We maximize the value in your industrial real estate transactions
There are literally thousands of Orange County business owners out there who bought their industrial buildings when prices were just a small fraction of what they are today. If you are one of those with the foresight and courage to have done so, congratulations, you are a huge winner. Your property’s value has appreciated more than you ever thought possible.
All of us in the business community deal with uncertainty no matter what condition our local, state and national economies are in. Every business decision we make involves a calculation of risk, but we can mitigate that risk through our level of knowledge about those factors most likely to impact profitability. In a rapidly expanding economy, risk may be minimized by the natural rise in demand for our product or service. We certainly experienced that in the commercial real estate sector after the market bottomed out in 2010. However, after the longest industrial property upcycle in history, the economy experienced a nasty inflation spike starting in 2021, which forced the Fed to raise the cost of capital to put out the fire. That sent industrial property demand sharply lower and flattened pricing growth for both lease and sale product, as a corresponding rise in uncertainty sent buyers and tenants to the sidelines. However, we have yet to experience a full-blown correction in most major submarkets, the Inland Empire being the exception due to high levels of construction. So, when asked, we have been describing current conditions as sluggish, slightly out of sync, but with election uncertainty behind us.
Since last November’s election, the speed at which new economic policies have been coming at us has accelerated. Just a quick scan of the daily headlines exposes us to a dizzying array of facts, figures, truths and fictions (disguised as facts depending on the media source) about any number of global, national and local topics.
In conditions like these, it pays to stay on your toes and be current on what is happening in your preferred area. We recommend that you always be lookin’ for space as you would if you had to move in the next six months.
In our last two discussions, we explored the opportunities and challenges presented by today’s market conditions.