The Los Angeles Industrial market ended the fourth quarter 2014 with a vacancy rate of 3.2%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 3,584,466 square feet in the fourth quarter. That compares to positive 3,655,443 square feet in the third quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 1,774,425 square feet.

Tenants moving into large blocks of space in 2014 include: 99 Cents Only moving into 620,000 square feet at 6100 Garfield Ave, Ceva Logistics moving into 369,750 square feet at Harbor Gateway I – Bldg A, and Huffy Bicycle Company moving into 338,899 square feet at 300 Westmont Ave.

Rental rates ended the fourth quarter at $8.18, an increase over the previous quarter.

A total of nine buildings delivered to the market in the quarter totaling 484,473 square feet, with 2,290,710 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.2% from the previous quarter, with net absorption positive 81.04 million square feet in the fourth quarter. Average rental rates increased to $5.50, and 240 buildings delivered to the market totaling almost 41.8 million square feet.