The average asking lease rate closed Q4 2017 at $0.79 per sq. ft., an increase of 8.5% year over year. Rent growth across all class types was strong in 2017, resulting in record-high rates throughout large pockets of the GLA region.
At the end of Q4 2017, vacancy decreased by 10 basis points (bps) to 1.2%, unchanged year over year. The decrease in vacancy quarter to quarter was attributed to third-party logistics (3PLs) and distribution firms competing over quality expansion alternatives.
Over 4.1million sq. ft. of newly completed construction was delivered to the market in 2017. A majority of the newly completed construction was in the San Gabriel Valley and Mid-Counties submarkets, accounting for 39.0% in 2017.
The most active users, such as 3PLs, food, packaging, e-commerce, and general merchandise helped propel gross activity to over 40.4 million sq. ft. and occupancy gain to over 4.3 million sq. ft. in 2017.