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.
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.