Market Update & Current Development...

Market Update & Current Development Projects

INDUSTRIAL

Brandon Carrillo, PrincipalGarrett Massaro, Principal

OFFICE

Jeff Coburn, PrincipalShaun McCullough, Principal

Are We in the Final Innings?

• Demand Outstripping Supply (Vacancy Rate 1%)• Marijuana Conundrum (We have seen this before in Denver)• Cities being overly proactive on use approvals (Carson Example)

• Office Vacancy Rate Continues to Decline (Close to Healthy Vacancy Rate of 12%)

• CAP Rates are depressed for all sectors of Commercial Real Estate in Key Markets

• Class A Rates: 3.9% - 4.5%

• Class B Rates: 4.75% - 6%

• Class C Rates: 6.1% - Higher

DEVELOPMENTS

1331-1351 Orizaba Avenue, Long Beach

1333 – 1351 Orizaba

1333 – 1351 Orizaba

1333 – 1351 Orizaba

1331-1351 Orizaba Avenue, Long Beach

• Existing Industrial building being refurbished and repurposed

• 10 Suites ranging from 2,470 SF – 7,182 SF

• Adding Extensive Glass Lines and creative features

• Pricing $200 - $250 psf cold shell

• $50 per Office SF Tenant Improvement Allowances Available

• Core and Shell completion expected by end of year 2017

DEVELOPMENTS

The Terminal at Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

DEVELOPMENTS

2310 Long Beach Blvd, Long Beach

2310 Long Beach Blvd

2310 Long Beach Blvd, Long Beach

Before After

2310 Long Beach Blvd

2310 Long Beach Blvd

2310 Long Beach Blvd, Long Beach

• Complete Façade Refurbishment and Replacement

• Custom Designed Features to Create Unique Appearance

• Refurbishment Complete August, 2017

• Currently available for both Sale or Lease

• Sale: $150 psf or $1,945,650

• Lease: $0.85 psf or $11,025 per month

DEVELOPMENTS

CSULB Technology Park Build To Suit

CSULB Technology Park

CSULB Technology Park Build To Suit

• Currently going through Entitlements

• Proposed / Approximate 34,200 SF building

• Warehouse / Distribution

• Pricing: TBD

• Availability: 12 – 24 Months.

Trends for 2017 and Beyond…

• 2017 will be another strong year for Commercial Real Estate• 2018 should be strong with signals of a correction in Q3/Q4• Continued CAP Rate Compression on Class A and widening CAP Rates

between Class A and Class B (sound familiar 2007??)• US Real Estate remains attractive to foreign buyers, despite the Trump

Factor• Last Mile E-Commerce users will continue to value location over building

functionality• Bottom Line: Commercial Real Estate will continue to be in strong demand,

especially Industrial. 2017 should be another strong year. Things that can throw our markets off here locally and worldwide is possible impeachment of Trump and a Pence presidency…

Questions?

Brandon Carrillo | Principal

Direct: 562.354.2510Cell: 714.746.1345

Garrett Massaro| Principal

Direct: 562.354.2516Cell: 562.546.3006

Lee & Associates | Los Angeles – Long Beach, Inc.5000 E. Spring Street, Suite 600

Long Beach, California 90815

Jeff Coburn| Principal

Direct: 562.354.2511Cell: 562.547.7794

Shaun McCullough| Principal

Direct: 562.354.2517Cell: 562.234.5370