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E-Commerce Continues to Fuel Industrial Market: 2018 Winter/Spring Allen Matkins/UCLA Anderson Forecast

1/31/2018

Though last June’s panel saw the Bay Area industrial market as being at its peak, events since then, including expected consumer spending increases due to the tax overhaul, have led the panelists to now conclude that will not be enough industrial space in three years, and that today’s high occupancy rates will hold or continue to rise. In turn, rental rates will increase in step with the lack of available space. In addition to import logistics, increased warehouse space will continue to be demanded by e-commerce firms. This demand has slowed a bit from its recent peak, but it is still very high throughout Southern California. With high occupancy rates and an improvement in market conditions, panelists predict an increase in rental rates and a market that will continue to drive new industrial structure construction. 

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