Economic Profile - City of Cerritos

Vacancy Rate and Asking Rental RateCommercial Real EstateCerritos’ office market vacancy and rental rates are lower than those in Orange County and Los Angeles County.In the first quarter of 2010, the office market vacancy rate in Cerritos was 10.8%, which is lower than OrangeCounty (26.9%) and Los Angeles County (16.6%). Cerritos also has the lowest office market rental rate at $1.98per square foot. The overall lower rental rates in Cerritos indicates that Cerritos has competitive rates, which addsto the City’s marketability.In contrast, Cerritos has the highest vacancy rate in the industrial market at 8.9% when compared to Los AngelesCounty (3.4%) and Orange County (7.0%) . However, the asking industrial rental rate per square foot in Cerritos($0.50) is lower than Orange County ($0.65) and Los Angeles County ($0.52). The low asking rental rate of $0.50per square foot for industrial properties, combined with its access to the 91/605 Freeways, help to make theCerritos Industrial Park a prime location for industrial businesses.Office Market - Vacancy Rate and Asking Rental RateVacancy Rate20.0%18.0%16.0%14.0%12.0%10.0%8.0%6.0%4.0%2.0%0.0%$2.56$2.6216.6% $2.30$1.9813.9%$2.1310.8% 10.6%2009 Q1 2010 Q1 2009 Q1 2010 Q1 2009 Q1 2010 Q1$3.00$2.50$2.00$1.50$1.00$0.50$0.00Rental Rate (monthly per square foot)Cerritos* Los Angeles County Orange CountyVacancy Rate30.0%25.0%20.0%15.0%10.0%5.0%0.0%Indust rial Market - Vacancy Rat e and Asking Rent al Rat e$0.86$0.70$0.65$0.50$0.528.9%7.0%4.4% 3.4% 4.8%2009 Q1 2010 Q1 2009 Q1 2010 Q1 2009 Q1 2010 Q1$1.00$0.90$0.80$0.70$0.60$0.50$0.40$0.30$0.20$0.10$0.00Rental Rate (monthly per square foot)Cerritos* Los Angeles County Orange County*Note: Cerritos vacancy and rental rate data were derived from listings of properties available for lease.Sources: Grubb-Ellis and Rofo.comCerritos Economic Profile - Spring 201020