Dedeaux Properties had one of its strongest years in 2020. The firm completed $500 million in transaction volume, a total of 2 million square feet in logistics, distribution and cold storage assets in California. The transaction activity underscores the strength of the industrial market in California through the pandemic.

"Los Angeles and Inland Empire is one of the largest and strongest industrial markets in the US and has exhibited continued growth for some time," Matt Evans, chief investment officer for Dedeaux, tells GlobeSt.com. "Contributing to this was an increased demand, accelerating the need for faster supply chains in order to deal with smaller, even single items. COVID-19 and stay-at-home orders further accelerated this trend and it was one of the biggest demand drivers for the impressive transaction activity in 2020."

Of course, the pandemic also served to drive competition into the space. Through the course of the year, this resulted in increased asset pricing. "The market was uneven over course of year.  As we moved through the year though, the high level of competition that typically characterizes SoCal Industrial investment intensified which drove prices higher," says Evans. In addition to new entrants, some of the existing players increased their emphasis on Southern California industrial versus other asset classes and/or markets."