Search
 

Major Industrial Markets “Frothy”

LOS ANGELES—Although the major industrial markets have record-low vacancies, some developers think these markets are frothy at this point in the cycle, according to Jim Klein of Klein Commercial and the CEO Power Panel moderator at I.CON '15.

By Kelsi Maree Borland | Updated on May 21, 2015

LOS ANGELES—Some developers are concerned that the major industrial markets—namely Los Angeles, San Francisco, Miami and New Jersey—are “frothy” at this point in the cycle, according to Jim Klein, SIOR, the president of Klein Commercial. Klein is moderating the CEO Power Panel at NAIOP‘s I.CON ’15 conference June 10 and 11 in Long Beach. The panel is staked with developers who will talk strategy and the state of the market, as well as some of the challenges they are facing, despite the soaring demand.

“All the developers feel very comfortable with the market right now. They see at least a few good years ahead,” Klein tells GlobeSt.com. “The biggest concern is that developers think that these markets are frothy, and at this point, several are very careful now about what they buy. The opportunities in those top markets to make some money really happened a couple of years ago, so most seem focused on infill projects, if they can find them, because those seem somewhat less risky. However, in infill markets, unfortunately, it is mostly bad pieces of land and sites that are environmentally challenged. I would say that developers are picking markets that are less intense at this point.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.