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Exclusive Listings by Lloyd
Wertheimer
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Commercial Real Estate
Westlake Village
Telephone
805.497.4557
FAX
805.496.3589
E-Mail Address
Lloyd@Westcord.com
Address
951 Westlake Blvd
Suite 101
Westlake Village, CA 91361 |
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Industrial leasing and construction was steady in Q3, according to Colliers
International. Q3 absorption was 48.4 million sf, compared to 50.3 million
sf during Q2 and 61.3 million sf of absorption in Q3 2005. Q3 industrial
vacancies in the U.S. were 8.2%, compared to 8.3% during Q2 and 8.7% during
Q3 2005. Development continues to be strong with 49.4 million sf of
industrial space completed during Q3. Industrial space under construction
fell by 5.2 million sf to 121 million sf for Q3 2006 in the U.S., marking
the first decrease in industrial construction activity since Q4 2004.
Industrial Holds Steady as Flex
Also Rebounds
Just as with the office market, the U.S. flex space market rebounded in the
second quarter as well. The flex building market recorded negative net
absorption in the first quarter but posted a healthy 8.2 million square feet of
net absorption in the second quarter. That helped drop the overall flex vacancy
rate from 12.5% to 12.2% percent.
It also helped boost overall industrial space absorption in the second quarter
to 37.5 million square feet - up more than 14% over the first quarter.
Los Angeles, the nation's largest industrial market with 1.08 billion square
feet of space, continues to suffer from its success. With a vacancy rate of just
3%, there is virtually no space available for lease in the market. The market
posted negative net absorption of 2.6 million square feet as tenants went to
surrounding markets in search of space. There is just 3 million square feet of
space under construction in Los Angeles.
In the neighboring Inland Empire, there is more than 31 million square feet
under construction. That market posted net absorption of 5.6 million square feet
in the second quarter - the largest amount in a year and the most by far of any
market in the country.
In Chicago, the second largest industrial market in the country, also with more
than 1 billion square feet, net absorption totaled 2.9 million square feet. The
vacancy rate there dropped down to single digits, ending the quarter at 9.95%.
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