Article: Lack of industrial space could squeeze out businesses.(Real Estate Quarterly--San Gabriel Valley)

SPACE remained tight in the San Gabriel Valley industrial market during the fourth quarter, raising concerns that expanding and relocating businesses will be forced elsewhere as the economy picks up steam.

The 185.3 million-square-foot market saw its vacancy rate remain essentially flat at 2.3 percent--just 0.1 percent higher than the third quarter and still the lowest industrial rate outside central Los Angeles, according to Grubb & Ellis Co.

Even with so little space available, only a handful of new projects have contributed additional inventory to the market. With interest rates still low, anything available in the sales market got gobbled up.

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