Los Angeles County Industrial Rent & Vacancy Trends: 2000-2018

The Los Angeles County industrial market remained one of the tightest in the nation in 2018. The vacancy rate ended the year at 2.3%, down 20 basis points from 3Q 2018 and up 40 basis points over 2017. Space is incredibly limited, even with nearly six million square feet of completed construction in 2018. Though the vacancy rate ticked up, demand continues to outpace supply. This caused asking rents to rise to the highest level on record. The industrial market in Los Angeles has continued to grow and far exceed rates achieved at the peak of the prior cycle. At the end of the year, the average asking rent hit $0.88/SF, up 3.5% over the prior quarter and up 7.3% from last year. The asking rent is 37.5% higher than the prior peak reached in 2007. Expect Los Angeles to sustain this high demand as we enter 2019.