What Adaptive Reuse is Doing to Industrial

Strasmann: “It’s good if you own industrial because you’re taking product away. The supply is constrained, and this is exacerbating the availability factor for industrial tenants, but it’s also bad for our market because industrial tenants have to go somewhere.”

NEWPORT BEACH, CA—While conversions from industrial to creative office, mixed use or multifamily tighten the already constrained industrial supply even further, they are allowing for higher and best use as well as higher-paying jobs, CBRE’s senior managing director Kurt Strasmann tells GlobeSt.com. The firm’s Carol Trapani, Ben Seybold and Sean Ward recently represented seller Doyle Properties LLC, and CBRE’s Brad Bierbaum represented buyer American Technologies Inc., an owner/user in this transaction, in the sale of a 144,000-square-foot industrial building in Anaheim, CA, for approximately $16.6 million.

The property, located at 3360 East La Palma Ave., contains approximately 85,000 square feet of warehouse space and 48,900 square feet of office space.  American Technologies plans to rehab the facility, last purchased 30 years ago. The building is located within Anaheim’s Canyon Business Center, a prominent local business corridor. The building features major street frontage and is in proximity to the Metrolink train station.