As market conditions shift, absorption stays negative

For the third consecutive quarter, the Los Angeles industrial market saw negative absorption. In the second quarter, overall absorption recorded -1.6 million square feet (msf). Much of this movement stemmed from the Los Angeles Central and South Bay submarkets, which recorded a total of -2.0 msf absorption due to large occupier move-outs and soft container volume activity at the nearby ports of Los Angeles/Long Beach. Overall vacancy ticked up 40 basis points (bps) over the previous quarter to 3.7%. In comparison, this is up 190 bps from the total vacancy rate of 1.6% reported a year earlier.

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