IRVINE, CA—You might not think there are any challenges to leasing or selling industrial assets given how in-demand this property type is now, but educating tenants on increasing rental rates and forecasting pricing are two of the biggest challenges, given the volatility of the sector, Kidder Mathews' Brandon Rohe tells GlobeSt.com. As we recently reported, Rohe has joined the firm's Orange County office as a VP, specializing in the sale and leasing of industrial properties throughout Southern California. We spoke with him about his goals with the firm and current challenges in leasing and selling industrial assets in Southern California.

GlobeSt.com: What are your goals in your new role with Kidder Mathews?

Rohe: My goal is to contribute to the growth and strength of the Kidder Mathews brand in Southern California. Kidder Mathews has been the dominate firm in the Pacific Northwest for almost 50 years, and in more recent years, has expanded to become the largest independently owned and fastest-growing commercial real estate firm on the West Coast. In utilizing the platform and resources Kidder Mathews has to offer, I'll be able to provide my clients with the best possible services that will suit their specific needs. We have the ability to provide expertise in all areas of commercial real estate including appraisal, property management, market analysis, acquisition, investment sales, owner/user, leasing, and debt and equity financing.

GlobeSt.com: What are the biggest challenges in leasing industrial property given the current tight vacancy rate in Southern California?

Rohe: With a sub-3% vacancy, the obvious response is the lack of available product. Also, a huge challenge is educating tenants on increasing rental rates, which are sometimes 20% to 30% higher than what they were previously paying. I have had a lot of success representing tenants recently by structuring deals to provide security for longer term, while still having flexibility to adapt to a changing market.

GlobeSt.com: What are the biggest challenges in selling these assets?

Rohe: There are minimal challenges in selling industrial properties if the product is priced correctly. One of the biggest hurdles with the volatility of the market currently is forecasting pricing. Properties tend to exchange at a rapid pace, leading to a lack of supply, which creates a higher demand and therefore increased pricing.

GlobeSt.com: What else should our readers know about the industrial sector?

Rohe: We are currently in a landlord's market. If you are in a position to benefit from the uptick, jump on it. It's just a matter of time before the market will change, and now is a great time to be an owner.

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Challenges in Leasing and Selling Industrial Assets

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