Vacancy Ticks up Despite Strong Activity
The San Gabriel Valley industrial market closed out the third quarter with 216,625 SF of positive net absorption. The overall vacancy rate increased to 1.0% from 0.7% quarter over quarter and is now 40 basis points above the mark from one year ago. With net absorption at positive 124,422 SF for 2022, the increase in vacancy is due to a handful of new deliveries that completed without a tenant in tow. Average asking rents increased $0.02 compared to Q2, bringing the weighted average to a historical high of $1.76 NNN PSF per month. Like the rest of greater Los Angeles, the San Gabriel Valley has a historically low vacancy rate, causing exponential growth in rental rates.