LOADING LOADING LOADING
June 13, 2013 on 12:14 pm | In Charts + Statistics, New Developments, Uncategorized, world | 3 Comments
5,000 vessels call on the Port of Long Beach each year. The Port hosts more than 140 shipping lines and has connections to 217 ports worldwide.
SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT ~ JUNE 2013 ~ INDUSTRIAL IS ON THE BOTTOM ABOUT TO RISE
May 31, 2013 on 9:12 am | In Bravo, Charts + Statistics, Economy, Investment Opportunities, Market Snapshot, Trends, Uncategorized | 2 Comments
by Jodi Summers
We be growing…2012 estimates from the Los Angeles Economic Development Corporation reveal that California surpassed Italy to become the eighth largest economy in the world. Locally Los Angeles County remained in 21st place behind Saudi Arabia and Switzerland, and ahead of Norway, Iran, Sweden, Belgium and Poland.
Our economy is growing and so is the interest in SoCal warehousing. Demand is anticipated to outpace supply through 2014 and rents finally beginning to rise again, notes CoStar.com As the local warehouse market has been sliding since mid-2008, commercial real estate investors are increasingly interested in placing capital in the warehouse sector. 
Very little new warehouse space is being delivered in Los Angeles. Current Los Angeles market trends data indicates an increase of +0.6% in the median asking price per sq ft for Industrial properties compared to 4Q 2012, with a decrease of 0.6% compared to last year’s prices. Loopnet observes that county-wide, asking prices for Industrial properties are 0.4% higher – at $131 per square foot – compared to the current median price of $138 per sq ft for Industrial properties in Los Angeles, CA.
Los Angeles County has nearly 10 million residents, spread out over 4,752.32 square miles, We are the most populous county in the nation, and larger in population than 42 states. L.A. is one of the original counties, created when California became a state in 1850. The county has 88 cities, of which the city of Los Angeles is the largest, followed by Long Beach, Glendale, and Santa Clarita.
Los Angeles County entered 2013 with momentum from a county labor market that accelerated during the second half of 2012. Nearly all of the major private sector industries added jobs in 2012, paring nearly two percentage points off our hefty unemployment rate.
The California seasonally adjusted unemployment rate was 9.0% in April 2013, 9.4% in 
March 2013, and 10.7% a year ago in April 2012. The comparable estimates for the nation were 7.5% in April 2013, 7.6% in March 2013, and 8.1% a year ago.
International trade continues to play an important role in the local economy. The San Pedro Bay ports of Los Angeles and Long Beach are the two largest container ports in the nation. Much of the nation’s imported consumer goods from Asia and the Pacific Rim enter the United States through the twin ports. While the number of TEUs (twenty-foot equivalent units) moving through the ports edged up by 0.9% from 2011 to 2012, the value of two-way trade through the Los Angeles Customs District, a broader measure of trade volume, rose by 4.3% last year to a record $403.4 billion. Two-way trade should increase by 3.0% this year, and accelerate to a 4.9% growth rate in 2014 as prospects improve for the U.S. and its trading partners.
The industrial property rental market is reacting well to all this good news. The average asking rental rate per sq ft/year for Industrial properties in LA as of March 2013 was $123.39. This represents an increase of 1.6% compared to the prior 3 months, with an increase of +4.6% year-over-year. County-wide, average rental rates in Los Angeles are +0.8% higher at $105.06 per sq ft/year for Industrial properties currently for lease. Demand is translating into quick occupancy gains and a deepening, widening recovery.
Experts say the Los Angeles County economy will continue to show improvement in 2013 and 2014, barring an unforeseen pullback in the national economy. Population
should eclipse the 10 million mark by 2014 and employment should approach four million. They say it may be 2015 or 2016 before nonfarm employment exceeds the peak of 4.12 million reached in 2007.
With money and good flowing, lease rates on the rise, the future is promising for industrial properties. Manufacturing is growing and job expansion in transportation and utilities are outpacing all service-related sectors. Movement of goods measured in truck tonnage is doing well, while intermodal rail traffic was up 5% in the first 13 weeks of 2013 compared to the same period last year.
Growth is predicted for the Los Angeles industrial real estate market. If you want to get in the game, the value is now.
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.
**
http://www.socalindustrialrealestateblog.com/?p=1816
laedc.org/reports/2013-14EconomicForecastandIndustryOutlook.pdf
OUR PORTS ALREADY BENEFIT FROM THE PANAMA CANAL EXPANSION
April 11, 2013 on 8:14 pm | In Charts + Statistics, Fascinating Information, New Developments, Problem Solving, Property Maintenance, Uncategorized | 6 Commentsby Jodi Summers
Will bigger locks affect our cargo volumes? Not likely, conclude the import/exports experts. Expect SoCal warehousing to continue to grow.
The Third Set of Locks Expansion of the Panama Canal doubles the capacity of the Panama Canal by 2015 by allowing more and larger ships to transit.
The $5.2 billion project creates a new lane of traffic along the canal by constructing a new set of locks. Ships as large as 12,000 or more TEUs (20-foot equivalent units—a measurement of container ship capacity) will be able to fit through the new locks vs. the 5,000 TEU ships that currently transit the Canal (which opened in 1914). The Canal is owned by Panama and is currently used more for Latin American shipping.
Pundits, forecasting the impact on our local ports have concluded that the Ports of LA and Long Beach are the most efficient port system in America and will “remain the leader for the foreseeable time,” thanks to our state-of-the-art ports and an efficient supply chain.
In fact, Port of Long Beach terminals saw a dramatic increase in cargo in February, moving 36.6% more containers compared to Feb. 2012. Imports surged nearly 46% – thanks to our growing economy, and the port saw a 17.2% jump in exports. 
February’s total was 530,967 TEUs and the highest volume of import containers for a February since 2007.
Cargo increases in recent months are in part due to the port already accepting more frequent dockings of larger ships and the addition of service lines to Long Beach. In the latter part of last year, Mediterranean Shipping Co. and CMA CGM, two of the largest ocean carriers in the world, established exclusive hubs at the Port of Long Beach.
Once they’ve arrived, half of the containers coming into LA/Long Beach are transloaded onto trains or trucks out to the Midwest or Eastern US and the other half stay in SoCal warehouses to serve the Western US.
The Long Beach Board of Harbor Commissioners are currently behind Southern California International Gateway rail yard project approved recently by the Port of Los Angeles. The 153-acre facility proposed by BNSF Railway Co. sits just outside West Long Beach, alongside the Terminal Island Freeway on land owned by the Port of Los Angeles. The will serve on-dock rail facilities at both the Port of Long Beach and the Port of Los Angeles.
“Improvement of rail facilities is critical to the economic development of this port, and improved rail facilities are what we need in order to reduce emissions,” supports Harbor Commission President Susan E. Anderson Wise.
LA/Long Beach is in the midst of their $6 billion infrastructure construction program and is decades ahead of other ports in addressing environmental concerns such as truck emissions. Everyone wants to dock here.
**
http://www.socalindustrialrealestateblog.com/?p=1732
SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT ~ APRIL 2013 ~ INDUSTRIAL WILL IMPROVE 4 THE NEXT 3 YEARS
March 30, 2013 on 6:13 pm | In Charts + Statistics, Economy, Investment Opportunities, Market Snapshot, Uncategorized | No Commentsby Jodi Summers
“Demand for industrial space will drive the U.S. economic recovery and California,” heralds the first quarter 2013 UCLA Anderson Forecast.
“Industrial markets are going to be improving over the next three years,” proclaims Jerry Nickelsburg, Senior Economist for the Forecast.
California Industrial Space is the story of two prominent markets: manufacturing and warehousing. Los Angeles covers the gamut. Orange County, San Francisco, East Bay and Silicon Valley are proportionately more manufacturing. The Inland Empire is proportionately more warehousing. 
Our recent slowdown has to do with exports, Asia and Europe slowdowns impacted our recovery, keeping the demand for warehousing low. That pendulum is already swinging in the other direction. Port of Long Beach terminals saw a dramatic increase in cargo in February, moving 36.6% more containers that February 2012 ― including a nearly 46% surge in imports and a 17.2% jump in exports.
The Anderson Forecast statistics are further behind. They note that in December 2012, the industrial real estate index turned upward for Orange County, Inland Empire, and East Bay as plans for new additions to industrial space moved forward. San Francisco remained unchanged. Los Angeles and Silicon Valley were waiting to emerge….but now that’s shifted as 1Q 2013 draws to a close.
“We’re expecting an increase of demand of California products in Asia,” noted Nickelsburg, “that increases the demand for industrial space and office space.”
Expectations have become reality. Pundits have an optimistic outlook through 2015 with all of the composite sentiment indices well above an uncaring 50. With its resilient high-tech sectors, Silicon Valley holds its superiority in the industrial space market in California with a composite index of 78, followed by Orange County (76), East Bay (75), San Francisco (74), Inland Empire (68), and Los Angeles (63).
Concluded Nickelsburg, “People are starting to spend more, increasing the demand for warehouse space.”
We’re here to help you with your real estate needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.
And now, enjoy Jerry Nickelsburg, Senior Economist for the UCLA Anderson Forecast talking about the strengthening California industrial real estate marketplace.
**
http://uclaforecast.com/allenmatkinsCRES/
http://www.socalindustrialrealestateblog.com/?p=1718
http://www.youtube.com/watch?v=8f1wUAkNMZE
http://www.busjournal.com/content/archives/1210/img/pictures/ucla%20forecast.jpg
LOS ANGELES INDUSTRIAL REAL ESTATE SNAPSHOT ~ FEBRUARY 2013 > CONTAINER HEAVEN
January 31, 2013 on 9:51 pm | In Bravo, Charts + Statistics, Market Snapshot, New Developments, Trends, Uncategorized, world | 1 Commentby Jodi Summers
This month, our Los Angeles Industrial Real Estate update is all about cargo containers…both in traditional and non-traditional uses.
Cargo volume at the ports is up for the year, which bodes well for Los Angeles Industrial real estate. The Port of Long Beach was proud to announce that they had their busiest-ever December for container imports, rising and impressive 18.9% over the same period a year ago. Btw, a busy December is not typical, as shippers use this time of year to import goods for the slower winter and spring retail seasons.
“Business at the Port of Long Beach is clearly on the upswing as the economy strengthens and international trade continues to support hundreds of thousands of jobs in Southern California alone,” shared J. Christopher Lytle, Executive Director of the Port of Long Beach.
Currently, an estimated 21,000 shipping containers arrive in the United States every day. Retired shipping containers are abundant in the United States. Port authorities estimate that over 700,000 used shipping containers are stockpiled on prime waterfront real estate without a significant use, purpose, or typical method for disposal, making them ideal construction modules.
Shipping container architecture has evolved as a form of architecture using steel intermodal containers (shipping containers) as structural element, because of their inherent strength, wide availability and relatively low expense. A container is often referred to as a TEU, or twenty-foot equivalent unit. A standard TEU is approximately 20 feet long and 8 feet wide. The most common height is 8 feet 6 inches, an ample ceiling height.
Cargo containers are a rather perfect sized box for building. Made of steel and wood, this product is stronger than conventional framing, stackable for creating levels and is readily available.
“There are a lot of different types of energy efficiency that cargo container-based construction brings to the table,” offered Leslie Horn, CEO of Three Squares real estate development company. “With the U.S. new construction industry desperate for ways to cut costs without undermining quality, green home construction gaining significant momentum, and a growth rate from $49 billion to $140 billion forecasted over the next five years, shipping container-based construction is an extraordinarily well-positioned solution.”
Shipping containers have been called an ideal building material as they are designed to carry heavy loads and to be stacked in high columns. They are also designed to resist harsh environments – such as on ocean-going vessels or sprayed with road salt while 
transported on roads. As all shipping containers are made to standard measurements and as such they provide modular elements that can be combined into larger structures. Construction involves very little labor. As they are already designed to interlock for ease of mobility during transportation, structural construction is as easy as stacking more containers. Containers can be stacked up to 12 high when empty. They also keep building costs way down. Containers may be purchased from major transport companies for as little as US $1,200 each. Even when purchased brand new they are seldom more than US $6000.
Many structures based on shipping containers have already been constructed, and their uses, sizes, locations and appearances vary widely. In 2000, the firm Urban Space Management completed the project called Container City I in the Trinity Buoy Wharf area of London. The London docklands development is composed of environmentally friendly work studios and live/work lofts stacked on top of each other to create a 5-story building.
Architect Nicholas Lacey and Buro Happold created a flexible design system that relies on component pieces instead of units. Instead of using a 1 container = 1 unit approach, their system relies on components in various permutations to create very livable, adaptable spaces. Aside from this Container City residential project, the system has been used in projects as diverse as classrooms, office spaces, residential units, retail spaces and even youth centers.
“Containers as architecture are just one of the ways in which we can look at objects and find new uses to them. The modular nature of the containers, their adaptability, and the fact that they can be found in industrial surplus make them an ideal prefab material,” noted Urban Space Management.
In 2006, Southern California Architect Peter DeMaria designed the first two story shipping container home in the U.S. as an approved structural system under the strict guidelines of the nationally recognized Uniform 
Building Code (UBC). This home was the Redondo Beach House and it inspired the creation of Logical Homes, a cargo container based pre-fabricated home company.
They also have a fine use for low income housing. As an MBA student, Brian McCarthy saw many poor neighborhoods in Ciudad Juárez, Mexico. He has since developed prototypes of shipping container housing for typical maquiladora workers in Mexico. And now, people can buy homes for as low as $8,000. 
Containers are also used in disaster relief. In 2011, an earthquake in Christchurch, New Zealand devastated the city’s central business district. The Cashel Mall reopened in a series of shipping containers within months.
The use of rudimentary containers to ship cargo began in the late 17th century. By the 1950s, the U.S. military standardized their design, building strong, uniform, theft-resistant, stackable shipping containers that were easy to load and unload by truck, rail and ship, and easy to store. Now, containers are not just for shipping anymore. In the future, the cargo container will contribute to construction in a variety of ways.
We’re here to help you with your real estate needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.
**
http://upload.wikimedia.org/wikipedia/commons/c/c1/NomadicMuseumSantaMonica.jpg
http://www.socalindustrialrealestateblog.com/?p=1635
http://www.thecompliancecenter.com/blog/2012/11/07/re-use-of-shipping-containers/
http://www.theatlanticcities.com/design/2012/05/shipping-container-city-boom/1983/
http://www.toptennewhomecommunities.com/blog/container-homes-thinking-out-of-the-box/
http://www.socalgreenrealestateblog.com/?p=2568
http://savannahnow.com/exchange/2008-09-27/firm-turns-shipping-containers-homes
LOS ANGELES INDUSTRIAL REAL ESTATE SNAPSHOT ~ JANUARY 2013 ~ THE NEW YEAR IS GOING TO BE GOOD
December 30, 2012 on 2:01 pm | In Bravo, Charts + Statistics, Economy, Fascinating Information, Investment Opportunities, Market Snapshot, New Developments, Trends, Uncategorized | 3 Commentsby Jodi Summers 
Happy New Year’s! 2013 is going to be a prosperous year for Los Angeles Industrial Real Estate. Our market is off the bottom and climbing. It will be happy year. If you want to buy or sell industrial properties in Los Angeles, now is the time – {Contact us @ (310) 392-1211 – we can facilitate your transaction.} There is very little inventory in the LAX-area market. Buyers are sifting through limited inventory – Increased demand, limited supply – both sale prices and lease rates are on the rise.
SoCal is known for being the deepest and largest industrial market in the nation, with LA and Orange counties having the lowest and second-lowest vacancy rates at 2.4% and 3.8%, respectively according to CBRE. (Btw, the Inland Empire ranks ninth-lowest at 6.3%.) Low vacancy rates mean inventories are sparse, declining 16.9% over the last year in the Los Angeles Metro Area.
Prices are way down too…the average asking price for industrial properties in the metro area is approximately $131.39 per square foot, down 2.9% from the previous year, calculates Loopnet. Asking prices for industrial properties reached a three-year high in February 2008 at $198.40 per square foot. The three-year low was $131.09 in May 2012. We are rising off the bottom…and prices are rising. The median sale price per square foot for industrial properties in the metro area climbed 5.7% in the second half of 2012.
Savvy owner-users are buying into the sometimes pricy Westside industrial market thanks to Small Business Administration loans. The SBA had its largest volume of financing ever in fiscal 2012. (FYI – SBA financing is available up to 200,000 square feet.) Watch for increased strength in the owner-user market in 2013.
Sale prices per square foot for industrial properties end the year at around $112.56, a 5.2% rise from a year ago, and 8.2% higher than the three-year-low set in January 2011. The 
highest recent median sale price was $127.91, set in October 2009.
There’s been no spec development for a couple of years – Sellers, if you’ve got an older industrial property, now is a good time to sell it to a new user. Hunky new properties will be coming on the market, now that speculative industrial development is ramping up.
“We’re tracking 16 million square feet of true spec development within our region,” calculates CBRE senior managing director Kurt Strasmann. “The Inland Empire accounts for almost 9 million square feet.”
On the leasing end, asking rents for industrial properties end the year @ around $8.81 per square foot, a rise of 0.8% on the year. Lease rates for industrial properties reached a three-year high in January 2008 at $10.85 per square foot. The lowest asking lease rate in the past three years was seen in January 2012 at $8.67. Time on the market is 150 days.
The National Association of Realtors offers a positive nationwide outlook. Their reports find that the areas with the lowest industrial vacancy rates currently are Orange County, CA, with a vacancy rate of 4.3%; Los Angeles – 4.4%; and Miami at 6.5%.
Throughout the Country, industrial vacancy rates should decline from 10.1% in 4Q 2012 to 9.5% in 4Q 2013. NAR reasons that annual industrial rents rose 1.7% in 2012 and will climb 2.2% next year. Net absorption of industrial space nationally will probably total 93.4 million square feet this year and 89.6 million in 2013.
As for the strength of our market, let’s conclude with the stats of CBRE senior managing director Kurt Strasmann. “The best indicator is that we’re tracking 16 million square feet of true spec development within our region, of which the Inland Empire accounts for almost 9 million square feet.”
We’re here to help you with your commercial and investment property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.
**
http://www.loopnet.com/Los-Angeles_California_Market-Trends
http://www.socalindustrialrealestateblog.com/?p=1590
http://www.scribd.com/fullscreen/116742486?access_key=key-1on4f9dkq5d9bz8mcjb9
http://2013-wallpapers.blogspot.com/2012/07/happy-new-year-wallpapers-2013.html
http://new.usgbc.org/sites/default/files/imagecache/fixed_670-308/construction.jpg
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