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Bo Mills Bo Mills

Industrial prices in Southern California are at an all-time high—again. Prices have been trending upward since 2011, with numbers repeatedly breaking records. According to new research from JLL, single-building industrial properties are now trading hands for an average of $235.34 per square foot. Los Angeles industrial product is trading at the highest price points, followed by Orange County. All four of the major Southern California markets—Los Angeles, Orange County, San Diego and Inland Empire—are trading above or on par with average national industrial pricing.

Although this has been a steady pricing increases for industrial product, there is no ceiling ahead. “There is no end in sight to L.A. industrial pricing,” Bo Mills, managing director at JLL Capital Markets, tells GlobeSt.com. “Land and construction pricing continue to climb at rates that have never been seen. With multi-story industrial buildings under construction in the Northeast and Northwest areas of the United States it is just a matter of time before they come to L.A. The infill multi-story buildings will command rents and ultimately sales pricing that is three times what current industrial buildings are leasing and selling for.  The multi-story industrial building comps will reset traditional thinking on industrial pricing.”

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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.

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