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Article: Office market still flagging as demand fills industrial space.(REAL ESTATE QUARTERLY--South Bay)
- Article from:
- Los Angeles Business Journal
- Article date:
- April 25, 2005
- Author:
CopyrightCOPYRIGHT 2005 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CONTINUING demand for port-related space pushed already-low vacancy rates in the South Bay industrial market even lower.
Vacancies fell to 2.5 percent in the first quarter, from 2.6 percent in the previous three months and 4.1 percent in the first quarter of 2004, according to Grubb & Ellis Co.
Sales and lease activity totaled 2.5 million square feet, and net absorption neared 300,000 square feet as customs brokers and logistics firms tried to accommodate a surge of goods from Asia.
Meanwhile, the South Bay's office market remained the worst-performing sub-sector in Los Angeles in recent quarters.
Office vacancies in the area stretching ...