Demand for industrial space weakened countywide in Q3, with an increase in sublet space.
Vacancy rates are the highest since 2013 but still 200 basis points below the national average.
The decline in net absorption is the largest year-to-date drop in 15 years.
Average rents fell for the seventh consecutive quarter.
Countywide negative net absorption in Q3 totaled 1.3 million SF, bringing the annual total to 4.1 million SF, the highest since the 2008 financial crisis.
The average triple-net rental rate dropped to $1.59 per SF, down from the $1.71 peak at the end of 2023.
Q3's 5% vacancy rate is an increase from 2% in Q1 2023.
