A Slight Change in Sentiment?

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.

Looking forward into 2016 we have started the year off with continued limited inventory,however we are sensing the beginning of a shift in momentum. I’m not at all saying “The sky is falling” but the feverous rush to buy anything that resembles a “Market Deal” seems to have slowed a bit. We attribute some of the sentiment to the following:

• People tuned into CNN & Fox.
• A slowing Chinese economy.
• Heavy sell off in the stock market.
• Plummeting Oil Prices from over production and a slowdown in worldwide demand.

For you owners out there the local Mid-Counties Industrial vacancy rates continue to hover in the 1%- 1.5% range. This number is encouraging and we expect the market will continue its strength and expect lease rates to continue rising, albeit a slower pace than ’15. Furthermore, we expect sales prices to continue to rise but my crystal ball doesn’t predict by what percent.

On a personal level we are looking forward to adding an additional member to the Mid-Counties Industrial Team in March. Phillip and his wife Sonia and son Luke (3 yrs old) are looking forward to adding a baby girl, name T.B.D. Don’t be surprised if you see Phillip a bit tired and unshaven during March! Joel will hold his team steady as he and his wife Melia already have their hands full with their daughter Taylor (5 yrs old) and son Hayes (2 yrs old).

Thank you again for reading our Mid-Counties Industrial Newsletter and we look forward to meeting and assisting each Owner, Tenant, Buyer and Seller in 2016.

3/15/2016 Current Rate Change Since 1/4/16
3 Yr. Treasury 1.16 -11.5%
5 Yr. Treasury 1.5 -13.2%
7 Yr. Treasury 1.78 -13.5%
10 Yr. Treasury 1.97 -12%

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For more information about the Industrial Real Estate Market in the Orange County, Los Angeles County & Surrounding Areas, give us a call:

Joel Hutak
Philip DeRousse

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