Compton remains one of the most tightly held infill markets in the Los Angeles industrial corridor, but 2026 has brought a notable shift in fundamentals. Vacancy has risen, rent growth has turned negative, and sales activity has slowed from the highs of 2022–2024. For property owners, tenants, and investors tracking the submarket, here's a breakdown of where things stand.
As of the third quarter of 2026, the Compton industrial submarket carries a vacancy rate of 10.1%, up 0.9 percentage points year over year. That's a meaningful move above the submarket's five-year average of 5.2% and well above the 10-year average of 3.5%. Vacancy is forecast to end 2026 at roughly the same level.
The availability rate stands at 12.0%, with approximately 2.0 million square feet of space currently listed as available across the submarket's 17.0 million square feet of total inventory. Compton's inventory breaks down into approximately 14.2 million SF of logistics space, 2.7 million SF of specialized industrial space, and 160,000 SF of flex space.
Net absorption has been negative for the trailing 12 months at approximately (143,000) SF, driven primarily by give-back in the logistics and specialized segments.
Leasing activity in Compton has been concentrated among smaller and mid-sized industrial buildings over the past year. Among the most active properties, a handful of 3-Star buildings in the 50,000 to 230,000 SF range accounted for the bulk of leased square footage, including full-building leases at properties along Walnut Street, Carlin Avenue, and Artesia Boulevard.
Market asking rents in Compton currently average $1.30/SF per month across all product types. By segment, logistics space is averaging $1.30/SF per month, specialized industrial space is averaging $1.22/SF per month, and flex space is averaging $1.95/SF per month.
Rents have declined 4.2% year over year in Compton, roughly in line with the broader Los Angeles industrial market's -3.9% change over the same period. Despite the recent softening, Compton's five-year average annual rent growth stands at 4.1%, and its 10-year average is 6.3%, underscoring that the current pullback follows several years of outsized gains.
Compton remains a supply-constrained, infill market. As of the third quarter of 2026, there is no industrial space under construction in the submarket, and none is proposed over the next eight quarters. The submarket has averaged just 4,400 SF of under-construction inventory annually over the past decade.
The most recent delivery was South Bay Transload Center at 500-550 S Alameda St, a 30,886 SF building completed in April 2026.
Over the past 12 months, 7 industrial properties traded in Compton, totaling roughly 230,000 SF of inventory turnover and $42.3 million in sales volume. That compares to a five-year average of $97.8 million and a 10-year average of $77.5 million, reflecting the broader slowdown in investment sales activity across the industrial sector.
The average price per square foot among recent comparable sales was $265, with pricing ranging from $131/SF to $337/SF depending on building age, condition, and location within the submarket. Estimated market pricing for Compton industrial currently sits at $288/SF, compared to a broader market average of $313/SF. The estimated market cap rate for Compton industrial is 5.2%, slightly below the market average of 5.3%.
Recent notable transactions include:
Looking ahead, Compton's vacancy is forecast to gradually ease from its current peak, with rent growth expected to turn positive again by 2028 as absorption stabilizes. With effectively no new supply in the pipeline, the submarket's long-term fundamentals remain tied closely to broader industrial demand across the LA South Bay and Los Angeles industrial markets.
For property owners, this is a market environment worth watching closely — whether you're evaluating a sale, a refinance, or simply want to understand where your property's value stands today.
Whether you're considering a sale, exploring a refinance, or just want an up-to-date read on your property's value, we provide a Complimentary Valuation for industrial property owners in Compton and throughout the greater Los Angeles to Inland Empire corridor. Request your Complimentary Valuation here.
What is the industrial vacancy rate in Compton?
As of the third quarter of 2026, Compton's industrial vacancy rate is 10.1%, up from a five-year average of 5.2%.
What are industrial rents in Compton?
Market asking rents in Compton average $1.30/SF per month, with logistics space averaging $1.30/SF, specialized industrial space averaging $1.22/SF, and flex space averaging $1.95/SF per month.
Is there new industrial construction in Compton?
No. As of the third quarter of 2026, there is no industrial space under construction in Compton, and none is currently proposed.
What is the average sale price for industrial property in Compton?
Recent comparable sales in Compton have averaged $265/SF, with estimated overall market pricing around $288/SF.
Why is Compton considered a strong industrial submarket despite rising vacancy?
Compton is a supply-constrained infill market with limited land available for new industrial development, which has historically supported long-term rent growth even through short-term cycles.
Some 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
