Tag Archives: rate

VItal Property Stats – The Past Decade

If you want to get a quick feel for the strength of the Central Los Angeles Industrial submarket, then glance at the below chart. It shows the 3 key metrics over the past decade.

The vital property statistic that I focus on the most is our low vacancy rate at just under 4%. The Southern California industrial real estate market has generally had the lowest vacancy rate in the United States over the past decade. Why? Because demand from tenants and buyers is very strong and we are an infill market given we have run out of vacant land to construct new buildings.

Here are the definitions of the other two metrics in the chart. For a complete list of commercial real estate terms defined please see our Glossary.

Net Absorption: The square feet leased in a specific geographic area over a fixed period-of-time after deducting space vacated in the same area during the same period.

Net Deliveries: The square feet of new construction delivered to the market minus any buildings that were demolished.

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.