Los Angeles, CA Industrial Market Report Q3 2026
New Supply Falls 58% While Rent Falls 3.6% Year Over Year
Demand
During Q3 2026, the Los Angeles market absorbed 1.14M SF, against -462K SF in the same quarter last year. Vacancy is 6.5%, 6 bps looser than Q3 2025. East/Outer LA County is the tightest submarket at 0.0% vacancy; Westside/LAX posted the smallest rent decline at -2.8%. Trailing-12-month absorption of -996K SF compares with -4.39M SF a year earlier. Asking rent of $17.46/SF is down 3.6% year over year and 6.9% below the Q4 2023 peak of $18.76/SF. Vacancy sits 476 bps above the Q1 2022 low of 1.7%.
Supply
Los Angeles delivered 707K SF in Q3 and 2.79M SF over the trailing twelve months (-58% versus the prior TTM period). Space under construction equals 0.4% of inventory, concentrated in Antelope Valley at 2.1% of its stock. Annual deliveries peaked at 12.81M SF in 2001. Q3 deliveries were less than half of last year’s 2.19M SF.
Investment Market
Sales activity generated $6.6B in transactions over the trailing twelve months, +23% against the prior TTM period; Q3 accounted for $1.98B. The high-water mark in this series is $10.4B in 2021. Cap rates across Los Angeles average 5.51%, up for 18 straight quarters. Pricing sits at $312/SF. The cap rate is 120 bps above the Q1 2022 low of 4.31%.
Volume
- $6.6B TTM volume (+23% YoY)
- Q3 2026: $1.98B
- Series peak $10.4B (2021)
Pricing
- Cap rate 5.51%
- Price per SF $312
- Caps expanding 18 quarters running
