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Los Angeles Industrial Market Outlook 1Q 2018

05/01/2018
Published By: NAI Capital Research

MARKET OVERVIEW
Availability and new deliveries of Los Angeles industrial product cannot
keep up with the market’s insatiable demand. Los Angeles’ industrial
market began 2018 by continuing the trend of low vacancy and rising rental
rates. At the end of 1Q 2018 vacancy was just 2.2% while the average
asking rent reached an unprecedented $0.82/SF. A strong economy drove
demand for industrial space as demonstrated by increased cargo volume
from the ports of Los Angeles and Long Beach, which handle roughly
32% of the nation’s cargo imports. In January and February 2018, more
than 2.8 million TEUs filtered through the two ports. The first two months
of the year saw no slowdown in port activity, which is significant as cargo
volume typically declines due to the Lunar New Year when many Chinese
businesses and factories shut down for the extended holiday. Instead,
combined cargo volume from both ports jumped 12.7% over the year
and imports were up 14.6%. Consumer demand for imported goods is
supporting cargo volume increases and will continue driving demand for
industrial space in Los Angeles.

Release Date05/01/2018 - 12:02

Source

NAI Capital

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