In the second quarter, the vacancy rate had stood at 5.82%. Another highlight is that for three straight quarters, the market has absorbed more than one million sf, with the first nine months this year pushing the rate to more than 3.4 million sf. Most of the net absorption has occurred in class B and C space, an older, second-tier space that now has a 2.3% vacancy.
The third quarter marks the first in five years that no new class-A buildings had come to market. That will change in the fourth quarter when 700,000 sf of class-A industrial space will deliver.
Also noteworthy is Catellus is bringing back on line 349,000 sf near the former Stapleton International Airport, space formerly occupied by Web Van. Meanwhile, Janus Capital is subleasing its 80,000-sf building in the Prologis Upland Distribution Center rather than occupy it for its operations.
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