Construction Boom Caps Off Stellar Year
- Construction completions were 16,080,900 square feet this quarter, which is significantly above average.
- The construction pipeline has been reduced to 22,339,100 square feet.
- Net absorption recorded positive 11,693,300 square feet this quarter and was 28,549,300 square feet for the year. All markets have reported positive industrial demand this quarter.
- Asking rents have increased $0.01 per square foot (PSF) triple net (NNN) to $0.82. This is a record rate for the Greater Los Angeles Basin and the pace of rent growth shows no sign of slowing.
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.