Monthly Archives: June 2013

About Klein Commercial

 

We have a 30 year career selling industrial property in the Los Angeles area. Our daily focus is Gardena and the South Bay. We also have considerable experience in other parts of the United States and Mexico.  We go where our clients want and use several tools to get there. Besides relying on SIOR for out-of-area assignments, we’ve developed the MAPP program to find off-market deals throughout California and in other selected parts of the country. The dual focus gives us solid relationships in our primary market and a very sophisticated computer program to find large buildings and land parcels across the entire U.S.  While at home, we are hands-on giving our longstanding clients superlative advice and service. When looking for large deals, we use a parcel based map and ownership database.  Our aim is to be the best traditional broker and give clients a national platform for sourcing and selling property.

Klein Data

Our primary focus is the day-to-day business of working with Users to find new locations and representing owners for sales and leases. We do this mostly in 10-mile radius from our Gardena Office which includes LAX and the Los Angeles ports.  We list and sell industrial property, mostly for many longtime clients. We are always grateful to establish new relationships. So far, we’ve been involved in over $500 Million worth of deals, one-by-one.

The second part of our business is the development and investment of mostly larger properties. Since the end of the recession, Big Industrial has greatly concentrated into the hands of fewer investors. The entrepreneurial developers are on the sidelines because of capital constraints. This leaves a core of institutionally funded buyers who are rolling up every asset they can find often at the same pricing a User will pay. For sellers of development land or better grade buildings, it makes it fairly easy when there are many outstanding bidders who can close with all cash.

Our difference is a strong focus on local and national data. We are especially interested in larger industrial and development land. Many of the same investors we know from Los Angeles have significant interests in other markets. For instance, in large distribution markets anywhere in the United States, the properties are often owned by the same handful of owners and occupied by many of the same tenants. The regional approach to the real estate industry has been supplanted by one large global market with many of the same operators, funders, and occupiers.  

As valuable as data is, my real estate business has always been personal. Repeat business is based on trust, honesty, understanding, and performance. I am fortunate to have longstanding clients that like dealing with me because they’ll receive honest and thorough representation. It’s how I’ve been able to work on all different property types (apartment communities, self-storage, retail, NNN, industrial) in all parts of the country. It often takes years, but the close friends I’ve made, in Gardena and around the world, are the most rewarding part of my career.

Gardena Letter to Building Owners

 

Dear Gardena Building Owner:

I’ve been an industrial real estate broker in Gardena for thirty (30) years. I have many long standing clients and created excellent relationships. I’m also active around the United States relying on my broker friends from SIOR. My reputation and personal contacts can help with your next property decision.

Property values have now returned to the pre-recession period. It’s not necessarily because business activity is better, although it is. The price rebound is mostly due to low interest rates, monetary stimulus, and intense demand on behalf of foreign buyers, particularly the Chinese. On the larger scale, institutional investors are on fire and are dipping down into lower grade and smaller properties.

Lease rates are also significantly up because there is a shortage of decent quality buildings. So far the new development, and there hasn’t been that much, is in larger distribution buildings. Soon developers that can secure financing will build smaller buildings if they can find the land, which is difficult to come by.

One thing to watch is a change from the low interest rate environment. This past month rates have increased by 50 basis points. It could be a monthly blip or the beginning of a trend to normalization. If the handoff from monetary stimulus to business fundamentals is done smoothly, we can expect long term, sustainable growth.

Please call or stop by our Gardena Boulevard office if we can help with your industrial property. We use our knowledge so you can make a better decision.

Kindest Regards,


Jim Klein, SIOR

310-451-8121