The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,191,632 square feet in the fourth quarter. That compares to positive 2,934,441 square feet in the third quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 877,167 square feet.
Tenants moving into large blocks of space in 2014 include: Walmart Distribution moving into 1,200,000 square feet at 2785 Commerce Center Blvd, Ocean Spray moving into 980,000 square feet at West Hills Business Center - Building A, and Kane Warehousing, Inc. moving into 955,935 square feet at Distribution Center 6 (Kane is Able).
Rental rates ended the fourth quarter at $4.51, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 327,200 square feet, with 16,734,334 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.2% from the previous quarter, with net absorption positive 81.04 million square feet in the fourth quarter. Average rental rates increased to $5.50, and 240 buildings delivered to the market totaling almost 41.8 million square feet.
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