The 12 month trailing average for capitalization rates in Los Angeles County is five and eight-tenths percent (5.8%) for industrial properties. This rate of return is only a few percentage points higher than competing commercial real estate investments such as retail, multifamily and office. Industrial properties remain to be a clear favorite among sophisticated investors.
In the state of California, the Los Angeles area completed $4.5 billion in commercial property transaction volume while the other major regions of California typically range from $.2 to $1.6 B.