Thank you for sharing!

Your article was successfully shared with the contacts you provided.

John McMillanThe industrial supply in Los Angeles is only getting tighter, and for tenants that is going to mean higher rents and even more challenges securing space in 2019. According to the latest market report from Newmark Knight Frank, the Los Angeles industrial vacancy rates was 1.1% in the fourth quarter, and while there is some new construction activity, the absorption rate is on par with new supply. In fact, new product built in the last eight years drove the absorption activity in 2018.

“Educating tenants as to how tight market conditions are remains one of the toughest jobs we have right now,” John McMillan, vice chairman at Newmark Knight Frank, tells GlobeSt.com. “Many leases that are rolling were transacted from 2009 to 2013 before the market really took off.  Back then tenants might have had 10 to 20 options or more to choose from, depending on the size of the requirement and geographic region they were looking in. Now they might have just a handful at most.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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.

More from this author

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.