Occupier movement remains soft for LA industrial

For the ninth consecutive quarter, the Los Angeles industrial market saw negative absorption. In Q4, overall net absorption totaled negative 1.8 million square feet (msf). Positive occupier movement was seen in the Ventura County and Mid-Counties submarkets while negative movement was seen in the South Bay, Commerce/Vernon and San Fernando Valley submarkets. Large occupier move-outs included 99 Cents Only Stores leaving 856,200 square feet (sf) in Commerce, National Road Logistics leaving 684,900 sf in Torrance and Hanson Distribution leaving 200,000 sf in Azusa. Vacancy ticked up 50 basis points (bps) from the previous quarter to 6.6%. In comparison, this is up 200 bps from the total vacancy rate of 4.6% reported a year earlier. This increase is due to a large amount of available space added to the market in buildings below 200,000 sf.

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