For anyone looking to find industrial space in 2016, one thing becomes apparent rather quickly - there are not many building options to choose from based on a company’s parameters. We are currently experiencing a tangible shortage of inventory, and finding a building can be a genuine challenge. Now, this change in dynamics can come as quite a shock to those whose last search may have been sometime between 2009 and 2013. Inventory is now scarce and asking prices have risen significantly as a result of that shortage.
Interestingly enough, the current tight inventory has caused some companies who once entertained options for moving physical locations to postpone making that move now because they cannot find space to go to, thus further aggravating the problem.
So what can be done to help?
Here is a process that can uncover more possibilities when looking for space. Let’s take a look….
1 INITIAL Approach - Relationships
2 Off Market Approach
3 Procuring the Property
Class A Industrial Building For Lease - Market Rental Rates Increase for the Mid Counties Industrial Market
We have recently been hired to market and lease this property in the city of Santa Fe Springs, CA. This listing demonstrates the increase in rental rates realized over the past 18 months in Southern California. Spaces in the 10,000 +/- square foot size range are renting from $0.70 to 1.10 PSF NNN, and high quality buildings such as this are at a premium and hard to find.
As vacancy rates remain low, owners of businesses need to be ready for the increases in rental rates as they go out to secure new space in the market. However, working with a qualified real estate professional can help you navigate the process and keep occupancy costs as low as possible.
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.