Greater Los Angeles Industrial Figures Q4 2023

January 10, 2024 15 Minute Read

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‒ Greater Los Angeles (GLA) rates increased slightly to $1.53 triple net (NNN) per sq. ft. (PSF) quarter-over-quarter, a $0.01 increase from $1.52 PSF in Q3 2023.

‒ GLA posted net absorption of negative 659,000 sq. ft., rebounding from Q3 2023’s net absorption of negative 2.3M sq. ft. New sublease vacancies accounted for 460K sq. ft. of the total negative absorption in Q4 2023.

‒ Vacant sublease availabilities continued to apply downward pressure on the market.

‒ Investment sales were lower in Q4 2023, ending at $822M, primarily driven by selective capital investments amidst increased interest rates and higher costs associated with debt financing.

‒ New leases constituted 66% of gross leasing activity in Q4 2023, while renewals accounted for 34%. This trend held par with 2023 totals, as new leases comprised 65% of gross leasing activity, while renewals ended the year at 35% of activity.