How To Win Lease Deals with 1% Vacancy

COMPTON, CA—Industrial tenants are having a hard time in the South Bay. The vacancy rate in the Los Angeles submarket has dipped below 1%, leaving virtually no options for tenants in need of space. When something does become available—by sheer luck—the competition to win the deal is incredibly steep. Colliers International associate VP Kyle Degener and SVP Lary Carlton recently beat out the competition on a 158,357-square-foot industrial facility in the South Bay, on behalf of their client Empire Container Freight Station. The tenant signed a five-year lease deal at the property, located at 19600 S. Alameda St., valued at $6.7 million.

“The market is at 1% vacancy, so any time a new property comes onto the market, we quickly fire it off to all of our clients that are currently active in the market,” Degener tells GlobeSt.com. “You have to keep opening up the search, and that includes the size and the location. When we see something, we have to act fast and submit an aggressive offer.”