Thu. May 19th, 2022

Rental growth has been driven by an insatiable demand for storage space along with tightening of vacancies (iStock)

The housing market may cool, but industrial prices in Los Angeles continue to rise.

Average rent for industrial properties in LA ticked up to $ 1.14 feet in the third quarter, 3.6 percent higher than the previous quarter, according to a report by Kidder Mathews. It was also 8.6 percent over the third quarter of 2020.

Landlords often add 4 percent annual increases to leases, in anticipation of continued demand for storage and storage space, the July-September report added. Tightening unemployment has also been a factor.

Across LA, unemployment slumped to 1.4 percent in the third quarter from 1.7 percent in the previous quarter, according to the report.

About 3.3 million square feet of space was taken up by tenants in the last quarter.

The average selling price of industrial property is also rising. It stood at $ 249 a foot in the last quarter, compared to $ 226 a foot in the 2nd quarter.

The fourth quarter has already seen some developers pay big bucks for industrial properties. Earlier this month, Rexford Industrial Realty bought an 80-acre warehouse in Rancho Dominguez for $ 217 million.

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