When THE Industrial King Speaks, We Listen

Industrial investors like Los Angeles as an investment opportunity. Hamid Moghadam, chief executive of AMB, is one of those investors. Currently, AMB owns or controls 155 million square feet of distribution space around the globe > making it one of the largest property owners on the planet. Figure CEO Moghadam has is pulse on the industrial property market. He believes that “Smart real estate investors aren’t worried about 2010 earnings. They’re already looking ahead to the recovery in 2011 and 2012 and the ability to capitalize on future opportunities.”

Moghadam gives the L.A.-area industrial market a thumbs up as a place to be looking for property values. “Our favorite global markets include Los Angeles/Long Beach, New York/New Jersey, Toronto, Mexico City, Sao Paulo, London, Paris, Hamburg, Shanghai, Beijing and Tokyo,” he confirms. “We look for the following characteristics in selecting our markets: They need to include a large population base and a deep pool of industrial tenants; contain a major container port and an international airport served by a diverse set of airlines; include an established transportation infrastructure involving multiple freeways and rail lines; and most important of all, have significant constraints on the development of new competing products. These constraints can be physical (difficult topography, etc.), political (zoning, no growth policies, etc.), or economic (very high land costs).” The situation in the industrial market is mixed throughout Southern California, sites Jack Kyser, Founding Economist of the Kyser Center for Economic Research. As unstable as our industrial market may seem, the research shows that Los Angeles County is the lowest in the U.S. at a 3.3 percent vacancy.               credit/Jodi Summers

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