Tag Archives: vacancy

Vacancy Report

The vacancy rate stands at 2.1% while the availability rate is 5.4%.  Both of these figures are slightly higher than a year ago.  Los Angeles County is the largest industrial market in the nation, with over 1 billion square feet of industrial land, and the Central Los Angeles submarket maintains the lowest vacancy rate in the nation due to constant user demand for industrial warehousing space.  Chicago #2, Dallas/Fort Worth #3,  Philadelphia #4,  Detroit #5.  The five county area of Southern California maintained a three percent vacancy rate.

Investors and users have begun to exhibit cautionary behavior and thus the number of transactions have decreased.

A Few Basic Market Terms

Availability RateThe percentage of all space being marketed for sale or lease at a period of time in a given area.
Vacancy Rate The 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.