SoCal Industrial Market Isn’t Losing Its Crown

The Southern California industrial market is well positioned to weather the economic storm set off by the global pandemic. Heading into the current market dislocation, the industrial sector had low vacancy and a limited new construction pipeline—and limited land for new construction. Now, the pandemic has catalyzed a new wave of ecommerce activity, accelerating trends by a decade or more, some are estimating, and a lack of liquidity for new construction. “Bottom line, industrial will come through this year stronger than before,” Kurt Strasmann, regional industrial market leader at CBRE, tells GlobeSt.com.

New ecommerce activity in particular will play a role in industrial resilience through the next recovery cycle. “The emergence of ecommerce plays in perfectly for industrial demand on multiple levels, both cold storage and typical online sales from fulfillment as well as onshoring,” says Strasmann.