Industrial rents keep rising in the South Bay: report

Los Angeles /
May.May 16, 2016 12:00 PM

The South Bay is still the hottest industrial submarket in Los Angeles.

This southwest region of L.A. County is seeing continued appreciation in rents, according to a recent JLL report. Unless there is an economic downturn, the steady rise in rents is slated to continue for the next two years, the report shows.

The South Bay currently has a less than 1 percent vacancy rate, the report stated. The current high water mark monthly rent rate is $0.73 per square foot for properties larger than 75,000 square feet. By year end, that rate is anticipated to rise just north of $0.75 per square foot.

In the first quarter of 2016, the El Segundo region of the South Bay also saw its lowest office vacancy rate, 12.1 percent,  as well as an average asking rent of $2.25. In El Segundo, Continental Development Corporation is now redeveloping 840 and 880 Apollo Street, a total of 182,000 square feet of leasable space.

In L.A. overall, the industrial market is tighter than ever. As demand rises well above the current supply, average rent persists on its upward streak. According to a report by CBRE, the county average was $0.71. The most expensive submarket in the first quarter of 2016, based on this report,  was DTLA with a $0.78 average.

South Bay is seeing some new industrial construction, which may help release some of the pressure on rents. More than 84 percent of L.A.’s 3.8 million square feet of industrial properties currently undergoing construction is located in South Bay and the San Gabriel Valley.


Related Articles

arrow_forward_ios
Heather Crossner and the site (Credit: Google Maps)

Bridge Development plans distribution center outside Torrance

Bridge Development plans distribution center outside Torrance
Brookfield Asset Management CEO Bruce Flatt

Brookfield scoops up Carson industrial properties for $64M

Brookfield scoops up Carson industrial properties for $64M
The Spot at 2139 South Pacific Avenue and Adam O’Neill, president of Square One Homes, LLC, and Stonebridge Real Estate Group Inc. (Credit: Google Maps, iStock)

Multifamily development in San Pedro surges, thanks in part to Opportunity Zones

Multifamily development in San Pedro surges, thanks in part to Opportunity Zones
Cesar Pelli and the Hawthorne Federal Building

Auction for Cesar Pelli-designed FAA building nears end

Auction for Cesar Pelli-designed FAA building nears end
Here are LA’s top industrial investment sales of 2018

Here are LA’s top industrial investment sales of 2018

Here are LA’s top industrial investment sales of 2018
Biotech and life science firms energize L.A.’s office real estate

Biotech and life science firms energize L.A.’s office real estate

Biotech and life science firms energize L.A.’s office real estate
LA office market I-sales are down but leasing remains steady: report

LA office market I-sales are down but leasing remains steady: report

LA office market I-sales are down but leasing remains steady: report
Konoike Group plans 55k sf cold storage facility in Wilmington

Konoike Group plans 55k sf cold storage facility in Wilmington

Konoike Group plans 55k sf cold storage facility in Wilmington
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...