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modesto commercial real estate

Hot Markets for Commercial Real Estate in the West

By G3 Enterprises | PUBLISHED | UPDATED: |blog

While experts debate whether the housing market in California and throughout will continue to cool off following months of record-setting home sales, there is no debate about the strength of the industrial real estate sector as available industrial space availability is extremely tight and tenants in many markets are willing to pay premiums for their leases.

 

While it is important to keep an eye on rising interest rates and the anticipated impact on economic growth, the industrial real estate market is expected to continue to perform well, particularly in the short term.  Vacant industrial space is hard to come by in most markets with industrial markets in close proximity to major U.S. ports showing particularly big jumps in monthly average rents.

 

Fueled by the continued growth of e-commerce and manufacturers' increases in safety-stock inventory industrial space continues to be the outstanding performer in California real estate.  In fact, five of the nation’s 20 hottest industrial markets this past year are in California: the Bay Area, the Inland Empire, the Central Valley, Los Angeles and Orange County.  Three other western markets in the nation’s Top Twenty are Phoenix, Seattle and Portland.

 

This comes at a time when demand for industrial space exceeds both the planned and projected supply over the next three years.  Current vacancy rates for industrial and warehouse space in California’s top five markets is at a stunning low average of just 3%.

 

If you need future industrial space for lease or built-to-suit, how can you succeed in this current market?

 

G3 Real Estate, given our strategic locations in the Central Valley and Phoenix, is poised to provide you with innovative solutions to your industrial real estate challenges.  In addition, we own and manage a diverse portfolio spanning all property types including raw land, warehousing, rail-served 3PL warehouses, manufacturing, agricultural, retail, office and speculative development. For those looking to expand nationally, we also have industrial campuses available in Napa, Phoenix and Chicago. 

 

Now is the time to turn to the agile experts at G3 Real Estate as we have the solutions to your industrial space challenges.  Contact our experts today at G3 Real Estate.