Ron Mgrublian
24 Jul
24Jul

Pomona is the largest and most active node within the East San Gabriel Valley industrial submarket, and 2026 data shows a market that has stabilized after several years of softening. Below is a breakdown of current conditions for owners, tenants, and investors evaluating industrial property in Pomona.

Market Snapshot

The broader East San Gabriel Valley submarket, of which Pomona is the core, posted these year-to-date figures:

  • Vacancy rate: 5.3%, roughly a full point below the greater Los Angeles average
  • Net absorption (trailing 12 months): 332,000 SF, positive after a multi-year contraction
  • Market asking rent growth: -4.0% year-over-year, reflecting the broader pullback in asking rates across Southern California
  • New deliveries: None in the past 12 months, underscoring how built-out this infill market has become

Vacancy has held relatively flat since 2025 and remains tied more closely to broader slowdowns in port cargo volume and e-commerce-driven demand than to any oversupply issue locally — there's essentially no new construction to absorb.

Leasing Activity

Some of the largest lease and vacancy events shaping the submarket in the past year touched Pomona directly. L.L. Flooring's 2024 bankruptcy vacated a 504,000 SF portion of a building at 1601 W Mission Blvd in Pomona; that space was subsequently leased to Mission Sino Investments in 2025, contributing to the positive net absorption number. A related 247,500 SF sublease listing in the same building, previously occupied by Home Depot, was pulled from the market in early 2026 — typically a signal of renewed occupier commitment.

Availability across the submarket, including sublet space, sits at 6.5%, with logistics buildings running slightly ahead of specialized manufacturing product at 6.9%.

Rents

Asking rents across the submarket currently average $1.21/SF for logistics and specialized industrial product combined. After a run of double-digit rent growth in 2021–2022, rents have pulled back roughly 4% year-over-year and are now hovering near a cyclical low, with forecasts showing rents beginning to recover through 2027 and beyond.

Sales & Investment Activity

Two Pomona sales stand out from the past 18 months:

  • 2861–2867 Surveyor St — 190,500 SF owner-user acquisition by Future Foam for $52,600,000 ($276/SF), closed 2025 Q1 and the largest driver of that quarter's submarket sales volume
  • 1488 E Mission Blvd, Building 4 — 21,400 SF, sold October 2025 for $6,700,000 ($313/SF) at a 6.6% cap rate, leased through March 2028 at a $1.70/SF monthly gross rate
  • 1505 E Mission Blvd — 2.66 acres (115,933 SF) of industrial land, sold June 2026 for $4,700,000 ($40.54/SF land), reflecting continued investor appetite for outdoor storage and yard-use sites in the submarket

Submarket-wide, 2025 saw 24 completed deals totaling roughly $118 million, below the five-year annual average of about $196 million, as transaction activity has slowed from the surge seen ahead of the 2022 implementation of the ULA transfer tax. Cap rates have widened by more than 100 basis points over the past several years and currently sit in the mid-5% to 6% range, giving buyers more room to underwrite mark-to-market rent upside as older leases roll over.

Outlook

With essentially no new supply in the pipeline and vacancy trending below the broader LA market, Pomona remains a tightly held, infill market. Rent growth is forecast to turn positive again by 2027, and long-term leases signed during the 2021–2022 rent spike will continue to create mark-to-market opportunities for investors as they roll to current market rates.

Frequently Asked Questions

What is the current industrial vacancy rate in Pomona?

Pomona sits within the East San Gabriel Valley industrial submarket, which is running a 5.3% vacancy rate as of mid-2026 — below the broader Los Angeles industrial average.

Are industrial rents rising or falling in Pomona right now?

Asking rents have declined roughly 4% year-over-year, consistent with the broader Southern California pullback, though CoStar's forecast shows rents stabilizing and beginning to grow again by 2027.What cap rates are industrial buyers seeing in Pomona?

Recent Pomona-area sales have traded in the mid-5% to 6% cap rate range, with average pricing across the submarket's past 12 months of sales at roughly $210/SF.

Is Pomona a good market for industrial investment?

Limited new supply, a deep labor pool, and vacancy below the broader LA market make Pomona an attractive infill market for investors, particularly given the mark-to-market rent upside on leases signed during the 2021–2022 rent spike.

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

Phone: 562-354-2537

Email: rmgrublian@leelalb.com

CalDRE# 01902882

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