2301 · 2018. 4. 18. · 2301. S. WILMINGTON AVENUE. COMPTON, CALIFORNIA. NON-ENDORSEMENT &...

Offering Memorandum

FULLY RENOVATED 39,091 SF INDUSTRIAL / MANUFACTURING FACILITY STRATEGICALLY LOCATED NEAR THE PORTS, WITH SR-91, I-110 AND I-405 ACCESS

2301S. WILMINGTON AVENUE

COMPTON, CALIFORNIA

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by

the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to

establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the

income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the

property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal

regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s

plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained

from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained

herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the

information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this

marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or

endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of

Marcus & Millichap, and is solely included for the purpose of providing tenant lessee

information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


MAKAN MOSTAFAVIEncino Office

Mobile 818.515.8100Office 818.212.2706

[email protected] CA 01436120

WILL MACDONALDEncino Office

Mobile 805.813.0612Office 818.212.2653


EXCLUSIVELY LISTED BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

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07 29

EXECUTIVE SUMMARYSECTION 1 Offering Highlights • Investment OverviewSummary of Terms • Investment Highlights

COMPETITIVE COMPARABLESSECTION 3 Sales Comparables Summary • Sales Comparables

PROPERTY DESCRIPTIONSECTION 2 Property Specifications • Property Floor PlansMarket Drivers • Local & Regional MapsTransportation & Logistics • Strategic Distribution LocationsProperty Photos

MARKET OVERVIEWSECTION 4 Location Overview • Demographics Highlights

TABLE OF CONTENTS

EXCLUSIVELY LISTED BY:


This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000

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EXECUTIVESUMMARY

2301 S. WILMINGTON AVENUE

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OFFERING HIGHLIGHTS

Fully Renovated, 39,091 SF Industrial / Manufacturing Facility

OFFERING SUMMARY

Price $7,500,000

Physical Building Area 39,091 SF

Price / SF of Physical Building Area $191.86

Year Built 1979

Year Renovated 2014

Number of Buildings One (1)

Parking Stalls 20 (Expandable to 46)

Land Area (Acres) 1.85

Assessor's Parcel Number 7319-034-002

2301 S. WILMINGTON AVENUEC O M P T O N , C A

OFFERING PRICE

$7,500,000PRICE PER SQUARE FOOT

$191.86

RARE OPPORTUNITY TO PURCHASE A NEWLY REFURBISHED INDUSTRIAL BUILDING

TOTALING 39,091 SF STRATEGICALLY LOCATED IN A PREMIER, SOUTHERN CALIFORNIA INFILL MARKET

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INVESTMENT OVERVIEWMarcus & Millichap, as exclusive advisor to ownership, is pleased to present for sale 2301 South Wilmington Avenue, Compton, CA 90220 (the "Property"), a high quality, fully-refurbished industrial owner/user opportunity located near the signalized corner of Wilmington and Victoria in an area called Rancho Dominguez.

The Property, which underwent a complete renovation in 2014, is a state-of-the-art industrial/manufacturing facility featuring approximately 5,127 square feet of 2-story remodeled office space, three (3) dock high positions, five (5) ground level loading doors, all new exterior lighting, and 2,000 amps of 3 phase 480 volt power (with separate transformer). The Property features new exterior paint, a new roof (installed in 2014), all new T-5 lighting in the warehouse, new 2" top coat, seal and stripe of the asphalt, new landscaping, new sprinkler system and valves (installed in 2016), and only one row of columns with the spacing of 56' wide by 48' deep. The building has had 1-year fire certification in January 2016, and 5-year certification in 2014. The Property has twenty (20) open surface parking spaces, which can be increased to forty-six (46) open surface parking spaces if needed. The Property's secured, gated yard is approximately 132' deep by 143' wide, with a convenient, dedicated access point along Wilmington Avenue.

Located on the border of Compton and Carson near Rancho Dominguez at the intersection of South Wilmington Avenue and West Victoria Street, the Property is a logistical dream. Just 8-miles from the ports of Los Angeles and Long Beach, 15-miles from the 110, 710, 91, 405, 105, 5, 10, and 60 freeways, with easy access to Los Angeles International (LAX) and Long Beach Airports and conveniently located to the Burlington Northern Santa Fe and Union Pacific rails, the Property offers unrivaled connectivity for streamlined distribution throughout Southern California. The Property also benefits from its proximity to major economic spheres of influence. Most notably, perhaps, is the Dominguez Technology Center located across the street from the Property - a 20-building, 438-acre industrial and technology park situated within Foreign Trade Zone 202, offering more than 6 Million square feet of state-of-the-art import-export and administrative offices, corporate headquarters, warehouses, laboratories, research facilities, light manufacturing, and service center space to Fortune 500 companies, international conglomerates, and titans of industry such as General Mills, FedEx, Dermalogica, Herbalife, Samsung, and General Freight Solutions. With overall vacancy for the Carson/ Compton/Rancho Dominguez submarket hovering around 1.5% (the lowest in the nation) and average rental rate rates increasing to a historic high of $0.86 psf/mo (net), the Property is well-positioned to capitalize on the tremendous commercial potency of the South Bay industrial market.

The Property is offered to the market at $7,500,000 and will be delivered vacant at close of escrow, offering the buyer an opportunity to either occupy the space, or convert it to a leased investment.

SUMMARY OF TERMS

INTEREST OFFERED100 percent fee simple interest in a 39,091 square foot industrial

building located at 2301 South Wilmington Avenue in Compton, CA.

TERMS OF SALE2301 South Wilmington Avenue is offered at $7,500,000. The

Property is being offered free and clear of any debt.

PROPERTY TOURSPlease do not contact the tenants, on-site management, or staff without prior approval. All property tours must be coordinated

through the Marcus & Millichap listing agents.

► High Visibility, High Image Owner / User Opportunity Suitable for a Myriad of Industrial, Distribution, Warehouse, and/or Corporate Headquarter Uses - Building Features 22'-24' Ceiling Clearance, 5 Ground Level Loading Doors and 3 Dock-High Loading Positions, Heavy Power (2,000 Amps of 3 Phase 480 Volt Power with Separate Transformer), Dual Street Access and Fully Fenced 132' x 143' Truck Court.

► Fully Renovated, State-of-the-Art Facility - Building Refurbishments Recently Completed by Ownership Include Freshly Painted Exterior and Refreshed Entrance with Landscape Upgrades, Asphalt Slurry Coating and Restriping, Office Space Upgrades and Interior Repainting, All New Upgraded T-5 Lighting in Warehouse, New Fire Sprinkler System and Valves (in 2016), and a Complete Roof Replacement (in 2014).

► The South Bay is One of the Strongest Industrial Markets in the Nation. This Market is Well Positioned for Significant Future Rental Rate Growth Given the Historically Low Overall Vacancy of 1.5% as of the Fourth Quarter of 2017 and the Very Low Drayage Cost with Such Close Proximity to the Ports of Los Angeles and Long Beach.

► Available at a Substantial Discount to Replacement Cost in the Supply Constrained, Mature In-Fill South Bay Industrial Market which has Significant Economic and Physical Barriers to Entry.

► Located 8-Miles From the World Ports of Los Angeles and Long Beach and within 5-Miles of Four Major Los Angeles Basin Freeways Including the Artesia (SR-91), Long Beach (I-710), San Diego (I-405), and Harbor (I-110) Freeways.

► Superb Access to Los Angeles' Major Economic Engines - The Ports and LAX are Located within 10-Miles and the Property Also Offers Convenient Access to Premier Executive Housing in the Beach Communities and Palos Verdes Peninsula. Over 3 Million People Live Within 20-Minutes of the Location Providing Close Access to a Diverse Labor Pool.

INVESTMENT HIGHLIGHTS



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PROPERTYDESCRIPTION


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LOCATION 2301 South Wi lmington AvenueCompton, CA 90220APN: 7319-034-002

SITE The Property is located with in the dense, in f i l l South Bay industr ia l d ist r ict just off the SR-91 Freeway at the border of Compton and Carson, in an area cal led Rancho Dominguez.

BUILDING AREA The Property consists of 39,091 SF of rentable area

BUILT / RENOVATED Constructed in 1979 and complete ly refurb ished in 2014

CEILING HEIGHT 22.0' to 24.0'

POWER 2,000 Amps / 480 Vol t , 3-Phase, 4-Wire

PARKING 20 Open, Surface Park ing Spaces (Expandable to 46 Spaces)

ZONING The Property is current ly zoned MH

LOADING 3 Dock High Posi t ions, Up to 5 Ground Level Loading Doors

PROPERTY SPECIFICATIONS

LAND AREA 2301 South Wi lmington Avenue is s i tuated on approimate ly 1.85 acres or 80,586 square feet of land area.

PROPERTY FLOOR PLANS

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MARKET DRIVERS

Foreign Trade Zone - Subzone 202

Subzone 202 of the Foreign Trade Zone (FTZ 202), located directly across the street from the Property, is a designated site where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program, granted through the Port of Los Angeles, was designed to lower the cost of doing business and stimulate economic growth and development in the United States by allowing companies to defer, reduce, or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are trasfered from the FTZ sites for U.S. consumption. The FTZ may be utilized to examine product so it meets accurate specifications before duty is paid. Merchandise not meeting the requirements can then be repaired, re-exported, or destroyed without having to make duty payments. Furthermore, goods may be stored in an FTZ for unlimited periods, even if they are subject to U.S. quota constraints. Companies located in FTZ 202 benefit from having better inventory control with lower customs supervision, and the duty payable on FTZ goods doesn’t need to be included in the calculation of insurable value, which lowers insurance costs.

As evidenced by the areas hyper-compressed vacancy rate (sub-1.0%), FTZ 202 has proven to be one of the most influencial economic drivers within the Compton/Carson/Rancho Dominguez submarket. With the rise of a truly global economy and the more recent shift towards e-commerce business models, FTZ 202 continues to attract international and domestic companies to the area as they look to reduce operating costs for their manufacturing and inventory facilities.

California State University, Dominguez Hills

CSUDH serves as a vital educational, economic, cultural and recreational resource for the South Bay area of Los Angeles. Established in 1960, CSU Dominguez Hills enrolls close to 15,000 students and graduates 3,000 into the workforce each year. With over 100,000 alumni, 65 percent living within 25-miles of the university, the annual impact CSUDH has on the regional economy is huge – at around $330 million in the South Bay alone. Per year, the impact generates more than $18.5 million in local and nearly $20 million in statewide tax revenue. Even greater—more than $1 billion of the earnings by alumni from CSU Dominguez Hills are attributable to their CSU degrees, which creates an additional $1.7 billion of industry activity throughout the state. The university’s partnerships with local businesses, residents, civic organizations, and legislators promote the beneficial exchange of knowledge and resources, and enhance its ability to serve the economic, public policy, and social needs of the region.

StubHub Center

StubHub Center, formerly the Home Depot Center, is a multiple-use sports complex located on the campus of California State University, Dominguez Hills in Carson, California. It is approximately fourteen miles (23 km) south of Downtown Los Angeles and its primary tenants are the LA Galaxy of Major League Soccer. Opened in 2003, its title sponsor since 2013 is online ticket marketplace StubHub. The $150 million complex was developed and is operated by the Anschutz Entertainment Group; with a seating capacity of 27,000, it is the second-largest soccer-specific stadium in MLS, after Toronto FC's BMO Field. The StubHub Center is also the temporary home of the Los Angeles Chargers of the National Football League beginning in 2017 – making it the smallest NFL stadium – until the completion of the Los Angeles Stadium at Hollywood Park in 2020, which they will then share with the Los Angeles Rams.

Port of Los Angeles

Located approximately 8-miles from the Property lies the Port of Los Angeles. As the largest port in the U.S., the Port of Los Angeles encompasses 7,500 acres of land and water along 43 miles of waterfront and is the primary destination for U.S. imports from Asia. In 2017, the Port of Los Angeles moved more cargo than in any time in the port's 110-year history with 9.3 million TEUs, a 5.5% increase over 2016 and the most cargo moved annually by a Western Hemisphere port. The port's planned $2.6 billion investment in capital improvements over the next decade will ensure its continued ability to provide superior cargo terminals, rail and warehouse infrastructure, and attract top business tenants from around the world. In 2018, the Port of Los Angeles will move forward with plans to develop a container terminal support facility on an 80-acre site formerly occupied by a coal export terminal. This multipurpose facility will support container peel-off operations at the terminals and will serve as a storage site for chassis and cell-phone holding yard for tryckers waiting to take delivery of containers. Infrastructure upgrades like these will continue to boost the port's ability to service increasingly larger ships and facilitate more efficient movement of cargo throughout its terminals.

Port of Long Beach

Approximately 8.5-miles from the Property lies the 3,200-acre Port of Long Beach, the second-busiest port in the United States. Together with the Port of Los Angeles, this port makes Southern California the largest gateway for U.S. imports, generating more than $5 billion a year in U.S. Customs revenues and about $4.9 billion a year in local, state, and general federal taxes from Port-related trade. As with the Port of Los Angeles, 2017 was a record breaking year for the Port of Long Beach, with 7.5 million TEUs, an increase of 11.4% over 2016. Similar to the Port of Los Angeles, the Port of Long Beach is moving into the future with substantial infrastructure investments, with plans to invest more than $4 billion over the next decade to build a modern, clean, and efficient gateway capable of handling the next generation of cargo vessels.

FOREIGN TRADE ZONE 202


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LOCAL & REGIONAL MAPS



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TRANSPORTATION & LOGISTICS

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TRANSPORTATION & LOGISTICS - KEY DISTANCES

Airports

Long Beach Airport 10-miles

Los Angeles International Airport 15-miles

John Wayne Airport 30-miles

Freeways

I-110 1-mile

Highway 1 1-mile

I-405 3-miles

I-705 4-miles

Ports

Port of Los Angeles 8-miles

Port of Long Beach 8-miles

BNSF Watson/Wilmington 2-miles

UP Dolores 3-miles

INTERMODAL YARDSBNSF UNION PACIFIC

1. BNSF Commerce Eastern 1. UP City of Industry

2. BNSF Sheila 2. UP Colton

3. BNSF Hobart 3. UP Dolores

4. BNSF San Bernardino 4. UP LATC

5. BNSF Wastson / Wilmington 5. UP Mira Loma

6. BNSF La Mirada 6. UP Anaheim

7. BNSF Pico Rivera 7. UP Montclair

8. UP Yermo

STRATEGIC DISTRIBUTION LOCATIONS



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HIGHLY CONFIGURABLEEASILY ADAPTABLE WAREHOUSE SPACE

FEATURING ONLY ONE (1) ROW OF COLUMNSWITH SPACING AT 56' WIDE X 48' DEEP

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COMPARABLEPROPERTIES


PROPERTY ADDRESS

CLOSE OF ESCROW

SALES PRICE

RENTABLE AREA (SF)

YEAR BUILT

PRICE PER SF

2301 South Wilmington AvenueCompton, CA 90220 TBD $7,500,000 39,091 SF 1979 $191.83

18711 Broadwick DriveRancho Dominguez, CA 90220 3/16/2017 $5,625,000 36,252 SF 1992 $155.16

2301 East Gladwick StreetCompton, CA 90220 11/17/2017 $5,350,000 21,430 SF 2002 $249.65

150 West Carob StreetCompton, CA 90220 12/18/2017 $5,035,000 26,050 SF 1974 $193.28

1821 Kona DriveCompton, CA 90220 9/11/2017 $2,188,000 11,827 SF 1981 $185.00

18700 Laurel Park RoadCompton, CA 90220 12/22/2017 $11,750,000 70,640 SF 1971 $166.34

3144 East Maria StreetCompton, CA 90220 11/22/2017 $7,360,000 34,964 SF 1974 $210.50

1490 West Walnut ParkwayCompton, CA 90220 12/21/2017 $6,500,000 34,953 SF 1979 $185.96

TOTALS/AVERAGES $43,808,000 33,731 SF 1982 $192.27

SALES COMPARABLES | SUMMARY TABLE

2

3

1

6

7

4

5

Av g. $192.27

$0.00

$30.00

$60.00

$90.00

$120.00

$150.00

$180.00

$210.00

$240.00

$270.00

$300.00

2301 S.Wilmington

Av enue

18711Broadwick

Dr

2301 EGladwick St

150W Carob St

1821Kona Dr

18700Laurel

Park Rd

3144 EMaria St

1490 WWalnut Pky

Average Price Per Square Foot

AVERAGEPRICE

PER SF

$192.272

3

1

6

7

5

4


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18711 Broadwick Dr iveRancho Dominguez, CA 90220

2301 South Wi lmington AvenueCompton, CA 90220

1

SALES PRICE $7,500,000

Close of Escrow TBD

Rentable SF 39,091 SF

$ / Square Foot $191.86

Year Built / Year Renovated 1979 / 2014

Parking Ratio 1.42 / 1,000 SF

Power 2,000a/480v 3p Heavy

Clear Height 22' - 24'

Percentage Office 13%


Close of Escrow 3/16/2017



Year Built / Year Renovated 1992

Parking Ratio N/A

Power 1,200-1,600a/277-480v Heavy

Clear Height 22'


SALES COMPARABLES

150 West Carob StreetCompton, CA 90220

2301 East Gladwick StreetCompton, CA 90220

32







Power 1,200-1,600a/277-480v Heavy

Clear Height N/A'

Percentage Office N/A







Power 1,600a/120-208v 3p 4w Heavy




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18700 Laure l Park RoadCompton, CA 90220

1821 Kona Dr iveCompton, CA 90220

5







Power 800a/120-208v 3p 4w Heavy

Clear Height 9'

Percentage Office N/A







Power 3,000a/277-480v 3p Heavy

Clear Height 22'


4

SALES COMPARABLES

1490 Walnut ParkwayCompton, CA 90220

3144 East Mar ia StreetCompton, CA 90220

76



Rentable SF 34,964




Power 400a/120-240v 3p

Clear Height 19'








Power 600a/277-480v 3p


Percentage Office N/A 23

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MARKETOVERVIEW


LOCATION OVERVIEW

EconomyAccording to the recent Marcus & Millichap Industrial Forecast report, we enter a new year with a global economy that appears to have regained its footing for the first time since the financial crisis. Synchronized global growth, stabilizing oil prices, increasing manufacturing activity, and greater trade flows offer reasons for optimism. Continued job creation, stronger wage growth, and impending tax cuts in the U.S. should buoy household wealth and spur stronger consumer spending. On the downside, the greatest risk to the industrial outlook is trade policy. However, the fate of NAFTA, and any resulting shifts in real estate demand, will take time to unfold. Trade negotiations are seldom quickly accomplished, and even when an agreement is reached it can take months or years for the changes to take effect. Locally, 2017 is on track to be a record-setting year for container trade volume in a calendar year at the Long Beach & Los Angeles ports. Container volume at the combined ports are already at 15.41 million TEUs through November and will easily surpass 16 million TEUs when year-end numbers are tallied.

Market OverviewGreater Los Angeles continues to have the lowest vacancy of any major industrial market in the U.S. However, with vacancy of just 1.3%, 2017’s leasing activity is down 5.7% from last year. The tight market means users have relatively few alternatives. Strong demand is putting added pressure on markets where both available space and land are in extremely short supply. In the last five years, the region has absorbed 35.0 million square feet (msf) of space while only adding 18.1 msf of new product to its inventory. Such momentum has generated significant rent growth in markets across the region and available Class A and B product are leased quickly at high rents. At year-end, direct average asking rent increased to $0.80 psf/mo for annual increase of 5.3% while overall rent posted a 2.6% annual growth. Although these increases are significantly lower than 2016’s double-digit growth, overall rents are still up 56% from their lows during the financial crisis. Due to accelerating demand for last-mile facilities, well-located Class B properties, which five years ago may have been considered obsolete, are now sought after spaces in in-fill markets. These distribution centers are focus on fast throughput delivery rather than maintaining high levels of inventory and ceiling heights are not as important as a site’s ability to accommodate a large number of delivery vans as well as employee parking. Last-mile facilities are about the parking, access, and proximity to customers.

2011 2012 2013 2014 2015 2016 2017

Net Absorption, MSF Asking Rent, $ PSF

$0.80

$0.75

$0.70

$0.65

$0.60

$0.55

$0.50

$0.45

4.0

3.53.02.52.01.51.00.50.0

$0.80

$0.75

$0.70

$0.65

$0.60

$0.55

$0.50

$0.45

4.0

3.53.02.52.01.51.00.50.0

Overall Net Absorpotion/Overall Asking Rent4-QTR TRAILING AVERAGE

1%

2%

3%

4%

5%

6%

2011 2012 2013 2014 2015 2016 2017

Historical Average = 3.6%

Overall Vacancy

Central Los AngelesAlthough demand for industrial product has never been greater, options are limited and users have relatively few alternatives due to insufficient available supply. After a significant increase in leasing activity in the third quarter, leasing velocity slowed at the final quarter of the year and 2017 ended with leasing total of 8.0 msf, down 17.8 % from last year. With 2.7 msf of leased space, the Vernon submarket dominated the Central LA market in terms of leasing activity in 2017. This submarket also accounted for the majority of the market’s net demand with 470,559 sf of occupancy gains. Although rents have grown 60.9% in the last five years, there was a very slight decrease in overall rents from last year due to limited amount of quality space coming online. Class A and B+ facilities are leasing quickly so what remains are inferior buildings that drag the average rate down and the year ended with an average rent of $0.74 psf/mo, compared to $0.75 psf/mo in 2016. The Commerce/Vernon submarket’s overall vacancy rate declined to 1.4% from 1.5% in the third quarter and ended the year with 324,788 sf net absorption. However, with the addition of 895,806 sf of new supply, the vacancy rate was 20 bps higher than last year. With strong demand and limited supply, rental rates are now at historic highs with the overall average rate now 23.1% higher than the last peak recorded in 2008. Market fundamentals will remain strong and lease rates and sale prices will continue to trend up.

South BayAt year-end, overall vacancy for the South Bay market stood at 1.2% - the same level as last year. For perspective, the lowest rate that was recorded during the last peak cycle period was 2.1% in 2004. With such low vacancies across all submarkets, there is little room for further growth and the year ended with net absorption of just 1.1 msf. It has been a very challenging market for users as available supply is limited. The tight market has intensified competition for the more desirable and functional spaces that become available and the average rental rate jumped to a historic high of $0.86 psf/mo (net), for an annual increase of 8.9%. Leasing velocity slowed to just 1.1 msf in the fourth quarter; however, due to a very strong first quarter, 2017’s year-end leasing activity total of 9.2 msf is up 4.3% from 2016 year-end total of 8.8 msf. The Carson/ Compton/Rancho Dominguez submarket, South Bay’s largest, posted a 3.4% annual increase in leasing activity in 2017. It’s definitely a great time to be a landlord or a seller as pricing continues to increase, and vacancy remains at historically low levels. Perhaps the biggest news of the year in the South Bay is the $270 million sale of Toyota’s 110-acre property to Sares-Regis for redevelopment that will have a mix of office, retail and industrial businesses.

WITH ONLINE SALES GROWING MULTIPLE TIMES FASTER THAN OVERALL RETAIL SALES, THEY WILL REMAIN A POWERFUL INDUSTRIAL TAILWIND. LEASING WILL ALSO BENEFIT FROM A MUCH-IMPROVED GLOBAL ECONOMY.

SUBMARKET TOTALBLDGSINVENTORY

(SF)

YTDLEASINGACTIVITY

(SF)

YTD USER SALES ACTIVIY

(SF)

OVERALLVACANCY

RATE

YTD NET OVER-ALL

ABSORPOTION(SF)

UNDERCONSTRUCTION

(SF)

YTDCONSTRUCTIONCOMPLETIONS

(SF)

DIRECTWEIGHTED AVGNET RENT (MF)

DIRECTWEIGHTED AVGNET RENT (OS)

DIRECTWEIGHTED AVGNET RENT (W/D)

Los Angeles 2,519 123,669,204 1,988,494 461,334 1.0% 169,618 0 0 $1.05 $1.45 $0.76

Commerce/Vernon 2,630 164,349,392 5,987,170 934,750 1.4% 324,788 388,474 895,806 $0.65 $1.23 $0.69

Mid-Counties 2,063 122,473,592 5,377,963 405,472 1.0% 871,965 1,452,664 761,454 $0.74 $1.10 $0.77

San Gabriel Valley 3,608 195,689,886 5,327,827 1,572,034 1.3% 1,277,185 2,539,348 1,995,912 $0.53 $0.75 $0.71

South Bay 4,753 233,358,074 9,229,535 945,612 1.2% 1,091,796 700,691 957,682 $0.81 $1.27 $0.87

Westside 558 16,681,394 136,440 17,940 0.4% 57,611 0 0 $0.00 $2.09 $2.21

North Los Angeles 5,914 224,419,913 5,930,473 1,693,169 1.6% 2,096,433 1,283,881 1,409,569 $0.65 $1.34 $0.73

GREATER LOS ANGELES TOTAL 22,045 1,080,641,455 33,977,902 6,030,311 1.3% 5,889,396 6,365,058 6,020,423 $0.77 $1.18 $0.75

NOTE: Rental rates reflect asking $psf/month MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution

1.2%1.0%

1.4%

1.1%1.0%1.3% 1.2%1.2%

1.6%

0.5%

1.0%

1.5%

2.0% 2.2%

2.5%

0.0%Commerce/Vernon Mid-Counties San Gabriel Valley South Bay North Los Angeles

Q4 16 Q4 17

Average Direct Asking RentANNUAL RENT APPRECIATION AVERAGED 10%

2.2%

Overall Vacancy Comparison

$0.6

0 $0.6

6 $0.

75 $0.7

9

$0.7

5

$0.7

0 $0.

79

$0.7

1

$0.9

1

$0.7

8

$0.25

$0.35

$0.45

$0.55

$0.65

$0.75

$0.85

$0.95

Commerce/Vernon Mid-Counties San Gabriel Valley South Bay North Los Angeles

Q4 16 Q4 17

Average Direct Asking RentANNUAL RENT APPRECIATION AVERAGED 10%

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DEMOGRAPHICS HIGHLIGHTS

2017 AVERAGE HOUSEHOLD INCOME (1-MILE RADIUS)

$85,160

PROJECTED HOUSEHOLD INCOME GROWTH (2017-2022)

13.9%

2017 DAYTIME POPULATION (3-MILE RADIUS)

204,235

POPULATION 1 MILE 3 MILES 5 MILES

2022 ProjectionTotal Population

5,942 189,707 682,855

2017 EstimateTotal Population

6,102 193,064 689,490

2010 CensusTotal Population

5,933 186,507 664,560

2000 CensusTotal Population

5,540 179,826 639,212

Daytime PopulationsTotal Population

20,614 204,235 639,212

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2022 ProjectionTotal Households

1,743 51,036 191,139

2017 EstimateTotal Households Average (Mean) Household Size

1,758 3.08

50,179 3.71

187,967 3.53

2010 CensusTotal Households

1,705 48,580 181,126

2000 CensusTotal Households

1,676 47,172 177,714

Growth 2017 - 2022 -0.01% 0.98% 0.98%

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2017 Estimate

$200,000 or More 4.16% 2.36% 2.87%

$150,000 - $199,000 6.49% 4.23% 4.20%

$100,000 - $149,000 18.17% 13.09% 12.72%

$75,000 - $99,999 16.26% 12.85% 12.48%

$50,000 - $74,999 20.48% 20.20% 19.35%

$35,000 - $49,999 10.74% 13.82% 13.92%

$25,000 - $34,999 8.64% 9.93% 10.21%

$15,000 - $24,999 7.35% 11.42% 11.52%

Under $15,000 7.70% 12.10% 12.73%

Average Household Income $85,160 $68,082 $69,404

Median Household Income $68,955 $53,209 $51,994

Per Capita Income $25,215 $17,857 $19,179

HOUSEHOLD COMPOSITION 1 MILE 3 MILES 5 MILES

Population By Age

2017 Estimate Total Population 6,102 193,064 689,490

Under 20 25.53% 31.18% 29.96%

20 to 34 Years 19.74% 23.07% 23.00%

35 to 39 Years 5.69% 6.36% 6.61%

40 to 49 Years 12.71% 12.85% 13.05%

50 to 64 Years 19.91% 16.14% 16.67%

Age 65+ 16.40% 10.39% 10.71%

Median Age 39.18 31.77 32.86

Population 25+ by Education Level

2017 Estimate Population Age 25+ 4,023 116,731 428,606

Elementary (0-8) 6.99% 15.26% 13.70%

Some High School (9-11) 7.71% 13.00% 12.78%

High School Graduate (12) 24.05% 24.91% 24.87%

Some College (13-15) 27.45% 22.01% 21.41%

Associate Degree Only 8.70% 7.62% 6.92%

Bachelors Degree Only 13.98% 9.18% 12.01%

Graduate Degree 9.90% 4.09% 4.29%

Time Travel to Work

Average Travel Time in Minutes 33 31 30

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MAKAN MOSTAFAVIEncino Office

Mobile 818.515.8100Office 818.212.2706


WILL MACDONALDEncino Office

Mobile 805.813.0612Office 818.212.2653


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2301 · 2018. 4. 18. · 2301. S. WILMINGTON AVENUE. COMPTON, CALIFORNIA. NON-ENDORSEMENT &...

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