Industrial developers in coastal U.S. markets are cashing in on the extraordinarily high demand by small businesses for for-sale modern warehouse facilities of between 25,000 and 40,000 sq. ft.
In Orange County’s industrial market, everything sells.
The strong demand for industrial product has pushed vacancy rates to historic lows (sound familiar?), and as a result, industrial investment opportunities are limited. When properties do come to market, investors strike. This was the case in the sale of two separate small box industrial facilities in Newport Beach. The two assets—both around 30,000 square feet—traded hands in off-market transactions to private investors looking for investment opportunities in the market.
The Lee & Associates brokers who worked on both deals say that this is part of the new normal of robust industrial demand.
TA Realty just sold three warehouses in Miami Gardens and near Hialeah for $21.35 million to RREEF Property Trust, an arm of Deutsche Bank asset management.
The industrial portfolio spans 290,000 square feet, meaning the deal breaks down to nearly $75 per square foot. Records show TA Realty spent a total of about $17.6 million acquiring the sites in 2007 and 2008 through an affiliate company, the Realty Associates Fund VIII.