There is an unrelenting desire by warehouse users to occupy properties within close proximity to Los Angeles’ ports – where 40 percent of all containerized cargo enters the United States. Vacancy rates remain historically low in the Southern California Industrial Real Estate market, however, a flattening of cargo activity at the local Los Angeles and Long Beach ports may spell a warning for the area’s outlook in 2008. The fact remains, though, that the two ports ranked first in the nation for container activity in 2006, placing 5th in the world. In the above aerial photo, industrial parcels are outlined in green.
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Food Building Roundup 2008-04-10
A 16,570 square foot building was leased to a company that prepares school lunches. The building was located at Alameda and 21st Street, and was formerly occupied by a seafood processing and packaging company which focused on shrimp products. Included in the long term lease was 2 cooler boxes, a 22 foot high freezer, and a large food processing room with washable walls and floor drains. The prior tenant relocated to a seafood building in the South Bay that was approximately 12,000 square feet in size. One broker coordinated the simultaneous transactions and the entire deal spaned several months.
An 18,000 square foot warehouse was leased to a Downtown Los Angeles produce company on Industrial Street. The building included an unusually high number of dock high loading positions for an older building: eleven. The produce company was attracted to the building for its proximity to the produce market ,the fact the building had 3 refrigerated coolers, and there was sufficient yard space to accomodate large 53 foot container trucks.
The following food buildings are available for occupancy lease and/or sale:
- Marengo St- Cooler and freezer with dock high loading for a 10,000 SF facility. Forlease.
- Main St- USDA food processing facility built in 1999 with 5000 SF freezer, 2500 SF cooler and 5000 SF processing room in 26,000 SF of improvements. Great for poultry, beef, seafood processors.
- Anderson St- 11,000 SF building with freezers, coolers and truck high loading.
- Industrial St- 23,000 SF building with 6000 SF freezer and 1200 SF cooler and 7 dock high spots.
- 6th St- 23,000 SF concrete building with 3000 SF cooler and 1100 SF freezer, 16 truck high positions and 22 foot clear.
- Alameda St- 15000 SF building with 8000 SF cooler and 4 dock high spots. Great location for produce distribution.
- Alameda St- 16000 SF building with 4000 SF of coolers and freezers and processing room. 3 truck high spots.
- Spring St- U.S.D.A. federal inspection facility for poultry and meat processing with coolers and freezers. 17000 SF building.
- Triangle Dr- 23000 SF building, former commercial bakery with coolers, freezer and processing rooms.
Mixed Bag for SoCal Economy
Southern California’s economy continues to slow as the housing downturn has been full swing for a few quarters. However, the following industries have been growth drivers: retail trade, transportation, warehousing and logistics, administrative and support, leisure and hospitality, and professional, scientific and technical services. Even with falling single-family home prices, tighter mortgage underwriting standards, and increasing residential notices of default and foreclosures, the industrial real estate markets continue to remain stable in sales prices and rental rates. Though industrial economics remain flat, transactions numbers and absorption values are half the numbers from a year ago.
Vernon Warehouse Tax
After two years of deliberation a new City of Vernon Comprehensive Zoning Ordinance was approved by the City Council and became effective on January 16, 2008. Now the “2009 Issue” no longer will complicate owning property in Vernon. Industrial real estate brokers and prospective property buyers can now feel relieved regarding this issue.
However, not all is well in the Exclusively Industrial city. City officials are considering an increase in the Special Parcel Tax which was intended to support the improvement and maintenance of city streets. As the city’s businesses slowly changed from manufacturing to warehousing and distribution over the past few decades, the city sought increased revenues to address the infrastructure crumbling under the heavy truck traffic. Originally implemented in 1998, the tax applied to properties containing non-refrigerated warehouse uses, truck and freight terminal uses and other distribution uses.
Redevelopment Boundary Moved South in Arts District
The Los Angeles City Council last week approved a plan to expand the southern boundary of the Arts District, paving the way for redevelopment of the industrial area between 6th and 7th Streets just west of the river. This area includes a scattering of modern warehouses amongst mostly older and sometimes multistory brick warehouses built in the 30’s and 40’s. New residential grown in the current industrial area is expected. Councilman Huizar proposed the modification to the former boundary set by the Planning Commission and CRA.