The Cerritos/Norwalk industrial market — which stretches from Norwalk and Santa Fe Springs in the north down through Cerritos, Artesia, and Bellflower — is holding up better than much of Los Angeles County, but it isn't immune to the same forces reshaping industrial real estate across the region. Vacancy has crept up as older buildings lose ground to newer, more efficient space, even as investment sales activity in the submarket has stayed strong.
Vacancy in the submarket stands at 6.2%, with net absorption of 55,600 SF over the past 12 months — a modest positive, but one that masks a fair amount of turnover underneath. Several large logistics tenants have vacated older buildings in favor of more modern distribution space, often trading up into Inland Empire facilities with taller clear heights and greater throughput capacity. That shift has been most visible among distributors and national retailers looking to consolidate into fewer, more efficient locations.
At the same time, most of that vacated space has been backfilled. Leasing activity has remained concentrated in smaller footprints, typically in the 10,000 to 30,000 SF range, while large blocks are scarce — only a handful of buildings in the submarket exceed 100,000 SF. Recent large leases have priced in the $1.09 to $1.47 per square foot range, triple net, depending on building quality and location.The result is a market with more give in it than it had two years ago, but one where well-positioned buildings are still finding tenants relatively quickly.
Asking rents across the submarket now average $1.28/SF, down 3.8% year over year. That pullback tracks a broader Los Angeles County trend, where weighted-average asking rents for available space remain well below their 2022 peak. The pace of decline has slowed compared to the sharper corrections of 2023 and 2024, and a more meaningful compression in vacancy — anticipated in 2027 — could mark the start of a rent recovery.For owners, this means pricing new leases realistically relative to current market conditions is more important than it was during the run-up years, particularly for buildings competing against newer product elsewhere in the corridor.
New supply continues to be the one structural advantage working in owners' favor here. No new industrial space has delivered in the submarket over the past 12 months, and only 160,837 SF is currently under construction — a single building, expected to complete by the end of 2026. An additional 55,696 SF is proposed for delivery in 2027.
Cerritos/Norwalk sits in an infill market between downtown Los Angeles and Orange County, within roughly 20 miles of the ports of Los Angeles and Long Beach, where available land for new industrial development is scarce. That scarcity limits how much new supply can compete with existing buildings — a meaningful long-term tailwind for owners, even with today's elevated vacancy.
Investment sales have told a more positive story than leasing fundamentals. Submarket sales volume reached $338.6 million in 2025, the second consecutive annual increase, and 2026 has continued at a healthy pace with $100.1 million in year-to-date volume across 16 transactions. Institutional investors and REITs have driven that activity, now accounting for more than 60% of acquisition volume in the submarket over the past three years — up sharply from historical norms. Cap rates have generally settled in the mid-5% range.
Over the trailing 12 months, 19 comparable sales closed in the submarket at an average price of $213/SF, with an average vacancy at sale of just 4.2% — a sign that buyers continue to place a premium on occupied, income-producing buildings even in a softer leasing environment.
Taken together, the data points to a submarket in transition rather than decline. Vacancy is up and rents have softened, but constrained land supply, a near-total absence of new construction, and continued institutional buying interest all support the case that Cerritos/Norwalk remains a fundamentally attractive infill location for the long term. For owners evaluating whether to hold, sell, or reposition a property, understanding exactly where a specific building sits relative to these submarket trends is the first step.
If you're an owner in the Cerritos, Norwalk, Artesia, or Bellflower area weighing a sale or simply want a clearer picture of where your property stands today, a complimentary Broker Opinion of Value is a good place to start. It's a data-driven market estimate — useful whether you're considering a sale, weighing a refinance, or planning a 1031 exchange, though a refinance will still require a separate licensed appraisal for underwriting purposes.
Q: What is the current industrial vacancy rate in Cerritos/Norwalk?
A: Vacancy in the Cerritos/Norwalk industrial submarket currently stands at 6.2%, up from historical lows but still below prior peaks.
Q: Why is vacancy rising if there's no new construction?
A: Vacancy has increased primarily because some large logistics tenants have relocated out of older buildings into newer, more efficient distribution space, often in the Inland Empire, rather than because of new supply entering the market.
Q: What are typical industrial asking rents in Cerritos right now?
A: Asking rents across the submarket average $1.28/SF per month, down roughly 3.8% year over year.
Q: Is new industrial space being built in Cerritos/Norwalk?
A: Very little. Only one building, totaling 160,837 SF, is currently under construction, with one additional 55,696 SF project proposed for 2027. Limited available land keeps new supply constrained.
Q: Is now a good time to sell an industrial property in this submarket?
A: It depends on the specific property and ownership goals. Investment sales volume has grown for two straight years and institutional buyers remain active, but every situation is different — a Broker Opinion of Value can help clarify where a specific property stands.
Market data sourced from CoStar Group, licensed to Lee & Associates.
We specialize in industrial real estate from the greater Los Angeles to the Inland Empire markets, including: Long Beach, Carson, Torrance, Gardena, Compton, Rancho Dominguez, Wilmington, Paramount, Santa Fe Springs, Huntington Beach, Garden Grove, Irwindale, Signal Hill, Pomona, City of Industry, and Ontario, serving surrounding submarkets including LA South Bay, LA Central, Mid-Counties, San Gabriel Valley, Orange County and the Inland Empire.
Ron Mgrublian
Principal, Lee & Associates Los Angeles – Long Beach
562-354-2537
CalDRE# 01902882
