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Big Box Class A industrial market rents poised to rise even higher in infill submarkets

  • ​Strong demand for big box, Class A industrial product in LA infill markets is evident by a 70.0 percent drop in availability over the last five years.  As it is, only 20 percent of all big box product is Class A. Development has increased but has struggled to keep up with demand, and current projects underway are 46.0 percent pre-leased.
  • More than 30 leases greater than 100,000 s.f. are rolling in the next two years, and with only 13 projects in this size range under way (six of which are already pre-leased), tenants will have few options, forcing many to renew in place.
  • Rents in this product class have gone up by 28.0 percent since 2013 to nearly $0.85 p.s.f., but could exceed $1.00 p.s.f. NNN for new product in infill markets.  This could lead to a flurry of early renewals as tenants strive to lock in current rates. ​

Source: JLL Research

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