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Logistics centers may be promisnig for offering commercial leases

| Aug 9, 2017 | Commercial Leases

Real estate in the Los Angeles area has been strong in past years and continues to be robust in 2017. One particular aspect of the commercial real estate market is logistics buildings. Thus, real estate investors interested in offering commercial leases may find a wellspring of opportunity in the City of Angels.

The Inland Empire area of Southern California features top-quality logistics buildings that experienced a rent jump of 4.7 percent year over year earlier this year. However, the Los Angeles market saw a jump of a whopping 9.2 percent. This information comes from CBRE, a commercial real estate investment firm.

With its 9.2 percent jump, Los Angeles was listed as being in sixth place worldwide when it came to rent increases for prime logistics properties during 2017’s first quarter.  Meanwhile, the Inland Empire area of the state ranked 21st. In addition, the rent per square feet per year in Los Angeles was $8.52, much higher than that for the Inland Empire area at $5.40.

Part of the reason the demand for logistics centers is increasing is because electronic commerce operators need about triple the space that the users of traditional warehouses need, mostly because of how their items are packaged as well as how quantity of goods they handle. In light of this, these types of buildings may be worthwhile investments in today’s real estate climate for those interested in providing commercial leases. An attorney in Los Angeles can offer guidance during even the most complex of deals to ensure that one’s real estate goals are ultimately achieved in the Golden State.

Source:, “Why Inland area remains top bargain for logistics centers“, Richard Deatley, Aug. 8, 2017