May 25th, 2017

LOS ANGELES (South Bay) – In a market as “tight as a drum”, owners of industrial property are not asking what their building is worth. They’re asking what will the building be worth next month!

That’s the central observation emerging from The Klabin Company’s South Bay “Market Update” for the first quarter of 2017.

Contributing to that tight market, the report emphasizes, are five overriding trends.  They are:

— A City of Carson moratorium

— Historically low vacancy that’s driving rapid lease rate growth

— Warehousing uses being priced out of the market as trans loading takes over

— Land values reaching historical highs, and

— An ongoing emphasis on renewal of existing properties

Responding to these trends are lease and sale rates for Class A, B and C buildings, as well as industrial land, all of which are trending up. Class A building lease rates, the report shows, range from 78 cents to 84 cents N per SF; sale rates are at $200 and up. Class B building lease rates range from 68 cents to 72 cents N per SF, while sale prices run from $155 to $175 and up. Class C buildings run from 62 to 65 cents to lease, as sale prices range from $95 to $115. In the land category, lease rates go from 25 cents to 30 cents N per SF, and sale prices check in at $50 and up.

The Klabin Company report underlines that building sale prices continue to rise on user transactions, and that there exists a historical abundance of institutional investment capital.

The report explains that user transactions in Torrance, for example, are $200 per SF and up, while investor transactions in Rancho Dominguez and Carson list sub five percent CAP rates for superior credit and quality principals.

Land values, according to the report, are above $50 per SF, while surface lease rates are at approximately 30 cents per SF.


About The Klabin Company/CORFAC International

Now in its sixth decade, The Klabin Company/CORFAC International is ranked among the top commercial real estate companies based in Los Angeles. The firm is affiliated with CORFAC International. For more information go to

About CORFAC International

CORFAC International is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail properties, tenant and landlord representation, investment sales, multifamily, self-storage, acquisitions and dispositions, property management and corporate services. CORFAC has 81 offices throughout the Americas, Europe and Asia. Founded in 1989, CORFAC firms completed more than 11,000 lease and sales transactions in 2015 totaling 500 million square feet of space valued in excess of $8.5 billion. For more information on the CORFAC network, call the Chicago headquarters at 224-257-4400 or visit