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MARKET CORRECTION CONTINUES BUT RATE OF SPACE GIVEBACKS MIGHT BE SLOWING
After a year which saw the industrial market vacancy and availability rates rise in the San Fernando Valley & Ventura County to levels last seen during the last recession, the market surprisingly saw positive net absorption for the first time in over a year with +17,700 SF. Despite this small amount of positive net absorption, area firms have given back over 2.0 million SF of industrial space to the market vacant in 2009. The market also saw 1.07 million SF of sales and leasing activity. The relatively higher level of sales and leasing activity seen in the second half of 2009 is a continued
sign that the area industrial market is ending the year with more transactional velocity as industrial users are now taking advantage of the favorable pricing in the market.
Weighted average asking rental rates continued to decrease ending the year at $0.58 per square foot, per month Triple Net (NNN). In addition, average sales prices PSF continued to decrease from $136 PSF reported in Q3 to $129 PSF in Q4. While these represent lows not seen since earlier this decade, the aggressive pricing is finally starting to manifest itself with more interest from local companies to finally make decisions with regards to their real estate.
The vacancy rate in the area’s R&D market decreased to 11.6% in Q4. Sales and leasing activity decreased from 217,500 SF in Q3 to 100,700 SF in Q4.
Contact Michael Soto at 213.532.3220 for more information.
  INDSFVVC09Q4.pdf
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