Rexford Industrial Realty is promoting its chief operating officer to lead the company as it pivots its warehouse strategy in response to slowing industrial demand in Los Angeles.
The Los Angeles-based industrial real estate investment trust said Laura Clark will become chief executive officer on April 1, 2026, succeeding co-founders Michael Frankel and Howard Schwimmer, who will remain on the board until the 2026 annual meeting.
The leadership shift coincides with a plan to improve cash flow by pausing new warehouse development, selling some properties and redirecting capital into share repurchases and renovation projects.
The move follows more than a year of cooling tenant demand in Southern California’s industrial market, where vacancy has climbed to 6.4% in the fourth quarter from a historic low of 1.7% in early 2022, according to CoStar data.
“Our near-term priority is maximizing returns,” Clark said in a statement.
Rexford ended the third quarter with $1.6 billion in liquidity and repurchased $150 million of its own stock, while shifting its pipeline to focus only on projects meeting stronger underwriting standards.
Capital Shift
Clark said the company’s new strategy aims to align investment decisions with current market conditions, including reduced leasing velocity and shaky port-driven demand in the wake of climbing costs associated with tariffs.
The company has sold six properties so far this year totaling 488,145 square feet for $187.6 million. Another $160 million of sales is in the works.
The REIT has no acquisitions under contract and repaid $100 million in unsecured notes during the quarter, leaving it with no floating-rate debt and no major debt maturities until 2027.
Elliott Investment Management, one of Rexford’s largest shareholders, said the changes “position Rexford Industrial well for this next stage in its evolution.”
Leadership transition amid market pressure
Clark joined Rexford as chief financial officer in 2020 and was named chief operating officer in 2024. She previously held leadership roles at Regency Centers and worked in capital markets and equity research at Green Street Advisors and other firms.
She will replace Frankel and Schwimmer. The duo oversaw Rexford’s expansion from 5.5 million square feet at its 2013 IPO to a 51 million-square-foot portfolio worth nearly $10 billion today.
Clark will also join the board this month, and Rexford plans to appoint an additional independent director by the end of this year.
Rexford’s pivot comes as the Los Angeles industrial market adjusts to declining tenant demand tied to higher costs, pandemic-era population loss and the effects of retailer bankruptcies.
Tenant demand turned negative again in the second quarter after a short-lived rebound, while roughly 30% of the nearly 14 million square feet completed since 2023 remains available, according to CoStar data.
Meanwhile, asking rents are down nearly 20% from their 2023 peak and concessions have grown, though new leasing volume reached a record in the third quarter and construction remains limited, at about 3.5 million square feet underway.