Los Angeles industrial market maintains strong demand

In Q3 2026, the Los Angeles industrial market continued to see positive occupier movement, recording 1.4 million square feet (msf) of net absorption. This marked the second consecutive quarter of positive absorption, following last quarter’s surge in demand. Most of the positive absorption occurred in the Commerce/Vernon and South Bay submarkets, while Mid-Counties saw 300,300 square feet (sf) of negative absorption. Notable tenant move-ins included International Cargo Terminals occupying 338,900 sf in San Pedro, Circular Galaxy occupying 305,000 sf in Vernon and CODA Logistics occupying 211,400 sf in Long Beach. As a result, vacancy decreased by 10 basis points (bps) from the prior quarter to 6.7%. The stability in vacancy over the past year indicates that the market has found a bottom and is now moving toward tighter conditions.

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