How Is Industrial Real Estate Today?

How Is Industrial Real Estate Today?

Map showing electrical symbol for buildings with increasing size based on building
Power Map of Buildings In LA County

Industrial real estate is a diverse business that includes Investment funds, developers, private/family owners, corporations, occupiers, and a mix of product types and industries. Industrial buildings are in every community and are the source of employment, production, distribution, and wealth for many. The nation’s economic health rides on the success of industrial real estate.

There are several factors that are driving deals today. Broadly, these include Interest Rate Policy, US Industrial Strategy, and Local Municipal Governance. Everyone is affected differently. For example, higher interest rates are never good for real estate, though they affect sales more than leases; sale transactions are interest rate sensitive while leasing is supply and demand based. As an experienced broker, we use detailed knowledge, market analytics, and long-standing relationships to help you in making the best decision.

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2021 Remains an Unbalanced Industrial Market

2021 Remains an Unbalanced Industrial Market

The industrial property business has grown from a real estate niche serving mostly large corporations and owner/users to a favored investment of large institutions. The rise coincided with the great manufacturing upheaval of shuttered plants as companies shifted production offshore. Goods return in containerized shipments and begat the new industry of logistics. The result was increased liquidity of both goods and capital. A situation that is ideal for warehouse development and investment. Today’s industrial marketplace is made up of global and national 3pls, shipping companies, e-commerce, and on the capital side, Industrial REITS, large investment funds, and a handful of developers. The Covid Supply Chain phenomena and an increase in tariffs has compounded an already unbalanced space market to acute levels
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Streaming Industrial Real Estate

Streaming Industrial Real Estate

Streaming is the talk of Hollywood. The biggest adaption since television. Technology is replacing human decisions with lessons from on-line, eCommerce and subscription. It’s happening to industrial property. Real estate is already a superior cash streaming business, now with more means to enhance revenues. Visible effects of streaming appear with large space take-downs by studios and independent producers. Agency, too, is being disrupted because the value of data is surpassing personal relationships. Financial concentration and streaming technologies are creating a new real estate business. Virtual and artificial intelligence programs are essential to move forward in these new conditions. Continue reading “Streaming Industrial Real Estate”

Ownership Concentrations in Los Angeles Industrial Real Estate

Ownership Concentrations in Los Angeles Industrial Real Estate

Every August, the Los Angeles Tax Assessor releases its annual Tax Roll that lists all ownership in Los Angeles County. This is valuable data and serves as an important part of our statistical analysis for the year. In other words, Tax Roll data helps us find properties to purchase. For Tax Year 2019/2020, the share of Institutional ownership increased in all size ranges, particularly larger buildings. For investment buyers, more focus on smaller buildings will be fruitful because there is less institutional concentration.

percent of institutional ownership
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Economic Development in Greater Los Angeles

Economic Development in Greater Los Angeles


More so than ever before, cities are vying for companies that create jobs. There’s the policy aspect that favors clean and green jobs. Then there’s the backroom bargaining that favors successful outcomes. Companies that can offer employment would do well to study some of the recent newsworthy examples. They include the failed attempt by Los Angeles to attract AnseldoBreda, local jostling to snare Tesla Motors, competition for Eli Broad’s museum, Los Angeles Stadium in the City of Industry, and the smaller manufacturing deals coming through the CRA of Los Angeles. Each one is fairly lucrative to the company and does not necessarily fit any set model. They are similar to the large retailers, like Costco or Walmart, who were able to negotiate attractive packages for redevelopment funds, property tax breaks, and property development benefits. I haven’t seen any studies if these retail developments met city economic expectations, but certainly the recent raise in sales tax makes up any marginal differences. It pays to understand the multitude of incentives available from local, state and national agencies.
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Global Manufacturing And Los Angeles

Global Manufacturing And Los Angeles

More and more, there is an element of global manufacturing that I call “shelled out” production. There are no signs on the building. There is no one in the office. The workers either pretend or truly can not speak English. The manufacturing is composed of sub-assembly and contract piece work. There is no one in charge and the workers don’t know where their goods will go. As soon as the customer changes its allegiance to a slightly lower cost provider, the entire operation can fold. Our manufacturing system is largely devolving to the manufactured part and who can make it the best and ship it the fastest. There is virtually no other measure.
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Los Angeles Freight Airports

Los Angeles Freight Airports

View Los Angeles Industrial Features in a larger map

Industrial property is not going away, but it’s changing. Overall, only the best located properties or those that are adjacent to existing residential will be conversion candidates. Those industrial buildings safely tucked away in M-zoned districts will be protected. Whether there will be productive businesses for the older buildings is another question. The price difference between low-clear industrial and modern distribution space continues to widen.

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