On top of that, owners and occupants are making plans for the pending changes in the national administration and what those could mean for taxation, inflation, deflation, regulation, international trade and tariffs, further COVID guidelines, social issues, travel restrictions, etc. In spite of all of these actual and pending changes, one constant, (aside from a significant dip in March/April) is that the stock market continues to thrive. Additionally, interest rates throughout this year continued to remain low and demand for industrial property remained high. We have seen steady demand for industrial property (see last month’s article(linked), keeping the vacancy rate extremely low. Finally, one thing business owners have historically shown is a willingness and means to adapt to a wide array of challenges and opportunities.
But for most of you reading this article, you are concerned with how the local ‘Mid -Counties’ industrial market is going to adjust and move forward. The ’Mid -Counties’ market, also known as the North Orange County and Southeast Los Angeles region, consists of over 130,000,000 Sq.Ft. of industrial property owned or occupied by some of the largest landlords and tenants in the world as well as many local family owned companies. Yet, in every instance, each group benefits from the strategic location that this region affords. Proximity to the ports, a large consumer base, a strong employee pool, and the scenic surroundings from the ocean to the mountains make this one of the most desirable areas in which to own property or run a business.
The takeaway is that however things change from 2020 to 2021, this region is poised to see continued interest from owners and tenants, thus keeping the upward pressure on prices and rents. As this demand persists, inventory for available property remains low. Therefore, it is extremely important for those facing real estate decisions to plan well in advance. Our research, experience and network assist our clients to better position themselves for either the marketing of or the search for property. They can make the most informed decision when it comes time to execute a transaction.
Our team specializes in guiding industrial real estate decisions toward successful outcomes for our clients by delivering critical and relevant information. We work with our clients to help them determine and understand the key elements of their project so that they are getting the most value from their transaction and decision. Please contact us today to discuss your unique situation and the opportunities on the horizon.
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.