Industrial Outlook Tight

The more than 1.5 million square feet of industrial space added in the greater San Fernando Valley last year does not seem to have made a dent in the availability crunch in the region. According to a report just released by Colliers International, the vacancy rate for industrial space in the region stood at 2.9 percent at the end of 2006. The report projects that as a result of the limited availability of space, rental rates will continue to climb in 2007 at a rate of 6 percent to 8 percent. The report noted that in the Los Angeles Basin rental rates for industrial space are about 50 percent above the national average. As of the end of 2006, average asking rents for industrial space in the greater San Fernando Valley region were at $0.65 per square foot, according to Colliers.