South Bay Rents Continue to Set New Highs
The South Bay industrial market closed out the fourth quarter with 294,882 SF of positive net absorption. The overall vacancy rate decreased to 0.4% from 0.5% quarter over quarter and 190 basis points below its mark from one year ago. With the region’s extremely low vacancy, asking rents have dramatically increased and competition for warehouse space is at an all-time high. The Ports of L.A. and Long Beach continue to work their way through the historic backlog of cargo ships that can be seen from much of the Southern California coastline. Container trade in 20-foot equivalent units (TEUs) is up 18.7% in Los Angeles and up 18.3% in Long Beach compared to 2020.