We discuss CRE Marketplace & Land Mines of Industrial & Warehouse Space with CREPN Guests: Allen C. Buchanan, shareholder at Lee & Associates.
Allen is a Commercial Real Estate Broker, Industrial & Warehouse Distribution location specialist in Orange County, Southern California.
Allen enjoys a client base of closely held ownership business including both property owners & tenants.
The current Orange County CRE Industrial Marketplace of Orange County, California is experiencing a thirty-five year inventory low. Ninety-six percent occupancy makes it an Owners market, with no need to offer concessions. Demand is so strong, that owners have their pick of multiple eligible tenants.
This is a dramatic change from 2008 when the market fell off a cliff.
Since 2013, sales prices for Industrial Properties has increased nearly fifty percent, while lease rates have increased near fifteen percent.
Is the strong demand creating any new construction?
Developable land is not plentiful in Orange County, however the strong demand has lead to an opportunity to repurpose previously vacant properties to world class distribution facilities.
Is there an identifiable cause to the strong demand for industrial properties?
The purchase demand is largely due to low interest rates while additional expansion is largely due to merger & acquisition of those companies that weathered the economic recession
Prior to Allen joining Lee & Associates, Inc. – Orange in 1984 he spent five years in the consumer goods business with Procter and Gamble Distributing Company and the E and J Gallo Winery. Mr. Buchanan has spent his real estate career in the industrial arena in North Orange and West Riverside County.
Mr. Buchanan has ranked within the top five producers of the Orange office for eight of the past nine years and was the Top Industrial Producer in 1991, 1993, 1995, 1996, 1999, 2004, 2010, and 2012.
For more information on Allen, go to: allencbuchanan.com