COVID-19 shutdown hits the Southern California industrial real estate market hard but rents and sales prices remain high for now.
As expected, the COVID-19 global pandemic and subsequent shutdown has resulted in an unprecedented contraction in economic activity with the Southern California industrial market, resulting in a decrease in overall leasing and sales activity. Despite lower levels of deal volume, certain submarkets have been affected much more severely than others. However, with continued uncertainty over the path of the virus, expect the full negative impact to unwind itself over the second half of the year as consumer spending continues to be restrained.