If you own an industrial building in Huntington Beach or the surrounding West Orange County submarkets, the fundamentals in this market are worth a closer look. Vacancy is tight, no new supply is coming online, and pricing has stabilized after a two-year correction. Here is where things stand.
Industrial vacancy in Huntington Beach measured 3.5% as of the third quarter of 2026, down from a 5% peak in early 2024. Space availability has followed the same path, falling from a multi-decade high of 6.6% to 4.7%, while sublease space on the market has compressed to just 1.4%. For owners, that combination of shrinking vacancy and shrinking sublease supply is a healthy sign of real, tenant-driven demand rather than a market being propped up by short-term deals.Net absorption over the trailing year measured negative 59,000 square feet, though that represents an improvement over 2025. A handful of larger blocks have come back to the market recently, including space vacated by prior tenants, but recent leasing activity has also been headlined by larger users backfilling the biggest available spaces in the submarket.
Perhaps the most important number for owners: zero square feet were delivered in the past eight quarters, zero square feet are under construction, and zero square feet are proposed for delivery over the next eight quarters. Huntington Beach has essentially no active construction pipeline. With high barriers to new development already well established in this submarket, existing buildings are not facing new competition anytime soon, which supports occupancy and, over time, rents.
Market asking rent in Huntington Beach currently sits at $1.55 per square foot, down 0.6% year over year. Weighted-average rents across Orange County have declined more than 15% from peak levels. That said, the forecast points to rent growth resuming in 2027 and accelerating further in 2028, supported by the same structurally tight availability and limited new development driving today's low vacancy.
Fewer than 10 industrial building sales closed in Huntington Beach in 2025, the lowest annual total in at least a decade, and sales volume has been essentially flat for two years at around $43 million annually. Activity has remained subdued through the first half of 2026 with only a few smaller transactions closing.Cap rates expanded by more than 100 basis points into the mid-5% range during the broader rate-driven correction but have trended more evenly in recent periods. Private investors and private equity buyers have dominated the buyer pool, accounting for more than 60% of acquisition volume over the past decade, with institutional and REIT buyers representing roughly 20% and owner-users accounting for the balance. Over the trailing 12 months, sale comparables in the submarket have averaged $353 per square foot, with a median of $421 per square foot.
Tight vacancy, no new competing supply, and cap rates that have leveled off after their correction is a combination worth evaluating against your own building. If you have owned your property for several years, current rent growth expectations and mark-to-market opportunities may make this a good time to understand where your building stands today, whether you are considering a sale, exploring a refinance, or simply want an updated picture of your asset's value.
We offer a complimentary, no-obligation valuation report for industrial property owners in Huntington Beach and throughout West Orange County. Whether you are actively considering a sale or just want a current benchmark on your building's value, reach out and we will put together a market-based valuation specific to your property.
What is the industrial vacancy rate in Huntington Beach right now?
Industrial vacancy in Huntington Beach is 3.5% as of the third quarter of 2026, down from a 5% peak in early 2024.
Is there new industrial construction planned in Huntington Beach?
No. Zero square feet were delivered in the past eight quarters, and zero square feet are currently under construction or proposed for delivery over the next eight quarters.
Are industrial rents rising or falling in Huntington Beach?
Market asking rent is currently $1.55 per square foot, down 0.6% year over year, though rent growth is expected to resume in 2027 and accelerate in 2028.
How much are industrial buildings selling for in Huntington Beach?
Sale comparables over the trailing 12 months have averaged $353 per square foot, with a median of $421 per square foot, though pricing varies significantly by building age, condition, and vacancy at sale.
How do I find out what my industrial property is worth?
Contact Ron Mgrublian for a complimentary, no-obligation valuation report based on current market data and recent comparable sales in your submarket.
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
Source: CoStar Group, Huntington Beach Industrial Submarket Report, July 2026.
