Los Angeles Industrial Investment Forecast
Tightest Conditions in the Nation Enhance the Appeal of Local Industrial Listings Over Other Property Types
Dearth of available space persists. Los Angeles County registered a record year for demand in 2021 as a backlog of imports at the metro's two ports and the continual growth of e-commerce enhanced an already strong need for available space. Spanning the 12-month period users absorbed 18.5 million square feet slashing vacancy to a noteworthy 1.5 percent. Ample tenant demand was widespread as the market's five largest submarkets each with over 100 million square feet of inventory noted compression that lowered their respective vacancy rates below 2 percent. Additionally four of these submarkets recorded net absorption of at least 2.7 million square feet. Tight conditions throughout Los Angeles warrant the moderate increase in supply additions that will occur this year; 60 percent of the space slated for delivery however is spread between the San Gabriel Valley and Torrance. The relative lack of completions elsewhere and expectations for elevated cargo volumes this year will preserve robust demand for available space holding vacancy below 2 percent for a second consecutive year.