LA Northwest Market Update.
The Los Angeles county industrial market remains the tightest in the country – Xceligent Research. Despite seeing a continual feeding frenzy for industrial property, the market inventory has increased — by 0.1%. With the only new product coming online in Valencia and Simi Valley, San Fernando Valley industrial property values continues to grow by leaps and bounds.
The newest trend in the warehouse world is “Creative Rehab” which turns the dated heavy industrial brick construction into warehouse/office conversions. These properties are complete with polished concrete floors, modern lighting, full A/C, and a kitchen that would make your home jealous. It also comes with a hefty price tag of nearly $1.40 NNN per square foot for over 10,000 sq.ft. of space. In comparison the competitive market rate is between $1.15-$1.20 NNN per square foot.
Land within the Valley will continue to disappear as Overton Moore Properties’ newest project will remove land from Burbank Airport adjacent parking lots. Effectively displacing many entertainment studio vehicles and other related companies. Sending land hungry companies into Sun Valley, Sylmar, and San Fernando.
Bottom line – my opinion is lease rates will increase and sale price to follow suit.
To see Xceligent full report click HERE.
LA Northwest Market Update
Los Angeles Northwest region maintains continued low vacancy rates with only .1% increase in available space for warehouse and distribution totaling 1.1%. Direct Weighted Average Asking Rates (NNN) increased by $.01 to $.75 for warehouse and distribution but remained the same for flex property at $1.09. Unemployment also dropped for California.
In my opinion lease prices will continue at current market however sales prices will increase as users contemplate equity involvement in properties.
To see full report from Xcelligent click HERE.
Los Angeles Northwest region 4th quarter recap.
Los Angeles Northwest region continued fierce competition through the fourth quarter with a .1% drop in vacancy rates totaling 1% now available. Weighted Average Asking Rent (NNN) increased $.01 per square foot from 3Q bringing averages to $.81 (NNN). Current construction by submarket showed LA Northwest in second place behind LA East. LA Northwest reported 1,104,333 sq.ft. while least-under-construction market LA Central showed 626,818 sq.ft. Lastly, LA northwest posted 100,029 square feet of Total Quarterly Net Absorption.
In my opinion lease rates and square foot prices will stay the same or increase as seen in Weighted Average Asking Rent (NNN) increase. No noticeable movement from increased financing rates as of yet. Additionally, with with such little inventory the pricing and values are highly compressed – Sellers market.
To see full report from Xcelligent click here or on photo. ***
Do you need more information or help regarding your commercial real estate? Call today and I’ll be happy to discuss your needs. I’ll even send you a free survey of available properties to help you value your property.
*** Data from sources deemed reliable however information not confirmed or warranted for accuracy. Prospective buyers/sellors/lessors/lessees must do their own research.
Industrial market recap 3rd quarter 2016.
“The market is tight,” a standard saying being used around the Los Angeles marketplace for industrial property. Lease rates are increasing. Sales prices increasing. Rates increasing. Will we see a slowing of commercial property demand compression? I don’t believe so… yet.
LA Northwest (SFV) Quick Facts
- # of Bldgs – 3,886
- Inventory (sf) – 122,565,449
- Total Available (sf) – 4,055,666
- Total Vacant (sf) – 1,391,225
- Total Vacancy Rate (%) – 1.1%
- Total Quarterly Net Absorption (sf) – 600,620
- YTD Total Net Absorption – 829,143
We continue to see heavy competition around industrial buildings for sale and lease.
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PS. If you’d like a free survey of available properties OR If you have questions regarding your industrial property for Sale or Lease please feel free to call 818-933-7113 to speak with Ryan.
*Data taken from Xceligent, Inc. 2016 Q3 Market Trends for full report click here. Although data is deemed reliable, Ryan McKenzie makes no warranties as to the accuracy of the information.