Rexford Industrial is continuing to see strong performance in its Southern California industrial portfolio. According to its third quarter industrial call, the firm has a 2% vacancy across its Southern California industrial portfolio—excluding the Inland Empire East—and a 7.8% rent growth over the last 12 months. The severe supply-demand imbalance continues to be the major driver of activity.

"We are extremely pleased with our third quarter performance, which reflects both the ongoing strength of the Rexford Industrial operating platform, as well as our focus within the infill Southern California industrial market," Michael S. Frankel, co-CEO and director of Rexford Industrial, said on the call. " In terms of result, it's been a tremendous quarter and an exceptional year so far."

The supply-demand imbalance also drove strong leasing activity. During the quarter, the firm signed 91 leases totaling 1 million square feet. The leases had spreads at 31.2% on a GAAP basis and 19.4% on a cash basis, and on new leases, spreads were at 38.2% on a GAAP basis and 26.1% on a cash basis. "Key tenant demand fundamentals within our target infill markets are principally driven by this long-term supply demand imbalance, which is magnified by increasing urban land value," said Frankel. "Our decades of experience have also demonstrated that this market tends to be more stable through economic cycle when compared to non-infill or secondary industrial market."