Industrial Now Off the Bottom
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|There’s more lease product on the market, Colliers International SVP Christopher Sheehan tells us, which is making lease rate inflation a little more sluggish. But with increased activity in the market, rates are firming up and landlord concessions are waning. Also, sale prices are trending upward, with Christopher now seeing prices 10% to 20% higher than their lows in 2010.|
|The sense that the market is lifting off the bottom is spurring companies to take advantage of current lease rates, sale prices, and interest rates by consolidating multiple facilities. Christopher adds that operating out of multiple buildings requires duplication of effort and costs, creates "forklift traffic" between buildings (which leads to "forklift road rage"), and disrupts the flow of product. Christopher, along with SVP Steve Schloemer, recently repped the owners of 1110 W Taft Ave in Orange in a deal that involved consolidation. DMG Corp, an HVAC specialist, leased 54k SF in the building. The new tenant was repped by Lee & Associates’ Allen Buchanan and Steve Shatafian.|