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These Experts Say SoCal Industrial Fundamentals Are Strong

Riding on e-commerce, growing demand and tight supply, the industrial market in Southern California could be the strongest in the country, according to industry leaders.

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Dedeaux Properties principal Brett Dedeaux with his children

The fundamentals for industrial are strong in Southern California, according to Dedeaux Properties principal Brett Dedeaux.

"It's the strongest industrial market in the country," Dedeaux said. "It attracts a lot of investment capital, a lot of institutional investors."

Dedeaux expects investor demand to continue to be strong in the foreseeable future. Rental rates are low, and demand is high.

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Rexford Industrial Realty CEO Howard Schwimmer

Rexford Industrial Realty CEO Howard Schwimmer echoed Dedeaux's optimism.

"We don't see anything on the horizon indicating there's going to be a slowdown or a disruption to industrial demand in the near term," Schwimmer said.

New drivers in the market are actually creating incremental demand, namely e-commerce, he said.

With initially larger buildings in the Inland Empire, now e-commerce is being led by Amazon and others in online sales that are building out the last-mile distribution hubs in the infill markets.

Amazon needs to be everywhere for its same-day deliveries.

Southern California has a little more than 2B SF of industrial space, Schwimmer said. Almost 1.8B SF of that product is in the infill markets, meaning there is little or no land available for further development in those markets.

Hear more from Dedeaux Properties, Schwimmer and other industrial experts at the Bisnow Annual Southern California Industrial Series on July 13 at the JW Marriott LA Live. 

Related Topics: Brett Dedeaux