Los Angeles industrial real estate market reports

Q2 2021

Consumer spending remains high and online sales are increasing as a result the Ports of Los Angeles and Long Beach’s volume of traffic is at an historic high. Port traffic increased 44% compared to the same period last year. As e-commerce continues to drive the recovery, the industrial sector has been a bright spot during the pandemic with Los Angeles at the heart of warehousing and distribution requirements for the SoCal region and the nation. Consumer demand is driving speed and a diverse inventory from e-commerce, and those expectations are unlikely to diminish as delivery conveniences have now become commonplace.


Los Angeles industrial market

  • The overall vacancy rate of 3.0 percent for the Los Angeles industrial market is approaching pre-Covid lows.
  • Port volume traffic has increased 44.0 percent compared to the same period last year.
  • Overall leasing activity has been very robust throughout the pandemic, currently sitting at +45.4 percent of the long-term annual average of the last 20 years of historical data.


  • Net absorption is healthy and on pace to set an historic high. At 7.0 million square feet through the first half of the year, aggregate 2021 net absorption could outpace annual totals for the past two decade.

Rental pricing trends

  • Asking rents have increased by 8.6 percent since the start of the pandemic and have continued a steady upward trajectory since 2015.
  • Healthy demand and tightening leasing fundamentals have driven asking rents 68.3 percent over the last six years.

Capital markets

  • Los Angeles Industrial investment activity surged to $9.8 Billion since 2020 as investors are attracted to the sector fundamentals largely benefited from the COVID environment.
  • Investors continue capital deployment on industrial assets at a rate that is 50.3 percent higher than the prior five-year average.

Economic conditions

  • Reopening efforts and higher vaccination rates have allowed the Los Angeles Metropolitan Area (MSA) unemployment rate to rebound from a high of 17.9 percent to 9.9 percent.
  • The Los Angeles metro area lost 5.1 percent of industrial employment since the pandemic began, as evidenced by a sharp decline in jobs early in 2020.

Recovery rate

  • The Los Angeles metropolitan area began to reopen in the second quarter, as vaccination rates surpassed the national average to 47.2 percent.
  • As office workers across the metropolitan area just now begin to return to the office, the Transportation, warehousing & utilities sector has grown by 2.0 percent since the beginning of the pandemic in February 2020.
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