Mid-Year Industrial Real Estate Activity Already Exceeds 2013 in Key South Bay Submarket, Klabin/CORFAC Study Shows
Torrance, CA (July 24, 2013) – Despite ongoing low levels of inventory in the Carson/Rancho Dominguez/ 91 Freeway Corridor submarket of Los Angeles’s South Bay, total square footage of industrial space leased or sold through the first half of 2014 has already exceeded the number for all of 2013, according to a second quarter study by The Klabin Company/CORFAC International.
David Grote, a partner of The Klabin Company and author of the study, reports that just over 2.3 million square feet of space has been leased or sold in the subject submarket year-to-date. This compares to just over two million square feet leased and sold during all of last year
Grote added that the activity level in the second quarter of this year alone exceeded one million square feet, nearly matching the 1.2 million square feet leased/sold during the first quarter of this year.
Meanwhile, added Grote, vacancy rates in the Carson/Rancho Dominguez area have plunged from five per cent at the beginning of the year to 3.18 per cent at mid-year.
“Although there has not been an appreciable increase in asking lease rates, completed deal rates have risen. We anticipate upward pressure on lease rates and sales prices through the rest of this year,” Grote said.
He noted that a couple of large leases –- 184,000 sq. ft at 2902 Val Verde Court leased to Cal Cartage, and 254,411 sq ft. at 2132 E. Dominguez St. leased to Inland Star Distribution -- accounted for 40 per cent of the activity in the second quarter.
Grote reported that 19 tenants or buyers moved to the submarket in the second quarter, during which there was 353,355 square feet of net positive absorption. The total submarket, he said, comprises 52,103,957 square feet of industrial space.
About The Klabin Company/CORFAC International
Now in its sixth decade, The Klabin Company/CORFAC International is ranked among the top 25 commercial real estate companies based in Los Angeles. The firm has offices in Los Angeles and Torrance, and is affiliated with CORFAC International. For more information go to www.klabin.com.
About CORFAC International
CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services. Founded in 1989, CORFAC International is celebrating its 25th anniversary in 2014. In association with FIABCI (the International Real Estate Federation) and global affiliates, CORFAC International offers commercial real estate services with market reach in 60 countries worldwide. Last year CORFAC firms completed more than 10,000 lease and sales transactions totaling approximately 368 million square feet of space valued in excess of $7.4 billion. For more information on the CORFAC network, contact 703.532.6160 or visit www.corfac.com.