Understanding the future often requires attention to trends as they develop. Sometimes they start in one notable place where it might seem that they couldn't. It then becomes a question of whether come contagion is about to spread.
The industrial sector in Los Angeles is showing such a point, according to Moody's Analytics CRE. After rocket-driven growth over the last few years, the city was "2nd of 47 metros tracked by Moody's Analytics CRE nationally in rent growth in 2022 and ranking 8th of 47 metros in absorption in the same year."
Now, Los Angeles is "once again leading the way, but this time in the opposite direction." In the third quarter of 2023, after months of there was a warehouse and distribution effective rent dropped by 0.6% quarter over quarter.
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