As market conditions continue shift, absorption stays negative

For the fifth consecutive quarter, the Los Angeles industrial market saw negative absorption. In the fourth quarter of 2023, overall absorption recorded -280,200 million square feet (msf). Much of this movement stemmed from the Commerce/Vernon and Mid-Counties submarkets, which recorded a total of -783,400 square feet (sf) absorption. The largest moveouts in the Los Angeles market were Avalon Cold Storage from 300,000 square feet (sf) in Compton, Furniture of America out of 260,000 sf in City of Industry and Cotton On vacating 181,000 sf in La Mirada. Overall vacancy ticked up 40 basis points (bps) over the previous quarter to 4.5%, up 220 bps from the total vacancy rate of 2.3% reported a year earlier. This increase in vacancy is due to increased available sublease space as well as vacant construction deliveries.

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