If we tell you that a major metro area posted negative net absorption totaling minus 2.6M SF in its industrial market in Q1 2023, you'd probably expect us to tell you that asking rents in that market are retreating in the face of macro headwinds.

But despite a major paradigm shift in 2022—the diversification of supply chains that has seen a shift of container shipments from the ports in Los Angeles to East Coast destinations—the outlook for the industrial market in Greater Los Angeles is for rent growth for years to come.

The industrial vacancy rate ticked up to 1.3% and availability increased by 50 bps QoQ to 3.6% in the first quarter in Greater Los Angeles, but asking rents continue to shatter records:

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