LA VERNE, CA—Industrial users from the DowntownLos Angeles market, particularly in the arts district, aremigrating to the Vernon market, according to JackCline, SVP in Lee & AssociatesCentral LA office. Cline talked to us exclusively about theindustrial trends this year in the Central Los Angeles market,where he noted the influx of new users migrating from downtown thatare putting extreme upward pressure on prices.

“The migration from downtown arts district is continuing to putpressure on prices primarily in Vernon and secondarily in Commerce,which are the two largest industrial markets in the Central LosAngeles market,” Cline tells GlobeSt.com. That isn't to say,however, that absorption rates are dropping in the downtown market,just changing. “You are seeing a lot of converted uses. What was anindustrial application is now being priced out, and the users arefinding new facilities in adjacent or nearby submarkets,” Clinesays.

This group of migrating users isn't alone. According to Cline,the market saw a wealth of new users this year, including ethnicfood providers and true art users. These users, particularly theart users, can occupy the older industrial product in the marketthat is too outdated for the more corporate industrial type users,but still much newer than the facilities available in the Downtownarea. Another new user type to appear on the Vernon scene this yearwere the retail users. “The apparel business is revived and I thinkthis will be another push in our markets as they grow smallerconcepts into larger concepts,” says Cline. “Without a doubt, thisis a very entrepreneurial tenant base that has either been in themarket and has been expanding or they are new to the market butstill very entrepreneurial and very migratory.”