Los Angeles 4th Quarter 2016

Transcription

1 INDUSTRIAL MARKET REPORT Los Angeles 4th 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 (sf) of all existing single and multi tenant industrial properties greater than 10,000 sf. Direct The total of the vacant square footage in a building that is being marketed by an agent representing the landlord. Net Absorption The net change in physically occupied space from quarter to quarter, expressed in square feet. Sublease (sf) Space that is offered for lease by a current tenant, or his agent, within a property. Whether the tenant is paying rent or not, the space is considered vacant only if it is unoccupied. Total Available (sf) All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or sublease space. Total The total of all of the vacant square footage within a building, including both direct and sublease space. 2

3 Industrial Market Map 3

4 Los Angeles Industrial Overview Overview The Los Angeles industrial market closed out the fourth quarter of 2016 with a total of 1,544,884 square feet (sf) of positive net absorption. With a vacancy rate of 1%, the LA industrial market is the lowest in the nation. The LA South (South Bay) submarket recorded the most activity by absorbing 819,013 sf in the fourth quarter. Development activity remains active despite the lack of infill space throughout the county with 4.7 million sf of new construction underway. Vantec World Transport inked the largest lease of the quarter with a 197,685 sf deal at the new Oakmont Pomona development. # of Bldgs Inventory (sf) Total Available (sf) Total Total Vacancy Rate (%) Total Quarterly Net Absorption (sf) YTD Total Net Absorption (sf) LA Central 4, ,637,700 9,826,535 2,308, % 407,261 1,791,859 LA South 4, ,269,462 6,846,140 2,338, % 819, ,037 LA Northwest 3, ,549,221 4,189,740 1,212, % 100, ,172 LA East 3, ,159,654 5,117,188 1,576, % 133, ,894 MidCounties 2, ,174,080 2,479, , % 85, ,935 Overall 18, ,790,117 28,458,711 8,100, % 1,544,884 4,743,897 # of Bldgs Inventory (sf) Direct Available( sf) Direct Direct Vacancy Rate (%) Direct Quarterly Net Absorption (sf) YTD Direct Net Absorption (sf) LA Central 4, ,637,700 7,880,666 2,283, % 419,891 1,748,518 LA South 4, ,269,462 6,398,006 2,288, % 808, ,231 LA Northwest 3, ,549,221 3,581,998 1,175, % 113, ,310 LA East 3, ,159,654 4,423,708 1,548, % 133, ,535 MidCounties 2, ,174,080 1,987, , % 101, ,114 Overall 18, ,790,117 24,271,859 7,941, % 1,577,317 4,540,708 # of Bldgs Inventory (sf) Available Sublease (sf) Sublease Sublease Vacancy Rate (%) Sublease Quarterly Absorption (sf) YTD Sublease Net Absoprtion (sf) LA Central 4, ,637,700 1,945,869 25, % -12,630 43,341 LA South 4, ,269, ,134 49, % 10,253-40,194 LA Northwest 3, ,549, ,742 37, % -13,884-23,138 LA East 3, ,159, ,480 28, % 0 241,359 MidCounties 2, ,174, ,627 18, % -16,172-18,179 Overall 18, ,790,117 4,186, , % -32, ,189 4

5 Los Angeles Industrial Overview Historical Vacancy Rate & Net Absorption Absorption Vacancy 2,500,000 2,000,000 1,500,000 1,000, ,000-4Q Q Q Q Q % 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Historical Vacancy Rates by Use Whse/Mfg Flex/R&D 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 4Q Q Q Q Q ,500,000 Historical Net Absorption by Use Whse/Mfg Flex/R&D 2,000,000 1,500,000 1,000, ,000-4Q Q Q Q Q

6 Statistics by Market # of Bldgs Inventory (sf) Total Sublease Vacancy Rate (%) Total Quarterly Absorption (sf) YTD Total Net Absorption (sf) LA South 4, ,269,462 2,338,647 49, % 819, ,037 Carson-Compton/Rancho Dominguez 1,320 84,149, , % 157,499 88,415 Gardena/North Compton ,504, ,681 24, % 595, ,871 Long Beach/Paramount/Signal Hill ,788, , % 25, ,765 Torrance ,048, ,818 25, % 4, ,905 LAX Area ,571, , % 35,685-75,181 Port District 90 4,207, % 0 4,262 LA Central 4, ,637,700 2,308,699 25, % 407,261 1,791,859 Commerce/Vernon 2, ,642,635 1,003,347 25, % 636,397 1,400,228 CBD 1,517 46,944,688 1,108, % -220,156 66,623 Outside Submarket Area ,050, , % -8, ,008 LA East 3, ,159,654 1,576,707 28, % 133, ,894 West 1,330 36,098, ,196 13, % 5,767-17,902 Industry 1,188 72,999, ,444 15, % 22,145 99, Corridor ,034,643 47, % 7,327 90,896 Pomona ,027, , % 98, ,973 LA Northwest 3, ,549,221 1,212,848 37, % 100, ,172 East 1,815 53,697, ,600 37, % 68, ,633 West ,258, , % 14, ,307 Santa Clarita ,321, , % 13, ,271 Central ,271,732 69, % 4, ,961 MidCounties 2, ,174, ,733 18, % 85, ,935 LA Southeast 1,825 86,235, , % 78, ,563 Buena Park/La Palma ,938,637 73,231 18, % 6, ,372 Overall 18, ,790,117 8,100, , % 1,544,884 4,743,897 6

7 Vacancy Rates & Asking Rates Vacancy Rate % 4Q Q Q Q Q 2016 LA East 0.8% 0.9% 1.0% 0.9% 1.0% Whse/Mfg 0.7% 0.8% 0.9% 0.8% 1.0% Flex/R&D 2.2% 2.5% 2.2% 2.9% 2.1% LA Central 1.8% 1.7% 1.6% 1.3% 1.2% Whse/Mfg 1.8% 1.6% 1.6% 1.3% 1.1% Flex/R&D 2.7% 3.5% 2.9% 3.2% 2.9% LA South 0.9% 0.8% 0.7% 0.9% 1.1% Whse/Mfg 0.8% 0.8% 0.7% 0.9% 1.1% Flex/R&D 1.6% 1.4% 1.6% 1.7% 1.6% MidCounties 1.0% 0.6% 0.7% 0.5% 0.7% Whse/Mfg 1.0% 0.6% 0.7% 0.5% 0.6% Flex/R&D 1.0% 0.8% 0.9% 0.8% 0.8% LA Northwest 1.8% 1.7% 1.6% 1.1% 1.0% Whse/Mfg 1.5% 1.5% 1.3% 0.9% 0.8% Flex/R&D 4.3% 3.9% 4.2% 2.5% 2.6% Overall 1.3% 1.2% 1.1% 1.0% 1.0% Weighted Average Asking Rent (NNN) 4Q Q Q Q Q 2016 LA East $0.67 $0.73 $0.80 $0.75 $0.74 LA Central $0.78 $0.75 $0.78 $0.69 $0.73 LA South $0.78 $0.77 $0.79 $0.81 $0.81 MidCounties $0.60 $0.63 $0.66 $0.71 $0.71 LA Northwest $0.74 $0.74 $0.78 $0.80 $0.81 Grand Total $0.74 $0.73 $0.77 $0.76 $0.78 7

8 Vacancy Rates & Asking Rates Vacancy Rate by Market 1.0% 1.2% 1.0% 1.1% 0.7% LA East MidCounties LA Central LA Northwest LA South Weighted Average Asking Rent by Market (NNN) $0.81 $0.81 $0.74 $0.71 $0.73 LA East MidCounties LA Central LA Northwest LA South $2.50 Asking Rent Range by Use (NNN) $2.00 $2.07 $1.50 $1.00 $0.50 $- $1.55 $0.75 $0.38 Whse/Mfg Flex/R&D $1.07 $0.69 8

9 Leasing & Absorption Largest Leases & Absorption Changes Property Name Occupied or Vacated (sf) Tenant Name Submarket Specific Use th St, Pomona 197,685 Vantec World Transport, Inc. LA East Whse/Mfg Midway Pl, Cerritos 167,996 U.S. Corrugated Inc MidCounties Whse/Mfg 4615 Alcoa Ave, Vernon 165,636 CA Liquidators LA Central Whse/Mfg 2910 E Pacific Commerce Dr, Rancho Dominguez 150,000 Trademango, LLC LA South Whse/Mfg 3200 E Slauson Ave, Vernon 143,897 Popcornopolis LA Central Whse/Mfg Peachtree St, Commerce 105,286 Justman Packaging LA Central Whse/Mfg S Maciel Ave, Carson -176,031 Brookvale International LA South Whse/Mfg Nelson Ave, Industry -145,531 BlueLinx Corporation LA East Whse/Mfg 1431 W Via Plata St, Long Beach -112,121 Alltrade Tools, LLC LA South Whse/Mfg Top Transactions Property Name Sale Price Sold (sf) Buyer Seller Submarket Specific Use Avenue Hall, Valencia $19,300, ,000 Valencia Holdings LLC & Valencia Studio Group Capital Foresight LP and Valencia Studios NKG LLC LA Northwest Flex/R&D Artesia Blvd, La Mirada $11,700,000 88,937 East Sunrise Investment LLC Outlook Resources Inc MidCounties Whse/Mfg 2710 Media Center Dr, Los Angeles $18,000,000 66,723 Liz General Partnership Glassell Park Associates LP LA Central Flex/R&D 9

10 New Construction Current Construction by Submarket 1,600,000 1,400,000 1,371,899 1,200,000 1,000,000 1,006,192 1,104, , , , , , ,000 - LA East LA Central LA South MidCounties LA Northwest 10

11 Industrial Advisory Board Members Central MidCounties Northwest CBRE John Privett CBRE Rick McGeagh CBRE David Harding Jeff Stephens Laird Perkins Coldwell Banker Commercial Alliance Greg Barsamian Colliers International Will Smith Colliers International Steve Calhoun Colliers International Patrick DuRoss Cushman & Wakefield Dave Hess Chris Sheehan John Erickson Daum Commercial Jerry Sackler Cushman & Wakefield Chuck Berger Daum Commercial Kevin Tamura Heger Industrial Jon Reno Mike Foley Delphi Business Properties David Hoffberg JLL Paul Sablock JLL Cameron Driscoll Jeff Puffer NGKF Jeff Sanita Luke McDaniel JLL Bart Reinhard NAI Capital Philip Attalla Lee & Associates Tim Cronin Lee & Associates Randy Kobata The Quantum Associates Iqbal Hassan Joel Hutak NAI Capital Chad Gahr Voit Dave Fults Voit Peter Castleton David Young East South Ashwill & Associates Mitch Ashwill CBRE Brian Held CBRE Jason Chao Colliers International Chuck Littell Lynn Knox Cushman & Wakefield Steve Bohannon Colliers International Will Kim Daum Commercial Rudy Lara Tony Phu Daum Commercial Andrew Lara Cushman & Wakefield Stu Milligan Daum Commercial Casey Mungo Daum Commercial Charles Johnson Gateway Business Properties Mike Kantor Lee & Associates Jeff Bethel Heger Industrial John Bowman Christopher Bonney JLL Harvey Beesen Todd Launchbaugh JLL Barry Hill NAI Capital Ryan Campbell Lee & Associates David Bales Rich Horn NAI Capital Philip Attalla NGKF Rick Sheckter The Klabin Company David Prior 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 VP of National Accounts mfoxworthy@xceligent.com Pablo Dresie Sales Executive - South Bay pdresie@xceligent.com Sam Vaden Sales Executive - Central svaden@xceligent.com Mark Masliah Sales Executive - West LA mmasliah@xceligent.com Danny Teng Sales Executive - San Gabriel Valley dteng@xceligent.com Rebecca Johnson Sales Executive - San Fernando Valley/ Ventura County rjohnson@xceligent.com Tim Hayes Executive Director - AIR thayes@airea.com Brad Hauser VP of Analytics - Western Region bhauser@xceligent.com Produced in partnership with 12