Los Angeles and the InlandEmpire are two of the top markets for new industrial constructionin the country. According to a new report from YardiCommercial Café, 5.3 million square feet will deliver inLos Angeles this year, and in the Inland Empire—the most activeindustrial construction market in the country—has nearly 26 millionsquare feet scheduled for deliver this year. In total between thetwo markets, a total of 121 buildings will come to market thisyear. In Los Angeles, this is an 86% increase in new constructiondeliveries compared to 2019, which had 2.9 million square feetdelivered.

"As the economy was hitting new highs, Los Angeles simplycontinued on the trajectory from last year," PatrickMcGregor of Yardi Commercial Café, tells GlobeSt.com."[Los Angeles'] prime location amid a major port and airports,mixed with developable land, make the region extremely attractive.There's also been a supply shortage in the region that developersare trying to mitigate."

Phase IA and IB of the Center at Needham Ranch in Santa Claritais one of the largest new industrial developments in the LosAngeles area totaling 870,000 square feet. However, the majority ofnew construction activity is smaller box facilities. "Warehousesfar outpace more specialized industrial buildings simply becausetheir more versatile," says McGregor. "While the large developmentsof 1 million square feet or more make headlines, the majority ofindustrials buildings under construction are between 50,000 and400,000 square feet."