1st 1/2 2014 State of the Industrial Real Estate Market vs. 2nd 1/2

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1st Half 2014 State of the Industrial Real Estate Market vs. Forecast for 2nd Half 2014. Industrial Property Leasing Activity & Sales Activity and General Market Trends and Conditions.

A Local Submarket Expert Opinion Survey for 2nd quarter 2014 and also a crystal ball estimate for the remainder of the year, a Real Estate Appraisal Study for Industrial Properties: Warehouse & Flex / R & D – Research & Development uses in the city of Chino, San Bernardino County, CA.

An Up to Date Market Snapshot for Leasing Activity and Sales Activity, General Trends & Conditions in a submarket of Southern California from an Industrial Appraisal by a Real Estate Consultant / Appraiser.

Below is a detailed summary 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.

From a Market Level Industrial Real Estate Consulting Study:

2 Questions:

• A)What are Leasing Activity or Sales Activity Trends in 1st Half 2014 – Declining, Flat or Increasing?

• B)What are General Market Conditions and dynamics going into 2nd Half 2014?

14 Answers:

• 1)Very little land for new product, good upward trend, fairly stable.

• 2)A lot of pending deals, somewhat flat construction further east, number of deals ongoing & getting done. The vacancy rate is going up due to new construction, 4th quarter 2014 is expected to be flat. Going to see increased rates.
• 3)Things are picking up, vacancy rates declining. Rents remain stable, improving in 2nd half 2014.
• 4)Activity has been slow but picking up. Good activity.
• 5)Space is absorbing, not sitting vacant, getting built and preleased.
• 6)Preleased 14 buildings, more supply vs. demand. Very good activity.
• 7)Vacancy is down, capitalization rates are down, $/sf sale prices are up. Competing North Orange County owners live in Newport Beach to Corona.
• 8)Super slow leasing for the larger range, not a lot for sale.
• 9)Institutional buyers have too much cash, don’t know where to invest it.

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