(Save the date: RealShare Los Angeles comes tothe Hyatt Regency Century Plaza in Los Angeles, CA, on March 27,2013.)
LOS ANGELES-With two years of consecutive quarter-upon-quartervacancy rate decline, on which GlobeSt.compreviously reported, the prognosis forindustrial recovery in Southern California isgood, according to Craig Meyer, internationaldirector and head of logistics and industrial services group atJones Lang LaSalle. GlobeSt.com has learnedexclusively that Meyer spoke at a recent JLL West Coast industrialbrokerage meeting in which the big takeaway is that the back halfof 2013 looks pretty good for the SoCal industrial sector.

“We're looking at a flat first and a robust second half withcontinuing rental growth rates in key markets,” Meyer tellsGlobeSt.com. “During the first half, everyone will be looking atthe new tax structure and figuring out what that will mean.”

Companies in greater than 80% of US markets have experiencedpositive absorption, so vacancy rates are going to drop, Meyersays. “The Inland Empire is an exceptionally strong market with alot of potential development activity. We expectthe Inland Empire to have roughly 3% growth in rental rates overthe next year. This market has over 15 projects underconstruction—it's back to the days before the recession there.”