Evolution: Los Angeles Westside "Small" Industrial Buildings
BACKGROUND & HISTORY
As a group, Los Angeles Westside small industrial buildings are generally
under 10,000 square feet and range in age from 40 to 70 years. Most
were built along rail lines or in areas close to the historic aircraft
manufacturing plants. These small buildings frequently housed subcontractors
to the aircraft/aerospace/defense industries. By the late 1980s and
early 90s, these generally older and underparked properties had fallen
into the doldrums.
TURNAROUND By the mid-90s —and in advance of the general economic and real
estate market recovery—new types of users were beginning to occupy
these spaces. With little renovation, entertainment-related uses, galleries,
design studios, and some service businesses were renting or purchasing
and utilizing them. Now these buildings are considered a fashionable
and desirable alternative to traditional office spaces. Their owners/lessees
have discovered that sandblasted bow truss exposed beams can be a chic
alternative to the lowered acoustical panel ceilings of traditional
office buildings. Exhibit 1 illustrates the median and average price
history for properties of this type under 10,000 square feet in West
Los Angeles.
RECENT DATA With vacancies almost nonexistent, recent years have seen dramatic
increases in rents and sale prices for these buildings. Exhibit 2 is
a sampling of six recently sold properties that are representative
of this category (photos above).
CONCLUSIONS
At the present [late 2002] extremely high occupancy levels, continued
strength in this market is anticipated although further rent or
price increase
expectations would be speculative.
By the mid-90s —and in advance of the general economic and real
estate market recovery—new types of users were beginning to occupy
these spaces. With little renovation, entertainment-related uses, galleries,
design studios, and some service businesses were renting or purchasing
and utilizing them. Now these buildings are considered a fashionable
and desirable alternative to traditional office spaces. Their owners/lessees
have discovered that sandblasted bow truss exposed beams can be a chic
alternative to the lowered acoustical panel ceilings of traditional
office buildings. Exhibit 1 illustrates the median and average price
history for properties of this type under 10,000 square feet in West
Los Angeles.
With vacancies almost nonexistent, recent years have seen dramatic
increases in rents and sale prices for these buildings. Exhibit 2 is
a sampling of six recently sold properties that are representative
of this category (photos above). 
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