Average Asking Lease Rates have climbed dramatically in the last several years with the largest increases in 2021 and 2022. See below chart showing the steep rise for warehouse asking rental rates in Los Angeles, Orange, Ventura and the Inland Empire per AIRCRE MLS data. These are the major industrial property markets in Southern California. Individual markets and submarkets vary along with building class quality.
The Central Los Angeles industrial submarket had a very low vacancy rate of 1.4% in the first quarter of 2022. Warehouse buildings for sale or lease are hard to find for buyers and tenants as the number of listings is thin. Thus, rents and asking sale prices continue to rise. Year over year, rents rose 20% which is shocking.
