Asking Rates Hit All Time High
- Asking rents have increased $0.02 per square foot (PSF) triple net (NNN) to $0.74. This is a record rate for the Greater Los Angeles Basin.
- Construction completions were above average this quarter as 11,828,300 square feet was added to the base. There remains 26,795,200 square feet under construction.
- Vacancy rose 30 basis points to 2.5% due to construction completions. Vacancy is likely to fall next quarter as less new construction is brought to market.
- Net absorption recorded 5,637,100 square feet for the quarter and 27,549,800 square feet for the year.
The Los Angeles Basin industrial market is the largest in the United States, totaling more than 1.6 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 nation.
Imports at the twin ports of Los Angeles and Long Beach, which handle roughly 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.