Buzz on the Street
Whether a large portfolio or individual property sale, industrial buildings in Southern California continue to trade at high price levels. Furthermore, opportunistic owners or sellers continue to push values for properties they will sell if they can “get their number.” But the buzz on the street from Buyers (and Tenants) resembles a more cautious optimism. While still optimistic about future growth both in their business and in long-term property values, Buyers and Tenants are seeing some flattening in the price appreciation curve and are less willing to aggressively chase deals by repeatedly increasing their offering price. Quality industrial property in convenient locations still receives strong interest from the market, but there may not be three (3) or four (4) serious qualified buyers at the table, as we have experienced over the past few years, especially on offerings pushing the upper limits on price.
Christopher J. Destino, SIOR, a Principal at Lee & Associates, is an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.