The second quarter (Q2) 2023 reports on the Southern California (SoCal) commercial market are in, courtesy of VOIT Real Estate Services.
SoCal’s commercial market softened even further this quarter. Though demand remains higher for industrial compared to retail and office space, all commercial classes are experiencing a slowdown in activity and development.
San Diego County — industrial, retail and office
San Diego County’s industrial vacancy rate is:
- 3.12% in Q2 2023;
- up from 2.63% in Q1 2023; and
- above the vacancy rate of 1.92% in Q2 2022.
San Diego County’s retail vacancy rate is:
- 4.25% in Q2 2023;
- roughly level from 4.24% in Q1 2023; and
- slightly below the vacancy rate of 4.32% in Q2 2022.
San Diego County’s office vacancy rate is:
- 12.13% in Q2 2023;
- up from 11.80% in Q1 2023; and
- above the vacancy rate of 11.26% in Q2 2022.
San Diego County’s industrial net absorption — the total change in occupied industrial space during the quarter — is:
- -354,032 square feet in Q2 2023;
- down from -147,262 square feet in Q1 2023; and
- down from +291,044 square feet in Q2 2022.
San Diego County’s retail net absorption — the total change in occupied retail space during the quarter— is:
- +18,351 square feet in Q2 2023;
- up from -394,774 square feet in Q1 2023; and
- down from +414,640 square feet in Q2 2022.
San Diego County’s office net absorption — the total change in occupied office space during the quarter — is:
- -377,394 square feet in Q2 2023;
- down from -200,124 square feet in Q1 2023; and
- down significantly from +946,647 square feet in Q2 2022.
Orange County — industrial and office
Orange County’s industrial vacancy rate is:
- 2.02% in Q2 2023;
- up from 1.46% in Q1 2023; and
- above the vacancy rate of 1.23% in Q2 2022.
Orange County’s office vacancy rate is:
- 17.04% in Q2 2023;
- up from 16.85% in Q1 2023; and
- well above the vacancy rate of 14.50% in Q2 2022.
Orange County’s industrial net absorption during the quarter is:
- -194,101 square feet in Q2 2023;
- up from -496,325 square feet in Q1 2023; and
- down from +407,952 square feet in Q2 2022.
Orange County’s office net absorption during the quarter is:
- -499,618 square feet in Q2 2023;
- up from -1,262,288 square feet in Q1 2023; and
- down from -198,002 square feet in Q2 2022.
Los Angeles County — industrial
Los Angeles County’s industrial vacancy rate is:
- 2.91% in Q2 2023;
- up from 2.49% in Q1 2023; and
- above the vacancy rate of 1.11% in Q2 2022.
Los Angeles County’s industrial net absorption during the quarter is:
- -1,058,665 square feet in Q2 2023;
- up from -3,606,403 square feet in Q1 2023; and
- down from -100,360 square feet in Q2 2022.
Inland Empire — industrial
The Inland Empire’s industrial vacancy rate is:
- 3.17% in Q2 2023;
- up from 2.15% in Q1 2023; and
- well above the vacancy rate of 1.02% in Q2 2022.
The Inland Empire’s industrial net absorption during the quarter is:
- -381,554 square feet in Q2 2023;
- down significantly from +3,063,631 square feet in Q1 2023; and
- down significantly from +4,761,167 square feet in Q2 2022.
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