IRVINE, CA-With a dearth of industrial properties available for sale and vacancy rates continuing to tighten, as GlobeSt.com previously reported, this sector is experiencing high demand in Orange County. In fact, competition for properties has become so fierce that “the result in some situations in a competition between users, institutional investors and 1031-exchange buyers for the same property,” Mark Read, EVP for Voit Real Estate Services here, tells GlobeSt.com. “Definitely a seller's market.”
Read says at a recent SoCal industrial market overview, his firm's industrial professionals and research department predicted that sale prices would increase by more than 10% per year for the next few years. “Industrial rental rates will see a 5% to 8% annual increase over the same time frame,” he adds.
As a regional, entrepreneurial firm, Read says Voit is “encouraged to see a widespread recovery among small businesses. In 2010-2011, during the initial recovery from the recession, most of the activity was confined to larger companies and 'corporate' America with better access to capital. In early 2012 to present, we are seeing locally owned manufacturing operations in a variety of industries from tech/medical to defense to apparel begin to come back into the market to purchase and lease buildings.”
Read adds that the health of small business is a critical ingredient to Voit's success in the local markets and widespread improvements in both the housing and stock markets should keep this trend moving forward for the foreseeable future.
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