Single asset industrial sale prices continue to reach new heights
- The average sale price for Southern California industrial product has been on an upward trend since 2011 and is now at an all-time high. Los Angeles industrial is shaping up to be the most expensive market as the average sale price for single assets has reached $235.34 per square foot.
- Los Angeles County sale prices are now 70 percent higher than the national average and about 16.1 percent higher than the second-tightest industrial market in the region, Orange County. However, the highest growth in sale prices occurred in the Inland Empire, increasing by 91.6 percent in the last five years. In comparison, Los Angeles increased by 63.1 percent, Orange County by 43.3 percent, and by 17.0 percent in San Diego.
- Scarcity of opportunities and continued rent growth are driving sale prices higher but, despite the historical high prices, buyers remain eager to purchase any available quality product in the region.
Source: JLL Research, RCA (transactions larger than $5.0 million)