Los Angeles Industrial Market Report

Conditions compress in historically tight market. Industrial availability fell below 1.5 percent in each of Los Angeles County's five largest submarkets over the past year ended in March. This downward movement reduced overall vacancy to a record low, as together the quintet of locales account for more than three-fourths of the metro's total stock. An extended period of elevated import volumes at the ports of Los Angeles and Long Beach is bolstering industrial users' storage requirements. Twenty-foot equivalent units (TEUs) totals from April and May suggest this trend will continue over the near term, a boon for any available space proximate to the ports or major freeways. Furthermore, some suppliers and omnichannel retailers are increasing their safety stocks as a hedge against future supply chain disruptions, further heightening demand for local warehouse and distribution space.