LA's Industrial Market Is Hot
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The investment market for industrial is looking good these days. CBRE is predicting strong rent growth for the next 12 to 18 months, according to CBRE senior managing director Kurt Strasmann.
Kurt was one of the panelists at Bisnow's recent annual SoCal Industrial Real Estate event at the LA Athletic Club.
Kurt (far left), along with Rexford Industrial CEO Howard Schwimmer, moderator Allen Matkins partner John Condas and Prologis president-Southwest region Kim Snyder talked about how industrial is faring and the rise of e-commerce, which "cities seems to love," as John pointed out.
The panelists agreed e-commerce is growing, with Kurt saying it's growing exponentially.
There are many different types of e-commerce, according to Kim (above).
It includes everything in the supply chain. Sales are going through different channels, including buying merchandise on mobile phones, online or while traveling on an airplane, Kim said.
Multi-tenant also seems to be in vogue these days, Howard told the crowd of more than 200.
When it comes to the future of industrial, there are some challenges agreed panelists on the second panel, moderated by Greenberg Glusker partner Kenneth Fields (far left). Panelists included RAF Pacifica Group founder Adam Robinson, Dedeaux Properties principal Brett Dedeaux, Panattoni Development Co CEO Adon Panattoni.
Adon (far right) said industrial is benefiting from the e-commerce trend, but it's "harder to get deals done these days."
Banks are more disciplined now compared to the last market, according to Adon.
Adam (far left) said he thinks San Diego, where he is based, is a little behind the other markets when it comes to the current cycle.
Brett (above) said new opportunities are tougher to find. There has also been a flight to capital, he said.
Looking ahead to the future, there was talk of always being prepared for the inevitable, namely a recession. Despite that, it's about pushing ahead, according to Adon.
"We're in this business to do well, and things are good right now," he said.