Absorption continues to stay negative for LA Industrial

For the sixth consecutive quarter, the Los Angeles industrial market saw negative absorption. In the first quarter, overall net absorption recorded -4.5 million square feet (msf). Much of this movement stemmed from the Mid-Counties, South Bay and San Gabriel Valley submarkets, which recorded a total of -2.3 msf absorption. The largest moveouts in the Los Angeles market were Pilot Automotive who moved out of 407,600 square feet (sf) in City of Industry, WestRock who moved out of 373,370 sf in Montebello and Crane Worldwide who moved out of 300,200 sf in Compton. Overall vacancy ticked up 80 basis points (bps) over the previous quarter to 5.4%. In comparison, this is up 210 bps from the total vacancy rate of 3.3% reported a year earlier. This increase in vacancy is due to increased available sublease space as well as vacant construction deliveries.

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