Industrial Real Estate Insights

Orange County's industrial market rebounded in Q4 2025 with positive net absorption of +316,406 SF — its first in nearly three years — officially ending a record 11-quarter contraction and signaling stabilization in one of the nation's most desirable logistics hubs thanks to strong port access and moderating rents.

SoCal Q4 2025 industrial market rebalancing: vacancies 5.6–8.1% across submarkets, rents softening/stabilizing, leasing moderated with rising supply, yet strong demand from 3PLs, e-commerce, manufacturing & AI/tech—plus solid macro growth & port activity—supports 2026 expansion.

In today’s industrial site selection landscape, incentives have become the decisive factor — with reliable power, skilled labor, and aggressive policy packages (fueled by the CHIPS Act, Inflation Reduction Act, and layered state programs) now outweighing traditional drivers like land cost and logistics, transforming “Power, People, and Policy” into the new make-or-break criteria for major manufacturing, data center, and reshoring projects across the U.S.

Q3 2025 U.S. economy shows a sharp disconnect: consumer-driven GDP is tracking a robust ~3.9%, while the labor market weakens rapidly with rising layoffs and slowing hiring, leaving the Fed cautious and commercial real estate markets facing heightened uncertainty until “something’s got to give.”

Ron Mgrublian - Lee & Associates successfully sold a ±38,833 SF industrial land parcel at 1491 E Mission Blvd in Pomona, CA, featuring a versatile owner-user property with yard, office/residence, and prime freeway access.

Small-bay industrial properties (2,000–10,000 sq ft) are outperforming large warehouses with 4.2% vacancy (vs. 7.4%), rents up over 40% since 2020, and 62% of Q2 2025 sales volume, driven by reshoring, last-mile logistics, 36M+ small businesses, and structural supply scarcity in hotspots like Lehigh Valley, I-4 Corridor, and Metro Vancouver.

Q3 2025 Orange County Industrial: Vacancy ↑ to 6.2%; net absorption -869K SF (11th straight decline). Asking rates ↓ to $18.12 PSF; tenant concessions at peak. Demand up for 100K–200K SF spaces. Sales avg $343 PSF; construction ↓ to 2.0M SF.

A comprehensive look at the 3rd quarter of the San Gabriel Valley Industrial Market.

Lee & Associates proudly announces the sale of a ±9,311 SF turnkey industrial building at 10843 Los Vaqueros Cir in Los Alamitos, featuring 18–19’ clear height, dual loading doors, and a paved yard, with buyer representation by Ron Mgrublian, MBA.

The Industrial Market Insights for South Bay, Midcounties, Central and Inland Empire are in for the 3rd Quarter 2025

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

Understand how the commercial real estate market navigates the impact of enduring elevated interest rates.