The industrial market in Southern California is the tightest in the nation, in particular, Inland Empire industrial. JLL’s Q2 industrial market report for the IE registered another 13.7% increase in asking rates, while vacancies have trended down by 0.4%.
A 158,000 square foot Santa Fe Springs industrial property that initially traded for $36M in January recently sold for $85M, or $535/SF.
This 8.7-acre property—currently leased by Anheuser-Busch—on the cusp of Los Angeles County was purchased by Thor Equities, and is an indicator of where prices are going in the sector.
The lack of available space for Industrial leases has significantly diminished activity; Pre-leased spaces led the way in Q2 net absorption because existing availabilities are limited.
A record amount of new construction warehouses totaling 9.2M SF was added in Q2 to the already 40M SF in the development pipeline.