Orange County Industrial Market Report Q2-25

28 Jul

28Jul

Demand for industrial space declined for the tenth consecutive quarter in Q2 2025.
Vacancy rate increased to 6.1%, up from a record low of 1.8% in late 2022.
Higher vacancy rates have led to improved market conditions for tenants, with rental rates dropping over 10% from their recent peak.
Reduced demand is primarily driven by concerns over tariff impacts, contributing to decreased cargo volumes at the Los Angeles port complex.
Year-over-year container traffic in May 2025 fell by 5% at the Port of Los Angeles and by 8.2% at the Port of Long Beach.
Rising vacancies are fostering a more balanced industrial market.
The overall vacancy rate reached 6.1% at the end of June 2025, the highest since 2012.

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