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ACTIVITY UP SHARPLY IN SOUTH BAY INDUSTRIAL MARKET, REPORT REVEALS

 TORRANCE, Calif., April 28 /PRNewswire/ -- Industrial sales and leasing activity was up dramatically in the South Bay in the first quarter of 1993, according to a report released by Grubb & Ellis Commercial Real Estate Services.
 Activity was up 45 percent from the previous quarter and 61 percent from a year ago. Specifically, 2.9 million square feet of industrial space was sold or leased in the first quarter of 1993. That compares to 2.0 million square feet of activity last quarter and 1.8 million square feet during the first quarter of 1992.
 "Attractive rental rates and sale prices are driving activity," said Terry Reitz, senior vice president with Grubb & Ellis' South Bay office. "Users may sense that we're nearing the bottom and are moving to lock in at today's prices.
 "However, we expect lease rates to remain soft for a while," Reitz continued. "Effective lease rates will remain at the bottom of the trough until we are well into an economic recovery. On the sale side, prices will not improve until lease rates increase to the point where real estate ownership becomes profitable again."
 The industrial vacancy rate stood at 13.01 percent as the first quarter ended, down from the previous quarter's 13.14 percent, but up from last year's 11.9 percent.
 "While some companies are in a position to take advantage of today's market, others are struggling because of the weak economy," said Reitz. "As a result, we've seen some buildings come back on the market as companies downsize, leave the area, or simply go out of business."
 Carson/Compton/Rancho Dominguez, which contains the South Bay's largest concentration of industrial product, dominated sales and leasing activity in the first quarter with 1.7 million square feet. That was up from 880,468 square feet last quarter and 1.2 million square feet last year.
 Significant transactions included:
 -- Beach Patrol leased 80,000 square feet in Carson.
 -- Leading Edge leased 81,428 square feet in Carson.
 -- Micro Computer Systems leased 104,000 square feet in Carson.
 -- Freight System leased 113,332 square feet in Carson.
 -- American Paper purchased 149,300 square feet in Carson.
 -- Ball Industries leased 159,854 square feet in Compton.
 Torrance/Harbor City recorded 576,186 square feet of sales and leasing activity in the first quarter. That compared to 552,373 square feet last quarter and 140,813 square feet last year.
 Significant transactions included:
 -- Creative Computers leased 83,700 square feet in Torrance.
 -- American Lighting Specialties leased 145,536 square feet in Torrance.
 Long Beach/Paramount posted 326,528 square feet of sales and leasing activities for the first quarter, up from 261,142 square feet last quarter and 183,294 square feet a year ago.
 The largest transaction in this submarket was in Long Beach where Global Logistics leased 129,546 square feet of industrial space.
 In terms of new construction, there was no new speculative industrial product under construction in the South Bay in the first quarter.
 -0- 4/28/93
 /CONTACT: Sharon Abar, public relations director of Grubb & Ellis, 714-937-0881/


CO: Grubb & Ellis Commercial Real Estate Services ST: California IN: FIN SU: ECO

KJ -- LA027 -- 2078 04/28/93 13:14 EDT
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Publication:PR Newswire
Date:Apr 28, 1993
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