Los Angeles Industrial Market Report
Los Angeles Poised to Reclaim Title of Nation’s Tightest Industrial Market
Six-month absorption total strongest since 2000. Last-mile expansions and additional storage requirements brought on by an extended surge of import activity are supporting historically strong industrial demand in Los Angeles County. During the first half of 2021, tenants absorbed 9.8 million square feet of space, slashing vacancy 110 basis points. Heightened demand was widespread as more than 1.2 million square feet was absorbed in each of the metro’s five largest submarkets: South Bay, Commerce Area-Vernon, Mid-Cities, Lower San Gabriel Valley and San Fernando Valley. The significant level of demand that exists in these submarkets is further underlined by their combined vacancy rate of 1.8 percent. With development constrained in these areas due to a lack of developable land, near-term headwinds do not appear to exist.