MARKET TRENDS
- Vacancy increased by 60 basis points (bps) in the third quarter to 5.9%, while net absorption was negative for the fifth consecutive quarter tallying -583,807 square feet (sf). Much of this negative movement stemmed from the North County.
- There is 1.3 million square feet (msf) under construction, with 335,518 sf of new available space delivering in Q3. 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 $1.52 NNN in Q3, a 5.6% decrease from one quarter ago and a 12.1% decrease from this time last year.