The demand for industrialspace in Southern California is continuing to exceed theconstruction pipeline. In the Central L.A. markets, there isroughly 1 million square feet of industrial space underconstruction, and it will likely not be enough to deter occupancyand rental rate growth. Texas-based industrial developerXebec is bullish that this trend has a longrunway, and they are focused on growing a robust portfolio in themarket to supply the demand. The firm has purchased 10 acres in theMid-Counties submarket with plans to develop a 233,789-square-footlast-mile logistics facility.

“E-commerce continues to be a major factor driving industrialdevelopment to record highs as e-commerce sales haveincreased by 16% year-over-year and now account for 9% of all U.S.retail sales.” Jay Soni, EVP of acquisitions atXebec, tells GlobeSt.com. “The success of the Los Angelesmarket is largely attributed to the dense population and amount ofgoods coming through the Los Angeles International Airport and theLos Angeles and Long Beach Port Complex, which is a key part of ourdevelopment strategy. We are singularly focused on developing andredeveloping industrial facilities integral to the modern globallogistics supply chain, and providing access to qualified investorsseeking to capitalize on an investment opportunity ininstitutional-quality real estate.”

While Xebec has been a developer in Southern California fordecades, it is increasing its activity in the market because ofthis trend and growing demand. Of course, they aren't the onlyplayer in the market. Every developer and investor is looking forindustrial opportunities and ways to supply the demand. “Throughthe years we have seen an abundance of opportunities and havelearned how to find smart investments when there was seemingly alack of opportunities,” Soni says. “One way we've kept up withdemand and continued to increase our presence is by successfullyassessing, acquiring and redeveloping sites with environmental andgeotechnical challenges. Our team has vast experience with solvingthese challenges, and in turn making our investors more comfortablewith these types of opportunities.”

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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.