I’ve often been asked if the
commercial real estate business is seasonal. By this, I mean, do we see an uptick
in activity comparable to our residential brethren. As you’re aware, house
sales tend to ebb and flow based upon seasonality. As the summer months
approach and families near the end of school, they use the summer months as an
advantageous time to relocate.
Commercially - short of an economic
downturn - we tend to see several peaks and lows with leasing and sales volume.
As the year begins, we encounter companies who are interested in finding a new
location. Our activity tends to wain preceding tax time from mid March to mid
April. We experience robust volume through the middle of June. Vacation time
from mid June through Labor Day is historically slow. Finally, as autumn
approaches, and before the holidays begin, there is a mad dash for the exits to
get transactions accomplished before the end of the year.
However, this year has been a bit
different. We should be slow now as we are in the vacation mode for most
businesses. But, we have seen a fairly significant increase in tire kicking
this summer.
As I have written in this column, ad
nauseam, we are experiencing a glut of class A logistics inventory above
100,000 ft.². Orange County certainly has more supply than the present demand
but this trend is much more acute in the Inland Empire areas. Within the last
30 days, we have seen a tremendous amount of space leave the market as
evidenced by five deals in Huntington Beach and Garden Grove and a comparable
number in the IE.
So what gives? Here are my theories
as to why.
Pricing:
One of the primary factors driving
the recent uptick in activity is pricing. With an oversupply of large logistics
spaces, landlords are becoming more flexible in their negotiations. This has
created attractive opportunities for companies looking to secure favorable
lease terms. Lower rents and attractive concessions are enticing businesses to
move now rather than wait. We’ve seen a decrease in asking lease rates of
approximately 18%. Owners are coupling these aggressive rates with an abundance
of free rent and enhanced brokerage fees.
Chinese companies
absorbing space for inventory:
Another contributing factor is the
activity from Chinese companies. These firms are strategically securing
warehouse space to better manage their inventory. The Trump presidency had a
significant impact on tariffs, with increased tariffs on Chinese goods
prompting these companies to rethink their logistics strategies. With the
events of last weekend, adding some clarity to the November Choice, Chinese
third-party logistics providers are securing as much space as possible to move
inventory into the United States pending future tariffs. This is an interesting
debt because our election is still over three months away. With global supply
chains already experiencing disruptions, having additional storage capacity
close to major markets like Southern California has become even more
advantageous. This combination of tariff impacts and supply chain challenges
has led to a noticeable increase in leasing activity, particularly in the
logistics sector. Within the last 30 days, Chinese occupants have consumed over
2,000,000 ft.² of space in four transactions.
Pent-Up Demand:
Finally, there is a significant
amount of pent-up demand. The uncertainties of the past few years, including
economic fluctuations and the pandemic, have caused many businesses to delay
their expansion plans. Additionally, the Trump presidency and its impact on
tariffs played a crucial role. Increased tariffs on goods imported from China
prompted many companies to rethink their supply chains and logistics
strategies. As a result, businesses are now moving forward with their plans to
secure warehouse space in strategic locations like Southern California. This
shift has led to a surge of activity as companies seek to mitigate the impact
of tariffs and capitalize on current market conditions.
While commercial real estate may not
follow the same seasonal patterns as residential real estate, there are
certainly periods of increased and decreased activity. This year, contrary to
the usual summer slowdown, we are witnessing an unexpected boost in leasing and
sales. Factors such as attractive pricing, strategic moves by Chinese
companies, and pent-up demand are driving this trend.
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Occasionally, it’s a great idea
to clear your mind, empty the inbox, and allow your thoughts to be random.
Today, dear readers is such a moment.
It's fascinating how the mind can
wander through a labyrinth of thoughts, each one seemingly unrelated yet all
part of the same intricate web of our daily lives.
Today, I'm embracing the
randomness and sharing a glimpse into the eclectic musings of a commercial real
estate broker's mind.
Someone famous once opined,
they’re only opinions, however, they’re all mine.
Here goes.
Presidential
Election
The political climate is heating
up as we approach the next presidential election. The decisions made at the
polls will ripple through various sectors, including real estate. Policies on
taxes, environmental regulations, and economic incentives could dramatically
shape the landscape of commercial real estate. It’s a waiting game now, as we
brace for the changes that a new administration might bring.
Interest
Rates
Interest rates are the heartbeat
of real estate investment. Recently, there’s been a lot of speculation about
whether the Federal Reserve will adjust rates again. Lower rates have made
borrowing cheaper, fueling investment and development. However, the potential
for rising rates could cool the market, making it more challenging for buyers
to secure favorable financing terms.
Owner
Occupant Activity
There’s a noticeable trend of
increased owner-occupant activity. More businesses are opting to purchase their
spaces rather than lease. This shift is driven by the desire for long-term
stability and control over their work environments. It also reflects confidence
in their growth prospects and a strategic move to build equity in their
properties.
Vacation
Schedule
Even commercial real estate
brokers need to unwind. Planning a vacation amidst a busy schedule can be a
challenge, but it’s essential for maintaining balance. Whether it’s a beach
getaway, a mountain retreat, or exploring a new city, taking time off to recharge
is crucial. This summer, I’m hoping to strike that perfect balance between work
and relaxation.
What to
Expect This Summer
Summer often brings a mix of
excitement and uncertainty. The market tends to slow down slightly as people
take vacations, but it also presents opportunities. This year, I’m anticipating
a few surprises – perhaps an unexpected deal or a new trend emerging. Staying
adaptable and ready to seize opportunities is key.
Embracing the randomness allows
for a broader perspective. It’s a reminder that in the midst of our busy lives,
taking a moment to reflect on the myriad thoughts and events can be incredibly
grounding. Here’s to the journey and all the unpredictability it brings!
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Today marks the end of the first
half of 2024. Wow! Christmas decorations will grace the shelves of do it yourself
retailers in no time. Be sure and buy yours early. After all, you’ll want to
make sure your Christmas lights are donned by Labor Day. But, I digress. Today,
I thought it would be interesting to take a look at the predictions I made in
January of this year to see how they are progressing. It’s always a good idea
to make sure you’re on the right track - especially when advising owners and
occupants of industrial real estate in Southern California.
So with that as a backdrop, let’s
review what I had to say six months ago, how those predictions are faring, and
what’s in store for the balance of the year, shall we?
Here’s what I had to say
in January 2024. Industrial lease rates will soften. This
time last year, a client of ours was facing an expiring lease. We tried to find
a suitable alternative to move his operation. Nothing was ideal. We advised him
to stay put, negotiate a short term fix - 6-12 months and continue our search.
His owner would only agree to six months so we had a new deadline - June of
2023. We nearly struck pay dirt in March but jettisoned the opportunity due to
its size - just not quite big enough. Once again, we approached his owner
asking for some more time. He agreed to extend through December. Our gamble
paid off as we secured a suitable building at a 15% discount! Why, you may
wonder? Simple economics. We tracked new avails and ones leaving the market and
noticed an imbalance. Yep. More was coming than going. We knew someone would
drop their rate to secure a great tenant. Expect more of the same this year -
especially with Class-A buildings above 100,000 square feet. At last count in
the OC - eleven were open for business and seeking a resident. Two left the
market last year. Hmmm. Someone will get motivated and make a deal, comps will
reset to the new level and the frenzy will begin. What’s
happening now. Yes! If you read my column
from last week, where I discussed the stages in which price reductions occur,
you will realize that we are in the concession stage of price reductions. By
that I mean, owners, in order to get their industrial buildings leased, are
offering more concessions, such as free rent, enhanced brokerage fees, and
potentially moving allowances to attract occupants to their vacancies. I would
expect this trend to continue until all of the class a inventory above 100,000
ft.² is absorbed. How long will it take you may be wondering? It’s difficult to
say, but I suspect by February or March 2025, will be in a short supply
situation once again.
Here’s what I had to say
in January 2024. Expect sales volume to increase. The
forces outlined in the paragraph above will trickle into the sales world. By
that, I mean an owner awaiting a tenant may choose to sell. A
further catalyst could be the underlying debt on the asset. Imagine you’ve
originated a short term construction loan to build a class A structure. You
considered construction costs, time to build and lease. Your calculus was based
upon conditions in early 2022. You’ve delivered a new building into an entirely
different market - longer vacancy and lower rates. Your lender might be getting
a bit nervous. When will the maturing debt be repaid? Thus pressure to dispose
of the new build. What’s happening
now. In the inland areas of Southern
California, such as the inland Empire, we are seeing some institutional owners
opt to sell their vacancies as opposed to waiting for that elusive tenant. In
this manner, they are able to re-deploy the money into a different market with
better fundamentals or return principal investment to their investors. If a
building has near term vacancy, meeting a year or two, expect this trend to
continue.
Here’s what I had to say
in January 2024. Recession or no? I say no. Last
year I took a contrarian approach and predicted we would avoid a recession in
2023. Recall, recession is a decline in gross national product for at least two
quarters. I believed in the resiliency of the United States economy, especially
the consumer, and we skated by a recession in 2023. As I write these
predictions today, the only storm clouds I see on our horizon, are global
uncertainty in the Middle East. Specifically, will the Red Sea shipping lane
disruption cause inflationary pressures on goods delivered? If this proves to
be the case, the federal reserve may be persuaded to delay cuts in interest
rates, which are predicted for this year. However, I’m reminded of our status
in January 2020. We were rocking along when a microscopic foe sent us to our
spare bedrooms. Therefore, beware of the Black Swan event. What’s
happening now. So far, so good. In fact,
aside from retail sales, our economy seems to be performing fairly well. Unemployment
has crept up slightly, but is still at historic lows. Granted, interest rates
are higher than they were two years ago, but still much lower than we have
experienced in other decades. Will the federal reserve choose to cut interest
rates later this year? Only time will tell, but I believe we may see an
interest rate cut after the election.
Here’s what I had to say
in January 2024. Interest rates. Last year,
for the first time in a couple of decades, you could actually make money on
idle cash. We saw a peak in Treasuries occur last year when the 10 year T-note
eclipsed 5%. The rate this morning is slightly above 3.8%. This is good news
for borrowers, bad news for savers and could cause an uptick in institutional
buying activity. These behemoth money managers are constantly seeking return
and might view commercial real estate as a safe haven to earn some additional
juice. I believe the 10 year notes will level at around 4 to 4.25% percent this
year. What’s happening now. As
of this writing, the ten year T note is hovering around 4.2 to 4.3%. This is
significantly lower than the 5% we saw at the end of 2023. As mentioned,
Treasury interest rates are a great metric for savers but not such a good
metric for those reliant upon borrowing - expanding businesses which need to
lease space, buy a facility or machinery and hire. I still believe we will end
the year with 10 year rates well below 4.5%.
So there you have it., What I said,
what’s happening now, and what I expect for the balance of 2024 I wish you and
yours a very safe and sane Fourth of July. Let’s make the second half of 2024
the best ever!
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Recently, we discussed price
reductions and the factors which cause them. In short, when supply exceeds
demand, a shortage occurs - also called an imbalance. This imbalance is like a
seesaw - it’s hedged toward either side with one side up and the other down. In
our industrial market, the number of occupants needed to fill our vacancies is
surpassed by the addresses available. Ok. One of the ways to absorb the excess
is through price reductions. Today, I’ll take an in depth look at the steps you
can anticipate when lease rates soften as outlined by the stages of an economic
cycle.
The Economic Cycle Stages:
1. Vacancies Narrow: Initially,
as the market tightens, available spaces get leased quickly. Businesses expand,
new companies move in, and the surplus of vacant buildings decreases.
2. Rents Grow: As
vacancies narrow, landlords gain pricing power. Increased demand leads to
higher rents. Businesses are willing to pay more due to the scarcity of
available spaces.
3. Developers Build: Seeing
rising rents and low vacancies, developers enter the market. New projects are
initiated to capitalize on the high demand and favorable leasing conditions.
4. Leasing Activity is
Robust: With new developments and a
thriving economy, leasing activity peaks. Companies scramble to secure space,
often agreeing to higher rates and fewer concessions.
5. Developers Over-Build: Eventually,
enthusiasm leads to overbuilding. Developers, eager to take advantage of the
booming market, construct more spaces than the market can absorb.
6. Vacancies Increase: As
the new spaces come online, the market shifts. The supply of available
buildings starts to outpace demand, leading to increased vacancies.
7. Time on Market Expands: With
more options available, properties take longer to lease. The average time a
building sits on the market extends as businesses take their time to choose the
best deal.
8. Concessions Appear: To
attract tenants, landlords begin offering concessions—such as free rent
periods, tenant improvement allowances, and other incentives. These concessions
aim to make properties more appealing in a competitive market. By
the way, this is where we are.
9. Prices Soften: As
vacancies continue to rise and concessions become standard, lease rates start
to soften. Landlords adjust their pricing expectations to align with the new
market reality.
10. Demand Returns: Over
time, the lower prices and favorable leasing terms attract new tenants.
Businesses take advantage of the softened market to expand or relocate.
11. Vacancies are
Absorbed: As demand picks up, the
surplus of vacant buildings gradually diminishes. The market starts to balance
out, with supply and demand reaching equilibrium.
12. Rents Start to Grow: With
vacancies absorbed and demand steady, rents begin to rise again. The cycle
comes full circle as the market moves back toward a landlord's market, setting
the stage for the next economic cycle.
Conclusion:
Understanding these stages helps
businesses and investors gauge the ever-changing industrial real estate market.
By recognizing where we are in the cycle, you can make informed
decisions—whether it’s the right time to negotiate a lease, start a new development,
or make strategic investments. In today’s market, with lease rates softening,
it’s essential to stay informed and adaptable. The key to success lies in
anticipating the next phase of the cycle and positioning yourself to take full
advantage of the opportunities it presents.
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Last
week, we spent some time discussing the morphing industrial market and its
impact upon pricing. To review, north Orange County - especially in large
logistics boxes - approaching an imbalance weighted upon those who occupy.
Supply exceeds demand. Only time will tell if price drops will spur demand -
also known an elasticity.
With
that backdrop, today I’d like to offer some suggestions if you find your
company heading out to make a deal - either a purchase but especially a
lease.
Know
the market. Let’s
say your requirement is 100 to 150,000 ft.² of logistics space in North Orange
County. You should be keenly aware of everything that currently exists or will
become available during your search time. By this, I mean, what tenants will
vacate spaces that you could backfill. Coupled with an understanding of the
available inventory is knowledge of the transactions that have recently
occurred. By the way, transactions occur as sales, direct leases, subleases,
and renewals. Sales are a matter of public record - their terms are easy to
determine. Direct leases and subleases are more difficult to track because no
deed is recorded. Renewal deals are the most difficult to review as frequently
renewal deals occur between an owner and his occupant. These are typically not
marketed and therefore difficult to gauge. It is imperative that you engage a
commercial real estate professional, who really understands the marketplace in
which your requirement will compete. Another factor with which you should be
aware is the type of owner holding title to the property. An institutional
property owner such as a pension fund advisor or a real estate investment trust
will likely have more guard rails around the terms and conditions under which
they can negotiate. A private owner may be more flexible in agreeing to
favorable terms. Regardless, you must understand the owner’s motivations in
order to secure the best possible sale price or lease rate and terms.
Know
your capabilities. Things
such as how long you will be able to commit to the space, what variances from
the typical amenities will you require, what is the timing of your present
lease expiration, do you own a facility that must be sold prior to transacting,
is there anything unique about your use of the building that might cause a
timing delay, and other questions should be seriously considered with carefully
thought out answers. We recently represented a tenant who was able to sign a 10
year lease, use the improvements in the building largely as they existed and
had a lease that expired with enough time to enable the building to become
market ready. We were an ideal match for the owner. Had any of these components
been lacking, our requirement would not have been as favorable.
Understand
your strong suit.
If your company is ready to move upon closing a sale or signing a lease, and
the building you are pursuing is vacant, you are potentially golden. However,
the converse could be true if you are ready to make a deal yet the building
won’t be available for another nine months. As you can see, something would
have to change with this set of circumstances. Either you would have to delay
possession or the owner would have to figure out a way to make the building
available sooner. Is your company financially strong? In this rapidly changing
market, credit is king. The last thing an owner wants to do these days is sign
a long-term commitment with a financially shaky occupant. Turnover is expensive
and owners want to avoid this at all cost.
Be
aware of your blind spot. If all of the interest in a
particular piece of property were laid side-by-side, how does your interest
compare? By this I mean, do you require bank financing in order to complete the
deal? Is board approval a part of your process? Is there anything particular
about your requirement, which could add time to your ability to say yes? Will a
hefty legal review of all of the documents ensue upon the handshake? How does
the purchasing or leasing entity look financially? Let’s say you want the very
best purchase price available yet are hamstrung because of your need to procure
financing. This adds an uncertainty to the transaction which may cause a seller
to go a different direction. Of course, this assumes there are other potential purchasers.
If your sense is you are his only alternative, you may be able to get a great
price and the timeframe needed to close the deal. Certainty of clothes these
days is more important than the very highest price. Consequently, structure
your deal accordingly.
Don’t
get greedy. The
biggest mistake I see occupants make in this rapidly changing market, is trying
to take advantage of an owner. Owners of commercial real estate are generally
sophisticated entities with tons of market expertise. It’s safe to assume
they’re acutely aware of their situation. If you are trying to extract the best
sales price, lead with data. By understanding the owners exit strategy - lease
up and sell or hold long-term, you can chart the course to completion. Using
the lease up and hold exit, an owner will have to procure a tenant for his
building before selling it to an investor. Therefore, understanding the rental
market - rate, concessions and terms - you have a starting point. Once a tenant
is in place, what is the market capitalization rate for this income. Assume
$21.60 NNN annually and a 6% cap. The resulting price per square foot value
would be $360 ($21.60 / .06). But the tenant is not there yet. So, it would be
reasonable to expect some origination costs should be subtracted. After all, to
procure the tenant will require some free rent, potential modifications to the
building such as lighting or dock levelers, and brokerage fees. To compute this
cost requires assumptions. Overestimate and the greed enters the picture.
Thus,
negotiating the best deal in today’s industrial real estate market requires
thorough market knowledge, a clear understanding of your capabilities, and
strategic negotiation. By focusing on data-driven decisions and avoiding greed,
you can secure favorable terms in a challenging market.
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Our industrial market in Southern
California is rapidly morphing into a buyer’s/tenant’s market. By that I mean, a
supply of available buildings which exceeds demand and a softening of prices.
We’re seeing this especially in the large logistics spaces constructed in the
last building craze. At their peak, rents topped $2.10 per square foot triple
net for these concrete caverns. On a 100,000 sf building, that’s $210,000 per
month plus an additional $40,000 for operating expenses. In context, these
rents for a seemingly lower and lesser use - industrial - than an office
building eclipsed the price paid for a suite of office space.
Prior to June 2022, these boxes were
devoured by hungry occupants before construction was completed. Now they sit.
In some cases for months. Those deals that have transacted are much less than
the halcyon days of two years ago. Now a credit worthy tenant can expect to pay
$1.75-$1.85 triple net for the same address which commanded 17% higher numbers
not that long ago.
What about the sale market? In north
Orange County - Anaheim, Placentia, Brea, Orange, Yourba Linda, Fullerton and
la Habra - we’ve also seen softening. However, not to the extent rents have
decreased. The inland areas tell a different story.
Factors Contributing to
the Shift:
1. Increased Supply: The
recent building boom has resulted in an oversupply of large logistics spaces.
These buildings, once in high demand, are now struggling to find tenants. This
surplus is driving down rental rates as owners compete for a shrinking pool of
occupants.
2. Economic Uncertainty: Economic
factors, including inflation and rising operational costs, have made businesses
more cautious about expanding their industrial footprints. Companies are
re-evaluating their space needs and, in many cases, opting for smaller or more
flexible leasing arrangements.
3. Changes in Consumer
Behavior: The rapid shift towards
e-commerce during the pandemic has now stabilized. As consumer behavior
normalizes, the frantic demand for massive warehouse spaces to accommodate
inventory surges has waned.
4. Financing Challenges: Higher
interest rates and tighter lending conditions have made financing new
acquisitions and developments more challenging. This has tempered the pace of
new investments and developments in the industrial sector.
Opportunities for Tenants
and Buyers:
1. Bargaining Power: With
a glut of available spaces, tenants have greater bargaining power. They can
negotiate more favorable lease terms, including lower rents, longer rent-free
periods, and tenant improvement allowances.
2. Strategic Acquisitions: For
buyers, especially those with readily available capital, this market presents
opportunities to acquire properties at more reasonable prices. Investors can
capitalize on distressed assets or properties that have been sitting vacant.
3. Long-Term Planning: Businesses
can take advantage of the current market conditions to secure space for future
growth at attractive rates. Locking in long-term leases now can provide
stability and cost savings in the years to come.
Challenges Ahead:
1. Vacancy Rates: High
vacancy rates can strain property owners who rely on rental income to meet
their financial obligations. This could lead to increased property turnover and
potential distress sales.
2. Maintenance Costs: Maintaining
large, vacant industrial properties can be costly. Owners must continue to
invest in upkeep to attract potential tenants, even as rental income declines.
3. Market Uncertainty: Continued
economic uncertainty and potential regulatory changes could further impact the
industrial real estate market. Stakeholders need to stay informed and adaptable
to navigate these challenges.
Conclusion:
The Southern California industrial
real estate market is undergoing a significant transition into a
buyer’s/tenant’s market. While this shift presents challenges for property
owners, it also offers opportunities for tenants and buyers to secure favorable
terms and strategic investments. By understanding the factors driving this
change and staying adaptable, stakeholders can navigate the evolving landscape
and capitalize on new opportunities.
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.
Our travels took us to the upper
Midwest to witness the nuptials of our dear friend’s daughter. We found
ourselves in the land of Lincoln - Illinois and Wisconsin.
You may be wondering what a trip
to the Midwest has to do with Southern California commercial real estate.
Please indulge me as I recap a few lessons learned.
One of the most striking aspects
of our visit was the strong sense of community and local support in the
Midwest. Small towns thrive on mutual support and engagement, from local
businesses to community events. In Southern California, fostering a similar sense
of community within commercial developments can lead to more vibrant projects.
Investing in local events, supporting small businesses, and creating spaces
where people can connect can enhance the value and appeal of commercial real
estate.
The Midwest is known for its
unpredictable weather and the resilience of its people. This adaptability is a
valuable lesson for commercial real estate in Southern California. As we face
challenges such as economic fluctuations, environmental concerns, and changing
market demands, the ability to adapt and remain resilient is crucial.
Incorporating flexible design elements and sustainable practices into
commercial projects can help buildings withstand various challenges and remain
valuable assets over time.
Illinois and Wisconsin boast a
rich heritage, with a blend of historical landmarks and modern innovations.
Similarly, in Southern California, balancing preservation with progress is key.
Renovating historical buildings to meet modern standards or integrating
innovative technologies into new developments can create unique and appealing
commercial spaces. Embracing both heritage and innovation can attract diverse
tenants and visitors.
During our travels, we noticed
the importance of efficient transportation and accessibility. Whether it was
the well-connected highways or the ease of navigating small towns, getting
around was convenient. In Southern California, prioritizing transportation
infrastructure and accessibility within commercial developments can
significantly impact their success. Ensuring easy access for customers,
employees, and goods can enhance the overall functionality and attractiveness
of a property.
Lastly, our trip was a reminder
of the power of personal connections. The warmth and hospitality we experienced
highlighted the importance of building strong relationships, whether in
business or personal life. In commercial real estate, nurturing relationships
with clients, partners, and the community can lead to long-term success.
Personal connections often translate to trust, loyalty, and opportunities for
growth.
Allen C. Buchanan, SIOR, is a principal with Lee &
Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His
website is allencbuchanan.blogspot.com.