CORFAC News

CONTACT: 
Art Ansoorian
(805) 653-1648

Torrance, CA (April 24, 2013) – After unusually high lease and sale activity of industrial properties in the Carson/Rancho Dominguez and 91 Freeway Corridor of Los Angeles’ strategic South Bay region during the fourth quarter of 2012, the first quarter of 2013 experienced a significant drop.  Yet, there’s little reason for concern, according to a veteran broker with The Klabin Company/CORFAC International who tracks the submarket.

David Grote, a partner in the Torrance, CA office of Klabin/CORFAC, reports that a little over 350,000 square feet of industrial space was leased or sold in the Carson/Rancho Dominguez and 91 Freeway Corridor during the first quarter.  This compares to 1.5 million square feet leased/sold in the fourth quarter of 2012.

“The slowdown does not appear to be reason for concern, however, as most brokers report a healthy level of calls and showings on their listed properties.  More likely the number reflects an inevitable downturn from what was an unusually high performance during the final quarter of 2012.  Often times, if one quarter is higher than normal, the next quarter will be lower.  Comparing six-month windows may be a more accurate way to spot trends in the market,” Grote said.

Grote’s study indicates that accompanying the decline in activity, the vacancy rate in this area rose from 3.1 percent at year-end to 3.8 percent by the end of March. 

“This increased level of vacancy is still low enough that we can expect upward pressure on lease rates.  Accordingly, the activity level in the next quarter will be an important barometer to determine if the strong leasing market, which began last year, will continue, or if in fact, the lower levels of the first quarter signal the beginning of a slowdown,” Grote said.

About The Klabin Company/CORFAC International
Now in its sixth decade, The Klabin Company/CORFAC International is ranked among the top 20 commercial real estate companies based in Los Angeles.  The firm has offices in Los Angeles and Torrance, and is affiliated with CORFAC International.  For more information go to www.klabin.com.

About CORFAC International
CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services.  In association with FIABCI (the International Real Estate Federation) and global affiliates, CORFAC International offers commercial real estate services with market reach in 65 countries worldwide.  In recent years, CORFAC firms have averaged over 8500 completed transactions annually totaling more than 600 million square feet worth in excess of $52 billion for their customers.  For more information on the CORFAC network, contact (703) 532-6160 or visit www.corfac.com.