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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
