Monthly Archives: September 2003

South Bay Pricing Trends

South Bay continues the same pattern over the past 2 years. Buildings for sale are in demand and buildings for lease languish. There is considerable interest for smaller buildings and developers have taken this cue. New small building projects are under construction with asking prices in the $110 to $135 per square foot range depending on location.

Big building developers have not wilted either with approximately 2.5MM square feet currently under construction which is roughly 2.6% of the base. Developers are counting on new efficient warehouses to woo tenants from older buildings and for the most part, they are right. The big “B” and “C” buildings continue to be the worst performing sector—particularly those originally built for manufacturing.

Keep an eye on sale prices. Higher interest rates have already increased monthly payments. Generally speaking the two move in opposite directions. Local growth rates are the other factor to a stable real estate market.

 

Carson/Compton

10K-25K

$0.56

$

61.50

Carson/Compton

25K -50K

$0.58

$

77.00

Carson/Compton

50K-100K

$0.43

$

62.75

Carson/Compton

100K+

$0.42

$

52.00

Gardena/Hawthorne

10K- 25K

$0.49

$

75.00

Gardena/Hawthorne

25K – 50K

$0.49

$

57.00

Gardena/Hawthorne

50K-100K

$0.42

$

62.00

Gardena/Hawthorne

100K+

   $

51.38

Torrance

10K- 25K

$0.65

$ 142.00

Torrance

25K – 50K

$0.60

$

90.00

Torrance

100K+

$0.44

  $

52.25

CODA: 4 years later sale prices have doubled, but rents have only slightly increased.