Bakersfield Industrial Land Market, 2013

Wayne Kress HeadshotPosted on February 11, 2014 by 

Last Tuesday, I summarized the Bakersfield industrial building market over the last three years (Bakersfield’s Industrial Building Market, 2013). Today, I summarize our industrial land market.

First, this distinction between “Finished Land” and “Raw Land”: Finished Land is land that has been parcelized into useable lots, with streets, curbs, gutters, and sometimes sidewalks in place, and with utility stubs to the parcel line. Utility stubs mean stubs for the wet utilities (water, sewer), natural gas, and conduit for the dry utilities (electric, telephone). These dry conduits are not filled with live wires until plans for a building are approved. Why? Because the actual load needed is not known until application for service has been made and approved. Raw Land is land absent all fully-built streets, curbs, gutters, sidewalks, and utility stubs.

Finished Land

Here’s the report on finished industrial lots that has sold over the last three years:

2011   2012   2013
Total Acres Sold 91.4 ac 78.1 ac 61.6
Number of Sales 14 22 19
Average Lot Size 8.7 ac 3.7 ac 3.2 ac
Average Price per SF $2.45/sf $2.51/sf $3.43/sf

The peak boom period for finished land sales was 2007-2008, when 38 sales occurred each year. Sales fell to just 6 in 2009, the trough of the recession.  Demand began increasing in 2010, but the pricing had to fall significantly to achieve it.  Average price peaked in 2007 at $5.49/sf.  It troughed in 2011 at $2.45/sf—a 55% decline.  It increased slightly in 2012 and significantly in 2013.  Average pricing rose 37% in 2013—peaking at $6.00/sf in the highest demand submarket—although it is still only 63% of the last boom market peak.

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