2017 Q2 Los Angeles Mid-Counties Industrial Knowledge Report

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Asking Rents Increase As Space Remains Limited

The Mid Counties remains the tightest industrial market in Southern California, with a vacancy rate of only 0.6%. This has left limited options for firms looking to expand in the region. Average asking rents increased $0.02 PSF NNN over the prior quarter to $0.68 PSF NNN. Rates have surpassed their previous peak of $0.64 PSF NNN last seen in 2007.  

Key Takeaways:

  • The overall vacancy rate was 0.6%, unchanged from the previous quarter. Vacancy has remained below 1% for the last seven quarters!

  • Sales and leasing activity was 1,694,600 SF for the quarter, including 5 sales totaling 180,600 SF and 26 leases totaling 1,514,000 SF.

  • Net absorption was positive at 29,900 SF for the quarter. Low building availability is limiting the amount of net absorption that can occur.

  • There was no new space added to the market this quarter. There remains 2,092,400 SF under construction.

Outlook:

The Mid Counties market has hit a record low vacancy rate of 0.6%. This is putting upward pressure on asking rates which have hit a new market peak. Consequently, there is continued strong demand to purchase real estate assets rather than leasing them.


2017 Q2 Los Angeles Mid-Counties Industrial Knowledge Report

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