2020 Q3 Greater Los Angeles Industrial Knowledge Report

Download Report
industrialheroQ2020

Uneven Rebound Underway In Greater L.A.

Key Takeaways

  • The headline numbers have exceeded expectations in the third quarter of 2020. In the midst of a pandemic-induced recession, the vacancy rate has fallen 30 basis points, net absorption turned positive, construction activity increased and rents remain at all-time highs.
  • This rising tide has not lifted all boats, however. Most gains were contained to the Inland Empire, with buildings over 500,000 square feet in this market accounting for 50% of all net absorption in the entire basin.
  • This quarter saw the release of pent-up industrial demand emerging from the prior quarter’s economic shutdown. This is the easy part of the recovery. It remains to be seen if the industrial market can continue to exceed expectations.

Los Angeles Basin Industrial Market

The Los Angeles Basin industrial market is the largest in the United States, totaling more than 1.6 billion square feet. It has been characterized by some of the highest asking rates and lowest vacancy rates of any market in the nation. 

The ports of Los Angeles and Long Beach are the primary industrial driver making up for lost time. In the last three months, port activity surpassed 2019 levels as a growing backlog of cargo is making its way through the nation’s supply chain.

E-commerce has proven to be the saving grace for the industrial market. Consumers have accelerated their adoption of purchasing goods online. E-commerce has seen as much growth in the last six months as it has in the last decade, and these changes look to be permanent. The world will need more industrial buildings and fewer retail stores.


industrialsearchQ32020

2020 Q3 Greater Los Angeles Industrial Knowledge Report

Download Report
Related Experts

Alex Blecksmith

Associate Vice President

Los Angeles - Commerce

Alex Blecksmith joined Colliers International in 2005 and underwent an extensive year-long training program.

As a member of the Bucknell Football University team in college, Alex was selected to the Patriot League Academic Honor Roll. Through his participation in Division I-AA football, Alex honed his skills in accountability and tenacity, which he has parlayed into his professional work ethic.

AFFILIATIONS
The Jonathan Club
NAIOP (SoCal Chapter)
Colliers Broker Advisory Board
Santa Fe Springs Chamber of Commerce
Five Acres
Sigma Chi Fraternity

NOTABLE TRANSACTIONS
• 6317 Chalet Dr., Commerce; 24,864 SF
(Represented the Tenant)
• 6371 Randolph St, Commerce; 30,000 SF
(Represented the Buyer)
• 6289 Slauson Ave, Unit B, Commerce; 38,144 SF
(Represented the Landlord)
• 15977 Heron Ave., La Mirada; 30,000 SF of land
(Represented both the Landlord and Tenant)
• 1561 Chapin Rd., Unit B, Montebello; 32,186 SF
(Represented the Tenant)
• 13138 Arctic Circle, Santa Fe Springs; 8,480 SF
(Represented the Buyer)

PARTIAL CLIENT LIST
• Hunsaker Management
• DCT Industrial Trust
• Advantage Fitness Products
• New Century Logistics
• Lu’s Lighthouse
• Bambo
• McCulloch Power
View expert

Brad Yates

Executive Vice President

Los Angeles - Inland Empire

As a senior vice president for Colliers International, I have been based in the firm’s Ontario, CA, location in the Inland Empire since 2010. I concentrate primarily on mid-sized industrial properties for sale and lease, investment and off-market sales, along with specializing in the development of warehousing and distribution facilities throughout the area. Making sure to implement best strategies, I am directly involved in all aspects of assignment execution from the conception of marketing collateral to work product deliverables, property tours, tenant interface, client communications, negotiations and networking with brokers, owners and buyers to market our properties.


Before joining Colliers, I began my career in 2005 at Collins Commercial in Ontario, then moved to Grubb & Ellis, where I represented both landlords and tenants. Providing a full-service approach, I work to tailor each assignment around the specific needs, objectives and resources of each client. Known for being an honest and hardworking team with extensive knowledge of the Inland Empire, we make it a priority to put our clients first and take pride in each transaction we do.


I call South Orange County home, and while not at work I enjoy spending time with my wife and children and getting outdoors on my mountain bike. 

 

View expert

Brian Chastain

Senior Vice President

Los Angeles - Orange County

As a senior vice president in Colliers International’s high-producing Irvine office, I specialize in the leasing and sales of industrial properties in the North Orange County and Corona submarkets. Though I often work with property owners and developers, I also regularly represent corporate tenants and buyers, providing a full spectrum of real estate services to my clients.

Having started in the industry in 2007 as an associate working the same industrial markets I work today, I have more than a decade of on-the-ground experience. Such hands-on experience has allowed me to develop in-depth and personalized market knowledge that allows me to have a finger on the pulse of market for the benefit of my clients.

An expert in the industry who commits to outworking the competition, I am an honest and focused advisor. As such, I will always and only act in the best interest of my clients, whether owner, developer, tenant or buyer. As an enthusiast of the outdoors, you might find me fly fishing, hiking and camping when I’m not out touring industrial sites.

View expert

Chris DeVries

Vice President

Los Angeles - Orange County

Chris DeVries specializes in industrial properties within the Inland Empire and Orange County regions of Southern California. He focuses mainly on strengthening existing client relations as well as generating new opportunities for the team to pursue through business development. Chris works closely with Building and Land Owners, Tenants, and Buyers to match appropriate projects with the ideal occupant or buyer.

Through his efforts in the field and on the phone, Chris keeps the team in touch with the current business climate and market trends. Since 2013, Chris has assisted the team and its partners transact on over 16 million square feet as well as 560 acres of industrial land.

View expert

Chris Sheehan

Brokerage Executive Vice-President

Los Angeles - El Segundo

Chris has been with Colliers International since 1996 when he joined as an Associate in the City of Commerce office.  Today, as Executive Vice President, Chris focuses on industrial real estate in the Greater Los Angeles market with an emphasis on port related logistics within the Los Angeles basin.

Since 1998, Chris has personally been involved in completing more than 1,500 transactions totaling over 42,000,000 square feet and $1.7 Billion in considerations.  In 2013-2019, Chris was given the Colliers Everest Club award, a designation given to the top 10% producers in Colliers North America.

Chris has been able to leverage his expertise to assist his clients with their real estate needs over a broad spectrum of product types and geographic areas. Chris represents both institutional and local owners, as well as national and regional tenants.  He has extensive experience in industrial investment, development and building and land sale transactions.

View expert