LOS ANGELES—The industrial market in northern L.A. and Ventura County is attracting institutional capital—thanks to the ever tightening supply and plummeting vacancy rates averaging 2.4%. With industrial demand higher than ever, the typically owner-operator market is experiencing a shift. To find out more about the market, we sat down with Mike Tingus, the president of Lee & Associates-L.A. North/Ventura office and a market expert, for an exclusive interview. Here, he talks to us about the drivers behind this demand, how tenants are reacting to the tightening supply and why institutional investors are looking to get in on the action.

GlobeSt.com: The market for industrial real estate has been on fire in the L.A. North region bringing vacancies down to 2.4 percent. What's behind all that activity?

Mike Tingus: We're seeing a couple of different dynamics in our markets. First, we're seeing many industrial users expanding. There were several years when companies really were doing no CapX spending, so some of it is pent-up demand, but a lot of it is also plain, old-fashioned growth. Tech companies like Spirent, which we recently relocated into a larger facility, are seeing strong demand for services. I've got another client in a segment of the recycling industry that has really gained traction in the last few years, and then there are more traditional businesses that have simply benefited from the strengthening economy. Second we are seeing new businesses come into the market and we are also seeing businesses that started in a garage who have reached the critical mass they need to move out and into new space.