The industrial market is thriving in Los Angeles, and in many ways, the market is outpacing the former peak. A recent study from CBRE compared 2005-2007 to 2014-2016 and found that vacancy rate, absorption, rental growth and completions are either exceeding or near the former peak, with the exception of construction, which has been kept in check. The drivers of this market, on the other hand, are totally different. This cycle, industrial activity is driven by last-mile and logistics users. To find out more, we sat down with Petra Durnin, director of research and analysis at CBRE.
GlobeSt.com: How does this industrial market from the prior peak compare to the market today?
Petra Durnin: The industrial market today has been developing in a way it hasn't for quite some time. Though market fundamentals have been strong in both cycles, this current peak is driven largely by fulfillment and last-mile needs. While vacancy and absorption are on par with the last peak, construction is lower and that has helped drive higher rent growth compared with the last peak.
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Kelsi Maree Borland
