SoCal Industrial Market COVID-19 Impact Survey
Looking back, the 10-year trend in Southern California showed solid demand for industrial space – rents rising to record highs and vacancy declining to historically low levels.
The current Q1 2020 data does not reflect the COVID-19 pandemic shutdown and the economic impact on industrial markets.
Asking Rent Trends
The pandemic has impacted the ability of businesses to operate effectively but the full effect has yet to be seen. The logistics sector may be better positioned to survive the disruptions due to ecommerce and logistics support for retailers. Apparel manufacturers have started working on personal protective gear such as face masks and hospital gowns. Food service distributors have seen a drastic slowdown in demand with so many restaurants shutting down.
Vacancy Rate Trends
Looking forward, the industrial markets in Southern California are in uncharted territory. As industrial users close down or severely curtail operations for an indefinite period because of the coronavirus threat, vacancy is expected to rise and rents to be adjusted downward.
Industrial Broker Survey Results
To help our clients get a pulse of where the industrial market could be headed, we conducted a COVID-19 Impact Survey of our industrial market professionals.
Our industrial brokers were asked, “Where do you see the industrial market headed in the next 3 months?”
Below are the key takeaways of our survey for the Southern California Industrial Market.