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Monday, March 31, 2014

CARVE USA is scheduled to open a 10,000 square foot high-end surf and sunglass outlet store in Santa Ana at McFadden and 55 freeway.  The lease transaction was handled by Kevin Thomas at Lee & Associates. 

Carve USA, the company known for their VersaTraction and USA franchise of Carve sunglasses brought their surf industry know how to a retail store in the industrial/commercial center of Santa Ana that includes the following tenants: Monkey Sports' Goalie Monkey, Rip Curl, Roger Dunn Golf, Austrialian Swim School, Sender One Rock Climbing and Yoga and former REI sporting goods store. Kevin Thomas says, "The store has a great location next to Rip Curl which is right off the freeway and with the sports themed tenant mix the store should do very well".  

Kevin Thomas is a Senior Vice President and Principal with Lee & Associates - Newport Beach, Inc.  

Please see the following write up in Surfing Magazine:

 

OC Industrial:
All Revved Up, No Place to Build

Written by: Real Estate Bisnow 3/31/2014

 

Tight. In a word, that's the Orange County industrial market. (We would also have accepted "industrial.") Despite increasing demand, supply is hard to develop, according to experts at Bisnow’s third annual State of the Market at the Hotel Irvine recently, which drew 450.

Panattoni Development CEO Adon Panattoni says there’s a lack of sites in Orange County for industrial development, though there are a few. Even on those, developers can’t just build anything and expect it to be leased, since OC’s competing with its neighbors, the Inland Empire in particular. (One roof and four walls is still considered the industry minimum.) Heads of companies might like to be in OC, but they might also see the Inland Empire is an acceptable alternative, especially since it’s usually less expense.

CBRE senior managing director Kurt Strasmann says Orange County has the second lowest vacancy (2.9%), out of 51 markets his company tracks; the national average is 8.2%. Fortunately for OC landlords, it's also low in LA County (No. 1 lowest at 2.3%) and Inland Empire (4%). Because its land is constrained, Orange County is an industrial infill market, and hard for investors and developers to break into.

Overton Moore Properties is an industrial developer and investor in California and recently in Phoenix. CEO Timur Tecimer says land is too expensive in much of Orange County for most warehouse/distribution developments. That kind of development is heading east. Complicating matters in OC is that certain cities are relatively hard to work with. That demands a high level of local expertise.

Sares-Regis Group focuses on large industrial projects on the West Coast. Managing director John Hagestad says lenders would prefer that a developer already have its entitlements sorted out before committing to financing, but there’s so much capital now that lenders are more willing to come in during the development process, when there’s some entitlement risk. He also predicts there will be a wave of conversion from older, less useful OC industrial space to office space, maybe for tech users. (Make sure they don't get rid of the forklifts, for fun office parties.)

KPRS president Joel Stensby says he doesn’t expect construction costs to rise that much—maybe a 3% increase over the next 12 months. One reason is that other countries aren’t buying construction materials with the same appetite they did four or five years ago. In the current climate, it’s harder to find qualified labor, so it pays to have strong relationship with subcontractors.

Prologis president-Southwest region Kim Snyder says large industrial spaces are being leased in Orange County, even though logistics is moving away. Smaller industrial product is not being leased or developed as much because residential growth hasn’t returned in a robust way. That means the likes of lighting companies, tile suppliers, and door installers haven’t returned to the market. (Same for white picket fence makers and American dream catchers.)

Allen Matkins partner Bill Ahern moderated. Bill's practice primarily focuses on the structuring, formation, syndication, and taxation of partnerships and LLCs formed to engage in complex real estate transactions. Bill also has extensive experience in structuring 1031 exchanges and TIC agreements.
 
  

Kevin Thomas is a Senior Vice President / Principal of Lee & Associates-Newport Beach, Inc. Kevin specializes in Industrial and Office brokerage in the Airport area of Orange County, California

Friday, August 12, 2011

Why are Buildings Selling in Today's Rotten Real Estate Market?

It might be surprising to learn that industrial buildings are selling in this difficult real estate market. Some of the reasons why buildings are selling is because values are at 20-year lows. Another reason why is because the interest rates are at historic lows. Buyers are expecting huge discounts on property today and are finding them. For example, a new listing at 1016 Fuller in Santa Ana (5,201 Sq. Ft. industrial building) was just listed at $598,000 which would equal a rent payment of $0.78/ Sq. Ft. Gross! This building would have sold three years ago for over $1 million. In addition, buyers expect a discount off of the asking purchase price if there is a deficiency with the building. For instance, 1016 Fuller has very limited parking. Thus, it will likely be discounted further. For more information about this example listing, please go to:

http://www.youtube.com/watch?v=Hgw4o20Kmms



Monday, August 8, 2011

What a Week on Wall Street!

Check out this week's Financial and Economic Report, Courtesy of Wells Fargo:

http://ocindustrialgroup.com/files/WeeklyEconomicFinancialCommentary_08052011_V2.pdf

Why Hire a Broker to Negotiate Your Lease?


Today, a lease is usually 20 or more pages long! Get a qualified agent on your side. When you hire Kevin Thomas of Lee & Associates – Newport Beach, you engage the services of our researchers, data banks, and secretarial staff. Besides, it makes good business sense to use a specialist who knows the market. 

Here's why you should from a broker's point of view:

 NO COST TO YOU 

The landlord is responsible for paying the broker so you don’t need to! 

 LET ME DO THE LEG WORK 
Having representation frees your time to take care of business of your company. I’ll do the work so you only need to spend time necessary to make the appropriate, informed decisions.  

 NO CONFLICT OF INTEREST 
I have a personal commitment to you. There is only one thing on my mind, creating the best value for you.  

 PUT A PROFESSIONAL NEGOTIATOR ON YOUR TEAM  
I have the expertise to represent your interest and drive a hard bargain on your behalf. 

 AGGRESSIVE AND TIMELY LANDLORD RESPONSE  
When I present a letter of representation, the landlord knows they have a genuine prospect and will respond seriously and timely.  

Call me biased but...

LEE & ASSOCIATES gives you priority.
You are assured your requirement is getting top priority. Our focus is on your transaction. You see all opportunities whether listed or soon-to-be listed. Which is why we really are the go to guys for your commercial real estate needs.


Wednesday, July 27, 2011

Why Isn’t My Building Getting Leased or Sold?

5 Proven Tips to Make Your Industrial Building Look More  Appealing and Increase the Chances of Leasing or Selling it:

1) Repainting
A quick way to give a tired, old building some life again is to re-paint it. A fresh, new coat of paint will make the building look more polished. Perhaps paint a stripe around the top of the building, incorporating contrasting earth tones. I’ve also seen some owners modify their look by integrating corrugated metal or wood accents.  Architectural Digest is a great magazine to turn to for more inspiration. 

2) Landscaping
Old neglected trees and shrubberies around a building give off the impression that the building, too, is old and neglected. Planting drought tolerant trees will clean up your property’s look. Palm trees are a favorite in southern California because they look sleek and require little maintenance year-round. Small herb shrubs such as lavender or rosemary are also a good idea to add in order to freshen up the exterior. Not only does it give off a fragrant charm to the property but it can also help reduce water consumption.

3) Paving
If your parking lot is starting to look gray and cracked, it may be time to pave a new black top. Especially if the surface has sinkholes or potholes, the asphalt will worsen over time. Often times, the first impression of your property is based off of the pavement surrounding it. Do you really want it to be in poor condition? Not only is it unappealing to the eye but tenants and buyers will also cringe at the idea of eventually having to pay for its replacement.

4) Refurbishing
The look of the interior of a building is every bit as important as its exterior. Upon entrance, reception and office area should be displayed as open and flexible. Small, private offices are outdated. Thus, removing that plywood siding is highly recommended. When it comes to restrooms, the general rule of thumb is refurbishing them every ten years. This means installing brand new fixtures, flooring, and paint. Good first impressions are a must; which is why the receptionist area and restroom are two areas where a clean, updated look is absolutely essential. 

5) Clearing
Remove any items or distracting d├ęcor from the building when it is on display. Even old inventory or machines related to the previous owner/ tenant should not be visible if you are trying to show off the space.  The property should be completely empty for the prospect’s imagination. Doing so, allows the prospective buyer or tenant to take mental ownership of the asset, moving you further down the sales path.  

Finally, it should be obvious that the building must be clean and all systems must be operational. Without making any improvements to an unappealing building, your only other option is to deeply discount the building. While a qualified agent will be able to move your property effectively, it takes some hard work from the landlord as well. With the combination of these five tips and a knowledgeable agent, you will improve your chances of selling or leasing your property at its optimal price.