We’re doing something new in the second half of 2026! Starting in May of this year, we started sending out letters celebrating the anniversary of your building purchase, our team at Johnston Pacific Commercial Real Estate prepares something that often generates surprised phone calls.

Not because there’s a problem.

Because many owners have no idea how much their property has increased in value.

If you’ve recently received one of our Property Value Growth reports, you know exactly what we’re talking about. The report compares what you paid for your building to its estimated value in today’s market and illustrates the growth your investment has experienced since purchase.

Some owners see a modest increase.

Others discover they’ve accumulated hundreds of thousands, or even millions, of dollars in additional equity.

And almost all of them ask the same question:

“Is my building really worth that much?”

Commercial Real Estate Is Often the Largest Asset You Own

Many business owners closely monitor their bank accounts, retirement plans, investment portfolios, and operating expenses.

Yet surprisingly few track the value of the building they own.

That can be a costly oversight.

For many owner-users and investors, commercial real estate represents one of the largest assets on their balance sheet. Unlike stocks, however, there isn’t a ticker symbol flashing across a screen every day telling you what your property is worth.

As a result, years can pass without an owner having a clear understanding of how their investment has performed.

That’s exactly why we created our annual Property Value Growth reports.

The Results Often Surprise Owners

We’ve seen countless examples throughout South Orange County where property values have significantly outperformed owners’ expectations.

A building purchased five years ago may have appreciated by 40%, 60%, or even more depending on location, property type, and market conditions.

In some cases, owners who purchased industrial properties only a few years ago are sitting on substantial equity gains that they never anticipated.

Many are shocked to learn that the wealth created by their building has exceeded the returns generated by other investments they actively monitor every month.

The reality is that commercial real estate has quietly created significant wealth for many South Orange County property owners over the past decade.

Why Have Values Increased?

Several factors continue to support property values throughout the region.

Limited Supply

One of the biggest drivers of appreciation is simple economics.

There are only so many industrial and commercial buildings available, particularly in South Orange County. With limited land available for new development, existing properties continue to benefit from constrained supply.

Strong Business Demand

Companies still need space to operate, manufacture, distribute products, and serve customers.

Well-located commercial properties remain highly desirable, creating competition among both users and investors.

Rising Construction Costs

The cost of building new commercial buildings continues to rise.

Land acquisition, labor, materials, permitting, and development fees have all increased substantially over the past several years. As replacement costs rise, existing buildings often become more valuable.

Increasing Rental Rates

Strong rental growth has also contributed to higher values.

Whether an owner occupies the building themselves or leases it to tenants, rising rental rates help support higher valuations throughout the market.

Why Knowing Your Value Matters

Many property owners assume valuation only matters when they decide to sell.

In reality, understanding your property’s current value can help guide numerous business decisions.

It may influence:

• Refinancing opportunities
• Estate planning strategies
• Partnership decisions
• Future acquisitions
• 1031 exchange planning
• Expansion plans
• Retirement planning

Even if you have no intention of selling, understanding the current value of your real estate helps you make better long-term decisions.

The Cost of Not Knowing

One of the biggest mistakes we see is owners operating on outdated information.

An owner who believes their property is worth what it was worth five years ago may miss opportunities to leverage equity, refinance advantageously, acquire additional assets, or reposition their investment strategy.

Commercial real estate markets change.

Values change.

Opportunities change.

The owners who stay informed are generally the ones who make the best decisions.

More Than Just a Number

Our Property Value Growth reports aren’t intended to encourage owners to sell.

In fact, many recipients have no intention of selling at all.

The purpose is to provide insight.

When you understand what your building is worth today, you gain a clearer picture of your financial position and the opportunities available to you moving forward.

After all, you wouldn’t ignore the value of your stock portfolio for five years.

Why ignore the value of one of your largest assets?

Our Commitment to Property Owners

For more than 35 years, Johnston Pacific Commercial Real Estate has helped South Orange County property owners maximize the value of their investments.

The annual Property Value Growth report is simply one way we help our clients stay informed about their assets and the market around them.

If you haven’t received a recent valuation update, or if you’re curious about how your property’s value has changed since you purchased it, we’d be happy to prepare a confidential analysis.

You may be surprised by what your building is worth today.

And that’s a phone call we always enjoy making.

Don’t hesitate to reach out, 949-366-2020

One of the most impactful changes is the new ability to “couple” SBA 7(a) and SBA 504 financing together.

As of May 2026, the SBA has officially increased the combined SBA 7(a) and SBA 504 lending limit to $10 million, effectively doubling previous cumulative borrowing capacity. According to the latest lending update, the current SBA 504 rate is approximately 5.95%, while the 10-Year Treasury Constant Maturity Rate is 4.59%.

Here’s why that matters:

Previously, many borrowers would max out their SBA eligibility after a single large transaction.

Under the new structure, qualified borrowers may now access:
• Up to $5 million through the SBA 7(a) program
• PLUS up to $5 million through the SBA 504 program
• For a combined total of $10 million in SBA-backed financing

The SBA is also decoupling certain 7(a) balances from the 504 program, allowing businesses to leverage both loan products more strategically for expansion, equipment purchases, real estate acquisitions and working capital.

This creates substantial new opportunities for:
Manufacturers
Medical & life science companies
Aerospace & defense contractors
Logistics and distribution companies
Multi-location operators
Commercial real estate investors

For growing businesses, this may now make purchasing a facility far more achievable than many previously believed possible.

For commercial property owners, this potentially expands the buyer pool significantly,  especially for owner-user industrial and office properties.

At Johnston Pacific Commercial Real Estate, we are already seeing increased activity from companies evaluating expansion plans, acquisitions and long-term ownership opportunities throughout South Orange County’s industrial market.

With inventory remaining tight and financing capacity increasing, we believe this could become a major catalyst for owner-user demand in the months ahead.

If you would like to discuss:
• Owner-user acquisition opportunities
• Current market values
• Off-market industrial properties
• Expansion strategies
• Sale-leaseback structures
• Investment acquisitions

Access to capital creates opportunity, and this latest SBA change could be one of the most impactful financing shifts commercial real estate has seen in years.

Johnston Pacific Commercial Real Estate, Inc.
Experts at finding your perfect commercial property investment.

Below is a practical guide to upgrading your industrial commercial property while it is between tenants, with a focus on improvements that deliver the highest return and shorten downtime.

Start With the Basics: Fix What Can Kill a Deal

Before discussing enhancements, it is critical to address deferred maintenance. Sophisticated tenants will walk away quickly if they see unresolved issues that signal risk or future expense.

Common high-priority items include:

• Roof leaks or ponding areas
• Failing HVAC units or inadequate ventilation
• Electrical panels that are outdated or undersized
• Plumbing leaks or poor restroom conditions
• Exterior concrete cracks or drainage issues

Leaks, in particular, should never be ignored. Water intrusion damages inventory, equipment, and tenant confidence. A clean roof inspection report or recent repairs can remove a major objection during tours and speed up lease negotiations.

Addressing these fundamentals first creates a stable foundation for higher-impact upgrades.

Upgrade to LED Lighting: One of the Highest ROI Improvements

LED lighting has become an expectation rather than a luxury in modern industrial facilities. Upgrading outdated fluorescent or metal halide fixtures deliver immediate benefits.

Advantages of LED lighting include:

• Lower energy consumption and utility costs
• Brighter, more uniform lighting in warehouse areas
• Reduced maintenance due to longer fixture life
• Improved safety and productivity for employees

For owners, LED upgrades are attractive because they are relatively inexpensive compared to structural improvements and are easy to highlight in marketing materials. Many tenants now ask about lighting efficiency early in the tour process, especially those operating multiple shifts or energy-intensive operations.

If budget allows, consider motion sensors or daylight harvesting in warehouse and exterior areas to further enhance efficiency.

Flooring Improvements: Polish, Seal, or Replace

Flooring is one of the most overlooked yet impactful elements of an industrial property. Between tenants is the ideal time to address it without disrupting operations.

Depending on the condition and use case, options include:

• Polishing existing concrete to improve appearance and durability
• Sealing floors to reduce dust and staining
• Repairing cracks, spalling, or uneven surfaces
• Installing specialized coatings for heavy manufacturing or automotive uses

Clean, smooth floors make a strong first impression during tours and reduce objections from tenants concerned about equipment placement or forklift operations. In automotive or high-traffic environments, upgraded flooring can be a deciding factor.

EV Charging Stations: Future-Proofing Your Asset

Electric vehicle adoption continues to accelerate, and industrial tenants are beginning to factor EV infrastructure into site selection. While not every tenant requires EV charging today, installing charging stations can future-proof your property and differentiate it from competing buildings.

Benefits include:

• Appealing to fleet-based tenants transitioning to electric vehicles
• Supporting employee EV charging, a growing workplace expectation
• Enhancing ESG credentials for institutional or corporate tenants

Even installing conduit and electrical capacity for future chargers can be a smart compromise if full installation is not feasible immediately. This signals foresight and flexibility to prospective tenants.

Improve Electrical Capacity and Power Distribution

Power requirements are increasing across many industrial uses, from advanced manufacturing to automotive and cold storage. Insufficient electrical capacity is one of the fastest ways to lose a qualified tenant.

Between tenants, consider:

• Upgrading electrical panels or transformers
• Adding additional outlets or drops in warehouse areas
• Improving power distribution for flexibility in tenant layouts

These improvements are easier and less costly to complete when the building is vacant and can significantly expand the pool of viable tenants.

Refresh Office and Common Areas

While warehouse functionality drives most industrial leasing decisions, office areas still matter. A dated or worn office space can create friction, especially for owner-users or customer-facing businesses.

Cost-effective office upgrades include:

• Fresh paint with neutral, modern colors
• New flooring or carpet tiles
• Updated lighting and ceiling tiles
• Refreshed restrooms and break areas

These upgrades help to position the building as move-in ready and reduce tenant improvement negotiations.

Exterior and Curb Appeal Still Count

First impressions begin in the parking lot. Simple exterior upgrades can dramatically improve how a property shows.

Focus areas include:

• Power washing exterior walls and walkways
• Restriping parking and loading areas
• Updating landscaping with low-maintenance plants
• Repairing or repainting roll-up doors and entry doors

A clean, well-maintained exterior signals professionalism and pride of ownership, setting the tone before a prospect ever steps inside.

Think Strategically About Return on Investment

Not every upgrade makes sense for every property. The key is to align improvements with the most likely tenant profile and the realities of your submarket. In tight industrial markets, strategic upgrades can justify higher asking rents and shorten vacancy periods. In softer conditions they can be the difference between leasing quickly or sitting idle.

Working with a broker who understands tenant demand, pricing thresholds, and competitive inventory can help prioritize where capital will have the greatest impact.

Final Thoughts

The time between tenants is not dead time. It is an opportunity to reposition your industrial asset, reduce future headaches, and attract strong, longer-term occupants. By addressing maintenance issues, upgrading lighting and flooring, planning for EV infrastructure, and enhancing overall functionality, owners can turn vacancy into a value-creating phase.

For industrial property owners in Orange County, thoughtful upgrades completed at the right time often deliver returns well beyond their initial cost.

If you are evaluating whether to lease, sell, or reposition your industrial property, Johnston Pacific Commercial Real Estate brings more than 35 years of experience in the South Orange County industrial market. Our team can help you determine which upgrades make sense, how they impact value, and how to position your property for maximum exposure and results.

We increased our clients cash flow by $42m in 2025. This is one of the ways Johnston Pacific did it.

Client: Industrial Building Owner

Brokerage: Johnston Pacific Commercial Real Estate, Inc

Property: 5,406 sq ft. industrial building at 230 Calle Pintoresco, San Clemente, CA

Transaction: 5-Year Industrial Lease

Property Overview

230 Calle Pintoresco is an industrial property located in the Rancho San Clemente Business Park. While well maintained, the building faced a major challenge in today’s industrial leasing market: nearly 60% of the space was configured as office, making it unattractive to most warehouse, manufacturing, and distribution users.

In a market where tenants prioritize functionality, clear space, and efficient layouts, the property’s heavy office build-out significantly limited demand.

The Challenge

Despite being in a desirable location, the building struggled to gain traction because its layout did not match what modern industrial tenants were seeking.

Key obstacles included:

• Excessive office space relative to warehouse area
• A mezzanine structure that restricted usability and flexibility
• Limited appeal to core industrial users
• Reduced competitiveness compared to nearby properties

Many owners in this situation attempt to lease “as-is,” resulting in extended vacancy, downward pressure on rent, and missed opportunities.

Johnston Pacific’s Strategic Guidance

Rather than simply marketing the space, Johnston Pacific took a consultative, data-driven approach.

After analyzing tenant demand and market trends, our team identified that the property’s layout, not its location or condition, was the primary barrier to leasing.

We advised the owner to:

• Dismantle the mezzanine structure
• Reduce the oversized office footprint
• Rebalancing the space toward warehouse and production use
• Reposition the property to align with active tenant requirements

This recommendation required upfront investment. However, it was based on our deep knowledge of the South Orange County industrial market and our experience with what truly drives leasing velocity.

The owner trusted our expertise and executed the recommended improvements.

Execution & Repositioning

Once the mezzanine was removed and the space was reconfigured:

• The property became more versatile
• Prospective tenants could envision immediate occupancy
• The building compared favorably with competing inventory
• Marketing momentum increased significantly

Johnston Pacific then relaunched the property with a refined positioning strategy, targeting qualified industrial users actively seeking functional space.

Results

The impact was immediate and measurable.

• The property was successfully leased on a 5-year term
• Vacancy risk was eliminated
• Long-term income stability was secured
• The owner avoided prolonged downtime and rent concessions
• The building’s market perception shifted from “challenging” to “competitive”

By following Johnston Pacific’s guidance, the owner transformed a difficult-to-lease asset into a stabilized, income-producing investment.

Why Johnston Pacific Delivers Results

This transaction exemplifies what sets Johnston Pacific apart.

We don’t just list properties.
We analyze, advise, and execute strategies that maximize performance.

Our approach includes:

• In-depth market intelligence
• Firsthand knowledge of tenant demand
• Honest, data-backed recommendations
• Proactive asset repositioning
• Full-cycle leasing execution

Building owners who partner with Johnston Pacific benefit from decades of experience and a team that treats every assignment as a long-term relationship, not a one-time transaction.

Conclusion

At 230 Calle Pintoresco, success wasn’t driven by luck or timing. It was the result of expert guidance, informed decision-making, and trust in proven advisors.

By listening to Johnston Pacific’s recommendations and investing strategically, the owner achieved:

• Faster lease-up
• Stronger tenant commitment
• Improved asset performance
• Long-term value protection

This case study demonstrates a simple truth:

When owners follow Johnston Pacific’s advice, they position their assets to outperform the market.

Think of spring cleaning as preventive maintenance with a sense of humor. It’s not just about tidying up; it’s about safety, efficiency, and making sure your building isn’t silently judging you every time you walk through the loading door.

So grab your clipboard (or tablet, we’re modern professionals here), and let’s talk about spring cleaning for industrial properties, without putting anyone to sleep.

Don’t forget to download Johnston Pacific’s handy Vendor guide to get all the help you need for this undertaking. (QR CODE)

Step 1: Declutter Like You Mean It (Yes, That Includes “Someday” Items)

Every industrial building has that corner. You know the one. It’s where obsolete equipment, mystery crates, and broken shelving go to retire. No one remembers who owns it, what it’s for, or why it’s still there, but everyone agrees it might be useful someday.

Spring cleaning is the perfect time to ask the tough questions:

• Has this machine been used in the last five years?
• Does anyone actually know how to operate it?
• Is “vintage” a valid excuse for keeping it?

Clearing out unused inventory and equipment does more than improve appearances, it frees up valuable square footage, improves workflow, and reduces safety hazards. Plus, it makes your building feel bigger without paying for an expansion. That’s what we call industrial magic.

Step 2: Floors, Walls, and Ceilings, Yes, All of Them

Industrial floors are tough, but they’re not invincible. Over time, oil stains, tire marks, and years of “we’ll clean it later” add up. Spring is the time to pressure wash, reseal, and repair cracks before they become trip hazards, or worse, tenant complaints.

Walls and ceilings deserve some love too. Dust buildup, cobwebs, and mysterious stains don’t exactly scream “well-managed property.” A deep clean improves lighting efficiency, air quality, and overall morale. Because let’s face it, people work better when they don’t feel like they’re inside a forgotten storage unit.

Step 3: Loading Docks, The Unsung Heroes of Your Property

Loading docks or doors take a beating year-round. Forklifts, trucks, pallets, and the occasional “oops” moment all leave their mark. Spring cleaning is the ideal time to inspect, roll up doors, dock levelers, bumpers, seals, and lighting.

A clean, well-maintained loading area isn’t just safer, it sends a message. To tenants, vendors, and drivers, it says: This operation is buttoned up. And in industrial real estate, that impression matters more than you think.

Bonus tip: repainting stripes and safety markings is a small investment with big visual impact. It’s like eyeliner for your warehouse, subtle, but effective.

Step 4: HVAC and Ventilation, Out of Sight, Not Out of Mind

If your HVAC system could talk, it would probably ask for a break. Filters clogged with dust, vents working overtime, and systems struggling to keep up are common issues in industrial buildings.

Spring is the perfect time for inspections, filter replacements, and maintenance checks. Clean systems improve air quality, reduce energy costs, and extend equipment life. They also prevent that awkward moment when a tenant asks why their warehouse smells like last summer.

Fresh air isn’t just for office buildings. Your industrial space deserves it too.

Step 5: Electrical Rooms and Panels, No More “Temporary” Storage

Somewhere along the way, electrical rooms tend to become unofficial storage closets. Boxes, tools, spare parts, stacked dangerously close to panels clearly labeled KEEP CLEAR.

Spring cleaning is your reminder that electrical rooms are not storage units. Clearing these areas improves safety, code compliance, and accessibility for maintenance. It also reduces fire risk, which is always a crowd favorite when talking about liability.

Think of it this way: if an electrician can’t access the panel without playing Tetris, it’s time to clean up.

Step 6: Exterior Areas, Because Curb Appeal Isn’t Just for Retail

Industrial properties don’t need fountains or flower arches, but that doesn’t mean exteriors should be ignored. Spring cleaning is a great time to:

• Power wash building facades
• Clear weeds and debris
• Touch up paint
• Repair fencing and gates
• Organize outdoor storage areas

A clean exterior improves first impressions for tenants, investors, and buyers. It also signals pride of ownership, which often translates to higher retention and stronger property value.

Even warehouses like to look sharp.

Step 7: Paperwork Counts as Cleaning Too

Spring cleaning isn’t just physical, it’s operational. Reviewing leases, maintenance records, warranties, and compliance documentation is part of keeping industrial property running smoothly.

Outdated records and expired inspections can create headaches later. A little organizational effort now can save a lot of scrambling down the road. Plus, nothing feels better than a clean file system, except maybe a clean loading dock.

The Bottom Line

Spring cleaning for industrial properties isn’t glamorous, but it’s incredibly effective. It improves safety, efficiency, tenant satisfaction, and long-term value. It also helps uncover issues early, before they become expensive problems with extra zeros attached.

And yes, it may require dumpsters, pressure washers, and a few honest conversations about whether that broken conveyor belt is ever coming back to life. But when the dust settles (literally), you’ll have a cleaner, safer, more functional property that’s ready for the busy seasons ahead.

Because spring cleaning isn’t about perfection, it’s about progress. And your industrial building will thank you for it… silently, of course.

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