Category Archives: Market Trends & Indicators

Alameda Corridor Update

The Alameda Corridor is a 20-mile railroad “expressway” that connects the World Ports of Los Angeles and Long Beach with the national rail system. The Corridor began operating in April 2002 and its main purpose was to alleviate truck traffic on local freeways and create a more efficient way to move cargo containers from the Ports of Los Angeles and Long Beach to the Downtown Los Angeles rail  yards. Effectively, the Corridor has created an efficient solution to get cargo containers from the Ports to major inland distribution points in the Inland Empire and as far east as Kansas City and Chicago. As of April 2016, the Alameda Corridor was handling an average of almost 36 trains per day and over 11,000 TEU’S. The Alameda Corridor Transportation Authority (ACTA) owns and operates the Corridor and charges user fees to the railroads on a per-TEU basis.

The five-county Greater Los Angeles region represents the largest industrial market in the nation with approximately 1.0 BSF, connected by the region’s modern sea ports, highways, railways and airports. The region historically has boasted the strongest market
fundamentals in the country relating to rents, vacancy and availability rates and pricing. In Greater Los Angeles, the overall vacancy rate was 1.2% as of the fourth quarter of 2017. The market also generated 9.3 MSF of gross activity in the fourth quarter.

City of Los Angeles Approves Recreational Cannabis Regulations. Boon to Industrial Property Owners

The Los Angeles City Council voted and approved new regulations for recreational cannabis businesses. Recreational marijuana will officially spread like wildfire on January 1, 2018, per California state law. This will be a boon for industrial real estate landlords as cannabis growers and cultivation operations typically pay premium industrial rental rates compared to regular warehouse and manufacturing users. Pot growers often pay in excess of 2X the market rate. Some key rules are below from the L.A. Times article. The mayor is expected to sign the ordinance soon.

12/20/2017 UPDATE: the Mayor signed the cannabis ordinance.

Under the new regulations, pot shops can open their doors only in specific commercial and industrial zones and must operate at least 700 feet from schools, public parks and libraries, child care centers, alcohol and drug treatment centers and other “sensitive” sites, as well as from other pot retailers.

Other kinds of marijuana businesses, including growers and manufacturers, would be confined to industrial zones and banned within 600 feet of schools. And marijuana manufacturers that use volatile solvents would also be prohibited within 200 feet of residential areas.

To prevent an “undue concentration” in neighborhoods, city leaders also decided to cap the number of pot shops, growers, manufacturers and marijuana “micro-businesses,” which do a combination of things, allowed in each community.

Brick Warehouse For Sale – 135,000 SF, Los Angeles

img_2588Former American Apparel Facility.
Classic Brick Buildings, BowTruss Roof Roof, Great Natural Light.
Creative Campus conversion: art gallery, live/work.
Warehouse, Manufacturing, or Cannabis/Cultivation/Growing Uses.
Skylights, Sprinklers, Gated Parking.
1,200 AMPS of power, 120/240 Volts, 3 phase.
Adjacent to Slauson Central Retail Plaza: Starbucks, Fatburger, etc.
10 minutes south of DTLA Arts District.
For sale. img_2520



Los Angeles’ Garment Industry Frets Over Pay Hike

You can read the WSJ article here. Excerpt below.

Some say a $15 minimum wage, slated by 2020, will drive them out.

Employees sew towels and clothing at the 5 Thread Factory in the Fashion District in downtown Los Angeles. The company opened the factory just three years ago.

LOS ANGELES—Its numbers have slipped from earlier highs, but Los Angeles still boasts more jobs making jeans, jackets and other apparel than any other pocket of the country.

Manufacturers and designers now fear “Made in L.A.” is under threat from a new law set to boost the city’s minimum wage to $15 an hour by 2020.

The city’s wage law, which will raise the base pay by 50% over five years, serves as a test for urban minimum wages. Advocates say it will provide much needed help for working families but manufacturers warn it will undercut their competitiveness and drive them out of town.

Contract apparel manufacturer 5 Thread Factory, whose garments include shirts for men and women, mountain-bike gear and other products, has outgrown its two floors of space in a gritty downtown neighborhood just three years after it opened. But with wages rising, CEO Brian Zuckerman said he won’t sign another lease in the city.

“The simple answer to this whole conversation is we’re moving out of the city of L.A.,” he said.