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2022 Q2 South Bay Industrial Research Report

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Overall Activity Slows as Rents Continue to Soar

The South Bay industrial market pumped the breaks in the second quarter of 2022, recording only 1.5M SF of new leasing and user sales activity, significantly lower than the quarterly average. With a sub 1% vacancy and 1.6% availability rate, South Bay will see light activity until new supply becomes available. The overall vacancy rate slightly climbed to 0.8% from 0.7% quarter over quarter but is still 20 basis points below its mark from one year ago. With the region’s extremely low vacancy, asking rents have doubled in just five years, as competition for warehouse space is at an all-time high. The Ports of L.A. and Long Beach also saw a slowdown due to the COVID-19 lockdowns in China and ongoing supply chain issues. Container trade in 20-foot equivalent units (TEUs) is down 0.3% in Los Angeles and up 3.5% at Long Beach compared to this time last year.

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2022 Q2 South Bay Industrial Research Report

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