Los Angeles industrial real estate prices are as low as they are going to be. In the meantime, industrial rents are predicted to make a rapid rise over the next couple of years. Now is the time for buyers to buy, and for renters to get a solid long-term lease in place.
Current greater Los Angeles market trends data indicates that in the 3rd quarter, industrial real estate in L.A. was selling for a median sale price of $115.23 per sq.ft. This is an increase of +3.5% in the median sale price per sq ft for Industrial properties compared to the previous year. Statewide, asking prices for Industrial properties are +4.1%higher at $109.25 per sq ft.
In Los Angeles, this lower-end pricing should be a temporary state of affairs. The available square footage for sale has dropped off -20.3% in the past year…here’s why… If rents perform as anticipated, owners can expect a pop of about 8% mid-2015.
We’re already headed in that direction. The average asking rental rate per sq ft/year for Industrial properties in Los Angeles, CA as of Aug 13 was $11.03. This represents an increase of 5.3% compared to the prior 3 months, with an increase of +9.3% year-over-year. County-wide, average rental rates in Los Angeles are +0.9% higher at $8.86 per sq ft/year for Industrial properties currently for lease.
To add momentum to the pricing boom, the number of spaces for lease in metro Los Angeles has dropped -13.5% in the past 12 months.
Properties are spending 178 days on the market, -3.8% less time than the previous 12-month period.
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – firstname.lastname@example.org or 310.392.1211, and let us move forward together.
4 Comments »
Leave a comment
You must be logged in to post a comment.
Powered by Digital Shake LLC