Market Update & Current Development Projects OFFICE INDUSTRIAL - PowerPoint PPT Presentation

Market Update & Current Development Projects OFFICE INDUSTRIAL Jeff Coburn, Principal Brandon Carrillo, Principal Shaun McCullough, Principal Garrett Massaro, Principal

Are We in the Final Innings?

• Demand Outstripping Supply (Vacancy Rate 1%) • Marijuana Conundrum (We have seen this before in Denver) • Cities being overly proactive on use approvals (Carson Example)

• Office Vacancy Rate Continues to Decline (Close to Healthy Vacancy Rate of 12%) • CAP Rates are depressed for all sectors of Commercial Real Estate in Key Markets • Class A Rates: 3.9% - 4.5% • Class B Rates: 4.75% - 6% • Class C Rates: 6.1% - Higher

DEVELOPMENTS 1331-1351 Orizaba Avenue, Long Beach

1333 – 1351 Orizaba

1333 – 1351 Orizaba

1333 – 1351 Orizaba • Existing Industrial building being refurbished and repurposed • 10 Suites ranging from 2,470 SF – 7,182 SF • Adding Extensive Glass Lines and creative features • Pricing $200 - $250 psf cold shell • $50 per Office SF Tenant Improvement Allowances Available • Core and Shell completion expected by end of year 2017 1331-1351 Orizaba Avenue, Long Beach

DEVELOPMENTS The Terminal at Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

The Terminal At Douglas Park

DEVELOPMENTS 2310 Long Beach Blvd, Long Beach

2310 Long Beach Blvd Before After 2310 Long Beach Blvd, Long Beach

2310 Long Beach Blvd

2310 Long Beach Blvd • Complete Façade Refurbishment and Replacement • Custom Designed Features to Create Unique Appearance • Refurbishment Complete August, 2017 • Currently available for both Sale or Lease • Sale: $150 psf or $1,945,650 • Lease: $0.85 psf or $11,025 per month 2310 Long Beach Blvd, Long Beach

DEVELOPMENTS CSULB Technology Park Build To Suit

CSULB Technology Park • Currently going through Entitlements • Proposed / Approximate 34,200 SF building • Warehouse / Distribution • Pricing: TBD • Availability: 12 – 24 Months. CSULB Technology Park Build To Suit

Trends for 2017 and Beyond… • 2017 will be another strong year for Commercial Real Estate • 2018 should be strong with signals of a correction in Q3/Q4 • Continued CAP Rate Compression on Class A and widening CAP Rates between Class A and Class B (sound familiar 2007??) • US Real Estate remains attractive to foreign buyers, despite the Trump Factor • Last Mile E-Commerce users will continue to value location over building functionality • Bottom Line: Commercial Real Estate will continue to be in strong demand, especially Industrial. 2017 should be another strong year. Things that can throw our markets off here locally and worldwide is possible impeachment of Trump and a Pence presidency…

Questions? Brandon Carrillo | Principal Jeff Coburn| Principal Direct: 562.354.2510 Direct: 562.354.2511 Cell: 714.746.1345 Cell: 562.547.7794 Garrett Massaro| Principal Shaun McCullough| Principal Direct: 562.354.2516 Direct: 562.354.2517 Cell: 562.546.3006 Cell: 562.234.5370 Lee & Associates | Los Angeles – Long Beach, Inc. 5000 E. Spring Street, Suite 600 Long Beach, California 90815