Los Angeles Industrial Market Report

Developers respond to changing conditions. Los Angeles’ industrial sector entered the second half in a challenging spot. The metro’s vacant stock has tripled since mid-2022, raising vacancy to its highest point in more than a decade. This dynamic, alongside elevated borrowing costs, is impacting the development pipeline. Specifically, the volume of space slated for second half completion will be the lowest total for a July-December span in four years. Beyond this, just 1.75 million square feet was slated for 2025 delivery as of July, a tally that would be the lowest in 15 years. Annual totals may be even lower moving forward, as heightened vacancy is impacting proposals. As of July, a minimal number of projects were planned across the metro’s largest submarkets, a potential aid to owners with available space.