Jodi Summers = Industrial Real Estate

TIME TO DISCLOSE YOUR BUILDING’S ENERGY USE COMMANDS AB 1103

May 10, 2013 on 9:12 pm | In Government, Green, Investment Opportunities, Property Wish List, Uncategorized | 2 Comments

by Jodi Summers

Time flies. Do you remember back in 2007 when Arnold Schwarzenegger was governor and the state assembly passed AB 1103 Commercial Building Energy Use Disclosure Program? It was supposed to begin in 2010, but of course, it got changed and delayed and modified and finally, low and behold, the time to disclose energy data is upon us. The first phase of the Energy Use Disclosure Requirements begins July 1, 2013.

To refresh our memories, Assembly Bills 1103 and 531 require owners of nonresidential buildings located in California to disclose energy usage of such buildings in advance of any sale, lease, or financing of the entire building.

NEW RULES

Here is the schedule for when commercial buildings need to keep and disclose energy usage records:

1. On and after July 1, 2013, for buildings with a total gross floor area of more than 50,000 square feet;

2. On and after January 1, 2014, for buildings with a total gross floor area between 10,000 square feet and 50,000 square feet; and

3. On and after July 1, 2014, for buildings with a total gross floor area between 5,000 square feet 10,000 square feet.

AB 1103 and 531

Assembly Bill 1103, signed into law on October 12, 2007, requires the tracking of the energy use of all nonresidential buildings and the disclosure of such energy use as part of the sale, lease, or financing of an entire nonresidential building. T

The disclosure requirement is intended to “motivate building operators to take actions to improve their buildings’ energy profiles” and “to allow building owners and operators to compare their buildings’ performance to that of similar buildings and to manage their buildings’ energy costs.”

Since we’re talking government, AB 1103 then added Section 25402.10 which contained a compliance deadline of January 1, 2010. Assembly Bill 531 removed that deadline, and replaced it with the disclosure of energy usage data on a schedule of compliance established by the State Energy Resources Conservation and Development Commission.

HOW TO COMPLY

Compliance with Assembly Bills 1103 and 531 expects owners of nonresidential buildings to take certain actions at least 30 days before the sale, lease, or financing of the entire building.

1. Register for an account with “Portfolio Manager,” the U.S. Environmental Protection Agency’s ENERGY STAR program online tool for managing building energy use data.

2. Create a profile within Portfolio Manager for the nonresidential building.

3. Use Portfolio Manager to request that utilities serving the building release the last 12 months of energy use data for the building to Portfolio Manager. What you’ll get is:

Disclosure Summary Sheet;
Statement of Energy Performance;
Data Checklist; and
Facility Summary (collectively, the “Disclosure Data”).

4. After the utility data has been provided, download the Disclosure Data; and provide the Disclosure Data as part of the sale, lease, or financing.

(Regulations section 1683(a) + 1684(c).)

Here’s the curious caveat, there is no specific penalty for non-compliance, but a failure to disclose a building’s energy usage could be viewed as a material fact in the transaction.

http://www.allenmatkins.com/en/Publications/Legal-Alerts/2013/02/02_19_2013_Energy-Use-Disclosure-Requirements.aspx?utm_source=Listrak&utm_medium=Email&utm_term=http%3a%2f%2fwww.allenmatkins.com%2fen%2fPublications%2fLegal-Alerts%2f2013%2f02%2f02_19_2013_Energy-Use-Disclosure-Requirements.aspx&utm_campaign=Green+Building+Update+-+February+21%2c+2013

http://www.socalgreenrealestateblog.com/?p=2656

http://www.allenmatkins.com/Publications/Legal-Alerts/2013/02/02_19_2013_Energy-Use-Disclosure-Requirements.aspx

http://www.socalofficerealestateblog.com/?p=2348

http://www.energy.ca.gov/ab1103/

http://www.socalmultiunitrealestateblog.com/?p=2368

http://www.ahoodie.com/wp-content/uploads/2011/09/obey-desktop-wallpaper.jpg

http://www.socalindustrialrealestateblog.com/?p=1711

http://2.bp.blogspot.com/-C2BLWCC7ZYI/ThWjBScNgII/AAAAAAAABbY/FF0nj-cb8ag/s1600/serveimage%255B6%255D%2B%252815%2529.jpg

http://www.aclu-nm.org/wp-content/uploads/2012/02/Bloomfield-10-Commandments-monument.jpg

http://www.socalofficerealestateblog.com/wp-content/newuploads/2009/12/ab-32-signing-schwarzeneggar.jpg

http://obeygiant.com/images/2009/04/obey-elephant_2-fnl-btmp.jpg

http://clclt.com/binary/c1f0/cfacompany.jpg

FINE INDUSTRIAL COMPLEX BY LONG BEACH HARBOR

April 23, 2013 on 8:56 pm | In Investment Opportunities, Lights…Camera…Transaction, Property Wish List, Uncategorized | No Comments

Last installment, we told you that the ports were hopping…well here is a really great opportunity to have your own industrial complex by the port….

FINE INDUSTRIAL COMPLEX BY LONG BEACH HARBOR

1452 Harbor Ave., Long Beach, CA 90813

Price: $615,000

Price: $615,000
Building Size: 5,387 SF
Price/SF: $114.16
Property Type: Industrial
No. Stories: 1
Year Built: 1957
Clear Ceiling Height: 12 ft.
No. Drive In / Grade-Level Doors: 5
Lot Size: 0.16 AC
APN / Parcel ID: 7432-020-011

Highlights

Five 10′ loading doors total
3 bathrooms in shop
2 electric and 2 water meters, 1 gas meter
Each building has a pedestrian door facing Harbor Ave.
Overhead hoist inside northwest loading door
Inventory and fixtures negotiable

Description

Cut your fulfillment costs by relocating to the import/export hub of Long Beach. Take a tenant and expand as you need. For the very affordable price of $615,000, 1452 Harbor Ave. offers two side by side 2,240 SF buildings that have been connected, adding approximately 970 SF. Small fenced yard area in rear with gated access off Cowles St. AP#’s 7432-020-011 and 7432-020-012.

Location

On the corner of Harbor Ave. and Cowles St., 2 blocks north of Anaheim St., and 2 blocks west of the 710 freeway. Close to Anaheim St. onramp to 710 Freeway.

Is this the kind of property you’re looking for?

Do let us know how we can move forward together in meeting your real estate goals 310.392.1211 or jodi@jodisummers.com.

Best…

Jodi Summers

The SoCal Investment Real Estate Group

Sotheby’s International Realty

310. 392.1211

jodi@jodisummers.com

www.SoCalIndustrialRealEstateBlog.com

LICENSE # – 01343854

18104531
**
Experience is how life catches up with us and teaches us to love and forgive each other.
—Judy Collins

p.s. a. This is not intended as a solicitation if your property is already listed with another agent.

b. We are not the listing agent on this property.

Should you wish to unsubscribe from this emailing, please hit the reply button, and write unsubscribe in the headline of the email.

Sotheby’s International Realty, Inc. is Owned and Operated by NRT Incorporated.

http://www.loopnet.com/lid/18104531

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 Comments

by 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.bizjournals.com/phoenix/print-edition/2013/03/29/real-estate-office-industrial.html?s=image_gallery

http://www.cushwake.com/cwglobal/jsp/kcReportDetail.jsp?Country=US&Language=EN&catId=100001&pId=c47500010p

http://www.youtube.com/watch?v=8f1wUAkNMZE

http://www.busjournal.com/content/archives/1210/img/pictures/ucla%20forecast.jpg

SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – MARCH 2013 ~ GROWTH THROUGH STUFF

March 1, 2013 on 10:18 pm | In Economy, Fascinating Information, Investment Opportunities, Market Snapshot, New Developments, Trends, Uncategorized | No Comments

by Jodi Summers

It’s in the cards. In the future, we’re going to buy more stuff, build more stuff, make more stuff and warehouse more stuff, and these activities will keep SoCal industrial real estate market strong. Experts say the wide array of economic and real estate expansion that we are currently noticing around town will support healthy employment activity over next two years. This year, countywide employment is predicted to grow by 61,000 positions, or 1.6%, followed by 72,000 new hires in 2014, an increase of 1.8%.

Much of this new employment is coming in the way of new construction, and is good for the industrial market. Why kind of new construction, you wonder? Check out these billion dollar projects:

* Our football stadium, Farmers Field, was finally approved by the Los Angeles City Council in a 12-0 vote on September 28, 2012. The $1 billion, 78,000-seat stadium downtown in downtown will double the size of the Convention Center.

Soon, Los Angeles will be able to host an NFL team < this hasn’t happened since the Rams and the Raiders left Los Angeles at the end of 1994.

Construction of the project is anticipated to generate over $1.7 billion for the local economy, and add nearly 20,000 full-time jobs resulting from direct and indirect operations.

* The Tom Bradley International Terminal is undergoing a $1.5 billion renovation and expansion project that will be complete this year. This modern engineering marvel will feature 18 roomier boarding gates with nine built for new-generation aircrafts. The project is using recycled building materials and is expected to achieve a LEED Silver certification from the U.S. Green Building Council, as well as a host of other architecture and design awards.

The passenger experience will be enriched by upgraded customs/immigration and federal security screening areas for more efficient processing, as well as secured corridors so connecting passengers can travel between the New TBIT and Terminals 3 and 4. New state-of-the-art, baggage-handling systems will improve passenger wait times and speed travelers through the ticketing process.

Fyi, LAX is the sixth busiest airport in the world and third busiest in the United States, offering more than 600 daily flights to 91 domestic cities and over 1,000 weekly nonstop flights to 58 cities in 32 countries on nearly 75 air carriers. In 2011, LAX served more than 61.8 million passengers, processed more than 1.8 million tons of air cargo valued at nearly $84.6 billion, and handled 603,912 aircraft operations (landings and takeoffs).

* And the award for entertainment development goes to the Grand Avenue redevelopment project. Plans call for a $3 billion, 3.2 million-square-foot project near the Walt Disney Concert Hall in downtown Los Angeles. The project will include 2,600 residential units, 449,000 square feet of retail space, a five-star hotel, and a 16- acre park. The development is expected to support 5,900 permanent positions. The wide array of economic and real estate expansion will support healthy employment activity over the two-year forecast period. This year, countywide headcounts will grow by 61,000 positions, or 1.6%, followed by 72,000 new hires in 2014, an increase of 1.8%.

* And let us not forget our much-anticipated Expo Line light rail. The Expo Line will run from downtown Los Angeles to Santa Monica in approximately 46 minutes – even during rush hour. The 15.2 mile Expo Line will bring light rail to the Exposition Corridor, with 19 stations. Service on Phase 1 began service to the Culver City station on June 20, 2012. Phase 2 will extend the line out to Santa Monica and construction is scheduled to be completed in 2015. Estimated costs for the project are $930 million for Phase 1 and $1.5 billion for Phase 2. By 2030, an estimated 64,000 passengers are expected to ride the Expo Line each day – which would make it one of the most heavily used light rail lines in the country.

Those with a vision, see our growth. Be a part of the plan, buy more stuff, build more stuff, make more stuff and warehouse more stuff.

http://blog.commercialsource.com/fed-industrial-production-capacity-utilization-up/?om_rid=AAFjw1&om_mid=_BRFBXaB8wsws$y&om_ntype=NARWeekly

http://www.allenmatkins.com/Publications/Videos-and-Presentations/Videos/2013/01/30_01_2013-Winter-Anderson-Forecast-Main-Video.aspx

http://www.socalindustrialrealestateblog.com/?p=1694

http://www.youtube.com/watch?feature=player_embedded&v=avi7aSwzqXE

http://www.costar.com/News/Article/CRE-Sales-Surge-In-2012-As-Pricing-Recovery-Spreads-To-More-Markets/145720?ref=100&iid=323&cid=383F14EEE265B182474DA2442BACBBBF

http://creativenvironments.net/blog/wp-content/uploads/2009/12/grand-ave-2.jpg

http://en.wikipedia.org/wiki/Farmers_Field

http://venturebeat.files.wordpress.com/2012/11/buy-more-stuff.jpg

http://westfieldatlax.com/blog/2012/12/05/premier-dining-retail-coming-to-new-tom-bradley-international-terminal/

http://latimesblogs.latimes.com/lanow/2012/01/lax-renovation.html

http://www.buildexpo.org/

http://www.apartmentupdate.com/index.cfm?fuseaction=markets.main&mktpage=861&login=1

THE REVIVAL OF SPEC INDUSTRIAL BUILDING IN LOS ANGELES

February 20, 2013 on 12:00 am | In Bravo, Investment Opportunities, New Developments, Trends, Uncategorized | No Comments

by Jodi Summers

Spec building is coming back to Los Angeles area industrial real estate. Builders are creating small, high tech storage and distribution facilities with easy loading and easy access.

“What we’re trying to do is design the best building for the market.” Notes Panattoni Development partner Mark Payne.

The growth of Internet sales is creating a need for more warehousing. As you might expect, Los Angeles area industrial buyers place their priority on location. There is a desire for industrial sites near LAX, the Ports, UPS and FedEx stations. Taking a broader view, beyond local infill, there will be a demand for more distant locations where next-day delivery products can get shipped quickly and easily.

New development is going forward because experts praise the SoCal industrial real estate market as “by far 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% 3.8%.”

**

http://www.youtube.com/watch?v=ijXiVFXB_pk&noredirect=1

http://www.socalindustrialrealestateblog.com/?p=1572

http://www.ngstebbing.com.au/assets/Uploads/Projects/_resampled/croppedimage500260-IMG4.jpg

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 Comments

by 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.