Los Angeles industrial real estate market report

Q2 2022

The Los Angeles industrial market remains to be a landlord’s market as average asking rents continue to climb to new all-time highs. Investors will remain highly active in search for new investment opportunities as leasing and demand fundamentals remain robust. With the constant rise in fuel and drayage costs, occupiers located outside the Los Angeles market could begin to adjust their focus to options closer to the ports in order to save on costs. 

6.03 msf


Surging demand has pushed construction activity nearly 1.0 msf higher than the 10-year average with 6.03 msf under way.  Over 2.2 msf of industrial and flex buildings over 50,000 sf were completed in 2Q22.

705 ksf

Net absorption

Los Angeles continued to report positive gains in absorption with over 705 ksf. Limited availabilities have pushed many tenants to exercise their renewal options with 4 out of 5 top deals in 2Q22 coming from renewals.


Direct asking rent

Average asking rents are now up 56.5% since the start of the pandemic in 2020, concluding the second quarter at $1.44 psf triple-net. 

20.6 msf


Total available industrial and flex space increased to 20.6 msf market-wide, making it the third consecutive quarter of increased availabilities. 



Total vacancy climbed to 1.7%, up 30 basis points (bps) from the prior quarter. 9.3 msf of vacant space was reported in the second quarter. 

$335 psf

Investment Sales

Steady demand and lease fundamentals continue to attract investors looking to capitalize on current market conditions. The average sale price of $335.08 psf is a new record for the Los Angeles industrial market. 

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