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Jodi Summers' Blog

We Know SoCal Investment Real Estate

By Jodi Summers | Agent in Santa Monica, CA
  • STATISTICS PREDICT SOCAL INDUSTRIAL REAL ESTATE RENTS WILL RISE

    Posted Under: General Area in Los Angeles AFB, Market Conditions in Los Angeles AFB  |  January 22, 2011 11:51 AM  |  610 views  |  No comments

    edited by Jodi Summers

    The USC Lusk Center for Real Estate’s 9th annual Casden Southern California Industrial and Office Forecast analyzes economic data, provided by Grubb & Ellis, on rents, vacancies, and transactions for office and industrial markets in Los Angeles, Orange, Riverside and San Bernardino counties.

    The findings for Southern California industrial real estate were all positive. Key points include:

    Los Angeles County

    *With the nation's largest port and tightest industrial market, industrial rents are expected to increase by 10.5% over the next two years

    *The Inland Empire may enjoy the ripple effect as companies seek less expensive alternatives.

    *Los Angeles remains one of the tightest industrial markets in the country, with a 3.3% vacancy rate. Even with the approximately 250,000 square feet of industrial space currently under construction, rents are expected to rise in the next two quarters.

    * SBA financing for industrial parcels below $10 million may lure buyers.

    Orange County

    * Proximity to LA and Long Beach ports, strong manufacturing base and no new construction in 2009 will help to keep industrial vacancy rates low; could peak in mid to late 2010.

    * Orange County will lag LA County in industrial recovery due to higher rents and higher vacancies.

    *Increased demand for industrial space will cause vacancy rates to fall 2.1 percentage points over the next two years.

    Inland Empire Forecast

    *The Inland Empire office market will continue to experience moderate increases in vacancy rates and decreases in rents.

    *An exception is the Ontario Airport area, which showed 105,000 square feet of positive absorption as companies seek locations near transportation arteries.

    * Chino and Temecula could be first industrial markets to bounce back thanks to relatively low vacancies and a prime location on the I-215 corridor.

    *With the affordable pricing, many owner/user entities are now jumping into the market as companies seek to lock in industrial space.

    *While more than 2.2 million square feet of industrial space came on line last year, the increase in demand for industrial space will push rents a much as 6.6% higher.

    * Overall industrial markets begin recovering next year but some submarkets will lag from overbuilding.

    *With the affordable pricing, many owner/user entities are now jumping into the market as companies seek to lock in industrial space.

    *While more than 2.2 million square feet of industrial space came on line last year, the increase in demand for industrial space will push rents a much as 6.6% higher.

    **

    http://www.globest.com/news/1805_1805/losangeles/305039-1.html?ET=globest:e24392:277110a:&st=email

    http://www.santamonicapropertyblog.com/wp-content/uploads/2010/04/port-containers1.jpg

    http://www.ontario-airport-shuttle.com/images/51.jpg

    http://www.usc.edu/schools/sppd/lusk/casden/news/item.php?id=1740

    http://www.ca-mls.com/images/socalif.gif

 
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