The resolution of the supply chain disruption stemming from last year’s Japanese tsunami had a ripple effect across the Pacific: a healthy fourth quarter for the San Gabriel Valley industrial market.

As Japanese companies began to get back into full production and ship exports to Los Angeles, the import-dependent market saw about a half-million square feet of industrial space absorbed, and sales-and-lease activity rise 60 percent to 5.3 million square feet, according to Jones Lang LaSalle Inc.

“Typically, fourth quarter is dead, but this year even at Christmas time we were still pretty busy,” said Dennis Keane, a senior associate at Lee & Associates in City of Industry.

The valley’s proximity to the Inland Empire, a retail distribution hub in a strengthening economy, also helped the market, which saw vacancy rates drop four-tenths of a point to 5.4 percent since the prior quarter.

And still low asking rents that have held steady for the past year at about 42 cents a square foot were leading tenants to lock in longer-term lease deals, and causing landlords to back off of concessions offered during the depths of the recession.

“The landlords used to pick up improvement costs or make concessions like one month free rent per year to secure deals, but those days are going bye-bye,” Keane said.

In comparison, the South Bay market, which is closer to the ports, has average asking rents of 57 cents.

With the valley as strong as it is, Keane doesn’t even expect several large leases that are set to expire in the second quarter to soften up the market.

“I think we’ll see multiple tenants vying for some expiring leases over 100,000 square feet, and that’s going to be good for the market,” he said.

Nicole Page, an industrial broker with Jones Lang LaSalle, predicted that the market will continue to strengthen in the second quarter as retailers begin warehousing new inventory after holiday sales are reviewed. Still, she doubted the market is strong enough for landlords to significantly raise asking rents.

Meanwhile, low building prices and interest rates continued to fuel the sales market. In fact, the largest sale of the year, Page said, was a 649,926 square foot warehouse space at 5305 Rivergrade Road, Irwindale, that was acquired by LBA Realty for $43.5 million, or $66.93 per square foot, from TA Associates Fund V.

MAIN EVENTS

• Overton Moore Properties disposed of two locations in two separate owner-user sales in the City of Industry. Asia Direct Home Products Inc. purchased a 96,888-square-foot building at 760-780 N. Baldwin Park Blvd for $85 per square foot. The new owners relocated from City of Commerce. American Foam, Fiber and Supplies Inc. purchased a 92,488-square-foot building at 13280 Amar Road for $74 per square foot.

• Liberty Gloves and Safety, a wholesaler of safety gloves and apparel, renewed its lease on a 181,500-square-foot warehouse at 433 Cheryl Lane in the City of Industry. The lease runs for seven years. The property owner is San Francisco-based industrial developer Prologis Inc.

• Fashion label Michael Kors moved into a 613,375-square-foot distribution center at 3777 Workman Mill Road in the City of Industry. The company’s move, from the South Bay, consolidates its local operations. KTR Capital Partners bought the property in April 2011.

• LBA Realty, an Irvine developer, acquired 5305 Rivergrade Road in Irwindale for $43.5 million from TA Associates Fund V, which was liquidating its assets. The major tenant of the 649,926-square-foot property is Warnaco Group Inc., which manages distribution for fashion brands including Calvin Klein, Chaps and Speedo.

• Davenport Partners purchased a 79,000-square-foot building at 100 N. Citrus St. in West Covina for $7 million, or $89 per square foot, from Positive Investment Inc. The six-story property formerly housed a Washington Mutual bank branch.