AIR Marks 40th Anniversary, Brings Order to Industrial Real Estate Brokerage.

Business & Real Estate Editors

LOS ANGELES--(BUSINESS WIRE)--Oct. 31, 2000

"10 Different Broker Signs Were Common on Properties"

In 1960, industrial real estate brokerage in Southern California was a dog-eat-dog jungle. Brokers posted their signs on properties at will, often hammering them into place during the middle of the night.

That's when the American Industrial Real Estate Association (AIR) burst onto the scene concurrently, not coincidentally, with the explosion in the region's real estate market, to bring order to chaos.

This week (Oct. 31), as the nonprofit AIR celebrates its 40th anniversary, Gary J. Herman Sr., who together with the late Jules Altemus was a forming officer of AIR, recalled conditions in 1960.

"Since 95 percent of the listings on industrial property were open listings, no one really knew if a property could be delivered or if a commission could be collected. Confusing the situation was that there were up to 10 different broker signs on almost every available industrial property," said Herman, a principal of S.D. Herman Co. Inc. of Los Angeles.

Herman emphasized that the drafting of AIR's "Rules of Professional Conduct" as one of the fledgling organization's cornerstone goals helped clear up the issue of who did or did not possess a listing. All new members of the association are required to read, sign and abide by these rules.

AIR also served another key purpose early on, said Herman: "providing a platform for young brokers and salespeople specializing in industrial real estate to meet, get acquainted, learn from each other and work together to create better tools for our profession."

Before AIR, continued Herman, there were no training classes for new industrial real estate salesmen or those interested in entering the field, there was no multiple-listing service, and there were no industrial real estate standardized forms.

"We used a 1-1/2-page Wolcott commercial lease form and residential deposit receipt forms for purchase offers," said Herman.

During AIR's first decade, a new industrial lease was published in 1962 (since then, the Gross lease has been revised every three to five years). A "Principles of Industrial Real Estate Course" was launched at UCLA by AIR that same year, continuing to this day.

Also in 1962, an industrial-zone map was published for the first time and the Industrial MULTIPLE launched, the first such service in the United States. Today, there are more than 290 brokerage offices and more than 1,250 brokers participating in the MULTIPLE, long considered "the source" of industrial properties for the brokerage community. Earlier this year, AIR unveiled an Internet-based version of its MULTIPLE, called "e-Multiple," which all of its members have signed on to.

Another first in its field by AIR was signaled in 1976 when the association published, with the aid of legal counsel, a Standard Offer and Agreement for Purchase of Real Estate Form, more commonly known as the deposit receipt.

Seeking from its origins to advance education among its members, says Chief Operating Officer Ron Surace, AIR presents regular dinner meetings featuring industry experts, and annually presents its popular Commercial Real Estate Forecast, a submarket-by-submarket overview of the L.A. Basin market.

"It's hard to imagine Southern California industrial real estate without the American Industrial Real Estate Association and the Industrial MULTIPLE," declared Herman.