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Chris Jackson Chris Jackson

Los Angeles has the lowest industrial vacancy rate in Southern California at 2.2%, according to the first quarter report from NAI Capital. We have heard about the record-low vacancy rate—and subsequently record-high rental rates—in Los Angeles for the last several quarters, but what does this low of a vacancy rate really mean? At 2.2%, the industrial market is nearly fully occupied and vacancy rates likely can’t get any lower in the market—because a 0% overall vacancy rate is unlikely. Los Angeles isn’t alone. Orange County is in second place with a 2.3% vacancy rate and Ventura’s vacancy rate fell 50 basis points to 2.6% To find out more about how this supply shortage is impacting leasing activity, we sat down with Chris Jackson, executive managing director at NAI Capital.

GlobeSt.com: The 1Q18 report shows that vacancy rates have hit 2.2% throughout L.A. What does a 2.2% vacancy rate look like in the market? Can vacancy rates get any lower, or is this basically full occupancy?

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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