4Q 2014 State of the Industrial Real Estate Market vs. 1Q 2015

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Current 4th Quarter 2014 State of the Industrial Real Estate Market vs. Forecast for 1st Quarter 2015. Industrial Property Leasing Activity & Sales Market Activity Trends and Conditions.

A Local Submarket Expert Opinion Survey for this quarter and also a crystal ball estimate for next year, a Real Estate Study for Industrial Properties: Warehouse & Light Manufacturing uses in Santa Ana, Orange County, CA.

An Up to Date Market Snapshot for Leasing Activity and Sales Activity General Trends & Conditions in the Central submarket of Southern California from an Industrial Real Estate Consultant.

Below is a detailed summary Industrial Appraisal Survey from the most active leasing and sales specialists in the subject property area. Tenants with Companies or Businesses that are Leasing & Occupying Spaces or Buildings in projects from Landlords and Buyers purchasing as Occupiers to house their business or Investors buying Income Producing Leased Investments from Sellers.

A Market Level Industrial Real Estate Appraisal Study:

2 Questions:

• A)What are Leasing Activity or Sales Activity Trends in 4th Quarter 2014 – Declining, Flat or Increasing?

• B)What are General Market Conditions and dynamics going into 1st Quarter 2015?

7 Answers:

• 1)Pretty good this quarter, low vacancy, strong. Will continue into next year.

• 2)Demand is strong, no vacancy, smaller spaces under 10,000 sf in the airport area is 0.9%, 1.8% for over 10,000 sf. No land for new development, asking rates are going up on a few availably properties in 1st quarter 2015.
• 3)Currently a tighter market, things are starting to edge up, rates are starting to go up, multiple offers for buildings.
• 4)Quality of tenants is declining, lots of activity, vacancy is down.
• 5)This quarter, sold prices are definitely increasing.
• 6)Things are continuing to improve, sales are hot, pushing close to $200/sf for the right buildings, leasing rates have caught up. Trend is upward for 1st quarter 2015.
• 7)Sales activity in 4th quarter 2014 are headed upward, no supply, demand is high. Improving activity, upward trajectory for 1st quarter 2015.

Are you a Real Estate Consultant Expert that would like to share your Expertise or Knowledge with everyone?

Or do you have Specific Requests or Questions for Discussion or Needed Insight for any Real Estate Services related items that you would like to see posted?

Potential Suggestions for Feedback, Comments or Subjects for Real Property:

1) Locations in Los Angeles County or locales in 5 other Southern California counties: Ventura, Orange, San Bernardino, Riverside or San Diego?

2) General Property Types: Commercial Real Property or Industrial Real Estate?

3) Specific Property Types: A) Retail B) Industrial C) Office D) Medical / Healthcare E) Multi-Family Apartments or F) Vacant Land?

Possible Topics:

4) Estate Planning for Real Estate, Trust Planning, Fair Market Rent Comparables, Lease Comparables or Fair Market Value Sale Price

5) General or Specific Market Trends & Conditions

6) Lease Up Marketing Periods or Sell Out Absorption Periods

7) Vacancy Rates & Collection Loss, Operating Expenses, Capitalization Rates of Return or Investor Required Rates of Return

8) Leasing Activity - Direct or Sublease or Sales Activity, Below or Above Market Level Negative or Positive Factors related to Deferred Maintenance, Distressed Buyer or Seller Sale Motivation such as REO Foreclosure or Short Sale

9) Highest & Best Use(s), Ideal Tenant Mix

10) Net Effective Rent Occupancy Cost Analysis for Major Cost Savings

11) Internal Underwriting or Asset Monitoring, etc.

I can the post for All to Benefit based upon feedback & suggestions for requested Location Advice:

1) Tenants or Occupants that are National Credit, Regional or Local / mom & pop

2) Landlords or Owners that are Full or Partial Owner User Occupiers

3) Buyers 4) Sellers 5) Investors of Income Producing Leased Investments

6) Developers of New Construction Developments or Contractors of Redevelopment or Renovation Projects

7) Private or Hard Money Lenders or Nationwide Banks for Purchase Money Loans or Refinance or 8) Mortgage Brokers

9) Key items to look for in objective Real Estate Consulting, well supported Commercial Real Estate Appraisal or Industrial Appraisal reports

10) What to look for in choosing a professional and credible Real Estate Advisor or Real Estate Appraiser for Industrial Property Valuation or Commercial Appraisal

11) Differences in designated Appraisers: MAI - Member of the Appraisal Institute, ASA - American Society of Appraisers in Commercial Real Property Appraisal or CRE - Counselors of Real Estate for Commercial Real Estate Consulting

12) Important interview question to ask when retaining a Real Estate Advisor, Real Estate Agent or Real Estate Broker, etc.

Decision Making for Commercial Properties or Industrial Property Buildings or Projects:

A) Stay at Current Location & Reset New Fair Market Rent: Lease Rates, Concessions and Terms & Renegotiate prior or existing Lease Contracts in place for Upcoming or Soon to Expire Agreements for Options and Renewals to Stay or Renew Lease at existing location

B) Relocate to a Different Location and Negotiate a New Lease: Move to a Replacement site

C) Expansion into Additional Submarkets: Open Other Multiple Locations for retail or wholesale units or office suites