We maximize the value in your industrial real estate transactions
Few would challenge the wisdom of getting regular medical checkups to preserve your health or servicing your car to make sure it is properly lubricated and functioning normally. Well, we think the same logic also applies to your role as industrial property owner.
For the past 10 years, industrial property values have been on a tear, setting new records with every sale. But the market finally hit a cyclical apex in Q3 at a price point double that of the previous peak in 2007.
Q3 results for the Orange County and Mid Counties regions still reflect tight market conditions caused by persistent low vacancy and the absence of sufficient new deliveries to meet demand.
In the first two installments (see below) of our series regarding the potential impact of a recession on the commercial property sector, we discussed the probable reduction in transaction velocity, a flight to quality that would negatively impact functional obsolete properties, an increase in institutional ownership and a cap on the prolific rent growth we have seen over the past few years.
This combination alone would be enough to precipitate a substantial correction in property values.
However, there is more to story which we address in this third installment.
