CALIFORNIA
REAL ESTATE JOURNAL

Report Shows Modest Dip in L.A. Industrial Building Sales and Leasing
LOS ANGELES, CA -- Reflecting a moderate slowdown in Los Angeles Basin industrial property activity in recent months, the American Industrial Real Estate Association (AIR) reports that building space leased and sold during the second quarter declined by eight percent compared to the previous quarter, although three regions -- the South Bay, Ventura County and Orange County -- posted notable gains.
AIR's "Bulletin Statistics", based on information reported by over 1200 association brokers, shows that in excess of 13.5 million sq. ft. of industrial space was leased and sold during the second quarter. This compares to 15 million sq. ft. absorbed during the first quarter.
AIR figures reveal that 9.65 million sq. ft. of space was leased during the just completed quarter, while 3.9 million sq. ft. was sold.
Though most submarkets in the Los Angeles Basin showed slight decreases in absorption, AIR reported that the South Bay paced regional gainers with 2.2 million sq. ft. leased, nearly double the space leased in the first quarter. Space sold in the South Bay decreased by only 4000 sq. ft..
Ventura County, meanwhile, reported a dramatic gain in industrial space sold during the second quarter, rising to 1.04 million sq. ft. from just 79,130 sq. ft. in the previous quarter. Total space sold and leased in Ventura County hit 1.5 million sq. ft.
Orange County almost doubled the amount of industrial space absorbed during the second quarter, totaling approximately two million sq. ft. This compares to just over one million feet in the first quarter.

Other "Bulletin Statistics"highlights include:

  • The Westside experienced a 20 percent dip in space absorbed, along with a 30 percent drop in lease rates, and nearly a $10 per square foot decline in sale rates.
  • San Bernardino County dropped approximately 300,000 sq. ft. in space absorbed, but maintained its area-low property rate of $.48 per sq. ft. for leased space.
  • Central Los Angeles activity remains healthy with over two million sq. ft. leased and sold, compared to some 2.6 million in the first quarter.