Category Archives: Lease Rates

Why are sale-leasebacks trending?

As the local industrial real estate market continues to march along in what feels like zero percent vacancy, it’s actually 1.5% to 3.0% depending on which report you read and to what size range that report is geared, we are beginning to see a trend among owner-occupied buildings. Something we haven’t seen since mid-2000s, can anyone guess?
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A Slight Change in Sentiment?

First off, thank you very much for reading the Mid- Counties Industrial Quarterly Newsletter. We have been working very hard to deliver real time Local Industrial Real Estate market information and insight based on our 100+ hour per week schedule.

As we reflect on 2015 and the momentum and market share we’ve gained, we want to thank the 30 Owner, Tenants, Buyers and Sellers that we had the privilege of providing our real time real estate knowledge and honest service to in 2015. Without your trust and friendship we would not have been able to complete over $35 million dollars in sales and leasing consideration in ’15 alone. Continue reading

Beyond the Cones of Local Expansion Projects

From the Mid-Counties Market Newsletter, Q3 2015. Download the full newsletter (PDF).

The Mid-Counties Industrial Quarterly Newsletter has sounded like a broken record for the past 4 quarters: “Limited Inventory For Sale”, “Price increasing with every deal”, Class A properties are being leased quickly and functionally obsolete buildings are sitting a bit longer! Sound Familiar?! Continue reading

Preparation and Planning….The Keys To Success

Most business owners and building owners believe that real estate brokers add value only when a transaction is at hand. The truth is that the level of service today’s top real estate professionals offer goes way beyond the mechanics of closing a deal. Simply put, the bar has been raised much higher than that, and the best in the business believe in delivering a full range of services that enable their clients to strategically plan for their facilities needs on an ongoing basis.
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Have You Heard what a AB 1103 is?

Have you heard what AB1103 is? Probably not. Does it effect you? Maybe!

In November of 2007, California passed Assembly Bill 1103 (AB1103), mandating energy bench marketing and energy disclosure for non-residential buildings. AB 1103 requires non-residential business owners to input energy consumption and other building data into the Environmental Protection Agency’s ENERGY STAR Portfolio Manager system, which generates an energy efficiency rating for the building. Ratings are from 1 to 100, with 100 being the most energy efficient.Ifabuildingreachesascoreof75 or higher, owners can apply for an ENERGY STAR plaque. Any building applying for the ENERGY STAR label must have their data certified by a licensed professional engineer.

Implementation Schedule for AB1103

AB 1103 mandated disclosure of a building’s energy data and rating of the previous year to prospective buyers and lessees of the entire building or lenders financing the entire building. The original disclosure date was January 1, 2010, but after several delays, implementation of the AB 1103 bill requirements is finally expected to begin January 1, 2014 according to the following schedule:

(a) On and after January 1, 2014, for a building with total gross floor area measuring more than 50,000 SF.
(b) On and after March 1, 2014, for a building with a total gross floor area measuring more than 10,000 SF & up to 50,000 SF.
(c) On and after January 1, 2015, for a building with a total gross floor area measuring at least 5,000 SF and up to 10,000 SF.

The key determinant of whether AB 1103 disclosures apply is the building’s use classification. If the classification is Group F (Factory), the building is exempt. If the classification is Group S (Storage), AB 1103 applies. While the use classifications are defined under the statewide California Building Code, the local municipality selects the use classification for a particular building in its issuance of the occupancy permit.

Consequently, local interpretations and applications of the use classifications can vary. In the case of industrial buildings utilized for manufacturing, assembly or fabrication activities, the exemption will clearly apply. However, warehouses, depots and distribution centers are likely to be classified as Group S and, therefore, subject to the regulations. In those cases, the occupancy permit documentation is the best means of determining whether AB 1103 applies.

I can help you answer any questions about this personally. Get in touch.