Blog #vacancy rates

03Nov

SGV Industrial Market Report Q3 - 2025

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)

AddressSizeTenantIndustry
120 Puente Ave, City of Industry272,145 SFSunset DistributingWine/Alcohol Distribution
19515-19605 E Walnut Dr N260,000 SFIDC LogisticsLogistics
18400-18450 Gale Ave139,055 SFDNA MotoringAuto Parts (Wholesale)

Top Sale Transactions (Portfolio Deal by TA Realty)

AddressSizePricePSFClass
18537-18571 E Gale Ave148,408 SF$41.1M$276.69A
18505-18535 E Gale Ave136,705 SF$36.2M$264.86B
1100-1116 Coiner Ct81,489 SF$20.2M$247.72C

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

San Gabriel Valley Industrial Market Report Q3-25PDF • 1573KB
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21Oct

Industrial Markets With The Lowest Vacancy Rates

The Lee and Associates Q3 2025 Industrial Market Report is out and here is a list of the markets with the lowest vacancy rates.

| Rank | Market | Vacancy Rate |
|------|--------|--------------|
| 1 | LA, Baton Rouge | 2.2% |
| 2 | KS, Lawrence | 2.4% |
| 2 | NE, Lincoln | 2.4% |
| 4 | CA, San Luis Obispo | 2.5% |
| 4 | KS, Topeka | 2.5% |
| 6 | NE, Omaha | 2.8% |
| 7 | LA, Lafayette | 2.7% |
| 8 | FL, Naples | 3.8% |
| 9 | BC, Vancouver | 3.9% |
| 9 | MN, Minneapolis | 3.9% |
| 11 | OH, Cleveland | 4.1% |
| 12 | CA, Fresno | 4.2% |
| 13 | CA, Santa Barbara | 4.3% |
| 13 | ON, Toronto | 4.3% |
| 15 | WI, Madison | 4.4% |
| 16 | AB, Calgary | 4.5% |
| 17 | MO, Saint Louis | 4.7% |
| 18 | MI, Detroit | 4.9% |
| 19 | NJ, Vineland | 5.4% |
| 20 | CA, Ventura | 5.6% |
| 20 | DC, Washington | 5.6% |
| 22 | SC, Greenville | 5.7% |
| 23 | NJ, Northern New Jersey | 5.8% |
| 23 | NY, Long Island | 5.8% |
| 23 | OH, Cincinnati | 5.8% |
| 26 | IL, Chicago | 5.9% |
| 26 | NJ, Atlantic City | 5.9% |
| 26 | PA, Pittsburgh | 5.9% |
| 29 | MO, Kansas City | 6.2% |
| 29 | TN, Nashville | 6.2% |
| 31 | FL, Miami | 6.3% |
| 32 | CA, Los Angeles | 6.5% |
| 32 | CA, Orange County | 6.5% |
| 34 | PA, Harrisburg | 6.8% |
| 35 | NC, Raleigh | 6.9% |
| 36 | FL, Tampa | 7.2% |
| 36 | TX, Houston | 7.2% |
| 38 | OH, Columbus | 7.3% |
| 39 | NC, Durham | 7.7% |
| 40 | NY, New York | 7.9% |
| 41 | PA, Lehigh Valley | 8.0% |
| 42 | FL, Orlando | 8.2% |
| 42 | NJ, Trenton | 8.2% |
| 44 | FL, Fort Myers | 8.4% |
| 44 | MA, Boston | 8.4% |
| 46 | CO, Denver | 8.5% |
| 47 | CA, Inland Empire | 8.6% |
| 48 | GA, Atlanta | 8.7% |
| 49 | WA, Seattle | 8.9% |
| 50 | CA, East Bay | 9.0% |
| 50 | IN, Indianapolis | 9.0% |
| 52 | ID, Boise | 9.1% |
| 52 | TX, Dallas-Fort Worth | 9.1% |
| 54 | MD, Baltimore | 9.3% |
| 55 | CA, San Diego | 9.4% |
| 55 | PA, Philadelphia | 9.4% |
| 57 | NC, Charlotte | 10.1% |
| 58 | CA, Bakersfield | 10.6% |
| 59 | SC, Spartanburg | 10.7% |
| 60 | CA, Stockton | 11.1% |
| 60 | NV, Reno | 11.1% |
| 62 | NV, Las Vegas | 11.4% |
| 63 | AZ, Phoenix | 12.4% |
| 64 | GA, Savannah | 12.5% |
| 65 | CA, San Francisco | 13.1% |
| 66 | TX, Austin | 13.3% |
| 67 | SC, Charleston | 15.4%


*Source: Lee & Associates Q3 2025 North America Market Report

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