SoCal’s Industrial Real Estate: Will Cooling Activity Levels Affect the Outlook for the Future?
July 31, 2023 – ArticleReal Estate attorneys, Nancy Zhao and Ken Fields, published the article, "SoCal’s Industrial Real Estate: Will Cooling Activity Levels Affect the Outlook for the Future?" in the Los Angeles Business Journal.
Excerpts:
Southern California has been one of the hottest industrial markets in the nation, and the past few years have been no exception. SoCal’s commercial real estate market has been hit especially hard, with the shockwaves forcing some investors, owners, and developers to course correct in order to survive. However, for those nimble enough to pivot, the industrial sector has been a beacon of hope.
For several years now, industrial has been a strong counterpoint to the blighted climate for retail and office real estate. Demand for industrial space climbed to a historic high during the pandemic, when online retail surged and the e-commerce companies selling goods needed large industrial warehousing spaces to operate their businesses. Industrial warehouses were built as quickly as possible to meet demand. But no trend in real estate lasts forever, and the industrial sector is finally meeting headwinds, with data indicating a return to more normal (pre-pandemic) levels of activity.