MARKET TRENDS
- Vacancy increased by 80 basis points (bps) in the first quarter to 5.2%, while net absorption was negative for the sixth consecutive quarter tallying -865,937 square feet (sf). Much of this negative movement stemmed from the North County.
- There is 1.5 million square feet (msf) under construction, with 669,389 sf of new available space delivering in Q2. Much of this space and future deliveries are not preleased which will impact vacancy rates.
- As market conditions have plateaued and vacancy rates have increased, asking rental rates for industrial space decreased recording $1.61 NNN in Q2, a 5.6% decrease from one quarter ago and a 9.3% decrease from last year.