Warehouse property prices are soaring near Los Angeles International Airport.
A CBRE report found that industrial space over 75,000 square feet and within 5 miles of LAX rented for 13 percent over the average for the L.A. market last year, according to Los Angeles Daily News.
That’s about the same premium that warehouses command near major U.S. cargo airports. In Chicago, warehouses near O’Hare International Airport command a 47-percent premium over the wider Chicago market, according to CBRE.
L.A. is the priciest industrial market in the country, and the LAX submarket is still more expensive than Chicago O’Hare. LAX industrial rent prices are $11.73 per square foot compared to $6.90 a foot near O’Hare. But the LAX submarket was the second-priciest behind Oakland International Airport, where nearby industrial rents averaged $13.68 a foot, according to the report.
The pandemic has sped up the economic shift toward e-commerce, boosting demand for industrial space.
In the L.A. area, the industrial market fared better than any other property type in the last year and continued to tighten by some metrics.
[LADN] — Dennis Lynch