24Oct

The 3rd quarter, 2023 Los Angeles - Long Beach Industrial Real Estate Market Report shows an uptick in vacancy.

A prevalent and unifying trend has emerged in the industrial markets of Greater Los Angeles & Long Beach, Orange County, and the Inland Empire during the third quarter of 2023: an uptick in vacancy rates. This development has undoubtedly captured the attention of real estate observers, raising questions about the resilience of these markets amidst evolving economic conditions.

While it's true that asking lease rates and sale prices have moderated from their previous peaks, they continue to hover at historically elevated levels. This is particularly noteworthy in the realm of leasing, where the prevailing rates are higher than what has been observed in the past. The apparent contrast between increased vacancies and persistent high asking rates creates an intriguing narrative within these markets.

The question that naturally arises is whether this shift in vacancy rates is a direct consequence of the recent Federal Reserve interest rate hikes or if it's a temporary slowdown in the market's momentum. The answer to this query remains somewhat elusive, and much like the economic outlook itself, it is subject to ongoing observation and analysis.

One plausible hypothesis is that the impact of the Federal Reserve's interest rate hikes has yet to fully materialize. These hikes may have prompted businesses and investors to reevaluate their strategies, potentially leading to a pause in leasing and purchasing activities. The full ramifications of such monetary policy decisions often take time to ripple through the real estate sector.

On the other hand, it is equally plausible that the observed increase in vacancy rates is a transient phenomenon. Industrial markets are influenced by a myriad of factors, including supply and demand dynamics, economic cycles, and regional conditions. Short-term fluctuations are not uncommon, and they may not necessarily indicate a fundamental shift in the health of these markets.

As we move forward, close monitoring and analysis of these markets will be essential to provide a more definitive answer. Factors such as employment trends, trade activity, and consumer behavior will play a pivotal role in shaping the trajectory of these industrial markets. Whether the current situation is a harbinger of sustained change or a brief pause in the continued growth of these markets will be revealed in the coming quarters, offering valuable insights into the ever-evolving real estate landscape.

26Oct

The Los Angeles - Long Beach Industrial Real Estate Market Report for the third quarter of 2022.

Q3 2022 saw the economy start to slow but Industrial Real Estate remain tight.

08Aug

The Los Angeles - Long Beach Industrial Real Estate Market Report for the second quarter of 2022.

Low vacancy and high demand continued to drive higher sales prices and lease rates.

20May

The South Bay, Midcounties and Inland Empire all experienced further lease rate and sale price growth and demand continues to outstrip supply.

05Nov

The 3rd Quarter 2021 Industrial Real Estate Market Report for the Los Angeles - Long Beach Market.

The market continues to set record sale prices and lease rates as vacancies remain at historic lows.  Click below for full report.

05Aug

The Industrial segment of the Los Angeles-Long Beach Commercial Real Estate Market continued to rocket up with large gains in lease rates and sale prices.

Already low vacancy rates shrunk to 1.1% as lease rates and sales prices continue their ascent. An unprecedented 20% growth in rent rates was experienced in Q2 of 2021 and average sale prices increase by 37%!  Click the below link for the full report.