September 22, 2020
More, smaller opportunities these days. Far away from the institutional world. Family owned mostly. Generally industrial. Well located commercial with flexible zoning has merit. One significant problem in small industrial is the cost of everything you do is expensive because your are spreading the costs over a small footprint. For instance, if you take a 5,000 SF industrial building and install a new roof and 1,000 SF offices, the unit costs add up to $40 per foot. The improvement costs start looking better at a 40,000 SF and that’s where you see the institutions make their cut. You have to buy right, know where to spend the money, and have a good crew.
For SIOR, we are planning to pre-record a session on September 30 connecting factors regarding market liquidity and pricing of commercial property. I’ve seen some of the advanced data from a couple of months prior and declines are forecast. Moderate for Los Angeles industrial but declines just the same. I’m not sure if its because of less capital in the market, but I do see more deals at 7’s and 8’s. I will keep you posted on the latest findings. Price Dynamics Platform
431 W. Compton Boulevard is for sale. 36,000 Square Feet. We’ve had some trouble related to Covid-19 and it’s not completely solved yet. The previous tenant who was evicted left some material behind. Should not cause much of a problem to dump, but its a stumbling block for sure. Still looking for the right buyer to work with us. 431 W. Compton Blvd., Gardena, CA – For Sale – 36,000 SF – $7,000,000.