Overall
Southern California’s Industrial sector has been one of the top industrial submarkets for commercial assets. Momentum of the industrial market is due to the increased demand in e-commerce, manufacturing and warehousing to store inventory. As we have seen many changes in various industries due to COVID-19, the industrial sector has continued to retain high occupancy and demand during these unprecedented times.
Investors
Investors have continued to take an interest in the Los Angeles Industrial Market despite the unprecedented economic situation. Due to the historically low interest rates and lack of inventory investors remain optimistic. Of all real estate sectors industrial remains the preferred product type of investors.
Lease Transactions
Lessees have anticipated that lease rates would be adjusted downward. At this time, we have not seen a rate adjustment. We have witnessed that ownership has offered some greater concessions such as free rent to assist
a Lessee with the transition from one facility to the next. Vacancy rates in Los Angeles are still in the range of 3% which is the lowest of major U.S. industrial market.
