A comprehensive look at the 3rd quarter of the San Gabriel Valley Industrial Market.
Q3 2025 San Gabriel Valley (SGV), CA Industrial Market Summary
Market Recovery Signs
- Vacancy Rate: Down to 5.3% (from 6.4% in Q3 2024), with YTD improvement to 5.4% from 6.2% in 2024.
- Net Absorption: Strong rebound with +1.56M SF YTD; 12-month total at +2.12M SF (vs. -1.78M SF in Q3 2024).
- Leasing Activity: Robust at ~9M SF across 539 deals, indicating tenant re-entry despite elevated availability (~6.4%).
Rents & Pricing Trends
- Avg NNN Asking Rent: $1.29 PSF, down from $1.49 PSF (Q3 2024) — reflecting landlord competition.
- Sale Price PSF: $240.24, down from $285.03 in Q2 2025.
- Cap Rate: Compressed to 4.8% (from 6.1% in Q3 2024), signaling rising investor confidence.
Supply & Development
- Under Construction: 617K SF — limited pipeline, new deliveries slowed significantly.
- Total Inventory: 177.75M SF, stable with minimal additions.
Top Lease Transactions (by SF)
| Address | Size | Tenant | Industry |
|---|---|---|---|
| 120 Puente Ave, City of Industry | 272,145 SF | Sunset Distributing | Wine/Alcohol Distribution |
| 19515-19605 E Walnut Dr N | 260,000 SF | IDC Logistics | Logistics |
| 18400-18450 Gale Ave | 139,055 SF | DNA Motoring | Auto Parts (Wholesale) |
Top Sale Transactions (Portfolio Deal by TA Realty)
| Address | Size | Price | PSF | Class |
|---|---|---|---|---|
| 18537-18571 E Gale Ave | 148,408 SF | $41.1M | $276.69 | A |
| 18505-18535 E Gale Ave | 136,705 SF | $36.2M | $264.86 | B |
| 1100-1116 Coiner Ct | 81,489 SF | $20.2M | $247.72 | C |
Outlook: SGV industrial market is stabilizing with improving fundamentals, strong leasing, and moderating rents. Low construction and positive absorption support a tenant-favorable but recovering environment.
Source: Lee & Associates Research, Q3 2025
