Review the California real estate market’s performance in the second quarter of 2017 with Voit Real Estate Services’s indispensable Q2 2017 market reports.
Always Be Lookin’
Below, you will find Voit’s Q2 Industrial Market Reports for the Orange County and Mid-Counties/LA area.
Both reports clearly show that the challenges area business owners face continue to worsen. Vacancy can’t go much lower and it’s hard to imagine space getting any more difficult to find.
One very important metric pretty much tells the story: Transaction activity. In Orange County, deal volume is down by almost 47% and Mid-County’s count is down by 37% compared to the same time last year.
Simply put, there is just not enough space to go around and businesses are forced to stay with they are, whether or not their space suits their needs. This is not a new trend, either. Transaction activity has been declining for years, and the problem is likely to get worse before it gets better.
No wonder lease rates keep rising and new price records are being set with the closing of every sale. How long can this go on? No one can say for sure, but we do know a couple of things you can count on. Current sellers will reap a windfall profit even after paying Uncles Sam and Jerry.
Today’s owner/user buyers can put just 10% down and get a 25-year fixed rate loan at an interest rate under 5%, and tenants who are looking to lease will remain at the mercy of the few landlords who have a building to lease.
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.
Our team stands ready to be your eyes and ears, so that when the right building comes up on the radar, you are there to compete for it. Give us a call. We are here to help.
ORANGE COUNTY – INDUSTRIAL
This in-depth market report rounds up the performance of the Orange County industrial markets in the second quarter of 2017.
MID-COUNTIES – INDUSTRIAL
Download our fully-illustrated and graphed Q2 2017 report for the mid-counties industrial market via the button below.