The office market in San Fernando Valley and Ventura County saw total vacancy rates increase 40 basis points to 18.3 percent with net absorption of -123,600 square feet in Q3, according to Colliers International.

The rate of space givebacks continued to slow for the second consecutive quarter, but vacancy levels are already at the highest level since the dot-com bust earlier this decade.

The direct weighted average asking rent decreased for the sixth consecutive quarter to $2.37 per square foot, per month Full Service Gross, the lowest average asking rental rate seen market-wide in almost three years.

The small decrease in rents relative to what has been seen over the past 18 months may, however, be a sign that the decline in rents is moderating.

Leasing activity decreased 31 percent over last quarter to 439,100 square feet. The amount of space givebacks and increase in office vacancy were lower than expected, considering the sharp rise in vacancy levels at the beginning of the year, said the report.

Industrial Sales/Leasing

The area’s industrial market saw the total vacancy rate increase 20 basis points over last quarter to 3.9 percent. While the total vacancy rate increased only slightly market-wide, the availability rate continued to increase to a decade-wide high of 9.2 percent.

As available occupied space rolls vacant, it’s expected that vacancy rates will continue to climb to heights not seen in over a decade.

Despite the uncertainty facing most owner/users and investors, the market saw a 32 percent increase in the amount of sales and leasing activity from the previous quarter to 1.07 million square feet.

This is down 26 percent from the 1.5 million square feet of activity seen a year ago. But increased activity for the second consecutive quarter may be a sign that industrial users are finally making real estate decisions.

The vacancy rate in the area’s R