As market conditions shift, absorption stays negative

For the second consecutive quarter, the Los Angeles industrial market saw negative absorption. In the first quarter, overall absorption recorded negative 3.7 million square feet (msf). Much of this movement stemmed from the South Bay submarket, which recorded at negative 1.3 msf due largely to the drop in overall container volume at the nearby Port of Los Angeles. In February, the Port of Los Angeles saw a 43.1% year-over-year drop in container volume. Overall vacancy ticked up 90 basis points (bps) over the previous quarter to 3.2%. In comparison, this is up 170 bps from the total vacancy rate of 1.5% reported a year earlier.

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