Industrial landlords in Los Angeles County are facing challenges as President Trump's trade tariffs impact the industrial real estate market. After two years, the vacancy rate improved slightly to 5.8%, yet still marked an increase year-over-year. The decline in cargo volume and rising interest rates has led to a slowdown in deal activity, while rent growth has also faltered. Demand remains for Class A industrial buildings, but potential investors are adopting a cautious approach, preferring leasing to buying amidst these market dynamics.
"Industrial landlords are bracing for impacts from President Trump's trade tariffs, as they navigate a decline in vacancy rates amid ongoing trade tensions with China."
"The industrial market’s slight improvement in vacancy rates illustrates the complexities of demand tied to geopolitical events, particularly with ongoing tariff negotiations affecting cargo volumes."
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