Los Angeles Industrial Market Report

Deliveries sparse in most areas. Since early 2014, vacancy in Los Angeles County has held below 4 percent, reflecting a consistent level of demand for available space in one of the nation’s premier industrial markets. An extended stretch of tight conditions warrants supply additions; however, land constraints in most submarkets have prevented a significant amount of supply from being delivered. Metro inventory has expanded by just 5 percent over the past nine years. Of late, completions have been concentrated in South Bay and the San Gabriel Valley. This trend continues over the near-term, with the two areas accounting for 70 percent of this year’s delivery volume. Fortunately, the largest project in the San Gabriel Valley, a 1-million-square-foot distribution center, has been leased by the logistics firm Ryder. Leasing data from the first half of 2023 also reflects steady tenant demand for spaces larger than 100,000 square feet, a welcome sign for speculative projects in these zones.