How did I miss that? This is what many Investors/Business Owners say to themselves when an opportunity has past them by. In a turbulent economy, when the future is unknown, there are always missed opportunities, causing Investors to postpone long term decisions, and it’s not until they look in the rear-view mirror that they realize they should have pulled the trigger. Each market cycle has its own unique aspects, but the result is generally the same, time is the main variable.
I have participated in and observed the LAX Industrial Market for over twenty-five years, the cycles have been many. This morning I want to post two historic sales that took place here at LAX in the last fewYears…one in July of last year.
1. AMB sold a 20 acre parcel at 6351 Century Blvd for $125 Million Dollars that is approximately $140.00 per square foot for the land.
2. 5651 W. 96th St. sold at $230 per square foot – then an all-time market high price per square foot for an industrial building of its size in the Los Angeles International Airport market. The 57,000-sf industrial building sold for $13.1 million.
Yes the above two sales were in a much much better economy, but they were not THAT long ago…The land sale was in July of 2009 that’s less then a year ago.
My point is that Companies and or Investors who lease or purchase Buildings cannot stay on the sidelines forever, they must make a move, it might be to lease extra storage space for their Freight, it might be to expand into larger quarters, it might be that Major Car Rental Company here at LAX that sees the handwriting on the wall that leasing and or Purchasing Property at LAX was and will be again very high …and they decide to a make a move now with inventory and prices on the very reasonable side instead of the reverse which I guarantee will happen again.
The Media speaks with great negativity regarding the current economic trends.
But history speaks loudly…that the Investors and Smart Users make their strategic moves now to lease (or extend their lease) or Purchase. When the news finally turns positive…the prices both in Rents and in Sales will have already taken off.
The International Funds which have Billions to invest just proclaimed the following ”
- The U.S. remains the country selected as the “most stable and secure real estate investment environment “
“It is also apparent that opportunity lies within this economy since the U.S., shows substantially higher scoring for expected capital appreciation,” with half of respondents ranking the U.S. as the top country for increased returns.