The Central Los Angeles industrial market encompasses approximately 300,000,000 square feet of building area. This market includes the well-known submarkets Vernon/Commerce and Downtown Los Angeles. The Central Market completed the second quarter with an overall (direct and sublease) vacancy rate of 1.32%, which is down from 1.56% a year ago. Factors that attributed to this market’s low vacancy rate included strong buyer and tenant demand and expanding local economy. Planned and Build-to-Suit projects that came online during the quarter represented 473,624 square feet, an increase of 265,000 square feet from the previous quarter. Leasing activity continued its upward trend, comprising 67% of the total market activity.
Availability RateThe percentage of all space being marketed for sale or lease at a period of time in a given area.Vacancy RateThe percentage of all unoccupied space being marketed for sale or lease at a period of time in a given area.Gross Lease (GRS)A lease agreement in which the stated rent being paid to the landlord includes property taxes and property insurance.Gross AbsorptionTotal number of properties leased or sold for occupancy at a period of time in a given area.Triple Net Lease (NNN)A lease agreement whereby the tenant is obligated to pay for all the operating expenses, i.e. property taxes, property insurance, and facility maintenance.