Cushman & Wakefield was recently named the top industrial property management firm by the Los Angeles Business Journal, ranked by total industrial square footage managed in LA County.
Overall, property management firms tightened their grip on LA’s industrial market, adding 3.6 million square feet – nearly 4% – to their inventories last year. Coming in at No. 1 in the industrial sector was Cushman & Wakefield with 17.2 million square feet of local space under management, about 2% of LA County’s overall 800 million-square-foot industrial market, according to Los Angeles Business Journal reporter Shwanika Narayan.
Karinna Cassidy, Senior Managing Director, Asset Services, says that the LA industrial market continues to attract both local and out-of-state investors. Cassidy, the only female head of Asset Services in the list of the top 10 industrial firms, explains that Cushman & Wakefield’s growth through M&A activity and addition of talent is key to the firm’s success.
“We’ve grown our business through strategic acquisitions of other property management firms, growing our Americas Asset Services platform from 600 to 700 million square feet over the past year,” Cassidy says. “Through these acquisitions, we’ve made a priority of recruiting and developing top talent to reinforce our client-centric culture, with a focus on integrating new employees from acquisitions into the firm’s culture and to our platform’s best practices.”
Since the DTZ/Cushman & Wakefield merger, and with several other acquisitions, the firm’s Asset Services platform has expanded to 12 new markets, including a first-time presence in Canada, enhancing the ability to provide services to clients in key geographies.
According to Cushman & Wakefield’s 2017 Q4 Industrial MarketBeat Report, LA has one of the lowest industrial vacancy rates of any major U.S. industrial market. The strong demand for industrial space has generated rent growth in markets across the region, and available Class A and B product are being leased quickly at high rents.
In looking at the industrial outlook for LA in 2018, Cassidy sees the market continuing to perform well.
“Industrial is a red-hot asset class right now, partly due to the need for last-mile facilities and distribution centers. Factors such as rising land and construction costs, along with the high demand for industrial, will be key to driving rent growth. The Port of Los Angeles recorded the highest volume in its history for year-end 2017, proving that demand remains strong. New developments and new absorption were at near equilibrium, which also contributed to our healthy and stable industrial market.”
For more information, visit www.cushmanwakefield.com/en/services/property-asset-management/.