about 2%, especially in health care, housing, recreation, and durable goods.
  • Business investment increased, particularly in equipment and intellectual property.
  • Inventory growth was notable in wholesale and retail trade, offset by declines in mining, utilities, and construction.
  • Gross domestic purchases prices increased by 2.3%, down from 3.1% in Q1.
  • Excluding food and energy, prices increased by 2.5%, down from 3.3% in Q1.
  • Personal consumption expenditures price index increased by 2.6%, compared to 3.4% in Q1.
  • Current-dollar personal income increased by $237.6 billion, down from $396.8 billion in Q1.
  • Real disposable personal income growth slowed, and the personal saving rate decreased to 3.5%.

Employment: Q2 2024

  • 206,000 jobs added in June, with a slight rise in the unemployment rate to 4.1%.
  • Labor force participation rate increased to 62.6%, driven by prime-age workers.
  • Wage growth slowed, with average hourly earnings rising 0.3% from May and 3.9% year-over-year.
  • Job growth mainly in government and healthcare sectors.
  • Private sector payrolls slowed, with gains in construction offset by declines in manufacturing.
  • Job openings rose to 8.14 million in May, but a cooling trend is expected.

Monetary Policy: Q2 2024

  • Federal Reserve left the overnight federal funds rate unchanged.
  • Potential for at least one interest rate cut in 2024 remains.
  • Disinflation resumed, with CPI inflation falling to 3.3% in May.
  • FOMC held rates steady, awaiting further evidence of returning inflation to the 2% target.
  • Financial markets expect a 0.25% rate reduction in September.
  • Labor market showed better balance between supply and demand, with nominal wage increases trending down.

Global Economy: Q2 2024

  • IMF forecasted global growth at 3.2% for 2024 and 3.3% for 2025.
  • U.S. growth revised to 2.6% for 2024, slowing to 1.9% in 2025.
  • Euro area expected to see modest growth driven by services and net exports.
  • Japan's growth outlook revised downward due to supply disruptions and weak investment.
  • Stronger activity in emerging markets, especially China (5% growth forecast for 2024) and India (7%).
  • Latin America faced downward revisions for Brazil and Mexico due to natural disasters and moderating demand.
  • Middle East and Central Asia impacted by oil production cuts and regional conflicts, with notable downward revisions for Saudi Arabia and Sudan.
16Apr

The first quarter 2024 industrial real estate market report is out for the greater Los Angeles area.

Here are a few of the important points from the quarterly update on the greater Los Angeles industrial real estate market: 

  1. Market Conditions:
    • Vacancies and availability increased across all submarkets.
    • Lease rates experienced a decrease.
    • Sales and leasing activity hit historic lows.
    • Construction starts diminished.
  2. Employment and Wage Trends:
    • Unemployment rate fell to 3.8%, with a slight increase in labor force participation rate.
    • Average hourly earnings rose by 4.1% year-over-year, surpassing inflation.
  3. Inflation Concerns:
    • Inflation measures remain elevated, with growing worries that the disinflation process has stalled.
    • CPI report indicates inflation surpassed forecasts, with both month-over-month and year-over-year increases.
  4. Economic Growth:
    • Economy grew by 2.5% on an annual basis at the end of 2023.
    • Forecasted GDP growth for Q1 2024 is around 2.4%.
  5. Investor Sentiment and Market Behavior:
    • Cautious investor sentiment due to uncertainty over potential federal interest rate cuts and geopolitical challenges.
    • Opportunities for owner-occupiers to acquire buildings with less competition from institutional investors.
    • Smaller buildings sought after via SBA loans and conventional financing, but with stringent oversight from lenders.
  6. Tenant Trends and Industrial Real Estate:
    • Lease renewals becoming more prevalent among tenants.
    • Tenants increasingly subletting unused space.
    • Despite market corrections, industrial real estate remains sought after, driven by barriers-to-entry and demand for newer, functional space in infill Southern California markets.

The report ends with a note that the Port of Long Beach and Port of Los Angeles are seeing higher volumes.  With West Coast labor concerns resolved and issues at the Panama Canal (drought), Red Sea (safety), East Coast labor negotiations and now Baltimore (FSK Bridge Collapse) expect this trend to continue.

16Nov

Ron Mgrublian – Lee & Associates Los Angeles | Long Beach will provide a complimentary valuation report for your commercial real estate property!

Provided it’s in the database, Ron Mgrublian – Lee & Associates will provide a free valuation report for your commercial real estate property. Even amidst the complexities of the current lending climate, it's important to note that the demand for Industrial Real Estate Properties remains remarkably high. This knowledge becomes particularly valuable for those individuals who have a remaining loan term of two years or less. 

Understanding the nuances of the market and its unwavering demand for industrial properties despite the challenging business & lending environment is pivotal. Ron Mgrublian and the adept professionals at Lee & Associates are here to offer their expertise, ensuring you receive valuable insight that is instrumental in making informed decisions about your commercial real estate property. Whether you're assessing your property's value for refinancing, selling, or strategic planning, these insights provide a valuable edge in navigating the dynamics of the commercial real estate market. 

To receive your report, please use the contact form, call, text or email me.

15Aug

The ±10,208 Industrial Building Recently sold in the Highly Sought-After Long Beach Business Park

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.

02Mar

The ±40,000 SF Industrial Warehouse Space Available in Inland Empire West is now leased!

TERM: 1 Year, Month to Month Thereafter

• ESFR Sprinkler System

• 1-2 Docks Shared

• Office & Bathrooms Possible

• Dead Storage Okay

• High Functioning Property

• Great Strategic Location

• Minutes to 10 and 15 Freway

14Feb

The Los Angeles - Long Beach Industrial Real Estate Market Report for the fourth quarter of 2022.

The Los Angeles industrial real estate market is one of the most active and sought after in the United States. It is a diverse market, ranging from smaller facilities to large, modern distribution centers. The demand for industrial space in Los Angeles has remained strong due to the city's strategic location, growing population, and thriving economy. The Los Angeles industrial real estate market has also benefited from the rise of e-commerce, as online shopping has led to an increased demand for warehouse and distribution facilities. While the COVID-19 pandemic has had an impact on many industries, the industrial sector has remained resilient, with strong leasing activity and a stable vacancy rate. Overall, the Los Angeles industrial real estate market presents many opportunities for investors, developers, and tenants alike. 

The Los Angeles industrial real estate market in the fourth quarter of 2022 was strong, with robust demand and limited supply leading to higher rental rates and lower vacancies. The e-commerce sector continued to drive demand for warehouse and distribution space. Overall, the market was characterized by a favorable balance between supply and demand, with positive outlook for the future.

09Feb

The fourth quarter 2022 report for the San Gabriel Valley Industrial Real Estate Market.

The San Gabriel Valley industrial market in the fourth quarter of 2022 continued to perform well with low vacancy rates and rising rents. In the 1st quarter of 2023, it is expected to continue this trend with growing demand for industrial space from various industries, such as e-commerce, logistics, and manufacturing. The San Gabriel Valley's strategic location, close proximity to the ports of Los Angeles and Long Beach, and excellent transportation infrastructure make it an attractive location for businesses. 

Overall, the San Gabriel Valley industrial market in the 4th quarter of 2022 remained strong, with ongoing demand and limited supply driving up rents and pushing down vacancy rates.

06Dec

What caused the Supply Chain Crisis, what happens next and when will it be over?

Back in July I wanted to get a new mountain bike.  I visited a few stores and called around and was told maybe next year.  I know those who are looking for new cars are experiencing the same issue.  And windows and dishwashers and so on and so on.  The report explores why this is happening and how long it will last.

18Nov

The property at 11600 Western Ave in Stanton California sells for $321.35 Per Square Foot.

19Aug

Despite record low inventory Ron Mgrublian & Patrick Reddy were able to successfully find an exchange in the highly sought after Pasadena, California market.

Representing the Seller on the sale of 15343 Illinois Ave in Paramount, California, Ron Mgrublian was able to successfully find the Upleg portion of the 1031 Exchange for his client.  The property at 2094 E. Foothill Blvd in Pasadena, CA was identified with the assistance of Patrick Reddy of the Lee & Associates LA North office.  For more information contact Ron Mgrublian.

20May

The Orange County Industrial Real Estate Market Report for the 1st Quarter of 2021 showed continued gains in rents and sales prices.

The 1st Quarter of 2021 showed continued strength in the Industrial segment of Orange County Commercial Real Estate.  As the report shows, low inventory and strong demand led to another quarter of new highs in sale prices and lease rates.  Click here for full report.

21Apr

The Commercial Real Estate Industrial submarket of Los Angeles, California in the San Gabriel Valley saw impressive gains in leasing and sales in the 1st Quarter of 2021.

The San Gabriel Valley saw impressive gains in leasing and sales activity in the 1st quarter of 2021 in the Industrial Commercial Real Estate segment.  The top lease was a 572,240 SF transaction in El Monte and top sale a $33M deal in Pasadena.  Click below for full report.