New industrial leases are officially more expensive than ever, with the average new lease clocking in at $1.45 more per square foot than in-place deals.
Data from CommercialEdge shows that the gap between the average lease rate and leases signed over the last 12 months "has never been higher," creating a "hefty premium for new leases and signaling that average rents will likely continue to grow at a fast clip over the coming years.
The largest gap can be observed in Southern California, with the delta between new and existing leases coming in at $4.89 in Los Angeles, at $4.56 in the highly desirable Inland Empire region, and at $4.38 in Orange County. It's a similar story in other coastal port markets like New Jersey ($3.76), Boston ($2.50) and Miami ($1.75).
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