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9/14/11
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Industrial lease rates in Orange County and Los Angeles County have ticked up since the end of the second quarter, while the Inland Empire’s industrial lease rates increased for the first time since the fourth quarter of 2007. These are the latest findings from Voit Real Estate Services’ mid-third quarter 2011 reports.
“The steady improvement in lease rates is a good indicator that industrial property values may be on their way up throughout Southern California,” said Jerry Holdner, Director of Market Research for Voit. “While 2010 proved to be a stabilizing year, most market support indicators have turned positive in 2011, and these recent upticks in industrial lease rates are a clear example of that improvement.”
Voit reports an improvement in industrial lease rates in Los Angeles County in the first eight weeks of this quarter, with the average asking triple-net lease rate rising one cent since the second quarter and two cents since the first quarter to $.55 in the mid-third quarter.
The Orange County industrial market has also demonstrated improvement in the beginning of 2011’s third quarter, with the average asking triple-net lease ticking up one penny from the first and second quarter of 2011 to $.53 per month per square foot, the first increase in asking rates in the Orange County industrial market in over three years.
During the beginning of the third quarter, the Inland Empire industrial lease rate increased for the first time since the fourth quarter of 2007, rising a penny to $.35 per month per square-foot.
“On a combined basis, Southern California’s overall average asking triple-net lease jumped up a penny from the first quarter to the second quarter this year, and has held steady at the current rate of $.49 per month per square foot,” said Holdner. “The widespread increase in rates year-to-date, coupled with rising industrial lease rates in three major markets just eight weeks into the third quarter, indicate that the industry is coming off the bottom.”
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