Blog #los Angeles

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.

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.

Pomona, January 27, 2023—Lee & Associates, one of the largest national commercial real estate providers with regional expertise, has closed a sales transaction for a 288,195 industrial building located 2875 Pomona Boulevard, Pomona, California. This property was the largest industrial real estate transaction in Pomona in 2022.  

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Measure ULA passed in the November election and it increases the transfer tax of real estate (commercial as well, not just residential) sold for $5 million and more which is located within the City of Los Angeles.  

The new tax imposes an additional 4% transfer tax for commercial properties valued $5 to $10 million and an additional 5.5% for commercial properties valued at $10 million or more. The tax applies even if the property is sold at a loss.

This new tax takes effect April 1st, 2023. To explore your selling options before this tax takes effect, contact me now.

Q3 2022 saw the economy start to slow but Industrial Real Estate remain tight.

Despite slowing sectors, record demand continues to drive sale price and lease rate growth.

Low vacancy and high demand continued to drive higher sales prices and lease rates.

$44.39 price per square foot increase in sale prices and $0.37 psf (monthly) increase in lease rates year over year Q1 2022.  Click below for full report.

AVAILABLE: ±79,279 SF Land (±1.82 AC)

PRICE: $0.20 / SF Gross ($15,855.80 / Mo)

APN#: 1011-301-29-0000

TERM: 6 Months

ZONING: M1 

• Fenced Yard 

• 1,800 SF Building Included 

• Services Available (Water & Power) 

• Minutes Away From 10, 60, & 71 Freeways

The Los Angeles / Long Beach Industrial Real Estate market experienced more of the same, high demand and low supply.  Sale prices and lease rates for warehouses and industrial properties continue to set all time highs.  Click below for full report.

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.