July 31, 2014 on 6:16 am | In Bravo, Charts + Statistics, Investment Opportunities, Market Snapshot, Uncategorized | No Comments

by Jodi Summers

Hooray for us! Los Angeles remains the number one metro for Industrial Real Estate. In 2014, asking rents for warehouse space are up, the vacancy rate is down, and new construction is marginal…all reasons for optimism.

Want more good news? The Port of Los Angeles and Burlington Northern Santa Fe Railway are advocating a $500 million rail yard near the port. They imagine a train line that whisks containers nearly 25 miles inland to Commerce.

Pundits like what’s happening and predict that Los Angeles industrial real estate should be a good market for the foreseeable future. The most recent Allen Matkins/UCLA Anderson Forecast Survey concludes that goods movement through California’s ports results in real estate optimism…and least through 2017.

Here are some recent industrial real estate highlights….

■ Employment: Currently, the twin ports account for more than 40% of all the container traffic entering the nation. The strength of our ports will see employers in the metro expanding payrolls by 2.2% in 2014, as L.A. County creates 88,800 jobs. (In 2013, 76,900 jobs were created in the market.)

■ Construction: Marcus and Millichap notes that the pace of development will slip to 1.7 million square feet in 2014, down from 2.9 million square feet last year.

■ Rent: As vacancy falls below the 5% threshold, operators are expected to elevate asking rents 5.1% to $7.27 per square foot by year-end 2014.

■ Vacancy: Space available for lease and/or purchase will dip to 4.7% in 2014.

■ Investment: Opportunities are available throughout the L.A. area industrial real estate market. For the owner/user interest rates on SBA loans are still low. Investors can target properties with fewer than 100,000 square feet, which are predicted to trade at cap rates in the low 7% range. Larger, newer assets will remain the darling of institutional investors and change hands at first-year returns modestly above 5%.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.










July 15, 2014 on 9:55 am | In Bravo, Government, Green, New Developments, Problem Solving, Uncategorized, world | 2 Comments

by Jodi Summers

The SoCal Industrial Real Estate Blog enjoys watching the Port of Long Beach evolve.

Each year, when the Port offers free harbor tours from May to Nov. 1, we try to snag a reservation and enjoy the evolution.

Founded in 1911, the 3,200-acre Port of Long Beach is a premier gateway for trade between the United States and Asia The Port of Long Beach is one of the world’s busiest seaports, a leading gateway for trade between the United States and Asia. It supports over a million jobs nationally and generates billions of dollars in economic activity each year. Here’s how the numbers break down.

Each year, the Port handles:

More than 6.7 million 20-foot container units (TEUs)

Cargo valued at $180 billion

63.1 million metric tons of cargo

4,000 vessel calls


The Port’s loaded containers account for:

1/3 moving through all California ports

1/4 moving through all West Coast ports

nearly 1 in 5 moving through all U.S. ports


The Port comprises:

3,200 acres of land

10 piers

80 berths

66 post-Panamax gantry cranes

Shipping terminals (22)

5 break bulk (automobiles, lumber, steel, iron ore)

6 bulk (petroleum coke, salt, gypsum, cement)

6 container

5 liquid bulk (petroleum)

International ranking

Long Beach is the second busiest port in the United States

Long Beach is the 18th busiest container cargo port in the world

If combined, the ports of Long Beach and Los Angeles would be the world’s eighth-busiest port complex by container volume, after Shanghai, Singapore, Hong Kong, Shenzhen (China), Busan (S. Korea), Ningbo (China) and Guangzhou (China).

Port-related employment

30,000 jobs (about one in eight) in Long Beach

316,000 jobs (or one in 22) in the five-county Southern California region

1.4 million jobs throughout the U.S. are related to Long Beach-generated trade


Regional economic impacts

More than $5 billion a year in U.S. Customs revenues from the Long Beach/Los Angeles ports

About $4.9 billion a year in local, state and general federal taxes from Port-related trade

More than $47 billion in direct and indirect business sales yearly

Nearly $14.5 billion in annual trade-related wages


Trading partners

East Asian trade accounts for more than 90% of the shipments through the Port

Top trading partners by tonnage are; China, South Korea, Japan, Hong Kong, Taiwan, Vietnam, Iraq, Australia, Ecuador and Indonesia.


Top Imports

Crude oil






Top Exports

Petroleum coke

Petroleum bulk


Waste paper


Enjoy more photos @



June 30, 2014 on 8:48 am | In Bravo, Fascinating Information, Government, Green, Problem Solving, Property Maintenance, Uncategorized | 2 Comments

by Jodi Summers

Bravo! The Port of Long Beach has been recognized as the “Best Green Seaport” in the world at the 28th annual Asian Freight & Supply Chain Awards.

The Port of Long Beach is one of the world’s premier seaports, a primary gateway for trans-Pacific trade and a trailblazer in innovative goods movement, safety and environmental stewardship. The Port is served by 140 shipping lines with connections to 217 seaports worldwide. A major economic engine for the region, the Port handles trade valued at more than $180 billion each year and supports hundreds of thousands of Southern California jobs.

In 2005, the Port of Long adopted a “Green Port Policy,” focusing reducing its impact on the community, wildlife and the environment…with unmitigated success. The POLB is proud of the dramatic improvement in air and water quality thanks to an array of environmental initiatives that include the Clean Trucks, Green Flag Vessel Speed Reduction and Technology Advancement programs.

“This is an honor to be named the AFSCA’s Best Green Seaport. The Port of Long Beach has made great strides in reducing air pollution and improving water quality, and we are committed to doing even more,” said Long Beach Board of Harbor Commissioners President Doug Drummond.

The Port’s growth policy has had tremendous results. The total number of containers handled at the ports of Long Beach and Los Angeles in May increased by 5.6% on a year-over-year basis to 1,288,652 TEUs (twenty-foot equivalent units). This was the 14th consecutive month of at least 1 million TEUs for the San Pedro Bay ports.

The Port of Long Beach’s Green Port Policy is an aggressive, comprehensive and coordinated approach to reduce the negative impacts of Port operations. The Green Port Policy, adopted in 2005, serves as a guide for decision making and established a framework for environmentally friendly Port operations. The policy’s five guiding principles are:

  • Protect the community from harmful environmental impacts of Port operations.
  • Distinguish the Port as a leader in environmental stewardship and compliance.
  • Promote sustainability.
  • Employ best available technology to avoid or reduce environmental impacts.
  • Engage and educate the community.

The Green Port Policy includes six basic program elements, each with an overall goal:

  1. Wildlife – Protect, maintain or restore aquatic ecosystems and marine habitats.
  2. Air – Reduce harmful air emissions from Port activities.
  3. Water – Improve the quality of Long Beach Harbor waters.
  4. Soils/Sediments – Remove, treat, or render suitable for beneficial reuse contaminated soils and sediments in the Harbor District.
  5. Community Engagement – Interact with and educate the community regarding Port operations and environmental programs.
  6. Sustainability – Implement sustainable practices in design and construction, operations, and administrative practices throughout the Port.

The “Green Seaport” honor of the Asian Freight & Supply Chain Awards is reserved for ports that have “demonstrated compliance with green freight transport regulations and environmental standards; investment in green initiatives, technology and action plans; incorporation of environmental requirements in strategic planning; use of a policy on reducing fuel emissions from freight handling operations; and ongoing training of staff in green initiatives and in measures to lower carbon footprints.”

The awards are based on an annual poll of thousands of professionals in freight transportation services. Awards also are given in many categories, including best shipping lines, container terminals, air cargo terminals, airports and rail haulers.

Find out more about the Port of Long Beach’s environmental programs at




May 30, 2014 on 6:10 pm | In Bravo, Charts + Statistics, Economy, Fascinating Information, Investment Opportunities, Market Snapshot, Trends, Uncategorized | 4 Comments

by Jodi Summers

Let’s start the June SoCal Industrial Real Estate Snapshot with the takeaway – the experts say, The overall industrial market is becoming a more landlord controlled market. Vacancies are expected to remain in the low 4% range, with rents expected to rise in the 3% to 6% range in the coming year. > So if you’re thinking of adding industrial real estate in Los Angeles to your portfolio, now is the time.

Los Angeles metro industrial property sales prices finished the 1Q at $129.24sf, in increase of +2.1% for the quarter and +14.0% year over year, according to Loopnet.


“The outlook for 2014 is that the industrial market will remain very healthy,” observes Blaine Kelley, senior vice president of CBRE’s supply chain practice.

In the past year, 49 of the 50 largest warehousing markets experienced growth, and Los Angeles gets to plant their flag near the top of the heap. Depending upon the information you glean – the Los Angeles industrial real estate market has the 3rd most impressive lease rates in the nation – only behind Newark, New Jersey (obvious reasons) and Anchorage, Alaska (because everything needs to be flown in).

In 1Q 2014, the L.A. County industrial market witnessed vacancy rates decrease from  4.6% to 4.4%. The latest L.A. County Industrial report from Daum Commercial Real Estate notes that average asking rents increased 5.4%, year over year, moving from $0.56nnn to $0.59nnn. During 1Q, gross absorption totaled 12.8 million square feet, while net absorption posted a gain of 1.9 million square feet of occupied space.

Standard industrial asking rental rates increased 5.4%, year over year, moving from $0.56nnn to $0.59nnn. Notes Daum commercial.  Of the four major markets in Los Angeles County, the LA-North market ended the quarter with the highest standard industrial rental rate of $0.68nnn, followed by the LA- West/South market at $0.63nnn,

the LA- Central/SE markets at $0.55nnn, and the San Gabriel Valley market at $0.53nnn. Average rental rates increased 1.7% from the previous quarter, moving from $0.58nnn to $0.59nnn.

Economists who specialize in the industrial sector say that if Americans are working and consumers are spending, the need for warehouse and distribution space will increase. The long-term outlook is that market fundamentals will continue to improve, with activity levels, rents and sale prices all trending higher. The investment and sale market for industrial real estate in Los Angeles County remains strong as the available supply of for sale inventory remains low.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.




May 16, 2014 on 7:39 pm | In Green, Trends, Uncategorized | 2 Comments

by Jodi Summers

Water? Water? Where did it go? Last winter was one of the warmest winter on record in California. Paleoclimatologists believe it is exacerbating what could well be the region’s worst drought in 500 years…nearly all of the state’s 191 reservoirs are below normal levels.

If things don’t improve, some small communities may run out of drinking water. Farmers may need to idle 500,000 acres of farmland, resulting in billions of dollars in economic damage. The last time the water supply was as low, in the 1960s, California’s population was just less than 20m. Today, the same amount of water must accommodate twice as many people.

The chart shows reservoir storage records from California’s Department of Water Resources for all 191 reservoirs starting in 1960. Each color represents a different reservoir (though only the nine biggest are identified). The largest aren’t even in California: Lake Mead sits in Nevada and Lake Powell straddles the borders of Utah and Arizona.


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