Asking Rates Rise To Highest Point Ever
The Los Angeles Basin industrial market is the largest market in the United States, totaling more than 1.58 billion square feet. It also has some of the highest asking rental rates, as well as one of the lowest vacancy rates, of any market in the United States.
Imports at the twin ports of Los Angeles and Long Beach, which handle roughtly 40% of all imports into the country, continue to be a major industrial driver for the region. In addition, the region is the largest manufacturing center in the United States, with more manufacturing jobs than the entire state of Illinois.
- Asking rents rose to $0.70 PSF, NNN, the highest reported rental rate for the Greater Los Angeles Basin.
- The Greater Los Angeles Basin industrial market absorbed 4,78,900 square feet of industrial space this quarter with uneven gains by region. Absorption was highest in the Inland Empire at 3,417,300 square feet, while the South Bay reported 295,400 square feet of negative absorption.
- This quarter saw 11,127,200 square feet of industrial space added to the base, leading to a rise in the vacancy rate to 2.5%.
San Fernando Valley & Ventura County construction activity remained strong at 757,000 square feet. A total of 1,191,600 square feet remains under construction. The San Gabriel Valley is a tight infill market with few opportunities to develop additional industrial space. Industrial demand recorded 46,100 square feet of net absorption in Orange County. Much of this positive demand was in the North County submarket. The Inland Empire market finished the year strong, with sales and leasing activity totaling 11,314,700 square feet for the quarter, broken out into 16 sales (787,500 square feet) and 101 leases (10,527,200 square feet). Year to date, gross absorption was 42,240,200 square feet.