October 5, 2020
CBRE Econometric Advisors is forecasting that industrial rents in Los Angeles County will increase 41% through 2025, which works out to about 7% annually. The projected rent advance for the region leads the other major U.S. industrial markets and is more than double the projected national growth rate.
CBRE SoCal researcher Eric Willett notes, Los Angeles County’s projected increase reflects the desirability of the market for industrial users given the experienced labor pool, large and proximate population, and sophisticated logistics infrastructure, which includes the nation’s largest port complex.
Other SoCal industrial markets are also expected to see impressive rent growth through 2025. Orange County is forecast to have the fourth-greatest appreciation among U.S. industrial markets, with rents climbing 33% over the next five years driven by the market’s infill supply and last-mile positioning. CBRE projects Ventura County is likely to see a 22% rise.
The industrial sector’s strong performance in SoCal and nationwide reflects sustained levels of demand, even amidst the pandemic, which has amplified space needs from e-commerce and 3PL occupiers alike, writes Willett.
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