Greater Los Angeles posts net absorption of 4.8msf in first quarter 2021
On the heels of two consecutive quarters of positive gains, Greater Los Angeles posted net absorption of 4.8 million square feet in the first quarter 2021, driving its overall vacancy rate down to 2 percent, 40 basis points lower than the fourth quarter 2020’s rate, reported Cushman & Wakefield.
Increased demand for last-mile facilities to accommodate ecommerce demand continues to fuel strong leasing velocity. Totaling 11.5 million square feet for the quarter, leasing was 29.9 percent higher than the same period a year ago.
The South Bay took the top spot in leasing with 2.8 million square feet — up 28.2 percent from a year ago — followed by San Gabriel Valley with 2.7 million square feet, which is up 60.8 percent from first quarter 2020’s total. Big-box deals are on the rise with 20 new deals of more than 100,000 square feet transacted in Los Angeles, which totaled 4.1 million square feet. This compares to only 11 deals totaling 2.3 million square feet in