Los Angeles's Industrial Vacancy Decreases to 4.8%
The Los Angeles Industrial market ended the fourth quarter 2013 with a vacancy rate of 4.8%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,753,018 square feet in the fourth quarter. That compares to positive 1,764,280 square feet in the third quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,982,336 square feet.
Tenants moving into large blocks of space in 2013 include: Port Logistics Group, Inc. moving into 775,049 square feet at Grand Crossings - Bldg 18, as well as 350,022 square feet at 18215 E Rowland St, and East Lion Corporations moving into 325,049 square feet at Grand Crossing - Bldg 16.
Rental rates ended the fourth quarter at $7.67, an increase over the previous quarter.
A total of seven buildings delivered to the market in the quarter totaling 917,537 square feet, with 1,291,939 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 8.0% from the previous quarter, with net absorption totaling positive 78.93 million square feet in the fourth quarter. Average rental rates increased to $5.36 this quarter, and 150 industrial buildings delivered to the market totaling more than 18.5 million square feet.