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Spec Industrial Builds Holdout for Higher Rates

Speculative projects are waiting to sign new tenants in anticipation of rapidly increasing rents, thanks to a sub 2% vacancy rate.

Andrew Berk Andrew Berk

The industrial market in Los Angeles is rough. With a sub 2% vacancy rate, the market has far greater demand than supply to accommodate it, and new projects are being filled faster than they can come to market. As a result, some developers of speculative industrial projects are waiting to sign leases with prospective tenants in anticipation of rising rental rates, according to Andrew Berk, a market expert and principal at Avision Young, tells GlobeSt.com. Berk, who was recently promoted from VP at the company, sat down with us for an exclusive interview to talk about he challenging market, how tenants are finding space and how he expects the market to perform this year.

GlobeSt.com: Can you provide an overview of the Los Angeles County industrial market?

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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