News
RECOVERY: HAVES & HAVE NOTS
August 13, 2012
| Despite the plodding pace of recovery for the US and California economies, OC industrial still has that leg up. Being a nexus of international trade has its perks, eh? (What, you thought the only perk was not needing to buy Rosetta Stone?) |
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| The OC industrial market has essentially recovered, 360 Commercial Partners prez and current JLL senior managing director Louis Tomaselli (with JLL’s Jeff Ingham) tells us. Moreover, it’s been that way for six to eight months, with 5% or less vacancy, and a lack of product in some places, such as blocks of over 100k SF. Industrial buildings for sale in the 20k to 50k SF range are also lacking. One thing that isn’t: buyers for investment properties—every time a core industrial asset comes on the market, there are 20 or 30 offers, Louis explains. (It's the 21st century version of courting a king's daughter.) JLL recently acquired 360 Commercial (which has local strengths inindustrial brokerage, and mid- and low-rise office building sales) to boost its presence in Southern California. |
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| Bridgeport Investment founding principal Randy Bramel tells us that in many of the best markets for industrial in California, market dynamics are improving and industrial product is being absorbed, while at the same time development, other than big boxes, has not occurred for several years. When purchasing partially occupied industrial space or non-performing loans secured by industrial real estate, the purchase price can still be below replacement cost. On the other hand, investors have been bidding up prices. |
