From Xceligent report: See full article HERE
With a slight uptick in vacancy totaling 1.5% for warehouse distribution, landlords continue to reap the benefit. However, while sale prices are still high, Sales Volume has had a significant decrease over last year’s 3Q. Are prices going to drop? Demand continues to remain high, however pricing may have outpaced consumers.
See Xceligent report HERE
The new development on the old airport land…
From Burbankca.gov – See Below
The proposed “Avion” project would construct a business park on approximately 60 acres of vacant land adjacent to the Burbank Bob Hope Airport consisting of the following components:
- Six buildings two stories high for industrial/warehouse uses totaling 1,014,887square feet;
- Nine buildings two stories high for creative office uses totaling 142,250 square feet;
- Two buildings one story high for retail/restaurant uses totaling approximately 15,154 square feet;
- One hotel with 166 rooms;
- Complete site improvements related to the project including utilities, drainage, paving, landscape, lighting, etc.
- Extend, improve, and dedicate Tulare Avenue west of Hollywood Way;
- Extend, improve, and dedicate Kenwood Street south to the future Tulare Avenue.
The project site is located at 3001 N. Hollywood Way, and is surrounded by industrial/storage uses (to the north and east), the Burbank Bob Hope Airport (to the west and south), and vacant parcels. North Hollywood Way abuts the easterly boundary of the project site, and North San Fernando Road is to the north, and Winona Avenue is to the south. The current zoning designations are “General Industrial (M-2)” and “Airport (AP)” and are proposed to change to “Planned Development (PD)” zoning. The project site has two General Plan land use designations, “Golden State Commercial/Industrial” and “Airport” and the entire project site is proposed to be Golden State Commercial/Industrial.
SEE FULL PAGE INFORMATION: HERE
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.
Closed lease transaction Van Nuys.
I am pleased to announce our recent completed lease transaction for 7720 Airport Business Parkway in Van Nuys. Steve McKenzie and I represented Sweetwater Digital Productions a division of NEP Broadcasting as the Lessee on this transaction.
- 17,369 Square Feet
- 50 Months
- $1.10 Per Square Foot Gross
For additional information regarding this transaction, please email at firstname.lastname@example.org or call at 818-933-7113.
Contact me today if you have a property you need to lease or are needing space in the near future.
The New 9 Building 1.3 Million Sq.Ft. Development
With very little land left for development of new property near Los Angeles, the IAC Commerce Center will be a breath a fresh air – and paint.
I attended the IAC Commerce Center “Wall Raising” ceremony complete with hard hats, SCV Economic Development Corporation, and Press Secretaries for Assemblymen. The talk was all about the newest Valencia Industrial development. The business park boasts 9 buildings and 1.3 million square feet of building space, all built on 116 acres. Currently constructing Building 1, the business park will be developed in three phases. The timeline is not currently known, but it will be beautiful by the looks of it.
Some notable facts regarding the Building 1:
- Office Square Feet: To Suit
- Clear Height: 30
- Dock High Loading: 39
- Ground Level Loading: 2
- Lease Rate: Subject to Offer
- Power: 2,000 Amps. 480/277 Volt 3 Phase, 4 Wire
- Sprinklers: ESFR
- Parking: Approximately 218 Spaces
If you are considering a large facility move or addition to your business, this is a great opportunity to work with Santa Clarita Valley Economic Development Corporation. They can provide tax credits, scatter maps, and more to help you consider this opportunity.
Please contact me if you would like more information or have any questions regarding this project. You can see the full information here at IAC Commerce Center.
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.