2018 Ends With Rising Rents & Vacancy
- Rents increased by $0.01 per square foot (PSF) triple net (NNN) over the quarter to end at $0.78. Over the past 12 months, asking rents have increased by $0.06 PSF NNN or 8.3%.
- A slight uptick in space was returned to the market vacant, with negative absorption totaling 46,900 square feet for the quarter. For the year, net absorption was positive 1,614,500 square feet.
- The vacancy rate rose 10 basis points to 1.3%. Over the past 12 months, the vacancy rate has increased 50 basis points from 0.8% at the start of the year.
- Sales and leasing activity totaled 1,784,800 square feet, which is about average each quarter for this market.
- Total construction activity stands at 129,300 square feet.
Mid-Counties Industrial Market:
The Mid-Counties remains one of the tightest industrial markets in Southern California, with a low vacancy rate of 1.3%. This has left very few options for firms looking to expand. With few construction projects in the pipeline, tenants who need to be in this marketplace will pay a premium to move into space that meets their needs.
The Mid-Counties market remains a tight infill market with no space currently under construction. Industrial demand remains at record levels for Southern California with the Mid-Counties being one of the most sought after areas for distribution and last-mile industrial uses.