Rexford Industrial Posts Strong Leasing Activity

- Rexford Industrial's performance is concentrated exclusively in Southern California's infill markets, which are characterized by high demand and extremely limited new supply. - For comparison, the Chicago industrial market saw its own strong demand in 2025, with 36.8 million square feet of new leasing and a market vacancy rate that ended the year at 4.7%. - A major industrial REIT with a large Midwest presence, Prologis, is actively converting some of its Chicago-area warehouses into high-capacity data centers, capitalizing on the growth of digital infrastructure. - When analyzing industrial REITs, investors focus on Funds From Operations (FFO) rather than net income, as FFO adjusts for real estate depreciation to provide a truer measure of cash-generating ability. - The average asking rent for industrial space in the Chicago market at the end of 2025 was $7.16 per square foot, with some submarkets like Western Kane County seeing year-over-year rent increases of over 59%. - For professionals transitioning into real estate investment, firms prioritize candidates with strong financial modeling, market analysis, and deal structuring skills; certifications like the Certified Commercial Investment Member (CCIM) are highly valued. - Midwest industrial markets, including Chicago, Cleveland, and Minneapolis, had some of the lowest vacancy rates in the U.S. in 2025, attracting investors due to their relative stability compared to coastal markets with more speculative construction. - Institutional buyers showed renewed confidence in the Chicago market throughout 2025, with investment sales volume for the year increasing by 29.7% over 2024.