Why I Think LA Warehouses Will Be Worth Much More in 10 Years
America is rebuilding its manufacturing base, Los Angeles isn't making more industrial land, and owner-users continue to pay a premium for it. This North Hollywood warehouse sale shows why I believe industrial remains one of the best long-term investments in Southern California.
At a glance
confirmed
initial ask
seller conceded
34,663 gross SF
62,726 lot SF
steel frame, 1-story
62,726 SF
heavy industrial
above ULA threshold
Bohlinger Diversified LP
not an investment sale
surface
What matters
- Industrial land is finite. Zoning changes reduced the amount of usable industrial land over time. There is a shortage of land to build warehouses.
- New supply is difficult. Just like MF, construction costs make replacement expensive and slow.
- Owner-users create a pricing floor. Businesses buy for operational control, not just investment yield. It makes it hard for an investor to buy and lease these out.
- Industrial Is the Backbone of the Economy. Los Angeles remains the logistics gateway to the Pacific.
What an Operator Sees
Industrial real estate has one advantage that few other asset classes can match:
It serves the real economy.
Every package delivered, every contractor dispatched, every product assembled, every cabinet built, every movie set fabricated, every HVAC company, plumbing supplier, and electrical distributor needs buildings like this. Construction costs continue to rise. Yet businesses will always need places to manufacture, distribute, store inventory, and service customers.
As long as Los Angeles continues to grow and businesses continue to operate, demand for functional industrial space isn't going away. Los Angeles isn't making more industrial land. Manufacturing is returning to the U.S. Supply chains continue to evolve. Every business still needs a place to build, repair, store, assemble, distribute, or service products.
I track every commercial real estate sale in Los Angeles so you don't have to.
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Offering Memorandums: David@AtlasBrief.LA
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Appeared in the July 6, 2026 edition of The Tape.