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  • About
    • Testimonials
    • About Lee & Associates
    • About Our Team
    • Contact Us

The “Off Market” Deal – Good for Buyers or Sellers?

3/23/2022

 
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​If you have been presented with a proposal for an “Off-Market” transaction, defined as a transaction that is not presently listed on the multiple listing service(s), you, as either buyer, tenant or owner, must weigh the pluses and minuses of such a transaction.  In this article you will find insights to help you carefully consider this opportunity.

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Getting a Deal Done in a Tight Market

2/22/2022

 
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​In today’s market with a 1% vacancy rate and high demand, landlords (and sellers) of industrial warehouse property find themselves in a strong negotiating position. How do these market conditions play out in negotiations for tenants and buyers?  Much like the residential market in California, buyers and tenants of industrial property must be prepared to submit strong offers and compete to get the deal.  Here are a few factors to remember when trying to secure a deal. 

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2021 Recap and 2022 Strategy

12/9/2021

 
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​As we approach the end of 2021, we hope you are enjoying the Christmas and holiday season.  It is somewhat staggering to look back and see all that has developed in the industrial real estate landscape over the past 12-18 months.

Please enjoy this recap of 2021 and thoughts as we transition into 2022.


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As Lease Rates Climb and Land Values Increase, this cycle is Pushing Up Lease Rates and Building Sales Values Even Higher

9/22/2021

 
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​It is nothing new that demand for Southern California industrial property has continued to grow steadily in recent years. But what is fascinating market participants now is how this demand is accelerating in the fast-paced relationship between the recent lease rates and the price developers are willing to pay for developable industrial land.  What we are experiencing in the industrial property sector is a very rapid exchange of new leases being signed at higher and higher rates, which is pushing the value for industrial land to higher and higher price levels.  And it is happening quickly now.  As a new lease is inked between tenant and landlord at a new high-water mark, it quickly translates to developers being able to push the values on their land acquisition cost as they target future rental appreciation in their return models.  

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Insights for Selecting the Right Buyer or Tenant

8/19/2021

 
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​With so much interest and activity on virtually every listing that hits the market, and/or even available unlisted properties as the case may be, how should sellers and landlords decide on which buyer or tenant to choose.  There are several key factors to consider in making the right selection.

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How Much More Can E-Commerce Sales Drive Industrial Demand

7/15/2021

 
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​Many people are looking at the unprecedented rise in industrial property demand, sales prices and rental rates over the past 10.5 years and they beginning to wonder when we are going to experience our ‘market correction’ that we have grown accustomed to seeing every 7-9 years (going back +/-100 years).  Without getting into why we seem to have these corrections somewhat predictably, and putting aside the always looming threat of unforeseen natural or geopolitical events that can change dynamics in a short time frame, what are the current trends and market fundamentals telling us about industrial property values and demand moving forward?  Well, quite simply, the E-Commerce revolution and technologically driven supply chains are causing more and more of the formerly in-person retail purchase transactions to be secured and completed ‘online,’ and subsequently shipped directly to consumers. As a result, the inventory that formerly occupied large amounts of ‘commercial retail space’ is now being absorbed by industrial properties, and most predict this trend to continue for the next several years, at least.  

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How Much Can Prices Keep Going Up?

6/15/2021

 
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​In what feels like a steady but rapidly appreciating real estate market, at least since about 2010, people on all sides are beginning to ask questions regarding the length of this cycle.  “How long can things continue to go up at this pace?” “What could cause a change in trajectory?” and “How does inflation play into all of this?”  For the purpose of this article we will focus primarily on the last of these questions by looking at values of real estate and how inflation may impact these values.
 


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Capital Gains, Taxes, Regulation and Some Behavioral Affects

5/12/2021

 
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​With many new taxes being proposed and considered at both the local and national level, people are beginning to ask “How will this affect my family or my business?” However, an equally important question is “How will this affect business in America in general?”  But for the purpose of this article, we are going to look at how these taxes may potentially affect the local industrial real estate market in Southern California and the decisions or considerations market participants face on a daily basis. 
 
Taxes or fees are being proposed at the local level for items as basic as road maintenance caused by heavy truck traffic, and at the national level from income to capital gains.  These taxes, coupled with more and more regulation, continually put financial pressure on owners and occupants of industrial properties as they try to provide for their employees and families.  As we talk with these groups, we hear how discouraging and frustrating the continual addition of more taxes or regulation is on both productivity and morale.


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A Hyper Competitive Environment Affects Behavior

3/15/2021

 
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While we looked at the topic of the scarcity of industrial real estate or warehouse space in our article last month (Navigating a Tight Real Estate Market (destinoindustrial.com)), this time we will dive a little deeper into how this may effect behavior in the market place.  Buyers and Tenants are very motivated to purchase or lease property, and Sellers and Landlords are very motivated to get top dollar and all the terms in their favor.  While this dynamic clearly creates tension in negotiations, it also creates tension in relationships and interactions on the peripheral.  Buyer’s and Tenant’s can be skeptical of the advocacy of their agent on their behalf when they don’t seem to be scoring too many points in the negotiation process. Sellers and Landlords can also tend to want to over-play their cards and down-play the advice of their agent when introduced to the prospect of so many candidates for their property.  With the tensions mounting and the stakes high, one slip can significantly damage relationships.  However, as transactions successfully come together (or cancel for the right reason) and clients experience how valuable their agent representative was throughout the process, it can solidify that relationship between client and trusted advisor for a long time to come.

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Navigating a Tight Real Estate Market

2/18/2021

 
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​When looking to lease or buy industrial property in Southern California, it is challenging to find the right solution.  Missing opportunities or not being able to find a suitable property can be  frustrating experiences.   In addition, everything seems to have multiple offers, sellers and landlords are firm on their price, choices are few, and the list goes on….  This can create pressure that can influence  significant decisions. We must take steps to deal with these challenges, but also to slow down the decision -making process in order to make informed choices.
 
There are several items to consider  in order to be best positioned to seize opportunities in today’s market.  

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    Author

    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.

    Contact  Christopher 
    Today!!

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    Additional Market Articles and Reports 
    (click here for archive)
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    Categories

    All
    1031 Tax Deferred Exchange
    2021 Mid-Counties Market
    2021 Recap / 2022 Strategy
    3 Considerations For RE
    A Needle In A Haystack
    Benefits Of Short Term Lease
    California Shutting Down
    Capital Gains & Taxes
    Cosmetic Companies
    Covid 19 Real Estate Values
    Deal In A Tight Market
    Demand Post Election
    Determining Property Value
    Determining Value
    E-Commerce Sales
    Effective Time Management
    Feelings Vs Fundamentals
    Good Real Estate Moves
    Has The Gap Widened
    How To Secure Deal
    Industrial Market Dominio Effect
    Industrial Reacts To Pandemic
    Interpreting The Market
    Is There A Perfect Building?
    Land Values Increase
    Merry Christmas 2022
    Multi-Family Vs Industrial
    Navigating A Tight Market
    Net Vs Gross Pt1
    Net Vs Gross Pt2
    New 20K Sf Building Sold
    Not Involving A Broker
    Prices Going Up
    Proposition 15 Vote
    Renewing A Lease
    Select Right Buyer/Tenant
    Selling Your Business
    Strong Economy Skepticism
    Sublease Overview
    Successful 1031 Completed
    The "Off Market" Deal
    The Waiting Game
    Three Things To Consider
    To Buy Or Not Buy
    WFT Affects Office Space
    Why Sell/Lease Now

“Working with a Professional  
​
Achieves Professional Results”
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Lee & Associates
Commercial Real Estate Services

1004 W. Taft Avenue, Suite 150 
Orange, CA 92865
​LeeOrange.com
Corporate ID #01011260 

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Christopher J. Destino, SIOR
Principal
714.564.7181
cdestino@lee-associates.com
​Destino Industrial Team
DRE #01447060

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