Indeed, a recent report by LA-based CB Richard Ellis says that the average asking lease rate in the entire San Fernando Valley hit 62 cents psf per month in the third quarter. That put it in a tie with the Tri-Cities area as LA County's most expensive industrial market, and well above the countywide 51-cents psf average.

While rents across the Valley have softened a bit recently in step with the slowing economy, Thomas says the eastern portion of the market -- which includes the City of San Fernando and North Hollywood -- has fared better than many other communities to the west. One key reason is because the East Valley "has a lot of tenants involved in the entertainment business, which has continued to do pretty well even though the economy in general has gotten weaker," he notes.

But while interest among owner-users is strong, Thomas adds, there just aren't many buildings for sale. "We're seeing 'bidding wars' break out for some properties, especially those in the 5,000-sf range," the broker says. "Owners are demanding top-dollar, and getting it."