We Just Can’t Build Enough Industrial

Joe Dimola is a VP at JLL.

LOS ANGELES—Industrial vacancy rates are continuing to plummet even as new product is delivered. Last year, Los Angeles gained 3.9 million square feet of industrial space, compared to roughly 3 million square feet delivered in 2015. At the end of the year, however, vacancy rates in the Los Angeles market were at an all-time low of .9%, compared to 2.2% at the end of 2015. With land already limited for new development, opportunities for new supply are becoming more and more limited. As a result, rents are expected to skyrocket this year as tenants try to vie for space in the Los Angeles market. To get some expert perspective on the dilemma, we sat down with Joe Dimola, VP at JLL, for an exclusive interview.

GlobeSt.com: Is the low industrial vacancy rate becoming a serious issue for our industrial market? How does it hinder growth?