Los Angeles 2nd Quarter 2016

Transcription

1 INDUSTRIAL MARKET REPORT Los Angeles 2nd Quarter 2016 Produced in partnership with

2 Table of Contents/ Methodology of Tracked Set Xceligent is a leading provider of verified commercial real estate information which assists real estate professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell, buy and develop commercial properties. Table of Contents and Methodology/Map 2-3 Market Overview 4-5 Statistics by Market 6 Vacancy Rates & Asking Rates 7-8 Leasing & Absorption 9 New Construction 10 Industrial Advisory Board Members 11 Xceligent Team 12 The Los Angeles tracked set consists of an inventory of buildings considered to be competitive by the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for the market area. Tracked Inventory (Industrial) The total square feet of all single and multi-tenant buildings greater than 10,000 sf, including owner occupied facilities. Available SF All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or sublease space. Space can be available but not vacant, for example, if the landlord, or his agent, is marketing space that will be coming available at a future date because a tenant is planning to move. Vacant SF The total of the direct vacant square footage in a building that is being marketed. Net Absorption The net change in occupied square feet from quarter to quarter, expressed in square feet. Note This report reflects Direct Vacancy and Absorption, Sublease space is excluded. 2

3 Industrial Market Map 3

4 Los Angeles Industrial Overview Overview The Los Angeles industrial market closed out the second quarter of 2016 with a total of 794,431 square feet of positive net absorption. The LA South submarket recorded the most activity by absorbing 243,408 square feet in the second quarter. Construction activity remains active with 6.4 million square feet of new construction underway. 4PX Express inked the largest lease of the quarter with a 361,435 sf deal in the city of Commerce. # of Bldgs Inventory (SF) Total Available (SF) Total Vacant (SF) Total Vacancy Rate (%) Total Quarterly Net Absorption (SF) YTD Total Net Absorption (SF) LA Central 4, ,995,737 8,609,139 3,079, % 198, ,496 LA South 4, ,855,936 6,092,309 1,486, % 243, ,344 LA Northwest 3, ,554,741 4,099,398 1,912, % 193, ,523 LA East 3, ,547,879 4,917,868 1,474, % 214, ,660 MidCounties 2, ,045,673 2,897, , % (55,059) 316,100 Grand Total 19, ,999,966 26,615,740 8,684, % 794,431 2,074,123 # of Bldgs Inventory (SF) Sum of Direct Available SF Direct V acant (SF) Direct Vacancy Rate (%) Direct Quarterly Net Absorption (SF) YTD Direct Net Absorption (SF) LA Central 4, ,995,737 8,054,335 3,026, % 172, ,754 LA South 4, ,855,936 5,503,547 1,432, % 297, ,467 LA Northwest 3, ,554,741 3,688,421 1,871, % 193, ,594 LA East 3, ,547,879 4,732,994 1,323, % 99,109 74,163 MidCounties 2, ,045,673 2,473, , % (53,052) 318,107 Grand Total 19, ,999,966 24,453,244 8,383, % 708,892 2,013,085 # of Bldgs Inventory (SF) Available Sublease (SF) Sublease Vacant (SF) Sublease Vacancy Rate (%) Sublease Quarterly Absorption (SF) YTD Sublease Net Absoprtion (SF) LA Central 4, ,995, ,714 52, % 25,818 15,742 LA South 4, ,855, ,762 53, % (53,779) (44,123) LA Northwest 3, ,554, ,977 40, % - (27,071) LA East 3, ,547, , , % 115, ,497 MidCounties 2, ,045, ,079 2, % (2,007) (2,007) Grand Total 19, ,999,966 2,162, , % 85,539 61,038 4

5 Los Angeles Industrial Overview Historical Vacancy Rate & Net Absorption 2,500,000 2,000,000 1,500,000 1,000, , Q Q Q Q Q2 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Historical Vacancy Rates by Use 2015 Q Q Q Q Q2 Whse/Mfg Flex/R&D 2,500,000 2,000,000 Historical Net Absorption by Use 1,952,517 1,500,000 1,000,000 1,069,713 1,383,431 1,232, , , ,243 11,678 91,274 47, Q Q Q Q Q2 Whse/Mfg Flex/R&D 5

6 Statistics by Market # of Bldgs Inventory (SF) Total Vacant (SF) Sublease Vacant (SF) Vacancy Rate (%) Total Quarterly Absorption YTD Total Net Absorption (SF) LA South 4, ,855,936 1,486,371 53, % 243, ,344 Carson-Compton/Rancho Dominguez 1,340 85,323, , % 290, ,304 Gardena/North Compton ,239, ,443 16, % (8,142) 399 Long Beach/Paramount/Signal Hill ,158, , % 23, ,320 Torrance ,231, ,326 31, % (4,237) 77,907 LAX Area ,695, ,566 5, % (58,720) (25,586) Port District 90 4,207,011 4, % - - LA Central 4, ,995,737 3,079,107 52, % 198, ,496 Commerce/Vernon 2, ,578,831 1,818,675 35, % (143,356) 490,397 CBD 1,536 48,495, ,966 17, % 148, ,811 Outside Submarket Area ,921, , % 193, ,288 LA East 3, ,547,879 1,474, , % 214, ,660 West 1,342 37,108, , % 113,556 88,772 Industry 1,213 75,096, ,739 4, % (86,357) (151,058) 210 Corridor ,944,896 42, % 48,130 95,510 Pomona ,397, , , % 139, ,436 LA Northwest 3, ,554,741 1,912,929 40, % 193, ,523 East 1,839 54,702, ,014 14, % 192,930 (23,781) West ,562, ,131 23, % (57,428) (20,990) Santa Clarita ,774, ,096 3, % 32, ,057 Central ,515,202 67, % 25, ,237 MidCounties 2, ,045, ,159 2, % (55,059) 316,100 LA Southeast 1,880 88,562, ,553 2, % (140,895) 197,103 Buena Park/La Palma ,482,866 78, % 85, ,997 Grand Total 19, ,999,966 8,684, , % 794,431 2,074,123 6

7 Vacancy Rates & Asking Rates Vacancy Rate % 2015 Q Q Q Q Q2 LA East 1.0% 1.1% 0.8% 0.8% 0.9% Whse/Mfg 0.9% 1.0% 0.7% 0.7% 0.8% Flex/R&D 2.4% 2.0% 2.2% 2.4% 2.1% LA Central 1.9% 1.8% 1.8% 1.6% 1.5% Whse/Mfg 1.9% 1.8% 1.8% 1.6% 1.5% Flex/R&D 3.8% 2.4% 2.3% 2.0% 2.2% LA South 1.5% 1.2% 0.8% 0.8% 0.7% Whse/Mfg 1.4% 1.1% 0.8% 0.8% 0.7% Flex/R&D 2.4% 1.5% 1.5% 1.3% 1.6% MidCounties 1.5% 1.4% 1.0% 0.7% 0.7% Whse/Mfg 1.6% 1.4% 1.0% 0.6% 0.7% Flex/R&D 0.9% 1.1% 1.2% 0.8% 0.8% LA Northwest 2.0% 1.9% 1.7% 1.7% 1.5% Whse/Mfg 1.6% 1.6% 1.5% 1.5% 1.3% Flex/R&D 5.3% 4.9% 4.2% 4.0% 4.3% Grand Total 1.6% 1.4% 1.2% 1.1% 1.1% Average Weighted Direct Asking Rate 2015 Q Q Q Q Q2 LA East $0.75 $0.66 $0.67 $0.73 $0.80 LA Central $0.76 $0.82 $0.74 $0.75 $0.78 LA South $0.65 $0.67 $0.78 $0.77 $0.79 MidCounties $0.58 $0.59 $0.60 $0.63 $0.66 LA Northwest $0.70 $0.72 $0.73 $0.75 $0.77 Grand Total $0.67 $0.71 $0.73 $0.73 $0.76 7

8 Vacancy Rates & Asking Rates Vacancy Rate by Submarket 1.5% 1.5% 0.9% 0.7% 0.7% LA East MidCounties LA Central LA Northwest LA South Average Weighted Asking Rates by Submarket $0.80 $0.66 $0.78 $0.77 $0.79 LA East MidCounties LA Central LA Northwest LA South $2.50 Asking Lease Rate Range by Type (NNN) $2.00 $1.95 $1.50 $1.00 $0.50 $- $1.55 $0.74 $0.49 Whse/Mfg Flex/R&D $1.06 $0.69 8

9 Leasing & Absorption Property Name Largest Leases & Absorption Changes SF Occupied or Vacated Tenant Name Submarket Specific Use W Artesia Blvd 457,960 T.J. Maxx LA South Whse/Mfg Grace Pl 361,435 4PX Express LA Central Whse/Mfg 2700 E Imperial Hwy 323,374 idc Logistics, Inc. LA South Whse/Mfg E Slauson Ave 224,232 Plastic Express LA Central Whse/Mfg 2230 E Carson St 198,292 Idea Nuova Inc LA South Whse/Mfg Central Ave 183,473 MyDyer Inc. LA South Whse/Mfg Louden Ln 168,000 Wayfair LA East Whse/Mfg 768 Turnbull Canyon Rd (128,810) Yankee Clipper Distribution Of California, Inc. LA East Whse/Mfg 5008 S Boyle Ave (129,269) Uno Clothing LA Central Whse/Mfg 3030 S Atlantic Blvd (200,000) 99 Only Stores LA Central Whse/Mfg Top Transactions Property Name Sale Price SF Sold Buyer Seller Submarket Specific Use 6130 E Sheila St $32,500, ,772 Church of Scientology Intl Guardian Life Insurance LA Central Whse/Mfg 4633 S Downey Rd $24,000, , Downey Acquisition LLC Packaging Property Associates LLC LA Central Whse/Mfg Valley View Ave $18,000, , Valley View LLC Prologis MidCounties Whse/Mfg 9

10 New Construction Current New Construction by Submarket 2,500,000 2,000,000 1,500,000 1,000, ,000 - LA East LA Central LA South MidCounties LA Northwest 10

11 Industrial Advisory Board Members CBRE Central MidCounties Northwest John Privett Jeff Stephens CBRE Rick McGeagh CBRE David Harding Laird Perkins Coldwell Banker Greg Barsamian Commercial Alliance Colliers International Will Smith Colliers International Steve Calhoun Colliers International Patrick DuRoss Cushman & Wakefield Daum Commercial Jerry Sackler Dave Hess Chris Sheehan John Erickson Cushman & Wakefield Chuck Berger Heger Industrial Jon Reno Mike Foley Daum Commercial Kevin Tamura Delphi Business Properties David Hoffberg JLL Paul Sablock JLL Cameron Driscoll Jeff Puffer NAI Capital Philip Attalla Luke McDaniel JLL Bart Reinhard The Quantum Associates Iqbal Hassan Lee & Associates Tim Cronin Lee & Associates Randy Kobata Voit Dave Fults Voit Peter Castleton NAI Capital Chad Gahr David Young East South Ashwill & Associates Mitch Ashwill CBRE Brian Held CBRE Jason Chao Lynn Knox Will Kim Colliers International Tony Phu Cushman & Wakefield Stu Milligan Daum Commercial Charles Johnson Colliers International Chuck Littell Cushman & Wakefield Daum Commercial Gateway Business Properties Steve Bohannon Rudy Lara Andrew Lara Casey Mungo Mike Kantor Jeff Bethel Heger Industrial John Bowman Lee & Associates Christopher Bonney Todd Launchbaugh JLL Harvey Beesen Barry Hill NAI Capital Newmark Grubb Knight Frank Realty Advisory Group Ryan Campbell Lee & Associates David Bales Rich Horn NAI Capital Philip Attalla Rick Sheckter The Klabin Company David Prior Rustin Mork 11

12 Xceligent Los Angeles Team This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy. For more information, please contact : Matt Nelson Director of Analytics mnelson@xceligent.com Monique Ebel Director of Research mebel@xceligent.com Mike Foxworthy Pablo Dresie Sam Vaden Mark Masliah Danny Teng Rebecca Johnson Director of Client Services - Northwest LA & Ventura Director of Client Services - South Bay Director of Client Services - Central Director of Client Services - West LA Director of Client Services - LA East Director of Client Services - SFV/Ventura mfoxworthy@xceligent.com pdresie@xceligent.com svaden@xceligent.com mmasliah@xceligent.com dteng@xceligent.com rjohnson@xceligent.com Tim Hayes Executive Director - AIR thayes@airea.com Produced in partnership with 12