How Industrial Construction is Failing to Meet Demand
Not every industrial market can be like the Inland Empire, where 13.8M SF of construction is underway in the east IE alone. In some areas, new construction is limited, as the market continues to tighten and users have to act fast. That's why we're excited to host Bisnow's 5th Annual SoCal Industrial Real Estate Event, Aug. 25 at the Montage Beverly Hills, starting at 8am.
Among our speakers will be Lee & Associates-LA North/Ventura principal Mike Tingus (with his family in Maui recently), who tells us the San Fernando Valley and Ventura County markets are robust but challenging. And Mike should know, having completed nearly $2.5B worth of transactions over the past 28 years. With Class-A and B vacancy less than 2.5%, lease rates escalating and sale prices on the rise, some San Fernando Valley companies are having to look outside the area—think Simi Valley and Camarillo—to accommodate growth. Right now, industrial brokers have to be problem solvers, he says. It takes a lot of effort to find the right space and the right coaching so that when a suitable facility comes along, clients are ready, willing and able to move, and to do it quickly.
Mike (snapped at last year's industrial event) says that if you exclude Valencia, which is experiencing a building boom, the San Fernando Valley and Ventura County have less than 300k SF of industrial buildings under construction. In Chatsworth, Overton Moore has the Valley's only spec development going on right now, and it's virtually leased or sold out. In addition, some pretty big players have entered the Valley lately, he notes. Case in point: Prologis, which went all-in with the acquisition of five buildings this year. To learn more, join us Aug. 25 for Bisnow's 5th Annual SoCal Industrial Real Estate Event, at the Montage Beverly Hills, starting at 8am. Sign up here!