(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
TORRANCE, CA-Availability of industrial building space in a representative submarket of L.A. Metro's South Bay area continues to decrease after total square footage leased or sold topped 5 million square feet in 2012 for the first time since 2004, according to a year-end 2012 report issued by the Klabin Co./CORFAC International. The fourth quarter of last year was the sixth consecutive quarter of decreases in total space in the key Carson/Rancho Dominguez and 91 Freeway Corridor submarket, says David Grote, a partner in the local office of Klabin/CORFAC, who authored the firm's study.
“Lease rates firmed in the first half of 2012 and increased in the last half,” Grote said in a prepared statement. “Sale prices have increased at a faster rate than lease rates, fueled by a low supply of buildings and low interest rates.”
Grote also explained that the Carson/Rancho Dominguez and 91 Freeway Corridor submarket encompasses approximately 20%—52 million square feet—of the overall South Bay market, which he said is a large enough sample to be representative of the total market.
As GlobeSt.com previously reported, in September 2012 the Klabin Co. represented C&D Zodiac Inc. in a transaction with Warland Investments Co. involving a 85,773-square-foot, long-term industrial lease at Warland Cypress Business Center at 11240 Warland Dr. in Cypress, CA.
Read our update to this story later today to find out about vacancy rates in the South Bay.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
