Los Angeles industrial shifts back to negative absorption

In Q4 2025, the Los Angeles industrial market reverted to negative absorption, totaling -2.0 million square feet (msf). Nearly all submarkets experienced negative movement in occupier activity, with the exceptions of the Mid-Counties and Ventura County submarkets. Most of the negative absorption stemmed from the Antelope Valley and San Fernando submarkets. Notable tenant move-outs included Rite Aid vacating 927,000 square feet (sf) in Lancaster, HD Supply vacating 248,000 sf in Pomona and JCR Logistics vacating 184,000 sf in Santa Fe Springs. As a result, vacancy increased by 20 basis points (bps) from the previous quarter to 7.1%. Vacancy remains up 40 bps from one year ago and is highest in buildings over 300,000 sf.

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