Occupier movement remains soft for LA industrial

For the eighth consecutive quarter, the Los Angeles industrial market saw negative absorption. In Q3, overall net absorption recorded 2.2 million square feet (msf). Positive occupier movement was seen in the South Bay submarket while negative movement was seen in the Commerce/Vernon, San Gabriel Valley and Mid- Counties submarkets. Large occupier move-outs included Tri-Aire leaving 239,900 square feet (sf) in Santa Fe Springs, Newegg leaving 232,000 sf in City of Industry and NFI leaving 217,500 sf in City of Industry. Overall vacancy ticked up 40 basis points (bps) from the previous quarter to 6.1%. In comparison, this is up 200 bps from the total vacancy rate of 4.1% reported a year earlier. This increase in vacancy is due to a large amount of available space being added to the market in buildings ranging below 100,000 sf.

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