As market conditions shift, absorption stays negative

For the fourth consecutive quarter, the Los Angeles industrial market saw negative absorption. In the third quarter, overall absorption totaled -1.4 million square feet (msf). Much of this movement stemmed from the San Gabriel Valley and San Fernando Valley submarkets, which recorded a total of - 550,000 square feet (sf) absorption. The largest moveouts in the Los Angeles market were Furniture of America vacating 260,000 sf in City of Industry, ProCourier leaving 144,900 sf in Rancho Dominguez and DirectBuy furniture moving out of 230,900 sf in Gardena. Overall vacancy ticked up 30 basis points (bps) over the previous quarter to 4.0%. This is also up 210 bps from the total vacancy rate of 1.9% reported a year earlier.

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