2014 ended on a strong note at year end.  All my listings are either leased or sold and it confirms the space shortage that is looming throughout Los Angeles. Tenants should be looking six months prior to lease expiration and be prepared to pay double rent as soon as they find a space they like. Not only has there been very limited new construction over the past several years, but high sale prices have taken a lot of buildings off the lease market. This has put upward pressure on lease rates for functional distribution type warehouses.   Most new developments are exceeding their proformas with deals being struck during construction, especially on the sale side. The predominance of cash buyers, both from foreign investors and funds is dramatic even as the march of higher prices and lower yields continue.

Continue reading “Strong Demand But Not Much Product”

I’ve uploaded my presentation for the Nashville conference in a PDF document. The focus is on industrial land development throughout the United States. Everything goes better with good programming and I hope to demonstrate how the MAPP program is helping me with land developers. I have some other thoughts I will be sharing with you shortly about developing a trading platform for on and off market industrial. In the meantime, please review the attached and contact me with any questions or collaborative enterprises. Nashville Land Development Program

Where The Land Deals Are

On April 23^rd, SIOR held a Land Development Meeting in Las Vegas. We were fortunate to have four leading industrial building developers tell us about industrial land deals today. The comments have been updated to the publication date of this article.

Continue reading “Where The Land Deals Are”

Funds are dominating the purchase of industrial real estate. Out of the top 40 Los Angeles industrial deals this year, the majority were purchased by funds. For off-market deals, funds purchased closer to 100% of properties that were quietly offered. The size of the fund can range from a $20 Billion public company dealing in billion dollar portfolios to a single operator with wealthy partners buying an old building to rehab. What unites all the funds is their view of real estate as an investment, not as a place to do business.

Continue reading “Funds Continue To Dominate Purchasing Activity”

We’re starting off the year with good listings including a 58,000 SF building in Paramount (lease), a 7500 SF Building in Gardena (sale), a 9 acre development site in Compton (sale), and a 2 Acre Truck Yard in Gardena (lease). I also have deals working in Riverside, CA; Houston, TX; Long Island, NY and of course, Gardena, CA.

Continue reading “What’s New at Klein Commercial – March 2014”

In Los Angeles, older buildings continue to be valued unlike in many other post-industrial cities. Although these buildings have lower ceilings, poor loading, and limited parking, there have many types of occupants. The main advantages to older buildings are their low rents and central locations. One significant downside is since older buildings compete on low rents, owners can’t afford a lot of improvements. This condition creates blight and despite good occupancy rates, neighborhoods decline. Taxes and planning laws exacerbate the situation.

Continue reading “WHITHER OLDER BUILDINGS”

 

Dear Gardena Building Owner:

Continue reading “Gardena Letter to Building Owners”

New California state law that starts taking effect August 1, 2013. All Sellers and Landlords will need to disclose the energy efficiency of their buildings in any sale or lease of an entire building. The goal is to have an Energy Star rating of 75 or better. However disclosure of any score is a requirement. Here is the handout I received from Greenberg Glusker who provided the legal overview and Green Econome who will help you with the filing and disclosure. Handout

 

2012 was a very steady year and the best since 2007. I sold land in New York and North Carolina; A $3MM warehouse sale in Savannah, Georgia and a $9MM apartment community in Central Los Angeles. My Gardena/South Bay Industrial core was very solid with over 175,000 SF of building sales and leases. Several things are coming togeth er at the same time. My 30-year presence in Industrial Los Angeles has given me trusting relationships and extensive market knowledge. The investment in a sophisticated GIS database (MAPP) helps to locate property with exacting criteria. The New York State Real Estate License gives me another large market to tap. Strong national and international ties through SIOR substantially widen my geographical scope. As the economy continues to rebound, we will experience a Golden Age of Real Estate.

One of his (Warren Buffet) big worries these days is about what’s going to happen to all the pension money that is being invested in the markets, often with little success, in part because investors are constantly buying and selling securities on the advice of brokers and advisers, rather than holding them for the long term. “Most institutional investors, whoever is in charge — whether it’s the college treasurer or the trustees of the pension fund of some state — they’re buying what they’re sold.”

For More: http://dealbook.nytimes.com/2012/12/03/for-buffett-the-long-run-still-trumps-the-quick-return/?ref=todayspaper

Deal Book –  Anfrew Ross Dorkin