Vacancy Falls While Rents Continue To Rise
- Vacancy fell 10 basis points this quarter to 2.2% due to limited construction completions and growing industrial demand.
- Asking rents have increased $0.01 per square foot (PSF) triple net (NNN) to $0.81. This is a record rate for the Greater Los Angeles Basin, and the pace of rent growth has increased.
- Net absorption recorded positive 6,434,700 square feet for the quarter. Most markets reported positive net absorption this quarter with SFV & Ventura County being the only exception.
- Construction completions were 3,349,400 square feet, mostly contained to the Inland Empire. 36,261,400 square feet remains under construction.
Los Angeles Basin Industrial Market:
The Los Angeles Basin industrial market is the largest in the United States, totaling more than 1.6 billion square feet. It also has some of the highest asking rental rates, as well as one of the lowest vacancy rates, of any market in the nation. Imports at the twin ports of Los Angeles and Long Beach, which handle roughly 40% of all imports into the country, continue to be a major industrial driver for the region. In addition, the region is the largest manufacturing center in the United States, with more manufacturing jobs than the entire state of Illinois.