Q2 2023 Industrial Market Outlook – Ventura County
MARKET OVERVIEW
In Q2, the industrial market in Ventura County experienced a notable decrease in vacant space by 9.1%
compared to Q1 2023. The high demand for warehouse-distribution space drove this decrease, depleting
the existing inventory and causing rent prices to soar. Despite the vacancy rate increasing by 40 bps from
the previous year, it remained exceptionally low at 1.4%. The average rent also rose by 11.6% year over
year, but decreased by 4-cents from its record high last quarter, reaching $0.96/SF.
TRENDS TO WATCH
The market will continue to prop up rent and sale prices while the absence of speculative construction
keeps it tight. Businesses that seek large state-of-the-art facilities will need to scour the market for
opportunities. Interest rates have risen, and this has halted industrial building sales. In Central VC, leasing
volume experienced a remarkable 204% rise year over year, while sales volume plummeted by 52.6%,
and the vacancy rate remained low at 1.5%. Similarly, in North Ventura, leasing volume decreased by
43.6% quarter over quarter, with sale volume down 71.6%, and the vacancy rate registering at 1.3%.
