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.



Join the conversation! 4 Comments

  1. American factories gained momentum as the second quarter unfolded, a pocket of strength amid an uneven global recovery—and a relief to markets unnerved by an initially reported slowdown in activity.

    Manufacturing activity accelerated last month to 55.4 from 54.9 in April, the fourth consecutive month of improvement, according to the Institute for Supply Management’s manufacturing index Monday. Readings above 50 indicate expansion.

  2. Take a Look at the Top Industries for New College Graduates:

    Oil Drilling and Gas Extraction
    Projected revenue growth, 2014-19: 2.4 percent per year, on average
    Projected employment growth, 2014-19: 3 percent per year, on average
    Average industry wage, 2014: $131,847
    Occupations: Chemist and Materials Scientist, Petroleum Engineer, Geologist, Mechanical Engineer

  3. New orders for U.S.-made factory goods rose for a third straight month in April and automakers reported robust vehicle sales in May, boosting the outlook for second-quarter economic growth.

    Recent reports added to bullish employment and other manufacturing data in suggesting the economy has rebounded smartly from the first quarter’s weather-induced slump.

    “This is consistent with other data showing growth bouncing back in the second quarter. Everything looks set for solid growth in the second half of this year,” said Gus Faucher, senior economist at PNC Financial Services Group.

  4. The Toyota Motor Corp. recently announced its intention to move its North American headquarters from Torrance, Calif., to Plano, Texas, transferring 3,000 high-paying jobs to the Lone Star state. Toyota’s move, which starts this summer, is part of larger trend going on nationwide. Increasingly, people are voting with their feet and leaving high-tax states in California and the North East and moving to low-tax or no-tax states, many of them in the southeast. Texas, for example, is one of seven states with no state income tax; the others are Alaska, Florida, Nevada and South Dakota. Over 500,000 people moved to Texas in 2012.

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About Jodi Summers

Jodi Summers Sotheby’s International Realty 310.392.1211 Jodi Summers Bio With $100,000,000 in listed inventory, Jodi Summers understands the coastal commercial real estate market. A top producer with Sotheby’s International Realty, Jodi knows finance, rules, regulations, procedures and methods. She is accurate, knowledgeable, timely and aware of how government shapes the cities of Southern California. Jodi is born in Brooklyn, raised in and around Manhattan – the family business was marketing, Madison Avenue style. Childhood math quiz questions calculated demographic and psychographic percentages or analyzed the allocation of adverting dollars. Word games were for devising slogans. An honors graduate from the Walter Cronkite School of Journalism at Arizona State University, Jodi moved to California to achieve her goal of living by the beach with a palm tree and a hibiscus bush in her yard. She thrived as an entrepreneur in the entertainment, media and marketing industries. One of her books, “Marking and Marketing Music,” is in second edition. “My marketing and communication skills have proven to be a true gift when it comes to promoting real estate,” observes Jodi. “And I am consistently able to get an exceptionally high price per square foot for my sellers.” Discipline (Jodi holds a Black Belt in Tae Kwon Do), organization, motivation, excellent communication skills and knowing & satisfying the needs of her clients have been her essentials for running a successful business. A passion for investment real estate explains her emphasis in asset-yielding properties. Her team joined Sotheby’s International Realty for the company’s powerful brand and stellar reputation. “We offer the broad market knowledge needed to assist clients in formulating a sound acquisition strategy,” Jodi amplifies. “Together, we evaluate various markets, property types and neighborhoods to devise a customized approach that meets each client's specific objectives.” Jodi is a member of the Action Apartment Association of Westside income property owners, the Santa Monica Conservancy historic preservation society, the Ocean Park Association, the Friends of Sunset Park community group, the Real Estate Investors Club of L.A., and the Culver City Rock & Mineral Club. Members of her team are fluent in Spanish and Italian. “Our reputation assures your satisfaction.”


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