Q1 2023 Industrial Market Outlook – Los Angeles
The impact of demand caused by the pandemic and supply chain challenges is now in the rearview mirror, and it has resulted in an increase in available sublease space in L.A. County’s industrial market. The region has witnessed a decline in the heightened demand for warehouse and distribution space that once existed.
Trends to Watch
As demand slowed down, companies that expanded their warehouse/distribution space during the pandemic to keep up with the pandemic-fueled e-commerce boom have started to reduce excess space. The slowdown in demand is evident from the amount of industrial space placed on the market as available for sublease, which far exceeded the amount subleased in Q1.