Los Angeles industrial shifts back to positive absorption

In Q3 2025, the Los Angeles industrial market reverted to positive absorption, totaling 2.6 million square feet (msf). Nearly all submarkets experienced growth in occupier activity, with the exceptions of Central Los Angeles and the San Fernando Valley. Most of the positive absorption stemmed from the Commerce/Vernon and San Gabriel Valley submarkets. Notable tenant move-ins included Sino Investments occupying 504,000 square feet (sf) in Pomona, Million Dollar Baby occupying 335,600 sf in Pico Rivera and Moreno Bath occupying 204,000 sf in Commerce. As a result, vacancy declined by 10 basis points (bps) from the previous quarter to 6.9%. Vacancy remains up 80 bps compared to the 6.1% recorded one year earlier and is highest in buildings over 200,000 sf.

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