Southern California’s industrial market continued to stabilize in Q2 as leasing activity remained
steady and tenant demand gradually improved. While availability and vacancy stayed above
historical averages, the pace of new construction slowed significantly, helping to balance market
fundamentals.
Large warehouse facilities continue to face the greatest leasing challenges, with landlords
offering increased concessions to attract tenants. Meanwhile, smaller industrial properties
remain in strong demand due to limited supply and continued activity from local businesses,
manufacturers, and service users. As construction deliveries decline and leasing momentum
continues, the market is expected to strengthen gradually through the second half of the year.–
Edgar Matevosian
Commercial Real Estate Advisor
DRE02208499
eXp Commercial of California