Page 1

2013 Mid Year

MARKET REPORT

Lee & Associates Inland Empire North, Inc. 14369 Park Avenue, Suite 200 | Victorville, CA 92392 Office (760)241-5211 | Fax (760)241-1208

Lee-Associates.com


INLAND EMPIRE NORTH MARKET OVERVIEW MARKET INDICATOR Overall Inland Empire North Industrial Midyear 2013 Industrial Inventory: 17,653,228 Industrial Vacancy: 1,337,789 Industrial Absorption: (42,312) Industrial Vacancy Rate: 7.6%

DON DITTY GOES HERE ABOUT THE MARKET REPORT 2013

Retail Midyear 2013 Retail Inventory: 16747810 Retail Vacancy: 1,702,162 Retail Absorption: 8,388 Retail Vacancy Rate: 10.3% Office Office Inventory: Office Vacancy:

Midyear 2013 5,256,933 325,337

NOTABLE TRANSACTIONS COMPANY: Coca-Cola Bottling Company TRANSACTION: Lease SIZE: 27,830 SF LOCATION: 15344 Anacapa Road Victorville, CA COMPANY: World’s Gym TRANSACTION: Sale SIZE: 47,000 SF LOCATION: 14689 Valley Center Drive Victorville, CA COMPANY: General Atomics TRANSACTION: Lease SIZE: 20,000 SF LOCATION: 165374 Beaver Road #B COMPANY: Silver Lakes Mini Storage TRANSACTION: Sale SIZE: 15,240 SF LOCATION: 17030 Jordan Road Helendale, CA LEE & ASSOCIATES ®

2


2013 | Market Report

INLAND EMPIRE NORTH MARKET STATISTICS

*Combined units overall

Seneca Retail Stores

Old Town Victorville

LEE & ASSOCIATES 速

3


20 13

Mid Year Inland Empire North | 2013

id M ar Ye

INDUSTRIAL AVAILABILITY

ABSORPTION

LEASE RATE

The High Desert industrial market ended the second quarter of the year with a vacancy rate of 7.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative 42,312 square feet in the second quarter. Lease rates ended the second quarter at $.35 psf, a one cent increase over last quarter. Net absorption for the overall High Desert industrial market significantly increased from the first quarter 2013. The net absorption reported for the first quarter was (227,243) square feet and (42,312) square feet in the second quarter 2013. The overall condition of the industrial commercial real estate market will continue improving throughout 2013.

RETAIL AVAILABILITY

ABSORPTION

LEASE RATE

The High Desert retail market experienced a small decrease in market conditions in the second quarter 2013. The vacancy rate increased slightly between the first quarter and the second quarter ending at 10.3%. Net absorption was 8,388 square feet and quoted lease rates increased from first quarter 2013 levels, ending at $18.60 per square foot per year. Retail net absorption in the High Desert second quarter 2013 was a positive 8,388 square feet, a decrease from the first quarter when net absorption was reported at a positive 36,706 square feet. The High Desert’s retail vacancy rate increased slightly in the second quarter 2013 compared to the first quarter, ending the quarter at 10.3%. Average quoted asking rental rates in the High Desert retail market was up over the previous quarter level for the first quarter 2013. Quoted rents ended the second quarter 2013 at $18.60 per square foot per year compared to $18.36 per square foot per year in the first quarter.

OFFICE AVAILABILITY

ABSORPTION

LEASE RATE

The High Desert office market ended the second quarter 2013 with a vacancy rate of 6.2%. The vacancy rate went down compared to the previous quarter, with net absorption totaling a positive 8,071 square feet in the second quarter. Vacancy decreased in the second quarter, ending the second quarter at 325,337 square feet. Lease rates ended the second quarter at $14.76 per square foot per year, which has increased since the first quarter. Net absorption for the overall High Desert office market was a positive 8,071 square feet in the second quarter 2013. That compares to a negative 22,725 square feet in the first quarter 2013. The average quoted asking rental rate for available office space was $14.76 per square foot per year at the end of the second quarter 2013 in the High Desert market area.

LEE & ASSOCIATES ÂŽ

4


13 20

2013 | Market Report

M id a Ye

Apple Valley

3,950,000 3,450,000 2,950,000 2,450,000 1,950,000 1,450,000 950,000 450,000 -50,000

Square Feet

Square Feet

Adelanto

Inventory

r

HIGH DESERT AVAILABILITY HISTORY - ADELANTO AND APPLE VALLEY

Vacancy Q1

3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 -500,000

Net Absorption

Inventory

Vacancy Q1

Q2

Net Absorption

Q2

HIGH DESERT AVAILABILITY HISTORY - BARSTOW AND HESPERIA Hesperia

1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 -200,000

Square Feet

Square Feet

Barstow

Inventory

Vacancy Q1

5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 -500,000 Inventory

Net Absorption

Vacancy Q1

Q2

Net Absorption

Q2

HIGH DESERT AVAILABILITY HISTORY - VICTORVILLE AND UNINCORPORATED AREAS Unincorporated Areas

9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 -1,000,000

Square Feet

Square Feet

Victorville

Inventory

Vacancy Q1

Q2

Net Absorption

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Inventory

Vacancy Q1

Net Absorption

Q2

Information obtained from CoStar LEE & ASSOCIATES 速

5


Mid Year Inland Empire North | 2013

LEE & ASSOCIATES ® OFFICES NATIONWIDE 2013 - Columbia, MD 2012 - Charleston-Dwntn, SC 2012 - Edison, NJ 2012 - Orlando, FL 2012 - Charleston, SC 2011 - Fort Myers, FL 2011 - Kansas City, KS 2011 - Manhattan, NY 2011 - Greenville, SC 2010 - Atlanta, GA 2010 - Greenwood, IN 2010 - Indianapolis, IN 2009 - Long Beach, CA 2009 - Little Falls, NJ 2008 - Boise, ID 2008 - Investment Services Group, LA, CA 2008 - Palm Desert, CA 2008 - Santa Barbara, CA 2006 - Antelope Valley, CA 2006 - Dallas, TX 2006 - Madison, WI 2006 - Oakland, CA 2006 - Reno, NV 2006 - San Diego - UTC, CA 2006 - Ventura, CA 2006 - San Luis Obispo, CA 2005 - Santa Maria, CA 2004 - Calabasas, CA 2004 - St. Louis, MO 2002 - Chicago, IL 2001 - Victorville, CA 1999 - Temecula Valley, CA 1996 - Central LA, CA 1994 - Sherman Oaks, CA 1994 - West LA, CA 1993 - Pleasanton, CA 1993 - Stockton, CA 1992 - Las Vegas, NV 1991 - Phoenix, AZ 1990 - Carlsbad, CA 1990 - Industry, CA 1989 - Los Angeles, CA 1989 - Riverside, CA 1987 - Ontario, CA 1984 - Newport Beach, CA 1983 - Orange, CA 1979 - Irvine, CA

CAPITAL MARKET UPDATE • The majority of major markets saw cap rates decease in Q1 2013, according to PwC’s Real Estate Investor Survey. Most survey participants anticipate overall cap rates to be flat through Q3 2013. Interest Rate Projections

Key Rates

• The MBS’s Delinquency Report for commercial and multifamily loans cites a continued decline in delinquency rates Q1 20113, due to an environment more conducive to refinancing. CMBS delinquency rates decrease nearly 20 bps to 8.55 percent in Q1.

•Given low output and sequestration spending, forecasts of headwinds for the second half of 2013 in the form of a modest reduction in GDP and hiring their Q1 2013 baseline economic scenario.

LEE & ASSOCIATES ®

6


Lee & Associates Inland Empire North

2013 | Market Report

LEE & ASSOCIATES INLAND EMPIRE NORTH EXCLUSIVES

FOR LEASE

FOR SALE/LEASE

FOR LEASE

12429 Mariposa Road Victorville, CA ±8,500 sq. ft.

18077 Highway 18 Apple Valley, CA ±13,600 sq. ft.

1706-1710 Plum Lane Redlands, CA ±173 - 574 sq. ft.

FOR LEASE

FOR LEASE

FOR LEASE

12120 Ridgecrest Road Victorville, CA ±1,460 sq. ft. FOR SALE

17260-17330 Bear Valley Victorville, CA ±1,500 - 2,909 sq. ft. FOR SALE

1001 E. Main Street Barstow, CA ±3,900 sq. ft. FOR LEASE

160-170 Eastgate Road

13434 Manhasset Road

Barstow, CA

Apple Valley, CA

±28,000 sq. ft. (2 bldgs)

±13,068 sq. ft.

17229 Lemon Street Hesperia, CA ±102,400 sq. ft.

FOR SALE

FOR SALE

FOR SALE

160 Ac Helendale Road Helendale, CA

11.05 Ac Sultana Road Hesperia, CA

LEE & ASSOCIATES ASSET MANAGEMENT OFFICES NATIONWIDE 2012 2011 2011 2011 2010 2010 2009 2009 2008 2004 2001 2001

-

Charleston, SC Greenville, SC Manhattan, NY Kansas City, MO Atlanta, GA Indianapolis, IN Long Beach. CA Little Falls, NJ Chicago, IL St. Louis, MO Barstow, CA Victorville, CA

EXPLOSIVE GROWTH Over the past 34 years, there has been an explosive growth of Lee & Associates offices throughout the county, making it one of the largest and fastest growing commercial real estate organizations in the United States. NATIONAL ORGANIZATION, LOCAL OWNERSHIP Established in 1979 in Irvine, California, Lee & Associates’ 48 nationwide offices are individually owned with 12 of the 48 offices consisting of an Asset Management Division.

11.49 Acres Cataba Rd. Hesperia, CA

For more information, contact: Lee & Associates® Inland Empire North 14369 Park Avenue Ste 200 Victorville, CA 92392 Phone: 760.241.5211 - Fax: 760.241.1208 www.lee-associates.com

LEE & ASSOCIATES ®

7


Mid Year Inland Empire North | 2013

ASSET MANAGEMENT Lee & Associates is the only asset management company in the Inland Empire North region whom has received comprehensive training from the CALIFORNIA ASSOCIATION OF REALTORS® on Property Management and all the asset managers has been awarded the Property Management Certification (PMC). Lee & Associates Asset Management Group is a unique team of asset management specialists who have developed an unprecedented platform for sharing market knowledge and creating connections between sellers, buyers and tenants. Our staff is committed to maximizing the“bottom line” of each property within its portfolio. Lee & Associates strategically develops the property, recommends plans for the future, and monitors the results of those plans.

Our certified asset management professionals Services include: Owner/Tenant Relations Property Management Oversight Accounts Payable/Receivable Monthly Reporting Rent Invoicing Expense Reconciliation CAM Reconciliation Lease Negotiation, Administration & Compliance Vendor Service Contract Management Routine Facility Inspections Tenant Improvement Oversight Legal Notice & Eviction Service Oversee Daily Property Management Property Maintenance Oversight Risk Management/Insurance Oversight

Sterling Centre 1175 - 1177 Idaho Street Redlands, CA 92374 37,120 sq. ft.

Palmdale Medical Center 1220-1224 E. Avenue S. Palmdale, CA 92550 24,800 sq. ft.

Carriage Square 12421 - 12441 Hesperia Road Victorville, CA 92392 55,513 sq. ft.

Pawnee Industrial Building 13600 Pawnee Road Apple Valley, CA 8,000 sq. ft.

Barstow Shopping Center 1300-1354 E. Main Street Barstow, CA 92311 120,153 sq. ft.

Valley Center 14689 Valley Center Victorville, CA 92395 47,000 sq. ft.

Four Asset Management Offices to Serve You Park Avenue Executive Square 14369 Park Avenue Ste 200 Victorville, CA 92392

Harvey House Palmdale Medical Center Plum Lane Executive 681 N. 1st Ave Square 1220-24 E. Avenue S Barstow, CA 92311 Palmdale, CA 93550 1706 Plum Lane Redlands, CA 92371 LEE & ASSOCIATES ®

8


IT’S LEE COUNTRY

LEE & ASSOCIATES RANKED AMONG TOP COMMERCIAL REAL ESTATE FIRMS Its a business of numbers and names, and in a world where transaction and listing volumes often indicate success, specific rankings reflect leadership and excellence in the global commercial real estate industry. Lee & Associates has successfully tipped that scale. LIPSEY CO. SURVEY

Lee & Associates was highlighted in the 12th Annual Lipsey Survey. The Lipsey Co., the industry’s leading training consultants, has ranked Lee & Associates among the top global brands in its survey of more that 100,000 industry professionals from commercial property owners, investors, and lenders, to brokers and property management around the globe. For the eighth year in a row, Lee & Associates was ranked in the top 25 brands.

INLAND EMPIRE BUSINESS JOURNAL

The Lee & Associates Inland Empire offices were collectively ranked No. 2 on the Commercial Real Estate Brokers Serving the Inland Empire 2012 list by the Inland Empire Business Journal. The Lee offices included were Ontario, Riverside, and the Inland Empire North (Victorville) office which completed a total transaction volume of $653.5 million.

COSTAR POWER BROKER AWARDS

CoStar Power Broker Awards 2012, the most prestigious awards in real estate, recognized distinguished brokerage firms and commercial real estate deal makers whom are the best of the best. Lee & Associates Inland Empire North received three out of four given in the High Desert. President Donald P. brown was named CoStar Power Broker for top Office Leasing. Elizabeth Brown, Executive Vice President, has been awarded, for the second year in a row, two CoStar Power Broker Awards for; Top Office Leasing Broker and Top Retail Leasing Broker. Both areas of expertise representing the entire Inland Empire region.

REAL ESTATE FORUM

Lee & Associates Inland Empire North’s, Executive Vice President Elizabeth Brown, was recognized as on of the most prolific and active brokers in the leasing market by Real Estate Forum 2012. Brown claims one of the top 15 spots in the publication’s Top Brokers of Southern California list with deals total approximately 1.2 million square feet and over $608 million.

BEST OF THE DESERT

In January 2013, Lee & Associates Inland Empire North was nominated as one of the High Desert’s Top Commercial REal Estate Firms, Commercial Property Management Firms, and Top Commercial Agent. After counting of the votes, Lee & Associates was named one of the Best of the Desert in all three categories. Elizabeth Brown was voted one of the Best of the Desert Commercial Real Estate Agents for 2013 by her peers in the High Desert.

VICTOR VALLEY MULTIPLE LISTING SERVICES

Lee & Associates Inland Empire North receives two number one ranking by the Victor Valley Multiple Listing Services (VVMLS) for number of listings on the market and number of closed transactions in 2012. The lists were evaluated based on a one year period that covered the entire Victor Valley region, down to Redlands and up to Barstow.

BARSTOW MULTIPLE LISTING SERVICES

Barstow Multiple Listing Services (BMLS) has ranked Vice President of Lee & Associates Inland Empire North, Carol Randall, number one in transaction volume and total number of listings with nearly $1.8 million for Barstow area transactions over 2012.


The LEe Team

Elizabeth Brown

Executive Vice President

Carol Randall

Jeannine Brown

President/Broker

Asset Manager

Sales/Leasing Agent

dbrown@lee-associates.com Lic ID # 01223230

eabrown@lee-associates.com Lic ID # 01382494

crandall@lee-associates.com Lic ID # 01157681

jabrown@lee-associates.com Lic ID # 01506410

jmillus@lee-associates.com Lic ID # 01377952

Donald P. Brown

Vice President

James Millus

Stacey Nikac

Heather Ford

Michele McCormick AP/AR Supervisor

Bookkeeper Supervisor

snikac@lee-associates.com Lic # 01868690

hford@lee-associates.com

mmccormick@lee-associates.com

kmorrison@lee-associates.com

VP Administration & Brokerage Services Marketing Director

Karen Morrison

Lee & Associates速 Inland Empire North

LEE & ASSOCIATES 速

Lee & Associates Inland Empire North Mid Year Market Report 2013  
Read more
Read more
Similar to
Popular now
Just for you