If you want to have a thorough understanding of the causes for the current economic inflation, then this is the best article I’ve read on the subject recently. Christopher Thornberg of Beacon Economics has an excellent grasp of the details. Surprisingly the cause is not primarily supply chain kinks, but rather consumer demand. And Christopher details what has been driving demand and how the Federal Reserve has blundered in managing the money supply in countering inflation.
Average Asking Lease Rates have climbed dramatically in the last several years with the largest increases in 2021 and 2022. See below chart showing the steep rise for warehouse asking rental rates in Los Angeles, Orange, Ventura and the Inland Empire per AIRCRE MLS data. These are the major industrial property markets in Southern California. Individual markets and submarkets vary along with building class quality.
The Central Los Angeles industrial submarket had a very low vacancy rate of 1.4% in the first quarter of 2022. Warehouse buildings for sale or lease are hard to find for buyers and tenants as the number of listings is thin. Thus, rents and asking sale prices continue to rise. Year over year, rents rose 20% which is shocking.
In 2020 this 42,000 square foot concrete tilt-up warehouse was leased to Southern California Curling Center. It was built in 1997 with 24 foot ceiling height with a total lot size of 75,000 SF in the industrial enclave of the City of Vernon.
The Hollywood Curling Club, a nonprofit for 13 years, is based in the Southern California Curling Center, which is quickly becoming the Western hub for the sport. Opened in August 2021, the center is a 42,000-square-foot converted warehouse featuring six “sheets” of “dedicated ice.”
Curling aficionados say the center is the biggest facility in the Western United States that features dedicated ice and sheets built and maintained exclusively for curling. The center provides the stones and hosts leagues, tournaments and corporate events, along with learn-to-curl training sessions.
Below is a good summary by the city of its new zoning code and how they think it will be better than the current legacy code.
City Planning is modernizing Los Angeles’s Zoning Code to align with contemporary planning needs. This is the first comprehensive update to the Code since 1946 and marks a major shift from strictly Euclidean zoning—the most common form of land use regulation in the United States—to a hybrid, or modular, zoning approach.
This shift responds to the desire for zoning that focuses both on land use and buildings’ proposed mass, scale, and characteristics, allowing the Department to separate regulations governing the built environment from a property’s use. The creation of this new framework supports a wider array of options that reflect the cultural and demographic diversity of Los Angeles and its community neighborhoods.
This evolution in planning recognizes that a building’s physical character is equally as important as the uses permitted on-site. Conventional methods of zoning have traditionally focused more on prohibiting uses at a given site than on regulating the built environment. These planning methods reflected the priorities of an earlier period in Los Angeles’s history, when housing choices were limited and dominant interests sought to restrict all types of development other than single-family homes. As times have changed, so have the overall needs and priorities of our City’s communities.
The proposed modular zoning structure consists of five key modules, or “districts”: Form, Frontage, Development Standards, Use, and Density. While Form, Frontage, and Development Standards regulate the built environment, Use and Density refer to the activities allowed on a site. The new Zoning Code is organized in a clear, consistent way that is easier to navigate than its predecessor and constructed to enhance desired outcomes through objective standards.
Currently, zoning regulations are scattered throughout the Zoning Code, resulting in an ad hoc and incremental approach to zoning that hinders the Department’s ability to implement adopted plans more effectively.
The new Zoning Code is adaptable to current and future policy needs and will allow planners to implement a wide range of community visions that address the design of the public realm in balance with the local architecture and characteristics of our neighborhoods. Additionally, the new Code is easier to understand and navigate due to the unbundling of regulations for the built environment from activities allowed on a site, as well as other requirements.
Best of all, it consolidates the public benefits incentive programs into one place, including affordable housing, access to bonus FAR/height, and relief/waiver from regulations, thereby creating a predictable and adaptable incentive system.
To provide a framework for this comprehensive revision, the Processes and Procedures Ordinance, anticipated to go to a full Council vote this fall, will reside in Chapter 1A of the Los Angeles Municipal Code and establish a new home for the updated Zoning Code.
A former seafood facility is for sale in the heart of DTLA. 13,456 square feet of buildings on 24,740 square feet of M2 industrial land. Refrigerated rooms – coolers – along with floor drains. 400 amps of power three phase power. Fenced yard. Potential for food processing. Buyer can upgrade to USDA, FDA, SQF or convert into commercial kitchen for ghost virtual kitchen.
$5.3M asking price. Contact us for information. Photos below.