2018 Q4 Mid-Counties Industrial Knowledge Report

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2018 Ends With Rising Rents & Vacancy

Key Takeaways:

  • 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.

Outlook:

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.

 

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Greater Los Angeles Mid-Counties Industrial

2018 Q4 Mid-Counties Industrial Knowledge Report

Download Report