SoCal Industrial Has A Banner Year As Supply Shrinks

 

 

 

The pandemic has spelled bad news for many businesses and people. Industrial is not among that list. Instead, this sector has soared to new heights, with no signs of slowing down. “This has been one of the most successful years that I have experienced in my more than 40 years in service to the industry,” says Rick John, executive vice president of DAUM Commercial Real Estate Services in Ontario, Calif. “The industrial sector has continued to perform exceptionally well throughout the pandemic. Business has essentially been full speed ahead since summer, following the first couple months of uncertainty when industry players took a step back to review and assess the market thought process.” One needs to only look as far as the Inland Empire — the most robust industrial market in the country — to see how this product type has fared in 2020. This region is on track to complete (as of press time) more than 100 transactions on buildings with more than 100,000 square feet in 2020. This would surpass the 92 transactions it recorded in 2019, which was a record year. “In 2021, we expect this trajectory will continue to accelerate,” John continues. “A lack of inventory will be our only obstacle to sustaining this growth down the line.”

 

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