Four neighboring Orange County industrial markets, four different pictures. Cypress is working through elevated vacancy after a wave of new deliveries. Los Alamitos and Stanton are both tight, but not identical — each has its own building stock and transaction activity. And Seal Beach is the tightest of all, currently sitting at zero vacancy with no new construction in over a decade. Here's what owners and tenants in each market should know heading into Q4 2026.
It's worth noting that all four of these are small industrial markets, ranging from under 1 million SF in Seal Beach to about 7 million SF in Cypress. Tenants with larger space requirements, or those who can't find a suitable fit locally, may need to look beyond these markets to nearby submarkets to find the right property.
The Cypress industrial market posted a 15.9% vacancy rate in the third quarter of 2026 — well above its five-year average of 9.3% and more than double its 10-year average of 6.5%. That elevated vacancy traces back to two large deliveries (Buildings 1 and 2 on Plaza Dr, totaling roughly 390,000 SF) that came online in early 2025.
Net absorption over the past 12 months was essentially flat at 6,000 SF, and market asking rents softened by 1.1% year over year to $1.55/SF per month. The forecast has vacancy easing modestly to 14.2% by year-end as the market works through the added supply.
A third building — 191,894 SF at 5665 Plaza Dr, developed by Goodman North America — is under construction and slated for completion in July 2027. That's the only project in the pipeline; nothing else is proposed over the next eight quarters.On the sales side, activity has been thin: just one industrial property traded in Cypress over the past year, a 9,188 SF building at 10652 Walker St that sold for $3,610,884 ($393/SF) in September 2025. Estimated market pricing for Cypress industrial sits at $333/SF, slightly below the broader market average of $349/SF, with cap rates estimated around 5.3%.
What this means: Cypress is currently a tenant-favorable market, though this is due to a couple of large deliveries rather than a broader downturn. Owners with vacant space should expect more competitive negotiations until absorption catches up with the recent deliveries. For investors, pricing below market average combined with a below-average cap rate suggests the market hasn't fully repriced for the added vacancy — worth watching for value-add opportunities.
Los Alamitos totals roughly 2.36 million SF of industrial inventory across 107 buildings, with a 2.6% vacancy rate and 4.3% availability rate. That works out to an estimated 61,000 SF vacant and 101,000 SF available, with roughly 42,000 SF in 12-month net absorption and about $29.1 million in trailing 12-month sales volume.
The building stock is a mix of eras, ranging from 1950 to 2017 construction, with an average building size around 22,000 SF. The largest properties anchor a handful of established business parks, including 10811 Bloomfield (184,877 SF), 10681 Calle Lee in Los Alamitos Corporate Center (134,000 SF), and 4411 Katella Ave (120,600 SF, built 1969).
What this means: With vacancy this tight, Los Alamitos favors owners and landlords. Tenants should expect a competitive search, and owners are working in a market with real transaction volume behind it.
Stanton totals roughly 1.85 million SF of industrial inventory across 186 buildings, with a 2.6% vacancy rate and 4.3% availability rate. That works out to an estimated 48,000 SF vacant and 79,000 SF available, with roughly 33,000 SF in 12-month net absorption and about $22.8 million in trailing 12-month sales volume.
The building stock here is smaller and older on average: buildings run about 9,930 SF on average, with construction dates ranging from 1914 to 2000. The largest properties include 10521-10579 Dale Ave (118,059 SF, built 1960), 10680 Fern Ave (72,000 SF, built 1957), and 8470 Cerritos Ave (36,837 SF, built 1977).
What this means: Stanton's older, smaller-footprint building stock may suit tenants looking for smaller spaces. Owners and tenants here are working within tight overall conditions.
Seal Beach takes the tight-market story even further. The market had no vacancy at all as of the third quarter of 2026 — down slightly from a five-year average of 0.2% and a 10-year average of 1.0%. Nothing has been under construction in Seal Beach in over 10 years, and CoStar's forecast has vacancy ending 2026 at a still-minimal 0.9%.
Net absorption over the past 12 months was flat at zero, simply because there's no available space left to absorb. Market asking rents actually declined 1.0% year over year to $1.50/SF per month — a modest pullback despite the lack of vacancy, with CoStar forecasting a further -1.2% by year-end compared to the Orange County average of -0.2%.
Sales activity tells a different story than leasing: nothing has traded in Seal Beach over the past year. That's not unusual for a market this small (roughly 950,000 SF of total inventory) and this tightly held — average annual sales volume over the past five years is $16.3 million against just $10.1 million over the past 10 years, reflecting how rarely these buildings change hands. The estimated market cap rate for Seal Beach industrial is 5.6%, essentially in line with the market average of 5.5%.
What this means: Seal Beach is as close to a landlord's market as it gets — zero vacancy, zero new supply, and no signs of that changing. Tenants searching here should expect very few options and long lead times. For owners, the scarcity of trades doesn't mean lack of demand; it may simply reflect how few Seal Beach owners choose to sell. If you've been sitting on the fence, this is a market where a well-priced listing could move quickly.
| Metric | Cypress | Los Alamitos | Stanton | Seal Beach |
|---|---|---|---|---|
| Total Inventory | ~7.0M SF | ~2.36M SF | ~1.85M SF | ~950K SF |
| Vacancy Rate | 15.9% | 2.6% | 2.6% | 0% |
| Availability Rate | 17.6% | 4.3% | 4.3% | 0% |
| Market Asking Rent | $1.55/SF/mo | $1.67/SF/mo | $1.67/SF/mo | $1.50/SF/mo |
| Under Construction | 191,894 SF | 0 SF | 0 SF | 0 SF |
| Sales Volume (12 Mo, Prorated) | $3.6M | ~$29.1M | ~$22.8M | $0 |
Whether you own industrial property in a supply-heavy market like Cypress or a virtually vacancy-free market like Los Alamitos or Seal Beach, understanding where your property sits relative to current conditions is the first step toward a smart decision — whether that's holding, leasing up, or selling. Get a complimentary industrial property valuation to see where your property stands today.
Why is vacancy so much higher in Cypress than in Los Alamitos, Stanton, or Seal Beach?
Cypress recently absorbed roughly 390,000 SF of new deliveries, which pushed vacancy well above its historical average. Los Alamitos, Stanton, and Seal Beach, by contrast, have had little to no new construction in recent years, keeping supply — and vacancy — extremely tight.
Why hasn't anything sold in Seal Beach recently?
The market is small (under 1 million SF total) and tightly held, so trades are infrequent by nature — not necessarily a sign of weak demand. Average sales volume over the past five years still runs higher than the 10-year average.
Is now a good time to sell industrial property in any of these markets?
It depends on your goals and property specifics. Los Alamitos, Stanton, and Seal Beach's low-to-zero vacancy may favor sellers, while Cypress owners may want to weigh current softer conditions against their specific asset's positioning. A broker opinion of value can help clarify where you stand.
Are these figures useful for refinancing my property?
A broker opinion of value based on this market data is a helpful starting point for understanding your property's worth, but lenders require a separate, formal licensed appraisal for underwriting purposes.
Is new industrial construction planned in any of these markets?
Cypress has one project underway (191,894 SF, completing mid-2027) with nothing else proposed. Los Alamitos, Stanton, and Seal Beach have no construction underway or proposed over the next two years.
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
