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.
The cost of building new warehouses has been rising in South Florida thanks in part to a dwindling and more expensive supply of land.