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Port of Long BeachLos Angeles-located single-tenant industrial properties are in high-demand. The problem: they are becoming a rare find in the extremely tight and competitive market. This year, however, more product could come to market with owners encouraged by the strong market dynamics and record pricing. Daum Commercial’s Casey Mungo recently sold a 57,000-square-foot single-tenant asset in the Greater L.A. market, and says that while highly desirable, there are opportunities to buy.

“Since these assets are in high demand, cap rates can sometimes be extremely compressed,” Mungo, EVP at Daum, tells GlobeSt.com. “We are seeing cap rates between 3.5% and 4.5% on a regular basis. Sellers are taking this opportunity to move their equity into investments producing increased cash flow.”

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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