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Los AngelesThere has been an increase in industrial generational transactions in Los Angeles. These are properties that have been owned for several decades and passed down through families, and rarely trade hands. Owners of the properties—mostly private family offices—are deciding to sell in response to record pricing levels that are at or nearing peak levels.

“There are transactions that are going down right now in this phase of the cycle that we haven’t seen in 20 years,” Jeff Stephens, SVP at CBRE, tells GlobeSt.com. “You might see a one-off transaction like that where someone that has held a property for a long time decides to dispose of it and move on. This time, we are seeing a lot of them. I think that is related to the fact that more people are deciding to take their chips off the table as values have gone up so dramatically in the last five years. Land values have gone from $30 per square foot to $70 to $80 per square foot. Most of the properties are older, land-value transactions.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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