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Los AngelesAt this point, it would likely take a macro economic event to impact the tight industrial market in Southern California. Last month, research from JLL reported that more than 65 million square feet of industrial leases will roll over in the region in the next three years, with class-A and class-B space making up a majority of the space. While the mass of lease expirations will offer some relief to the severely tight market, it won’t have much of an impact on the vacancy rate.

“I think that it would take a much larger or broader economic change to impact the rent trajectory or vacancy rate in a dramatic way in this market,” Barry Hill, EVP at JLL, tells GlobeSt.com. “For the infill markets, even in 2009 and 2010, true vacancy only got up to 6%. This is still a tight market, and this is not going to completely loosen up the market or take the vacancy from 2% to 4%.”

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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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