Los Angeles Industrial & Warehouse Market Report | Q3 2026
Key Takeaways
- Los Angeles industrial vacancy rose to 4.3% in Q3 2026, up 30 basis points from Q2 and the first increase since Q4 2024. It is still 10 basis points below a year ago and well below the U.S. average of 6.8%.
- Net absorption turned negative for the first time since Q3 2024, at negative 1.5 million SF, but the year-to-date total stayed positive at 1.8 million SF. Leasing slowed to 7.6 million SF.
- Average asking rent rose $0.02 to $1.33/SF/mo NNN, the first increase since Q2 2023. It is $0.02 below a year ago and $0.38 below the 2023 peak.
- 6.5 million SF is under construction across 39 buildings, about 0.8% of a 787.9 million SF inventory, with 79.0% of it in LA North and LA South.
Browse warehouse space for rent in Los Angeles
4.3%
Overall Vacancy (Q3 2026)
$1.33
Avg. Asking Rent ($/SF/mo NNN)
−1.5M
SF Net Absorption (Q3 2026)
6.5M
SF Under Construction
Los Angeles County’s industrial market softened in Q3 2026 after seven straight quarters of positive absorption. Occupiers gave back 1.5 million SF, vacancy rose 30 basis points to 4.3%, and availability climbed to 5.8%. Pricing moved the other way. The average asking rent rose for the first time since Q2 2023, which C&W reads as a sign that rents may be approaching a floor.
Figures are from Cushman & Wakefield’s Q3 2026 Los Angeles Industrial MarketBeat unless noted. The report covers Los Angeles County only; the Inland Empire and Orange County are separate C&W markets. Prior-quarter comparisons use the figures as restated in C&W’s Q3 2026 reports, which revised Q2 net absorption up to 2.5 million SF. Rents are triple net (NNN) asking rates, quoted in $/SF per month by Southern California convention.
Market Snapshot: Q3 2026
| Metric | Q3 2026 | Q2 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy | 4.3% | 4.0% | +30 bps QoQ; −10 bps YoY (4.4% in Q3 2025) |
| Availability rate | 5.8% | n/a | First increase since Q2 2025; 45.8M SF available |
| Avg. asking rent ($/SF/mo NNN) | $1.33 | $1.31 | −$0.02 YoY; $0.38 below 2023 peak |
| Net absorption | −1,473,242 SF | 2,520,476 SF | 1,828,054 SF year to date |
| New leasing activity | 7.6M SF | n/a | −36.7% QoQ; 29.0M SF year to date |
| Deliveries | 674,332 SF | n/a | 1,435,776 SF year to date (11 buildings) |
| Under construction | 6,484,048 SF | n/a | 39 buildings |
| Industrial cap rate (Matthews/CoStar, Q2 2026) | 5.8% | n/a | Average sale price $308/SF; different data basis from C&W |
| Inventory | 787.9M SF | n/a | Base for all rates above |
Source: Cushman & Wakefield, Los Angeles Industrial MarketBeat Q3 2026. Q2 2026 and Q3 2025 values as restated in C&W’s U.S. Industrial MarketBeat Q3 2026 metro tables and the Los Angeles report. Cap rate and sale price: Matthews, Los Angeles Industrial Market Report Q2 2026, citing CoStar. n/a = not restated in the Q3 reports.
Rent Trends: Up $0.02 to $1.33, the First Increase Since 2023
The average asking rent in Los Angeles County rose $0.02 to $1.33/SF/mo NNN in Q3 2026, the first quarterly increase since Q2 2023. Warehouse/distribution space averaged $1.34 and manufacturing $1.20. Rents rose quickly in the pandemic years, then declined for a long stretch before stabilizing in Q2. The average now sits $0.02 below a year ago and $0.38 below the 2023 peak.
C&W says the increase suggests pricing may be approaching a floor. Tenants coming off older leases still face a reset, because asking rents remain well above many existing lease rates. That keeps occupiers price-sensitive, stretches negotiations and increases the use of concessions. Submarket rents run from $1.14 in LA Central to $2.47 in LA West, with LA South at $1.33 and LA North at $1.39.
For Tenants
Leverage improved this quarter. Availability rose to 5.8%, with 45.8 million SF on the market, and sublease space grew to 14.0% of the total. C&W reports continued reliance on concessions as landlords compete for tenants. LA Central offers the lowest average asking rent at $1.14/SF/mo NNN, and LA South, the most active leasing market, now has the highest vacancy of the large submarkets at 5.1%. Search Los Angeles warehouse listings on WareCRE.
Construction Pipeline: 6.5M SF Underway, 79% in LA North and LA South
At the end of Q3 2026, 39 buildings totaling 6.5 million SF were under construction in Los Angeles County. C&W still calls the pipeline relatively modest compared with many U.S. markets. Developers delivered four buildings totaling 674,332 SF in Q3, bringing year-to-date completions to 1.4 million SF across 11 buildings.
LA North (2.6 million SF) and LA South (2.5 million SF) together hold 79.0% of the space under construction. The San Gabriel Valley and LA Central took 80.3% of this year’s deliveries, led by Prologis’ 283,621 SF building in Commerce, leased to Pixior. LA West has nothing under construction. The pipeline equals about 0.8% of the 787.9 million SF inventory.
For Operators
Q3 tested landlords. Absorption turned negative and availability rose, yet asking rents still edged up. The exposure is in LA North, where 2.6 million SF is underway and year-to-date absorption is negative 1.5 million SF. LA South is in better balance, with 2.1 million SF of year-to-date absorption against 2.5 million SF under construction.
Submarket Breakdown: LA South Still Leads the Year, LA North Keeps Losing Ground
C&W tracks six Los Angeles County submarkets. The four below are the largest by inventory.
LA South
The port-adjacent submarket covering Torrance, Carson and Long Beach, 185.6 million SF. It gave back 744,614 SF in Q3 but still leads the county with 2.1 million SF of absorption year to date, and it accounted for 37.2% of Q3 leasing. Vacancy is 5.1% and the average asking rent is $1.33/SF/mo NNN. The quarter’s largest lease was ICT/Shipco’s 338,936 SF in San Pedro, and Coda Logistics took 211,446 SF in Carson.
LA Central
The county’s largest submarket at 198.6 million SF, including Vernon and Commerce. It has the lowest average asking rent in the county at $1.14/SF/mo NNN and 4.1% vacancy. It absorbed 169,068 SF in Q3 and 822,987 SF year to date, and took 23.2% of Q3 leasing. AMP Logis leased 180,601 SF in Vernon.
San Gabriel Valley
The tightest of the large submarkets at 3.3% vacancy, with 156.5 million SF of inventory. It gave back 661,123 SF in Q3, the second-largest loss after LA South, and took more of this year’s new deliveries than any other submarket, including Rexford Industrial’s 219,690 SF building in Industry. SLA, Inc. leased 220,000 SF in Industry. Rent averages $1.42/SF/mo NNN.
LA North
The northern county, including Santa Clarita and Westlake Village, at 149.6 million SF. Vacancy is 4.6% and rent averages $1.39/SF/mo NNN. It remains the soft spot. Absorption was negative 391,372 SF in Q3 and negative 1.5 million SF year to date, and it holds the county’s largest pipeline at 2.6 million SF.
| Submarket | Vacancy | Asking Rent ($/SF/mo NNN) | YTD Net Absorption (SF) | Under Construction (SF) |
|---|---|---|---|---|
| LA Central | 4.1% | $1.14 | 822,987 | 135,970 |
| LA South | 5.1% | $1.33 | 2,069,541 | 2,489,973 |
| San Gabriel Valley | 3.3% | $1.42 | -32,689 | 366,305 |
| LA North | 4.6% | $1.39 | -1,477,252 | 2,629,783 |
| Mid-Counties | 4.3% | $1.31 | 395,971 | 862,017 |
| LA West | 2.1% | $2.47 | 49,496 | 0 |
| Los Angeles total | 4.3% | $1.33 | 1,828,054 | 6,484,048 |
Source: Cushman & Wakefield, Los Angeles Industrial MarketBeat Q3 2026, market statistics table. Rents are overall weighted NNN asking rates, all product types.
Co-Warehousing & Flexible Warehouse Space in Los Angeles
Expensive traditional leases, long commitments and complex permitting make LA’s industrial market hard to enter, and a very large base of small businesses needs smaller-format space. Together they support demand for flexible units.
Co-warehousing operators in the LA metro offer units from a few hundred square feet to several thousand, typically with month-to-month or short-term terms. Properties cluster in areas like the Mid-Counties, LA Central and the San Fernando Valley, where building stock and zoning support multi-tenant layouts.
Typical flexible-space tenants in Los Angeles include e-commerce operators needing West Coast fulfillment space, entertainment and production companies that need staging and storage, food and beverage businesses serving LA’s hospitality market, and import distributors who want port-proximate space without a large traditional lease. Browse available listings on WareCRE’s Los Angeles marketplace.
Looking for warehouse space in Los Angeles?
Key Trends to Watch
1. Leasing Cooled in Q3, but Year-to-Date Leasing Is the Strongest Since 2021
New leasing fell 36.7% from Q2 to 7.6 million SF. Year to date, 29.0 million SF has leased, 6.5% ahead of 2025 and the strongest first three quarters since 2021. LA South took 37.2% of Q3 volume and LA Central 23.2%. Read more: Small-Bay vs. Big-Box: What the Vacancy Gap Means in 2026.
2. Availability Is Rising Again, Including Sublease Space
The availability rate rose for the first time since Q2 2025, to 5.8%, as direct available space grew 6.9% on the quarter. Sublease space expanded to 14.0% of all availability, giving occupiers more options. Total available space reached 45.8 million SF.
3. Port Volumes Are Holding Steady Despite Trade-Policy Uncertainty
The Port of Los Angeles handled 955,907 TEUs in August, down 0.3% year over year, and the Port of Long Beach 919,992 TEUs, up 2.0%. Year to date, Los Angeles is up 1.5% at 7.0 million TEUs and Long Beach up 1.3% at 6.7 million TEUs. C&W calls port activity resilient but says tariff and trade uncertainty still limits visibility for importers and logistics occupiers. For more, see How Tariffs Are Reshaping Warehouse Demand in 2026.
Outlook: What to Watch in Early 2027
C&W’s year-end 2026 MarketBeats are expected in mid-January.
Watch whether Q3’s negative absorption was a one-off. It ended seven straight positive quarters. C&W notes that fundamentals remain stronger than at their recent low and that year-to-date absorption is still positive. A positive Q4 would confirm that view.
Watch whether rents hold the floor. C&W says the Q3 increase suggests pricing may be approaching a floor after an extended correction. Rising availability will test that in Q4.
Watch how fast LA North’s pipeline leases. With 2.6 million SF under construction and negative absorption year to date, it is where new supply could lift vacancy locally.
Find warehouse space in Los Angeles
Browse co-warehousing, small-bay, and flex listings across Los Angeles County.
Data sources: Cushman & Wakefield Los Angeles Industrial MarketBeat Q3 2026 (headline, submarket, leasing, construction and port figures; rents NNN, $/SF/mo); Cushman & Wakefield U.S. Industrial MarketBeat Q3 2026 (restated Q2 2026 and Q3 2025 figures and the U.S. average); Matthews Los Angeles Industrial Market Report Q2 2026, citing CoStar data (cap rate and sale price only). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.
Related Resources
Frequently Asked Questions
What is the current industrial vacancy rate in Los Angeles?
Los Angeles County industrial vacancy was 4.3% in Q3 2026, according to Cushman & Wakefield, up 30 basis points from Q2 and 10 basis points below a year earlier. It remains well below the U.S. average of 6.8%. Submarket vacancy ranges from 2.1% in LA West to 5.1% in LA South.
How much does warehouse space cost in Los Angeles?
The average industrial asking rent in Los Angeles County was $1.33/SF/mo NNN in Q3 2026, up $0.02 from Q2 and $0.02 below a year ago. Warehouse/distribution space averaged $1.34 and manufacturing $1.20. By submarket, averages run from $1.14 in LA Central to $2.47 in LA West.
Which Los Angeles submarket is best for warehouse space?
It depends on the requirement. LA South is the port-adjacent logistics and aerospace hub and leads the county in year-to-date absorption and Q3 leasing. LA Central has the lowest average rent at $1.14/SF/mo NNN. The San Gabriel Valley is the tightest large submarket at 3.3% vacancy. LA North has the most space under construction, which may give tenants more options as it delivers.
How much industrial space is under construction in Los Angeles?
About 6.5 million SF across 39 buildings was under construction at the end of Q3 2026, with 79.0% of it in LA North and LA South. Developers delivered 1.4 million SF across 11 buildings in the first three quarters of 2026.
What are industrial cap rates in Los Angeles?
Matthews, citing CoStar data, reported an average industrial cap rate of 5.8% in Los Angeles County in Q2 2026, with an average sale price of $308/SF. Cushman & Wakefield’s Los Angeles MarketBeat does not publish a cap rate.
