Foreign Investors Ramp Up SoCal Industrial Spending

Steve Wagner

Foreign investors are increasing industrial investment activity in Southern California. According to research from JLL, industrial purchases have accounted for 52% of all foreign investment in Orange County in the last 24-month period. Foreign investors have acquired 5.4 million square feet of industrial property in the market. The trend is directly linked to the growth of ecommerce this cycle, which has increased industrial appetite for both domestic and foreign capital sources.

“Over the last 10 years industrial property has become an increasingly popular investment class throughout the United States, and targeted both by domestic and foreign capital as the industry becomes more institutionalized,” Steve Wagner, managing director at JLL, tells GlobeSt.com. “As consumer habits change, and warehouses in densely populated areas become more valuable to corporate America’s business model, markets like Southern California continue to lead.  Foreign investors are attracted to the United States, and particularly to Southern California, due to the strong economy and long-term growth prospects. Simply put, Southern California industrial is a much better alternative to many other investment opportunities foreign capital may consider.”