Tenants continue to have limited options as vacancy remains low
Overall net absorption was positive for the ninth consecutive quarter, with demand being led by the San Gabriel Valley and South Bay submarkets, both of which recorded over 800,000 square feet (sf) of positive absorption. The overall vacancy rate, already one of the lowest in the U.S., ticked up 20 basis points (bps) over last quarter to just 1.8% regionwide. However, this is still down 30 bps from a total vacancy rate of 2.1% reported a year ago. In the third quarter, new construction deliveries struck over 1.5 million square feet (msf) as demand for new buildings continues. The largest delivery in the third quarter was The Home Depot warehouse at 13131 Los Angeles Street in Irwindale, totaling 530,000 sf.