MARKET TRENDS
- Vacancy increased by 60 basis points (bps) in the first quarter to 4.4%, while net absorption was negative for the fifth consecutive quarter, tallying -670,016 square feet (sf). Much of this negative movement stemmed from North County.
- There is 1.2 million square feet (msf) under construction, with 257,267 sf of new available speculative space delivering in Q1. Much of this space and future deliveries are not pre-leased which will impact vacancy rates.
- As market conditions have plateaued and vacancy rates have increased, the asking rental rate for industrial space decreased, recording $1.70 NNN in Q1, a 3.6% decrease from one quarter ago and a 4.4% decrease from last year.