L.A. COUNTY INDUSTRIAL PROPERTY SNAPSHOT – FEBRUARY 2010

February 4, 2010 on 11:55 am | In CHARTS + STATISTICS, FASCINATING INDUSTRIAL REAL ESTATE INFORMATION, Trends, Uncategorized, all, statistics |

Signs of Hope

By Jodi Summers

Look forward, better times are on the horizon. U.S. economic growth surged during the fourth quarter!! According to estimates of the Bureau of Economic Analysis, the U.S. economy bounced up by +5.7% last quarter (seasonally adjusted annual rate). This pace was the biggest increase since the third quarter of 2003.

This growth impacted the industrial sector in several ways:

* Industrial production increased. As output grew, the net rate at which firms drew down inventories plunged as many businesses decided to produce more goods and sell less out of inventory. This change supplied the single biggest boost to the economy, adding a celebratory +3.4 percentage points to the quarter’s growth rate.

* Exports continued to grow rapidly, which contributed +1.9 percentage points to the quarterly growth rate.

The industrial market needs these signs of optimism as, according to Clarus Market Metrics, contrasting Jan-08 vs. Jan-10, the median price of for sale properties is down 47% and the median price of sold properties is down 100%…so Los Angeles County industrial properties need all the stimulus they can get.


Hope is on the horizon. CoStar commercial real estate service reports that while industrial vacancies stubbornly high across the country, they are now flattening. Leasing activity is starting to pick up and, unlike previous downturns, the market is not plagued by an overhang of new supply. Locally, there is still a lot of volume on the market. Comparing Jan-08 vs. Jan-10, the number of for sale properties is up 48% and the number of sold properties is down 100%


Jan-08 vs. Jan-10 shows the number of expired properties is up 100%. Prices have dropped so low, that those who do not have to sell, are waiting and holding. Buyers and sellers are coming to terms with losses inflicted by the recession and the bursting of the real estate bubble, and realizing 2010 can only be brighter.

On the Westside, “There are preliminary signs of price stabilization in leases and sales,” in the industrial market, concludes Klabin Co. principal Luke Staubitz. Transaction volume, which began building last September, “will continue to increase throughout the year with tenants holding the pocket aces,” Staubitz said.

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We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com or call 310.392.1211. We look forward to working with you in your next real estate transaction.

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http://www.cirbdata.com/

https://www.terradatum.com/

http://www.SoCalGreenRealEstateBlog.com

http://www.globest.com/news/1590_1590/washington/183353-1.html

http://www.globest.com/news/1592_1592/losangeles/183380-1.html

http://ellencarrlee.files.wordpress.com/2009/10/loading-dock.jpg

http://www.costar.com/News/Article.aspx?id=3C0803868E6B292E543549E07D5083C4&ref=100&iid=167&cid=383F14EEE265B182474DA2442BACBBBF

http://www.laedc.org/eedge/index.html#1

http://www.iamnotastalker.com/wp-content/uploads/2008/01/img_18842.jpg

4 Comments »

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  1. The first factory in the United States was built in 1793 during the Presidential days of George Washington. Samuel Slater, a cotton spinner’s apprentice from England built the factory, Slater Mill, which had 72 cotton spindles powered by nine children pushing foot treadles.

    Comment by Real Up — February 5, 2010 #

  2. Companies in California are receiving the most government pressure to this end, as the state implements progressively more stringent environmental (“green building”) standards for new commercial (as well as residential) construction.

    Data centers do not (by themselves) produce carbon emissions or toxic wastes, but they do use large amounts of power for running computer equipment and water to aid in cooling it. A data center can, for instance, easily use hundreds of thousands of gallons of water per day for cooling, in addition to megawatts of power. Thus, data center operators in California are increasingly coming under pressure from the state government as legislators and regulators seek to mandate building practices that reduce energy and water consumption.

    Comment by Jeffrey Clark — February 13, 2010 #

  3. California Exports Grew Strongly in December

    California maintained its position as the second largest state exporter in December, with total exports valued at $11.6 billion. California’s exports rose by +6.1% from November to December. More impressively, exports in December were up by +12% over the year, the second consecutive year-to-year increase and the first in double digits.

    The top California export markets in December were Mexico, China (including Hong Kong and Macao), Canada, Japan, and South Korea. Exports to Mexico, California’s largest market, increased by +8.9% over the year. California’s second largest market, China, actually witnessed the highest annual increase, a stunning +49.6% rise over the year, in December. The state’s fifth largest market, South Korea, experienced the second largest year-to-year increase, with a +47.7% rise in December. Exports to Canada and Japan strengthened by +3.6% and +0.2%, respectively. From an industry standpoint, the top three product exports (ranked by dollar value) remained computer & electronic products, transportation equipment and machinery.

    Comment by Ferdinando Guerra — February 16, 2010 #

  4. We’re hearing that demand has a bit of an upward trend. Not dramatically or significant, but I’m hearing that there is some positive activity. Our export market and export ports are starting to see some business pick up. Our import ports like LA Long Beach are more challenged than others, but the seaports like Savannah and Newark are actually reporting a bit of growth on the export side of the business. That all translates to general industrial activity that is starting to go the right way.

    Comment by Jim Dieter — March 4, 2010 #

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