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.