LA County’s Industrial Market Is No Longer ‘Tight as a Drum!’ as The Industrial Market Loosens Up
J.C. Casillas, Managing Director of Research at NAI Capital Commercial said, “LA County’s Industrial Market is getting to a more sustainable pace.”
The turnaround in LA County’s industrial market continued in 2023 as vacancy shifted from being ‘tight as a drum.’ Completed construction added close to 5.2 million square feet in 2023, marking a 22.8% increase from 2022 and contributing to a 200-bps rise in the vacancy rate year over year, now standing at 4.2%—the highest since Q4 2013. This abundance indicates that companies with warehousing requirements now have a variety of options.
J.C. stated, “It’s hard to say the sky is falling, when the market was extremely tight, that was unhealthy as well. We’re getting to a more sustainable pace,” J.C. declared. “The double-digit rent growth and near-nothing vacancy rates of the past two years were neither healthy nor sustainable.”