18Jul

The 2nd Quarter 2023 Los Angeles - Long Beach Industrial Real Esate Market Report

Every key metric typically used to measure the health of the economy is performing well right now. GDP grew by 2.0% in Q1, and it is estimated to grow by 2.3% in Q2 by the Atlanta Fed . In terms of employment, over the last year the U.S. added 3.8 million jobs and now has an unemployment rate of 3.6%. With regard to inflation, both headline and core inflation are
trending downward. The Consumer Price Index (CPI) rose by 3% year-over-year in June and 0.2% for the month, below consensus estimates of 3.1% and 0.3%. This was the lowest rate of inflation since March 2021. And core inflation, which excludes food and energy prices, rose by 4.8% year-over-year and 0.2% for the month. The annual core inflation level was
the lowest since October 2021, and its monthly gain was the smallest gain since August 2021.

Most economists, forecasters, and business leaders are anticipating that the Fed will continue to raise rates throughout the year until it reaches its target inflation rate. For this reason, most forecasters still believe a mild and shallow recession is likely within the next twelve months. However, a significant minority are anticipating that the US economy will avoid a recession altogether. For example, in its latest forecast, the National Association of Realtors has the economy growing slowly every quarter throughout 2023 and projects the economy to grow by 1.1% for the whole year. 

Regardless of one’s stance on this issue, it is indisputable that the industrial market is in a favorable position to weather most headwinds the economy might face. Total retail sales grew by 1.6% in May 2023 compared to the same period a year ago , and as a percentage of total sales, e-commerce retail sales (one of the key drivers of the industrial sector) now stand at 15.1% – 3.9 percentage points higher than where it stood at its peak prior to the pandemic in Q4 of 2019. With this said, available space continues to increase and there has been a growing sentiment regarding a shift in negotiating power from Landlords to Tenants

16May

The 1st quarter of 2023 the Los Angeles - Long Beach Industrial real estate market saw its first material change in a long while.

For the first time in a long time a change in the market materialized in the 1st quarter of 2023 in the Los Angeles – Long Beach Industrial Real Estate Market.  It appears that lease rates may have hit their ceiling for now.  The level of leasing activity in Q1 of 2023 dipped to levels not seen since 2006.  Despite the drop in activity demand for Industrial space remains at top levels and a struggle between historically high rates and the need for space is likely to play out over the next 18 or so months.

14Feb

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

The Los Angeles industrial real estate market is one of the most active and sought after in the United States. It is a diverse market, ranging from smaller facilities to large, modern distribution centers. The demand for industrial space in Los Angeles has remained strong due to the city's strategic location, growing population, and thriving economy. The Los Angeles industrial real estate market has also benefited from the rise of e-commerce, as online shopping has led to an increased demand for warehouse and distribution facilities. While the COVID-19 pandemic has had an impact on many industries, the industrial sector has remained resilient, with strong leasing activity and a stable vacancy rate. Overall, the Los Angeles industrial real estate market presents many opportunities for investors, developers, and tenants alike. 

The Los Angeles industrial real estate market in the fourth quarter of 2022 was strong, with robust demand and limited supply leading to higher rental rates and lower vacancies. The e-commerce sector continued to drive demand for warehouse and distribution space. Overall, the market was characterized by a favorable balance between supply and demand, with positive outlook for the future.

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.

11Feb

The 4th quarter Los Angeles / Long Beach Industrial Real Estate Market experienced continued rising sale prices and lease rates.

The Los Angeles / Long Beach Industrial Real Estate market experienced more of the same, high demand and low supply.  Sale prices and lease rates for warehouses and industrial properties continue to set all time highs.  Click below for full report.

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.

30Apr

The 1st Quarter of 2021 saw the continued lack of inventory in the Industrial Real Estate Market leading to the market to carry on with increasing in lease rates and sale prices.

The shortage of warehouse and industrial space available for lease and sale persisted in the 1st quarter of 2021.  The continued rise of e-commerce has led to demand for industrial space to outstrip supply. Additionally, low interest rates have led to the average sale price to increase by... CLICK BELOW FOR FULL REPORT

09Feb

In a up and down year, our latest report shows Industrial Real Estate closed strong in the 4th quarter of 2020.

While the Office and Retail sectors struggled in Commercial Real Estate, Industrial thrived.  Inventory decreased and e-commerce continues to drive the hot Industrial and Warehouse segments.