Leasing Activity Ramps Up Despite Economic Headwinds
The Central Los Angeles industrial market closed out the third quarter with 11,638 SF of negative net absorption. The overall vacancy rate increased to 0.6% from 0.5% quarter over quarter but is still 70 basis points below its mark from one year ago. Despite another quarter of negative absorption, gross activity surpassed 2M SF, a level not seen in over 12 months. Average asking rents continue their meteoric rise, up 46% from this time last year and 144% above the mark from five years ago. Industrial demand is heavily concentrated in the Vernon and Commerce submarkets, with food production and apparel manufacturing remaining the top industries.