I could not start the year without acknowledging the tools that are currently available at Open AI. I’ve recently created a new FAQ page with the use of ChatGPT and Dall-E 2. It must have been under the wire before Google Search created new defenses against text bots. I received one solid lead from a company looking for 30,000 square feet because of the AI-generated explanation of my services.
Green Zones are an entirely different way to look at zoning. It is an outgrowth of the Environmental Justice Movement that had its local origins addressing diesel exhaust at the Port Complex in San Pedro Bay. Properties are analyzed and graded based on their contribution to health disparities using the Environmental Justice Screening Method (EJSM). The EJSM is a new tool and strategy that is designed to correct unhealthy conditions by establishing new mitigation mechanisms. The County will use the EJSM for ongoing monitoring and annual reporting to the parcel level.
Depending on the EJSM score, Regional Planning offers four (4) different routes to approval. The simplest is Site Plan Review (SPR) and it is approved administratively in what we use to call, “over the counter”. The other three routes are discretionary and require formal application and Public Hearing at different levels of planning authority. Generally, the greater the health impact, the longer the approvals.
204 W 131st St, Los Angeles, CA – 11,484 Square Feet
For the past several years, and particularly during the COVID-19 Period, conventional underwriting took a back seat to momentum. No one’s pro-forma predicted the incredible rent growth over this period. Low interest rates and shortage of product drove prices higher. Industrial rents doubled in two years. Underwriting was limited to the simple and liberal measurement of Net Rent/Purchase Price = Rate of Return. Any return higher than treasury rates signaled a buy. It was the period of “Search for Yield”.
Putting a property on the blockchain allows people to transact if they have the link. When we post a property, the blockchain generates a cryptographic key which allows the possessor access to the property. We give that key, in the form of a link or a QR code. There are associated rights with the key that are compared to an NFT or a token, but our purpose for using the blockchain is its ordering system. The key is only sent to Selected Trusted Parties that are registered or known. Nothing is posted online or in the Multiple Listing Services because blockchain is used for privacy.
Continue reading “Blockchain: Should You Post Your Industrial Property?”
Intense industrial real estate trends and conditions are diminishing. There are fewer container ships waiting to unload. The cost to ship a container from Shanghai to Los Angeles is 30% lower from its high. Building rents are still increasing but the doubling during the Covid-19 period was an aberration. While signs of a hyper-market are departing, a strong industrial market remains. There is a deficit of available space, strong corporate demand to improve supply chains and manufacturing resiliency, e-commerce, and high investment flow. Rent surges will continue with holiday stocking schedules starting in the Summer and again later in the year when China re-opens from its Covid-19 lockdown.
Continue reading “Recent Observations: Real Estate Trends”
Welcome to Gardena, CA!
The center of industrial real estate for Los Angeles.
I’m Jim Klein and today I will show you, how to use the blockchain to send and receive files, decentrally among trusted parties.
Let’s go inside.
Here’s how it works. We input the address of the property on the top line. In this case, it’s 19475 Gramercy Pl, Torrance, CA. It’s a 47,000 ft manufacturing, industrial storage building. Contact ID is where we can put the user’s email or a customer number that we generate. We include the file and we press go.
After pressing go the program creates a QR code and a link that I can send to the customer. Only parties who have the link or code can open the file. It records on the blockchain to serve as proof.
With the link you can either click on it or put it in your browser, and the file is transmitted to the party you want to send.
My first use case is offmarket industrial real estate. Meta tags can be used to search the blockchain by keyword.
I’m asking for your help to expand the project and make more deals together. Thank you to the innovation committee and you watching.
We’ll be meeting in Phoenix for SIOR next week. They are bi-annual conferences, and this will be my 60th in attendance. There are three main reasons I attend. I learn from the best brokers and owner/developers in the industry. There are deals to make and I will see longtime friends. The 4th reason this year is to show how blockchain finds more industrial building deals.
Industrial building rents are surging. Largest and fastest increases I’ve ever seen. We are almost at the point where rents and sale prices have doubled since the start of Covid. If rents were quoted daily, there would be the same large spikes you see in oil or wheat markets. Because industrial building market data is opaque, only those buyers (and brokers) most in tune with the industrial market read it accurately. Tenants are paying premium prices to obtain space under constrained conditions.
Continue reading “Industrial Space Market Premium”
