L.A. Industrial Leasing Will Top Pre-Pandemic Activity This Year

The industrial market in Los Angeles is the epitome of gilding the lily. Before the pandemic struck, Los Angeles was among the leading industrial markets in the country. Now, a new report from Marcus & Millichap predicts that industrial leasing activity will surpass pre-pandemic activity.

The forecast expects the industrial vacancy rate to drop 40 basis points this year, falling to 2.9%. Ecommerce growth from the pandemic along with record port cargo volumes and safety stock upgrades. As a result, Los Angeles will continue its reign as the market with the lowest industrial vacancy rate. At the same time, new construction activity is down from the five-year average. This year, 4.4 million square feet will delivery into the market, increasing the industrial stock by .5%. That is down by about 400,000 square feet from the five-year average. About 60% of the product under construction is already pre-leased.