The L.A. Industrial Market Has Exploded Since 2010

The Port of Long Beach

Today, Los Angeles is known as one of the tightest and most popular industrial markets in the country. However, the market as we know it today has largely emerged in the last decade, since 2010. According to a new research snapshot from JLL shows the differences in the market between 2010 and 2019. In 2010, the Los Angeles industrial market had a 7% vacancy rate, compared to 2% today. Rents have increased 67%, while sales prices have increased more than 200%.

“The tremendous growth of e-commerce has been a major driver of industrial markets everywhere this decade,” Paul Sablock, managing director at JLL, tells GlobeSt.com. “In Southern California, you’ve got a population of over 21 million people, second only to the New York tri state region. This is a tremendous consumer base, and as buying preferences have continued to shift further to the online realm, retailers have shifted distribution strategies to meet demand. This means more reliance on distribution space rather than brick and mortar retail space.”