South Bay – 2024
The conventional way to look at space is by cost and square footage. Here is a chart of South Bay Rents. The range is from $1.00 per foot up to $2.50 including property taxes (per square foot/month). When we measure rents, I generally include property taxes because they can be as much as 25% of the total rent.
LAX (olive green) normally has the highest rent because of proximity to LAX and West L.A. The larger buildings are generally in Carson/Compton (magenta). The smallest spaces are in Gardena (light blue).
Many warehouse tenants measure cubic foot. They want to get the most cubic capacity for the lowest square foot price. Because they in turn will rent to their customers and will profit from on their cubic capacity. Amazon FBA is an example.
The graph below shows the lowest cost per cubic foot. It turns out most of these buildings are newer and taller. Newer buildings support higher square foot rents if a developer can deliver a lower cubic cost.
We measure different criteria including ceiling height, power, loading. This chart shows the age of industrial buildings in the South Bay. You can see the bulk of construction was in the 1970’s to early 1980’s.