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.
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.