Industrial Value-Adds Hot
Avison Young principal Dan Vittone, in the Irvine office (snapped with colleague Alan Pekarcik), tells us that last year, industrial sales activity in Orange County remained fairly stable, with a total of 7.23M SF changing hands, compared with 7.32M SF in 2012. He chalks that slight drop in activity to the lack of supply in some size ranges, and especially in the 40k SF to 60k SF. “That’s putting upward pressure on pricing.”
Despite the tightness in some sized assets, there are still opportunities to do value-add deals the OC industrial market, Dan says. Recently he and Alan, along with Voit Real Estate’s Sam Olmstead, repped seller Pacific Systems and buyer Burke Real Estate Group, in the sale of 45k SF 17392 Daimler St in Irvine. Alan says that the buyer intends to renovate the property, formerly occupied by Fidelity National Title, and take it to market for lease or for sale.
