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SALES AND LEASING ACTIVITY REACHES NEW ALL-TIME LOW TO BEGIN 2009
As economic conditions have deteriorated over the past several months, sales and leasing activity in the San Fernando Valley and Ventura County industrial market reached a new all-time low in the first three months of 2009. With many local manufacturing firms and other industrial users
looking to survive 2009, the amount of activity seen in Q1 represented a 45% decline from the 1.1 million SF of activity seen last quarter. This activity also represented a 64% decline from the 1.6 million SF of activity seen just a year ago.
In addition to the decreased levels of sales and leasing activity, the area industrial market experienced -439,300 SF of net absorption as many small- to mid-sized industrial users chose to downsize from their current spaces in order to cut operating costs amidst a worldwide downturn in aggregate
demand. Although this amount of negative net absorption is the most amount of industrial space given back to the market since 2004, the overall vacancy rate rose to only 3.2% which represents the lowest industrial vacancy level in the Greater Los Angeles Basin. However, it important to note that the availability rate, which is the amount of available space on the market regardless of whether it is vacant or occupied, has now reached 7.3%. As a result, more industrial space is now
on the market than at any time in the last several years.
Contact Michael Soto at 213.532.3220 for more information.
  INDSFVVC09Q1.pdf
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