The report shows that, compared to first quarter, sales and leasing activity in the county jumped 19% to 12.1 million sf from 9.8 million sf during the first quarter. The year-over-year comparison revealed an even greater increase of 31% from the 8.4 million sf during the second quarter of 2001."While all this sales and leasing activity produced substantial movement within the market," the CB report says, it produced "scant net absorption" of 846,000 sf compared to 3.6 million sf last quarter and 2.3 million sf a year ago.

Lewis C. Horne, senior managing director of the Los Angeles Region for CB Richard Ellis, says the high level of activity and low level of net absorption indicated that tenants and buyers capitalized upon the dip in the market to upgrade or purchase but did not expand.

The availability rate for industrial property in Los Angeles County dropped to 7.1% from 7.4% last quarter, despite 7.2 million square feet of new industrial projects under construction, the CB report notes. The vacancy rate remained virtually unchanged at 3.47% from 3.45% last quarter and 3.4% a year ago.