How to Get More Industrial Product to the L.A. Market
There is a severe dearth of industrial supply in Los Angeles, but there are ways of getting more supply to the market. Constructing multi-story industrial facilities are one way to bring more supply to the market. These projects are already going up in other dense markets as well as overseas, and could be a perfect solution to Los Angeles’ need for more industrial product. However, the solution is bigger than simply building more space.
“Multi-story warehouses are coming,” John McMillan, vice chairman at Newmark Knight Frank, tells GlobeSt.com. They must, because we don’t have any dirt available and large redevelopment sites are extremely rare. Multistory industrial properties are common in Asia due to a lack of land.
While multi-story industrial is a solution to the tight supply—driven by limited developable land and high construction costs—McMillan says that local governments should also support the growth of the industrial market in the city. “Not everyone can operate from the Inland Empire,” he says. “We need to work on convincing the local municipalities throughout Los Angeles County that we all benefit from industrial jobs. They should promote and welcome industrial development. Some cities do, but many don’t.”
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