First Quarter 2008 San Gabriel Valley Indusrial Report

Vacancy Rates Begin To Ease, Average Asking Rental Rates Continue To Increase

Average asking rental rates have increased 4.2%, or $0.02, over the previous quarter to end at
$0.60 NNN PSF. Vacancy rates for the San Gabriel Valley have remained very low, ending at 1.6% for the quarter, slightly above 1.3% from the previous quarter. Average sale prices per SF for Q1 2008 have declined 5%, or $6 PSF, from the previous quarter to end at $117 PSF, down from $123 in Q4 2007. Demand for industrial space within the San Gabriel Valley remains exceptionally high and low vacancy rates continue to put upward pressure on rents

To View The Full Report: Click Here

First Quarter 2008 East Inland Empire Industrial Report

Industrial Vacancy Rate Holds Steady As Asking Rental Rates Decline

Sales and leasing activity in the first quarter totaled 5.0 million SF, more activity than occurred in the second half of 2007. This was due to several very large deals that stalled last quarter and were not able to close until the beginning of this year, such as Whirlpool’s 1.6 million SF lease in Perris. This surge in sales and leasing activity boosted net absorption to 2.8 million SF, up significantly from 583,600 SF the previous quarter although less than the 3.2 million SF from the first quarter of 2007. Recently completed space totaled 3.3 million SF this quarter. The amount of space under construction has slowly declined over the past year and now stands at 8.6 million SF, down from 10.7 million SF last quarter and down from 13.3 million SF one year ago. This gradual decrease in construction activity coincides with a softening in the overall economy and rising concerns of overbuilding. Long-term, however, tight market conditions and low levels of construction in the rest of the Los Angeles Basin will inevitably cause demand to shift to the East Inland Empire, which is the only expansion area left in the region.


To View Full Report: Click Here

First Quarter 2008 West Inland Empire Industrial Report

Activity Continues To Slow In The West Inland Empire Industrial Market

MARKET OVERVIEW
After five consecutive quarters of very strong activity, sales and leasing continued to slow in Q1 2008 in the West Inland Empire industrial market. Sales and leasing activity totaled 2.9 million SF in the first quarter, similar to the level of activity seen in the last quarter but down significantly from 4.8 million SF in the first quarter of last year. Net absorption remained negative (-621,200 SF), a rare occurrence in this market. Reasons for this slowdown appear to include a sluggish economy and adjustment to above-average activity in previous quarters.




To View Full Report: Click Here