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Downtown Industrial Tenants Migrate South

VERNON, CA—The Vernon submarket is experiencing record-low vacancy rates thanks to an influx of new tenants moving into the space, GlobeSt.com reports in this EXCLUSIVE story.

By Kelsi Maree Borland | Updated on December 22, 2014

LA VERNE, CA—Industrial users from the Downtown Los Angeles market, particularly in the arts district, are migrating to the Vernon market, according to Jack Cline, SVP in Lee & Associates Central LA office. Cline talked to us exclusively about the industrial trends this year in the Central Los Angeles market, where he noted the influx of new users migrating from downtown that are putting extreme upward pressure on prices.

“The migration from downtown arts district is continuing to put pressure on prices primarily in Vernon and secondarily in Commerce, which are the two largest industrial markets in the Central Los Angeles market,” Cline tells GlobeSt.com. That isn’t to say, however, that absorption rates are dropping in the downtown market, just changing. “You are seeing a lot of converted uses. What was an industrial application is now being priced out, and the users are finding new facilities in adjacent or nearby submarkets,” Cline says.

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