Industrial real estate — those buildings geared for manufacturing and logistics warehouse providers — is on fire in Orange County!
These are typically constructed out of concrete, located on little known city streets such as Blue Gum, Coronado, Carnegie, and Capricorn, and house companies that make and ship things. But, as the term “on fire” means different things to different folks not related to our industry, I believe it’s important to offer some context.
2020 – the year of the pandemic is now nearly 80% complete. Costco has Christmas decorations in stock, and socially distanced Halloween isn’t yet a memory. What? You’ve not yet strung your lights? But, I digress.
Since January, we’ve seen 15 sales for industrial buildings greater than 50,000 square feet within the Orange County’s 34 cities. These from approximately 868 existing units in this size. Excluded from these statistics are lease transactions – another conversation. But, in 2020, suffice it to say, 15 sales, 868 buildings 50,000 sf and larger – 1.7% of the base inventory sold.
Now, how many 50,000+ sale availabilities are there? Care to hazard a guess? If you guessed five, you’d be spot on. Viewed another way – only a bit more than 1/2 of a percent (five available out of 868 existing structures) is ready to receive your offer to buy.
To add some historical perspective, during the last pause in the action – 2008-2009 – there were 22 buildings for sale (50,000+) along La Palma Avenue in East Anaheim — ALONE! My, my.