The industrial market in the greater Los Angeles area has a vacancy rate of 1.7 percent. This has increased from one year ago when the vacancy rate hovered at one percent. The Port of Los Angeles saw a 43 percent drop in container volume from one year ago. This is due to retailers pulling back on orders as the economic uncertainty continues to increase.
The San Gabriel Valley industrial market has remained strong through this uncertainty. The vacancy rate slightly increased to 1.9 percent from one percent one year ago. The average asking rent has remained strong, estimated at $1.55 per-square-foot. There is currently about 3.8 million square feet under construction in the area. Approximately 1.9M square feet is in the planning stages.
The Office Market
The office market in Los Angeles has been hit much more drastically by the financial market turmoil. The vacancy rate has risen to 22.5 percent which is up from around fourteen percent one year ago. We expect this to increase. Lease transaction activity has decreased by over twenty percent from one year ago. Sales volume for Los Angeles has fallen by 72 percent from last year.
The San Gabriel Valley office market has seen a decrease in the vacancy rate and has held relatively strong compared to Downtown Los Angeles. The vacancy rate is 7.9 percent which is down from eleven percent this time last year. The average asking rent is currently estimated at $2.36 per-square-foot on a full-service gross basis for Class B space.
If you have any questions or would like assistance in navigating your property’s value, feel free to call me at 626-358-8287 or email Linda@TopComRealty.com