Occupier movement remains soft for LA Industrial

For the seventh consecutive quarter, the Los Angeles industrial market saw negative absorption. In the second quarter of 2024, overall net absorption recorded negative 334,661 square feet (sf). Positive occupier movement was seen in the San Gabriel Valley and Ventura County submarkets while negative movement was seen in the Commerce/Vernon and Mid-Counties submarkets. Large occupier move-outs included 99 Cents Store leaving 615,000 sf in Commerce, VF Outdoor leaving 352,500 sf in Santa Fe Springs, and Huffy Bicycle leaving 334,000 sf in San Pedro. Overall vacancy ticked up 30 basis points (bps) from the previous quarter to 5.7%. In comparison, vacancy is up 200 bps from the total vacancy rate of 3.7% reported a year earlier. This increase in vacancy is due to increased available sublease space as well as vacant speculative deliveries.

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