2nd Quarter 2016 LA Industrial CRE


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2nd Quarter 2016 LA Industrial CRE


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2nd Quarter 2016: Greater Los Angeles Industrial Real Estate News Trends Figures for Q2 2016 for the Los Angeles industrial real estate market have been released. Current real estate trends for this area show almost a zero vacancy rate for the greater Los Angeles area. Vacancy rates registered in at 2.1 percent. This is 10 points lower than the first quarter of 2016 and registers at a zero rate for available properties. At the same time rents continued to increase in these areas with an average increase of over 12 percent from the previous year. The San Gabriel Valley area saw an increase of 19 percent just in the second quarter of 2016. The current real estate trends in the greater Los Angeles area are pointing to a continued strain on available properties. Industrial real estate projects in Santa Clarita and South Bay are hoping to alleviate some of the strain for industrial real estate but demand remains so high that these projects are sure to fill quickly once completed. Industrial Warehouse Leasing Sales Figures Over nine million square feet of industrial real estate space was sold during the first half of 2016. This represents a decrease of 6.6 percent over the same period of the previous year. It is believed that this trend will continue as more investors opt to keep their commercial real estate space in this area because of the high demand by businesses. Leasing figures for this area decreased by over 46 percent during the first half of 2016. This current real estate trend is also anticipated to continue for industrial real estate space in the greater Los Angeles area. Businesses that are securing spaces are signing leases that equal to 10 or more years leaving turn over times very slow for the market. As the current real estate trends continue to decrease in this area more businesses are opting for space in the Inland Empire region of California. This area offers newer warehouse space that has easy access to the ports and railroad and is just located outside of the main Los Angeles area. Industrial real estate in this area is booming and many larger businesses are moving their warehouses to this area for this reason alone. Industrial Real Estate Outlook The overall outlook for industrial real estate points to the Inland Empire area. Businesses will find access to larger buildings that can accommodate their g

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http://leechanggroup.com/industrial-real-estate-news-los- angeles/1476043611929-45fd0571-d6bd

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