The housing market may be cooling but Los Angeles industrial prices keep rising.
Average rent for industrial real estate in L.A. ticked up to $1.14 a foot in the third quarter, 3.6 percent higher than the previous quarter, according to a report from Kidder Mathews. It was also 8.6 percent above the third quarter of 2020.
Landlords are often adding 4 percent annual increases to leases, in anticipation of continued demand for warehouse and storage space, the July through September report added. Tightening vacancy rates has also been a factor.
Across L.A., the vacancy rate crept down to 1.4 percent in Q3, compared to 1.7 percent the previous quarter, according to the report.
Around 3.3 million square feet of space was taken by tenants last quarter.
The average sale price for industrial property is also rising. That stood at $249 a foot last quarter, compared to $226 a foot in Q2.
The fourth quarter has already seen some developers shell out big bucks for industrial real estate. Earlier this month, Rexford Industrial Realty bought an 80-acre storage site in Rancho Dominguez for $217 million.