Why this matters: Vacancy rates indicate the trend in available inventory in future quarters. In each past quarter in 2024, all SoCal commercial markets experienced increasing vacancies. This trend suggests landlords and the landlord brokers will become less demanding and tenants and the tenant brokers can be more demanding.
The third quarter (Q3) 2024 reports on the Southern California (SoCal) commercial property market are in, courtesy of VOIT Real Estate Services.
SoCal’s commercial market, struggling since the 2020 recession, has landlords seeing headwinds this quarter. Vacancy rates, the percentage of a building’s space remaining for rent, increased across all sectors in SoCal markets — San Diego, Orange County, Los Angeles and the Inland Empire.
San Diego County — industrial, retail and office
San Diego County’s industrial vacancy rate is:
- 6.14% in Q3 2024;
- up from 5.70% in Q2 2024; and
- above the vacancy rate of 3.80% in Q3 2023.
San Diego County’s retail vacancy rate is:
- 4.21% in Q3 2024;
- down from 4.27% in Q2 2024; and
- above the vacancy rate of 4.06% in Q3 2023.
San Diego County’s office vacancy rate is:
- 12.90% in Q3 2024;
- up from 12.62% in Q2 2024; and
- above the vacancy rate of 11.85% in Q3 2023.
San Diego County’s industrial net absorption rate — the total change in occupied industrial space during the quarter — is:
- -128,124 square feet in Q3 2024;
- up from -230,736 square feet in Q2 2024; and
- up from -431,390 square feet in Q3 2023.
San Diego County’s retail net absorption rate — the total change in occupied retail space during the quarter — is:
- +96,653 square feet in Q3 2024;
- up from +42,328 square feet in Q2 2024; and
- down from +223,672 square feet in Q3 2023.
San Diego County’s office net absorption rate — the total change in occupied office space during the quarter — is:
- +61,086 square feet in Q3 2024;
- down from +157,409 square feet in Q2 2024; and
- up from -11,989 square feet in Q3 2023.
Orange County — industrial and office
Orange County’s industrial vacancy rate is:
- 4.40% in Q3 2024;
- up from 4.18% in Q2 2024; and
- above the vacancy rate of 2.58% in Q3 2023.
Orange County’s office vacancy rate is:
- 16.26% in Q3 2024;
- down from 16.34% in Q2 2024; and
- up from 17.47% in Q3 2023.
Orange County’s industrial net absorption rate is:
- -481,755 square feet in Q3 2024;
- down from -168,170 square feet in Q2 2024; and
- down from -200,708 square feet in Q3 2023.
Orange County’s office net absorption rate is:
- +33,181 square feet in Q3 2024, the first positive net absorption rate for the region in years;
- up significantly from -225,869 square feet in Q2 2024; and
- up significantly from -403,741 square feet in Q3 2023.
Los Angeles County — industrial
Los Angeles County’s industrial vacancy rate is:
- 5.29% in Q3 2024;
- up from 5.26% in Q2 2024; and
- above the vacancy rate of 3.20% in Q3 2023.
Los Angeles County’s industrial net absorption rate is:
- -778,339 square feet in Q3 2024;
- up significantly from -3,091,322 square feet in Q2 2024; and
- up from -1,414,571 square feet in Q3 2023.
Inland Empire — industrial
The Inland Empire’s industrial vacancy rate is:
- 7.71% in Q3 2024;
- up from 6.76% in Q2 2024; and
- above the vacancy rate of 3.93% in Q3 2023.
The Inland Empire’s industrial net absorption rate is:
- +1,227,370 square feet in Q3 2024;
- down significantly from +4,117,605 square feet in Q2 2024; and
- down from +1,506,645 square feet in Q3 2023.
