While industrial leases signed in LA remains consistent, volume is down from the previous quarter
All submarkets within LA saw a significant decrease in total square footage leased in Q1 2019 when compared to Q4 2018.
March 19, 2019
- All submarkets within LA saw a significant decrease in total square footage leased in Q1 2019 when compared to Q4 2018, with Mid-Counties seeing the largest drop.
- The most significant decrease was in the 50-100k lease size range, with nearly 1.5 million square feet less of leases signed compared to the previous quarter.
- There is continued strength in the 10-50k size range. With such high demand for e-commerce and last mile logistics, there is a significant need for retailers to lease space within the dense LA market in order to meet these demands.
- There were only eight leases over 100,000 square feet signed this quarter, compared to 22 leases over 100,000 square feet last quarter. The largest lease this quarter is 267,000 square feet, whereas last quarter’s largest transaction total 631,000 square feet. This has brought the average lease size down from 60,000 square feet in the fourth quarter to 39,000 square feet this quarter.
- The overall count of leases signed is relatively similar to last quarter, and with a few weeks left in Q1 it is possible to see the amount of leases signed surpass last quarter. However, with the lack of big box leases signed this quarter, leased square footage will likely remain lower than Q4 2018.
Source: JLL Research