In the WSJ article, The U.S. Is Running Out of Land, a professor of finance who studies land values cites that “Land now accounts for 47% of U.S. home values…That is up from 38% in 2012 and less than 20% in the early 1960s.”
So that intrigued me and I pulled a sample of 1,315 industrial zoned parcels from Downtown Los Angeles to the City of Vernon. See below graphic. Dividing the Los Angeles County Assessor Land Value amount by the Total Assessment results in 71% of these industrial properties’ value is the land component. The Total Assessment includes improvements such as warehouse and manufacturing buildings constructed on the land.
That is a strikingly high percentage for land value but should not be surprising given the rapid increase in prices per square foot for land sales in the last decade. In the top section of the graphic, which is the DTLA Arts District, land values have ranged from $300-450/SF in recent years. In the bottom section, City of Vernon land was not long ago $50-100/SF and is now approaching $200/SF.
The Central Los Angeles Industrial Market has been an Infill Market for many years which has resulted in rapid increases in land values. If you own land in this area feel free to contact us.
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.
An approximately 20,000 square foot concrete warehouse with 5,200 square feet of freezer /cooer boxes is expected to come available as a listing for lease in several months. It is an industrial warehouse with cold storage and dry storage that can accommodate 10 dock high refrigerated truck trailers – this is an unusually high number of loading positions for a building of this size. Some freezer could possibly be converted to coolers.
There is plenty of yard and parking space given the large 43,000 square foot land parcel. Offices with restrooms included. Located the City of Commerce near the 5 Freeway about 10 minutes from Downtown Los Angeles (DTLA) and the City of Vernon.
Ideal for refrigerated food storage and distribution. Perishable foods such as prepared meals, poultry, seafood, beef, frozen foods, produce (fruit and vegetables).
Below is a list of industrial real estate listings that were sold in the 4th Quarter of 2020 over 10,000 square feet in size in the Central Los Angeles industrial submarket. Information includes: buyer, seller, sale price, square footages, and property features for warehouses and manufacturing buildings.
TriMas Corp. sells a 22-acre site at 5215 S. Boyle Ave. in Vernon to AMB Property Corp. Originally developed from the 1940s through the 1960s to support Norris Industries defense operations, 5215 S. Boyle Ave. includes more than 400,000 square feet of heavy manufacturing buildings with several existing leases currently in place.
According to an SEC filing, the purchase price was for $13 million, all cash. AMB would not confirm the price. AMB plans to market the vacancies at the property in the short-term with a long-range goal of repositioning the site in order to maximize the significant upside potential in the land enhancing the value of the parcel.
The purchase represents AMB’s first development project in Vernon, a city that consists almost entirely of industrial properties located approximately five miles southeast of Los Angeles. The city is home to more than 1,800 businesses which employ approximately 50,000 individuals. Vernon also consistently boasts one of the lowest vacancy rates in the greater Los Angeles area.
AMB purchased the site for substantially below current land sale value for clean & graded sites ready for construction.