Q3 2026 Southern California Industrial Market Insights

By Kevin Romano, Director, INCO Commercial Brokerage | October 2026

Southern California industrial asking rents ticked up in Q3 2026. The average direct asking rate rose to $1.389 per SF per month NNN, the first increase after eleven straight quarters of decline. Leasing and sales cooled after a strong Q2, while space for sale reached 88.8M SF, the highest level on AIR CRE's chart.

This covers Los Angeles County, Orange County, the Inland Empire and Ventura County. Here is what matters, in plain numbers.

Direct Lease

• Availability leveled off at 2,285 listings and 158.5M SF, down 1% in count and 4.8M SF from Q2. Available space is still up 8.5M SF (6%) from a year ago.
• The average asking rate rose slightly to $1.389 per SF per month NNN, the first increase after eleven straight quarters of decline. It is still down $0.03 (2%) from a year ago.
• Rate reductions rose to 65 from 43 in Q2, but are down 46% from a year ago. Over 69% were in Los Angeles County.
• Leasing cooled after a record Q2, with 394 transactions totaling 23.0M SF. Deal count is still up 3% from a year ago.
• The Inland Empire (10.3M SF) and Los Angeles County (10.0M SF) were nearly even in space leased. About 7.0M SF of the Inland Empire total was in buildings over 100K SF.

Sublease

• Sublease listings fell to 330, down 20% from a year ago. Available sublease space ticked up slightly from Q2 to 25.8M SF.
• The average sublease asking rate fell to $1.253 per SF per month NNN, down $0.05 (4%) from Q2 and $0.16 (11%) from a year ago.
• There were 34 sublease transactions totaling 1.4M SF, down 6% in count and 44% in square footage from Q2.
• Los Angeles County led with 716K SF, about 51% of all subleased space. Ventura County recorded none this quarter.

Sales

• Properties for sale reached 1,928 listings and 88.8M SF, the highest levels on AIR CRE's chart. Available square footage is up 23.9M SF (37%) from a year ago.
• Sales cooled after a strong Q2, with 381 transactions and 12.6M SF sold. Square footage sold is still up 2.9M SF (30%) from a year ago.
• Los Angeles County led with 6.4M SF sold, nearly 51% of the total, including about 3.3M SF in buildings over 100K SF.
• The average sold price rose to $307.48 per SF, up $6.38 (2%) from Q2, but still $8.39 (3%) below a year ago.

Months on Market

• Direct leases now take 9.5 months on average, a new high and 0.8 months longer than a year ago.
• Sublease marketing time improved to 6.5 months from 8.7 in Q2.

FAQ

What is the average industrial asking rent in Southern California in Q3 2026?

The average direct asking rate was $1.389 per SF per month NNN in Q3 2026, according to AIR CRE. The average sublease asking rate was $1.253 per SF per month NNN.

Are Southern California industrial rents still falling?

Direct asking rents rose slightly in Q3 2026, the first increase after eleven straight quarters of decline. They are still down 2% from a year ago. Sublease asking rents fell 4% from Q2.

How long does it take to lease industrial space in Southern California?

Direct leases took 9.5 months on average in Q3 2026, a new high. Subleases took 6.5 months, down from 8.7 months in Q2.

How much industrial property is for sale in Southern California?

In Q3 2026 there were 1,928 industrial properties for sale totaling 88.8M SF, the highest levels on AIR CRE's chart and up 37% in square footage from a year ago. The average sold price was $307.48 per SF.

What areas and buildings does this report cover?

Los Angeles County, Orange County, the Inland Empire and Ventura County. Lease and sublease figures cover industrial buildings of 10,000 SF and larger.

Data source: AIR CRE, Q3 2026. Figures are shown as presented and are believed reliable but are not guaranteed.