I WISH I WOULD HAVE.....
March 2024 - Southern California’s warehouse and industrial real estate market is currently sitting on a golden opportunity, one that whispers a cautious tale of "I wish I would have" to prospective buyers and tenants.
In a landscape where market deal transactions have cratered, down by ~70%+ (depending on the market, asset and size), a window for unparalleled deals in both sales and leasing has cracked open, revealing value unseen in nearly a decade. With price and lease rate reductions floating around (25%) to (30%)+ and with seemingly daily rate reductions and incentives, the significance of this decrease cannot be overstated, particularly after a five-year trend where prices and rates sometimes surged by over 30%, 40%, 50% annually.
Imagine the conversations a few years down the line: "I should have bought when it was this price," or "I should have leased it at that rate." Now, with nearly 700 available buildings/spaces at an average asking rate of $1.55psf — down by nearly $0.20psf over the last year—and the averge days on the market standing 219+ days, the message is clear: the deals are ripe for the picking. Property owners are rolling out the red carpet with lease concessions, free rent, and tenant improvement incentives, tailoring opportunities for businesses to either slash or stabilize their occupancy costs. Click here to View the SoCal March MarketView DashBoards for Sale and Lease
"Within 3-4 years lease rates in some markets in SoCal for warehouse product could be approaching $3.00 PSF.."
While leasing shines brightly with potential, buying remains a compelling course of action, albeit with a slightly less definitive trajectory. But with 225 properties on the market, boasting an average price of $337 per square foot and languishing for over 200 days, motivated sellers are out there. They're open to discussions, perhaps more so now than ever.
To property lessors and owners/sellers, the advice is to stay flexible, zero in on the long game, and remain open to negotiations. Consider shorter-term deals, possibly three years, with the option to adjust to market rates down the line. Explore alternative financing options, like seller financing, which benefits all parties involved.
This moment, brimming with the potential for regrettable hindsight, serves as a poignant reminder: An opportunity lost, encapsulated by the sentiment "I wish I would have," vanishes forever. In the ebb and flow of real estate, the tide currently favors the bold, the prudent, and the visionary. Now is the time to act, to make those strategic moves that our future selves will undoubtedly thank you for.
Cheers and go make it happen - let me know if we can assist....
Cameron
MARKET VIEW DATA DASHBOARDS
DATA DASHBOARDS! - Our team tracks for sale or lease listings ranging from -10K -100k sqft daily and shares this info via our Data Dashboards. These detail Key Performance Indicators for Available For Sale and Lease Warehouse / Industrial property in SoCal. Good Info and Data…
DASHBOARD NOTES:
For Sale
- ~198 Properties for Sale in SoCal
- $349psf Avg Asking Price
- ~5mm Sqft
- 218 Avg Days on Market
- Santa Ana, Santa Fe Springs, Chino, Riverside (top cities for available product)
- 49% is 10k -20k Sqft only 9.5% 50k-100k sqft
For Lease
- ~676 Properties/Spaces Available in SoCal
- ~25mm Sqft Available
- $1.57 Avg Asking Lease Rate
- ~3.5mm Sqft of Sublease space
- 214 Avg Days on Market
CLICK HERE TO VIEW AND DOWNLOAD SOCAL DASHBOARDS
SALE & LEASE COMPS IN SOCAL:
410 W Fletcher Orange - Sold - 28k sqft $10,093,000 ($355psf) - Owner/User Buyer will Occupy (196 days on market)
2420 Railroad St Corona - Sold 25k Sqft $7,000,000.00 ($271psf) (225 days on market)
1450-1456 Manhattan Ave Fullerton - Sold - 48k Sqft $13,350,000.00 ($276psf)
451 Cota Corona - Leased - 80k sqft - ~$1.10psf - $.24 Net fees - 62 month term
8420 Kass Drive Buena Park - Leased -24k sqft ~$1.45psf gross - (266 days on market)
GOOD DEALS IN SOCAL: (IN MY OPINION) FOR LEASE & SALE
1062 McGaw Ave Irvine - For Lease - 68k, 52k or 120,656k sqft -$2.15psf Net Brand New State of the Art 55 Fwy Frontage (500k cars/day) if you have a consumer facing product, this is a great property with Fwy Signage 12 DH doors 2k amps power, ESFR System...Reach out if interested
1900 Mountain Ave Bldg 18 Norco - For Lease - 57k sqft $1.27psf Net - Brand New Construction (5) Dock High & (1) Ground Level Loading Doors 30’ CH, 1600 amps Gated & Secured Yard....Reach out if interested
2390 - 2442 N American Way Orange - For Lease - 51k & 48k Sqft $2.00psf Net - Brand New Construction State of the Art - A+ Location ESFR 2k Amps 32’ Clear Height, DH & GL Loading Private Fenced Yards...Reach out if interested
1020 Armando Anaheim - For SubLease 16k Sqft $1.30psf net ($.20) 36k sqft lot large fenced yard 2 GL Doors 800 amps (sublease through 5/26) ..Reach out if interested
1020 N Olive St Anaheim - For Sale 15k sqft $5mm $320psf 2 GL Doors Fenced Yard/Parking 400amps bonus mezzanine Reach out if interested