Article: Defense conversions lead to lower South Bay industrial vacancy rates.(Special Report: Real Estate)

The South Bay's conversion from defense-oriented manufacturing to civilian industry is in full swing, according to the latest industrial real estate numbers.

Non-defense manufacturers are streaming back to industrial areas abandoned in the early 1990s by aerospace and defense companies, real estate brokers said. At the end of the first quarter, the vacancy rate for industrial facilities in the South Bay area was 10.2 percent, down from 11.5 percent at the end of 1994, according to researchers with Grubb & Ellis Co.

The metamorphosis of Hughes Electronics Co. serves as an example of the changing nature of South Bay industry. Although the aerospace ann of the ...

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