Amazon Signs More Leases, Brightline Gets Investment Grade Rating (Barely), and Menifee Gets Giant Battery Storage Project
Market News
Amazon Signs Leases for over 2 Million Sq. Ft of Space in Top U.S. Industrial Market
- Amazon signs two new leases in Southern California's Inland Empire, totaling more than 2 million sq. ft.
- One lease is for a recently completed building near three other large-scale Amazon distribution and fulfillment centers, while the other is in a new industrial complex with five buildings and 4.4 million sq. ft. of rentable space.
Brightline Achieves Investment-Grade Rating for Proposed Bonds (Barely… BBB- Rating from S&P)
- Brightline, the first private US passenger railroad in over a century, has obtained an investment-grade rating for its proposed senior municipal bonds, highlighting the viability of private investment in public infrastructure.
- This achievement paves the way for the development of the anticipated high-speed rail station in Apple Valley California, expected to commence construction in 2025 and bring economic benefits to the areas it touches.
Related:
Brightline West Continues Field Investigation for High-Speed Rail System (Source)
Brightline West Project Aims to Connect LA and Las Vegas, Reduce Traffic and Impact (Source)
Atlas Technical Consultants chosen to manage geotechnical engineering and design for Brightline West high-speed rail system (Source)
Softening Market in Inland Empire Leads to Surge in Large Leasing Deals
- Vacancy rate in Inland Empire reaches 5.9% in first quarter, seventh consecutive quarter of increased vacancy
- Surge in large leasing deals result from softening market in Southern California's Inland Empire
Brookfield Residential Nears Largest-Ever Land Deal in Orange County
- Brookfield Residential is set to buy a 75-acre parcel of land in North Irvine for over $600m, which will be one of the largest residential land sales seen in Orange County in years.
- The Canadian homebuilder is partnering with the city of Irvine for the Gateway Village development, which will be one of the larger housing Irvine projects not overseen by either of the city's two big master-planned developers, the Irvine Co. or Five Point Holdings LLC.
Southern California's Spring Home Buying Season Struggles with High Prices and Low Listings
- Busy open houses and bidding wars signal the start of the spring home buying season
- However, high mortgage rates and a lack of listings continue to limit home sales despite rising prices, with the February median price hitting $740,000, tied for the third-highest on record.
Related:
KB Home Opens Palmetto Community in Moreno Valley, California (Source)
California Snowpack Measurement Predicts Above-Average Year for Water Supply
- Gov. Gavin Newsom and state officials conduct last snowpack measurement of season, expect above-average year for second year in a row
- Essential snowpack supplies water to 27 million people and 750,000 acres of farmland via State Water Project; 11 of California's 12 major reservoirs storing more than 100% of average.
Rent Differences Between California Cities are Shrinking
- Study from Los Angeles Daily News shows the rent difference between high-cost and low-cost cities in California has shrunk 22% since 2017
- Rents in California's most expensive cities only grew 11% since 2017 while more affordable cities saw a 35% surge in rents
Calpines Nova Power Bank to store more electricity than all but one battery plant currently operating in the US (Source)
- Battery power land deals seem to have no end in sight.
The Pros and Cons of L.A.'s Mansion Tax: One Year Later
- L.A.'s transfer tax has raised $215 million in its first year, funding affordable housing and homelessness initiatives
- The tax, which charges a 4% or 5.5% fee on property sales above $5 or $10 million, has polarized the real estate industry