Los Angeles Industrial Lease Rates Skyrocket 45% in First Quarter
Intense demand for industrial space and a dearth of supply in Q1 of 2022 has led to record low vacancy numbers and a 45% rate increase year-over-year in LA. JLL reports that industrial vacancy stands at a paltry 0.6%, a 70 basis point decline from the previous quarter.
Leasing activity from apparel, technology and logistics companies are making up the bulk of the volume, with the Greater San Fernando Valley leading the way. Large move-ins from Volt Lites, Iron Mountain and North Star accounted for about one-quarter of total absorption in that region.
Meanwhile, JLL says the twin ports of Los Angeles and Long Beach made considerable progress in their effort to reduce the backlog of ships waiting offshore in January and February. This reduced the number of freighters waiting to berth from 109 in January to just 36 in March.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.
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