Robust Activity Keeps Vacancy Low
Key Takeaways
- Sales and leasing activity totaled 3,867,000 square feet, which is more than double the five-year quarterly average. There were 89 leases completed for 3,406,400 square feet and 13 sales totaling 460,600 square feet.
- Asking rents rebounded after declining in the previous quarter to end at $0.87 per square foot (PSF) triple-net (NNN).
- The vacancy rate plummeted from 2.6% to 1.7%, along with availability dropping to 3.4% from 4.6%.
- Despite a strong fourth quarter, net absorption closed out the year at negative 1,663,700 square feet.
Mid-Counties Industrial Market
The Mid-Counties remain the geographic heart of Southern California, positioned centrally within one of the most populous regions of the United States. This area continues to attract the attention of developers looking for last-mile infill locations with superior freeway accessibility. Land remains scarce, and there is limited planned new building development activity.