Rents Jump 18%, Setting a New High-Water Mark
The San Gabriel Valley industrial market closed out the first quarter with 242,891 SF of negative net absorption. The overall vacancy rate increased to 0.6% from 0.4% quarter over quarter and is still 60 basis points below its mark from one year ago. Average asking rents increased 18% quarter over quarter, bringing the weighted average to a historic high of $1.41 NNN PSF per month. Construction activity remains active with 2.5M SF currently underway. Like the rest of greater Los Angeles, the San Gabriel Valley has a historically low vacancy rate, which is causing exponential growth in rental rates.