Another trend, popular in West L.A. and DTLA, as well as other creative centers across the country is Space Sharing. Networks, mobile computing and particularly start-up finance, has made sharing office and desk ubiquitous. Many innovative industries share common production resources like equipment, processes, and costly tenant improvements in Maker Spaces. (see New Industries post). While normally more expensive on a square foot basis, the total cost of rent, on a demand and hedged basis, is much less. Compatibility, or in the Space Sharing vernacular, curation, is an essential factor easily overlooked. Having a common bond or a similar industry cluster increases the likelihood of success. The drawing below is of the LaKretz Innovation Campus in Downtown Los Angeles, a 65,000 square foot space that can be easily adapted for the changing needs of multiple occupants.

Continue reading “What Exactly Is Space Sharing?”

The Space Market is on a different trajectory than the general economy. Industrial building prices have doubled since the Great Recession and are up over 20% from previous peaks. Rents are keeping pace and $1.00 per foot Gross for industrial in Gardena and greater South Bay is becoming the norm in many segments especially for smaller units and new, Class A Buildings. All other buildings, while renting for less, are still at all-time highs. Space shortages persist across the board. A disconnect exists between a real estate pricing surge and muddling economic conditions.
Continue reading “What’s New For Gardena Industrial”

More and more, typical industrial development in the Inland Empire will look like this. Instead of one large warehouse with lots of truck doors, cities will require smaller buildings so not to conflict with nearby residential communities. This planning protocol significantly increases the costs for the developer but it creates opportunities for Occupiers who wouldn’t ordinarily find a building in smaller sizes to purchase.
Continue reading “Inland Empire Development Deal – 180,000 SF Total”

SIOR had their first European Conference in London at the end of June. Coincidentally, it was at the same time as the Brexit Referendum. The day before, gleeful developers, confident at being the center of the developed world were completely dazed by the results the next morning, with news of their world being threatened. However, it did not take long to speculate about the opportunities, not only in London but under a new financial order.
Continue reading “SIOR 2016 International European Conference”

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The major theme in this stage of the cycle is space shortage. There are very few available buildings to lease or purchase. This has caused strong rent growth throughout the region. This is a national condition and all major industrial markets are suffering from a shortage of vacant buildings.
Continue reading “Fall News 2015”