| |
|
RISING VACANCY & MEAGER ACTIVITY SHOWS INDUSTRIAL MARKET HAS YET TO HIT BOTTOM
At mid-year 2009, fundamentals in the San Fernando Valley & Ventura County industrial market took a turn for the worse with net absorption of -947,100 SF as industrial users gave back space in droves due to difficult business conditions. With the total vacancy rate increasing 50 basis points from 3.2% last quarter to 3.7% in Q2, it appears that the full effect of the most severe recession in decades has finally taken its toll.
Despite the uncertainty facing most owner/users and investors, the market saw a 39% increase in the amount of sales and leasing activity from the previous quarter to 820,500 SF. While this is still down 42% from the 1.4 million SF of activity seen just a year ago, the uptick in activity is a
welcome sign amongst weakening fundamentals.
The vacancy rate in the area’s R&D market increased 40 basis points from 10.3% last quarter to 10.7% in Q2. Like in the area’s industrial market, sales and leasing activity was also up from 73,700 SF in Q1 to 176,000 SF in Q2.
Contact Michael Soto at 213.532.3220 for more information.
  INDSFVVC09Q2.pdf
Email Report Link To Your Friend
|
|