Demand Hits Pause, Will Resume Play Next Quarter
The San Gabriel Valley industrial market closed out the first quarter with 80,123 SF of negative net absorption. The overall vacancy rate increased to 0.6% from 0.3% at the end of Q2 2021, still 130 basis points below its mark from one year ago. With 216,250 SF being delivered as vacant, the vacancy rate took a slight hit but will look to rebound in the fourth quarter as this property will likely be leased before the end of the year. Average asking rents increased 16% quarter over quarter, bringing the weighted average to a historical high of $1.11 NNN PSF per month. Construction activity remains active with 1.7M SF currently underway.