Surprising uptick for leases as Chinese companies snap up industrial properties

Occasionally, it’s good to clear your inbox. Mine is particularly full as I’ve been out of state since mid-August.

What follows are some random thoughts that are swirling around my consciousness. As someone famous once opined — they’re only opinions, but they’re all mine. So, here it goes.

Traveling through the Northeast was inspirational! Our destinations included several cities in six states: Providence, Rhode Island; Boston, Portsmouth, New Hampshire; Bangor, Maine; New York City and New Haven, Connecticut.

The contrast between these historic cities and the rapidly evolving commercial real estate landscape back home is striking. In many ways, the old-world charm of the Northeast reminds me of the long-term value that well-located, enduring properties can offer.

While shiny new developments and the latest logistics hubs dominate the conversation, there’s something to be said for the stability and reliability of properties that have stood the test of time.

Back in Southern California, the commercial real estate scene continues to shift.

One of the more surprising developments this summer has been the unexpected uptick in leasing activity, particularly in the logistics sector. Chinese companies, spurred by the Trump-era tariffs and ongoing global supply chain disruptions, are snapping up warehouse space to better manage their inventories. It’s a trend that caught many off guard, especially considering we’re typically in the slower, vacation-heavy months of the year.

But this isn’t just a story of international companies adapting to geopolitical realities. It’s also a reminder that in commercial real estate, timing and market dynamics are everything.

When supply exceeds demand, as we’ve been seeing with the glut of Class A logistics inventory above 100,000 square feet, price reductions inevitably follow. Yet, just as prices begin to soften, we’re witnessing renewed interest and activity. It’s almost as if the market itself is a living, breathing entity, responding to every nudge and shift in the global landscape.

Reflecting on these developments, I’m reminded that the commercial real estate market, much like the cities I visited, is a blend of the old and the new, the predictable and the unexpected. While it’s easy to get caught up in the latest trends or geopolitical shifts, there’s value in stepping back and considering the broader picture.

Perhaps that’s why I find travel so enriching. It offers a fresh perspective, a reminder that while the landscape may change, certain fundamentals—like the importance of location, timing, and adaptability—remain constant. So, as I clear my inbox and return to the day-to-day, I’ll keep these random thoughts in mind. They may be just that—random—but in the ever-evolving world of commercial real estate, they offer a lens through which to view the bigger picture.

And with that, it’s back to business as usual. Until the next trip, or the next unexpected shift in the market, these thoughts will keep swirling, reminding me that in real estate, as in life, it’s all about how you navigate the changes.

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.