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Where Can Industrial Go From Here?

LOS ANGELES—With a near zero vacancy rate in Los Angeles, the industrial market may be at a stand still for 2017.

John McMillan John McMillan joins NGKF as executive managing director.

LOS ANGELES—Industrial vacancy rates are hitting rock bottom. A fourth quarter 2016 from Newmark Grubb Knight Frank showed that vacancy rates were lower than 1% at the close of the year with net absorption of nearly 4 million square feet total in 2016. As a result, landlords have total control in the market, with rents up 12.3% year over year and up $0.01 per square foot higher than the previous cycle peak. With the market this tight, where is industrial to go from here? We sat down with John McMillan, executive managing director at Newmark Grubb Knight Frank for and exclusive interview to discuss the market and where it is headed in 2017.

GlobeSt.com: The industrial market had a strong Q4. What is continuing to drive this strong performance in Los Angeles?

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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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