The Fed's report says output at the nation's factories, utilities and mines rose a healthy 0.4% in March, the first monthly increase since September. The report is "a welcome first sign of recovery," says Jerry Jasinowski, president of the Washington, DC-based National Association of Manufacturers. But another month or two of gains would be needed to establish a trend, he adds, so "we're not really out of the slowdown woods yet."

Yet, the report raises fresh hope that the economy may indeed be bouncing back. A healthy industrial sector not only creates jobs but also boosts demand for most types of commercial property, from warehouses that store newly manufactured goods to the retail space that's needed to sell them.

Southern California's economy hasn't slowed as much as in other parts of the nation, so its industrial-property market has remained fairly strong even as others have faltered. Steady demand for space, coupled with little buildable land for new projects, has sent LA County's vacancy rate down to about 3% and pushed rents and values sharply higher.

The latest investor to bet that LA's industrial market will get stronger still is PMRealty Advisors. The Newport Beach, CA-based pension fund advisor has paid nearly $20 million for three industrial buildings totaling 324,945 sf in Valencia Commerceplex, a development in the North LA County suburb of Valencia.

The buildings were purchased from EJM Development, a privately held company headquartered in West Hollywood. Craig Peters, Barbara Emmons and Doug Sonderegger of CB Richard Ellis represented both parties in the transaction.