Nearly 10M sf of LA industrial space leased in Q2

Continued strong demand for logistics drives activity

Los Angeles /
Aug.August 03, 2021 12:56 PM
Submarkets near the ports accounted for 69.1 percent of total leases signed in Q2 2021 (Getty)
Submarkets near the ports accounted for 69.1 percent of total leases signed in Q2 2021 (Getty)

The Los Angeles industrial market recorded one of the busiest quarters ever, largely on strong demand for logistics and distribution space.

Around 9.8 million square feet of space was leased in the second quarter, according to a JLL report.

L.A.’s industrial vacancy fell to 1.9 percent compared to the first quarter. That was just behind nearby Inland Empire; and New York City, which tied for the lowest rate in the nation. Inland Empire and New York both reported just 1.7 percent of space vacant.

Orange County’s 2.9 percent industrial vacancy rate was also among the lowest in the nation.

Southern California’s historically strong industrial market can be attributed to its proximity to the ports of L.A. and Long Beach. Submarkets near the ports accounted for 69 percent of total leases signed from April through June.

Last year, the pandemic led to a backlog in the flow of goods from the ports, but that problem has largely been resolved. Container flow through the Port of L.A. hit an all-time monthly record for western hemisphere ports in May.

Average asking industrial rents in L.A. County continued their steady 10-year-long upward trajectory, reaching $1.02 per square foot. Sublease average asking rents are more volatile, but those also rose to $1.17 a foot compared to the previous quarter.

The nationwide pre-leasing rate hit a record high of 61.3 percent in the second quarter. That’s nearly twice the 34.6 percent from the second quarter last year, when pandemic-fueled uncertainty suspended most activity.

Meanwhile last quarter, national net absorption hit a record high of 107 million square feet, with vacancy falling to 4.8 percent.





    Related Articles

    arrow_forward_ios
    Cherry Valley Boulevard logistics center (Getty, Shopoff Realty Investments)
    Fast fashion titan Shein to open 1.8M sf distribution hub in Inland Empire
    Fast fashion titan Shein to open 1.8M sf distribution hub in Inland Empire
    Rexford’s Howard Schwimmer and Michael Frankel and 920 East Pacific Coast Highway in Wilmington (Rexford Industrial, Loopnet, Getty)
    Rexford reaches $2B in acquisitions for the year
    Rexford reaches $2B in acquisitions for the year
    Rising Realty Partners' Christopher Rising and 9320 Telstar Avenue (Rising Realty Partners, Loopnet, Getty)
    Rising Realty sells El Monte mixed-use complex for $70M
    Rising Realty sells El Monte mixed-use complex for $70M
    Los Angeles
    Rents rise across US, but fall in Greater LA, study finds
    Rents rise across US, but fall in Greater LA, study finds
    Prologis' Hamid Moghadam, Duke Realtys Jim Connor, Home Depot's Edward Decker; 13131 Los Angeles Street in Irwindale (Prologis, Duke Realty, Home Depot, Getty)
    Have 1M sf to fill? Home Depot can help
    Have 1M sf to fill? Home Depot can help
    From left: Blackstone’s  Kathleen McCarthy, Silver State Real Estate's Harshad Dharod, and Blackstone's Kenneth Caplan with  3610 Banbury Drive (Blackstone, Silver Star, The Foto Finisher)
    Blackstone sells Riverside apartment complex for $102M
    Blackstone sells Riverside apartment complex for $102M
    Seritage's Andrea Olshan and renderings on 3001 Iowa Avenue (LinkedIn, Getty, "Architecture. Design. Relationships")
    Seritage sells former Kmart site in Riverside
    Seritage sells former Kmart site in Riverside
    From left: Juanita’s Foods' Mark De La Torre, Duke Realty's James Connor, and Juanita’s Foods' Aaron De La Torre with 645 George De La Torre Jr
    Duke Realty buys food processing plant near ports for $171M
    Duke Realty buys food processing plant near ports for $171M
    arrow_forward_ios

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

    Loading...