South Bay Rents Rise Amidst Negative Demand
- The South Bay market finished 2019 with negative demand of 95,300 square feet, bringing 2019’s total to negative 509,200 square feet.
- Average asking rents for the overall market continued to rise, albeit less rapidly than in previous quarters, pushing up to $2.96 per square foot (PSF) full service gross (FSG) from$2.94 last quarter.
- Leasing stayed above the half-million mark with 564,500 square feet of activity recorded.
- Sales activity consisted of six sales combining for a total of $327.7 million in value.
- Worthe’s purchase of 15000 Aviation Boulevard added 216,100 square feet to the construction pipeline, which now has 957,000 square feet in development.
The outlook for the South Bay market remains positive, albeit less so than previous years. Despite this quarter’s increase, continued positive demand should push vacancy down in early 2020 due to moderate leasing activity in 2019.