Recent Observations

Recent Observations

Intense 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 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, ecommerce, 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 lockdown.

While all categories of space are in short supply, a scarcity of free-standers is particularly acute.  Many industrial businesses require their own space with exclusive access. For security and operational reasons, they cannot share. Ideal sizes generally tend to be 40,000 to 75,000 SF before companies look outside of California. In the past 15 years, economies of scale pushed developers to building larger bulk distribution buildings neglecting the free-standers.

Corporate real estate continues to be a source of property sales. While leasing yields better financial accounting results, many corporations still own sizeable industrial property properties. When business strategies change or sales decline, real estate can create an unexpected windfall. Most corporate sellers want an expedient sale, normally discrete, and at the appraised price. There’s often a pressing need to reinvest those funds at a higher return. We use research to find corporate owned properties and time our offers to add value. We developed most of the tools ourselves.

We recently moved our off-market industrial real estate business to a decentralized format. All files and documents are sent on the blockchain to give buyers and sellers more privacy. While most corporate users are already familiar with blockchain, it’s the wealthy private parties that appreciate the discretion the most. We are currently installing OpenID to enhance security for trusted parties.

Our specialty is industrial real estate in the Los Angeles area but we can act in other part in the United States, Canada, and Mexico with our SIOR colleagues. Our customers include local and national investors, developers, corporations and private parties.

SIORS: Finding More Industrial Deals By Blockchain

SIORS: Finding More Industrial Deals By Blockchain


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.

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Industrial Space Market Premium

Industrial Space Market Premium

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.
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2022 Continues – Severe Space Shortages

2022 Continues – Severe Space Shortages

potential 240,000 square foot lease deal near LAX

Acute space shortages are national news. Not only here in Los Angeles, where it’s about the worst, but all over the United States. Many tenants are being caught short and others are taking space far in advance, at greater amounts, and at much higher cost. Price bidding leads landlords to weigh credit, use, and history. Credit is the most important enhancement because it notably increases the value of buildings. Larger landlords also favor tenants that will lease multiple buildings across their national holdings.
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Are You Decentralized?

Are You Decentralized?

More real estate opportunities are popping up on decentralized platforms than ever before. Take for instance Los Angeles. There are more industrial buildings sold “off-market” than on. Industrial real estate has always had a decentralized component. Brokers find a good lead. They shop it first to their best clients off-market, decentralized. And if unsuccessful, put it on the market, on a central, MLS-type server for all to search and see. The difference today is that blockchain and cryptography is an electronic evolution that will give customers new ways to profit from their real estate.

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Can Crypto and Blockchain Secure your Commissions

Can Crypto and Blockchain Secure your Commissions

If you had the experience of driving down the street and seeing a building where you should have been paid and were not, this simple technology is of note. As more deals move “off-market”, I want certainty of commission arrangements. Ruthless competition and extreme space shortages is an explosive combination. In this hyper-intense market, this is one example of how I prove Procuring Cause using Blockchain.
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2021 Remains an Unbalanced Industrial Market

2021 Remains an Unbalanced Industrial Market

The industrial property business has grown from a real estate niche serving mostly large corporations and owner/users to a favored investment of large institutions. The rise coincided with the great manufacturing upheaval of shuttered plants as companies shifted production offshore. Goods return in containerized shipments and begat the new industry of logistics. The result was increased liquidity of both goods and capital. A situation that is ideal for warehouse development and investment. Today’s industrial marketplace is made up of global and national 3pls, shipping companies, e-commerce, and on the capital side, Industrial REITS, large investment funds, and a handful of developers. The Covid Supply Chain phenomena and an increase in tariffs has compounded an already unbalanced space market to acute levels
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