MARKET TRENDS
- Vacancy increased by 20 basis points (bps) in the first quarter to 7.3%. Following six consecutive quarters of negative absorption, the market recorded a positive shift, with North County recording 463,516 square foot (sf) of positive movement.
- There is 1.8 million square feet (msf) under construction and 808,407 sf delivered in Q1. Industrial inventory continues to rise as office buildings are redeveloped to industrial use.
- As market conditions begin to stabilize, asking rental rates have increased to $1.55 NNN in Q1, reflecting a 3.3% increase from the previous quarter and an 8.5% decrease compared to one year ago.