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More Of The Same: Vacancy Rises, Rental Rates Decline As Industrial Demand Wanes
Firms have continued to contract in the San Gabriel Valley industrial market as the global economic recession continues. The total vacancy rate for industrial space has increased 0.5% over the previous quarter to end at 6.5%, the highest vacancy rate in over 4 years.
Much of this decline can be attributed to weakness in the largest building category in the Industry submarket, which has built itself to be a logistics warehouse hub in the heart of Southern California.
Large buildings in the Industry submarket account for almost 40% of the industrial space in the San Gabriel Valley and over the past year the vacancy rate for this space has grown from 2.7% in Q2 2008 to now stand at 7.7%. Any meaningful recovery at the macro level for the San Gabriel Valley industrial market will occur once conditions improve for warehousing and distribution tenants in the Industry submarket and vacancy rates decline to a more reasonable level.
Contact Thomas Galvin at 909-937-6309 for more information.
  INDSGV09Q2.pdf
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