Los Angeles Industrial Market Report
Industrial Sector Poised for Strong Performance Following Rebound in Absorption
Leasing activity exceeds pre-pandemic totals. Supply chain upgrades and e-commerce growth over the past year fueled a level of industrial demand that enabled Los Angeles to maintain its title of nation’s least vacant market. As the health crisis extended, leasing velocity strengthened, with industrial users committing to occupy an additional 3.7 million square feet during the first three months of 2021, the top quarter for absorption in six years. Recent demand has been greatest in Lower San Gabriel Valley, Commerce Area-Vernon and Mid-Cities, where vacancies are sub-3 percent. While most of the leases executed during the first quarter were for 10,000- to 50,000-square-foot spaces, a collection of sizable agreements were also inked by logistics firms and online retailers. Preliminary data for the second quarter indicates a robust level of demand will continue in the near term, supporting significant net absorption.