Greater Los Angeles Industrial Market Overview – 2025 Trends and Outlook

The Greater Los Angeles industrial real estate market remains the largest and most active in the United States, encompassing more than 1.74 billion square feet of industrial space. Long recognized for its high asking rents and exceptionally low vacancy rates, this powerhouse market has experienced a notable shift over the past three years. Following a historic low in vacancy and availability during Q1 2022, the region now faces a market correction, with both figures rising to 12-year highs by early 2025.

Despite these adjustments, Los Angeles and Long Beach ports, which serve as the industrial engine of the region, continue to perform strongly. Year-to-date metrics reveal a 28% increase in loaded inbound container volumes at the Port of Long Beach and a 6% increase at the Port of Los Angeles, measured in twenty-foot equivalent units (TEUs). Combined, these two major gateways handle approximately 35% of all inbound containers entering the United States, making them essential infrastructure for national supply chains and global trade.

These rising container volumes underscore ongoing demand for logistics, warehousing, and industrial distribution space throughout Southern California. However, looming trade policy shifts—especially the potential removal of the ‘de minimis’ exemption and the reintroduction of tariffs on key imports—pose new risks to port throughput and market stability in the second half of the year.

As we move deeper into 2025, industrial stakeholders across the Los Angeles Basin will need to navigate a complex landscape shaped by rising inventory, fluctuating demand, and policy-driven disruptions. Still, the region’s strategic location, deep labor pool, and well-developed infrastructure ensure it remains a critical hub for industrial real estate investment and logistics operations.