LOS ANGELES—In this third in our in-depth series on the major Los Angeles food groups, we see in the industrial market a continuation of the clear-path growth we tracked in office and multifamily. It seems that the only major threats to the upward trajectory of this segment is, once again, external forces. So says Howard Schwimmer, who—along with Michael S. Frankel—is co-CEO and director of Rexford Industrial, one of the dominant industrial buyers and owners in Southern California.
“It's a great story,” he tells GlobeSt.com. “We're hitting every metric in terms of growing occupancy and rent growth. The interesting part is that when you ask most people who invest in L.A. industrial how it's going, they say the market is performing terrifically but it's difficult to buy anything.”
He explains that investors are paying “top dollar” for a foothold in the market, but yields are still a bit low on a lot of product. Nevertheless, there is a great “opportunity to fill out the valuations on some of those properties.” The same he says is true in rent-growth potential, which traditionally has been around “7% or 8%. In the past of few years, the market has met and exceeded those growth rates.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
