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Five Straight Quarters Of Negative Net Absorption; Global Recession Takes Its Toll
In responding to the severe global recession, foreign nations have drastically reduced their production of export goods to the United States. Industrial demand in Southern California is closely intertwined with foreign imports. The decades long trend of import growth has reversed itself and 11% of the world’s shipping fleets are idle. Port activity at Los Angeles and Long Beach was down in February by 36 percent over the previous year.
Net absorption totaled negative 7.5 million SF and the vacancy rate has increased from 6.6% last quarter to 7.2% this quarter due to slumping industrial demand. Construction activity for the region has shrunk to its lowest level in over two years as the market continues to correct.
Contact Thomas Galvin at 909.937.6309 for more information.
  INDLAB09Q1.pdf
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