THE KLABIN COMPANY MARKET UPDATE Q4 2018 SOUTH BAY LOS ANGELES THE KLABIN COMPANY KLABIN.COM A TRADITION OF TRUST
HOT TOPICS 1 Full Employment 2 Falling Interest Rates 3 Trade War 4 Lack of Supply 5 Credit & Long Lease Terms ACTIVE INDUSTRIES: Technology, E-Commerce, Consumer Goods, Manufacturing, 3PLs
SUBMARKET SPOTLIGHT LONG BEACH The City of Long Beach, perhaps best known for its waterfront downtown and suburban neighborhoods, can also be described as having one of the more diverse industrial submarkets in Southern California. At the forefront of its industrial real estate landscape is the Port of Long Beach, the second busiest container port in the nation, second only to the neighboring Port of Los Angeles. The city s remaining industrial real estate ranges 91 from small, WWII-era manufacturing buildings and truck yards on the outskirts of the port, to many newly constructed corporate headquarters facilities surrounding the Long Beach Airport. With vacancy rates around 1%, speculative development has increased in the last 5 years and continues to keep pace with demand from both local and international users 405 710 that have found Long Beach to be an attractive alternative to other submarkets in greater LA and Orange County. 605 Key Companies: Virgin Galactic, Simple Human, Rubbercraft, TurboAir, Mercedes, Toyota. HOT TOPICS: Nippon Express Pre-leases Prologis 193k SF Slow Down of Cannabis Port and Surrounding Infrastructure Investment Speculative Development Sale of Boeing C17 Facility
RENTAL RATES 10,000 SF 50,000 SF 50,000+ SF 95 - $1.10 N PER SF 85-95 N PER SF $225+ 85-90 N PER SF $180 - $200+ 75-80 N PER SF $125 - $150+ $200+ 78-85 N PER SF $160 - $200+ 70-75 N PER SF $120 - $140+ CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
2839 EL PRESIDIO ST. CARSON, CA RENEWAL COMPARABLE TENANT LANDLORD TERM START RATE Arms Transport/Caravan Canopy LBA Realty 135,781 SF 62 Months 82 Net 18300 CENTRAL AVE. CARSON, CA COMPARABLE TENANT LANDLORD TERM START RATE Salisbury by Honeywell The Carson Companies 183,473 SF 120 Months 90 Net RENT ADJUSTMENT 3% Annual Increases RENT ADJUSTMENT 3% Annual Increases 4350 CONANT ST. LONG BEACH, CA COMPARABLE TENANT LANDLORD TERM START RATE SpinLaunch Sares-Regis Group 140,430 SF 120 Months 92 Net 1225 E. ARTESIA BLVD. CARSON, CA COMPARABLE TENANT LANDLORD TERM START RATE Action Gypsum Supply West Overton Moore Properties 53,699 SF 98.5 Months 85 Net RENT ADJUSTMENT 3% Annual Increases RENT ADJUSTMENT 3% Annual Increases
1100 W. WALNUT ST. COMPTON, CA COMPARABLE BUYER Terreno Realty Corp. SELLER 1100 West Walnut, LLC 60,040 SF PRICE $185.01 PSF NOTES: Purchased vacant as investment User sale prices have stabilized USERS Torrance: $250+ PSF Rancho Dominguez/Carson/Compton: $175-$200+ PSF Abundance of institutional capital driving pricing INVESTORS Sub 4% CAP rates for superior credit & quality 4.5% for good credit & quality PRICES 263-321 E. GARDENA BLVD. CARSON, CA COMPARABLE BUYER Rexford Industrial SELLER 263 E. Gardena Property, Inc. 55,238 SF PRICE $291.47 PSF NOTES: Sale Leaseback $5.25 CAP, Extra Land
777 W. 190TH ST. LOS ANGELES, CA LAND COMPARABLE TENANT LANDLORD TERM START RATE RENT ADJUSTMENT Prime Auto Resources, Inc. First Industrial Realty Trust 457,380 SF 60 36 Net 3% Annual Increases LAND VALUES Land Values above $60 PSF Surface use lease rates 35-40 PSF, NNN 13344 S. MAIN ST. LOS ANGELES, CA LAND COMPARABLE BUYER SELLER PRICE Duke Realty South Main Street, LLC 13.3 Acres $61.68 PSF NOTES: Short term lease back, Buyer to demolish existing structure and develop speculative modern building
THE KLABIN COMPANY TEAM
INTEGRITY INTELLIGENCE THE KLABIN COMPANY CORE VALUES COLLABORATION ENTHUSIASM OUR STRENGTH / OUR PEOPLE At the Klabin Company, the strength of our company stems from the strength of our people. We employ a highly respected team of real estate professionals who share our core values along with personal values of trust and hard work.
A TRADITION OF TRUST 19750 S. Vermont Avenue, Suite 100, Torrance, CA 90502 Phone: 310.329.9000 Fax: 310.329.9088 Corporate BRE 00824993 klabin.com