Industrial Sector Growth Trends for Los Angeles and Orange County

Is the industrial real estate market set to expand in these California locales?

When it comes to the real estate market in California, the industrial sector is one of the top performing segments in the state.  This is especially true in key locations such as the greater Los Angeles area and Orange County.  But, is the growth of this industry expected to continue in 2019?  Here’s what expert commercial realty advisors have to say about industrial growth in these Southern California powerhouses.

  • Los Angeles

Demand for industrial space in the greater Los Angeles area has always been strong due to its high concentration of manufacturing, wholesale, and logistics operations.  However, in the last quarter of 2018, there were small signs of the industrial real estate market slowing slightly.  For instance, vacancy in the Los Angeles region dropped to 2.39%, about 10 basis points down from the previous quarter.

This small blip aside, the market seems steady overall.  While vacancy is down slightly, this rate is still 44 basis points up from what it was the year before.  Additionally, despite limited space affecting the development of industrial buildings, leasing activity has remained strong, and rents have continued to increase steadily.

  • Orange County

Due to its diverse economy and proximity to Los Angeles, Orange County has seen a steady growth of its industrial market.  In the last quarter of 2018, vacancy remained low and steady, and analysts expect to see this momentum carry on into 2019.  Additionally, with the high competition for limited space, rental rates have continued to increase for the third consecutive year.  Experts predict that the demand for industrial space will easily keep Orange County landlords comfortable in 2019.

These are some of the Southern California industrial real estate trends that commercial realty advisors expect to see in 2019.  Do you have additional questions regarding your commercial or industrial real estate needs?  If so, then contact the experts at California Commercial Realty Advisors, Inc. for assistance today.


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