Absorption & Vacancy Snap Back
- The Central Los Angeles industrial market reported 2,391,300 square feet of net absorption this quarter, a marked improvement from the negative 4.4 million seen in the first 3
quarters of the year.
- Sales and leasing activity had also significantly rebounded, ending the quarter at 3,782,600 square feet, a level not seen since 2015.
- The worst appears to be behind us, as sales and leasing activity has improved quarter over quarter and surpassed 2019 levels.
Central Los Angeles Industrial Market
The Central Los Angeles industrial market is the oldest market in the Greater Los Angeles region, with a large proportion of older and functionally obsolete buildings. Many of these lower clearance buildings are located in the Central Los Angeles submarket, near Downtown Los Angeles. Much of this space has been converted to residential, retail or office product, but has seen renewed interest by e-commerce tenants seeking last-mile industrial infill sites.
Industrial demand is heavily concentrated in the Vernon and Commerce submarkets, with food production and apparel manufacturing remaining the top industries.