- Los Angeles industrial investment saw $1.2B in Q4 2025 sales, up 6% year-over-year.
- Private buyers made up 63.8% of industrial acquisitions in 2025, outpacing REITs.
- Average sale price was $312 PSF, though key deals traded well above that level.
- Market fundamentals are stabilizing, but vacancies and negative net absorption remain.
Investor Momentum Builds
Industrial market sales in Los Angeles picked up in late 2025, with $1.2B in assets trading hands during the fourth quarter, reports Bisnow. This 6% annual increase, reported by CBRE, underscores renewed investor interest and confidence in the SoCal industrial market’s long-term prospects.
Private Capital Takes the Lead
In 2025, private buyers dominated the Los Angeles industrial market, accounting for nearly two-thirds of all transactions. Their share jumped to 63.8%, up from 46.1% in 2024, while REIT activity declined sharply to just 7.7%. Experts attribute this shift to improving debt markets and clearer market fundamentals.
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Pricing Trends and Big Deals
While the average sale price for industrial properties was $312 PSF in Q4, standout deals surpassed this level. Notably, Morgan Stanley acquired a 143 KSF Amazon-leased warehouse near LAX for $211.4M, or about $1,480 PSF. The average pricing was largely stable quarter-over-quarter but rose 3.3% compared to a year earlier.
Leasing Market Still Recovering
Despite improved investment activity, leasing fundamentals remain challenged. Los Angeles posted negative net absorption of 116 KSF in Q4, though this was the lowest negative figure in two years. Vacancy rose 20 basis points from Q3 and 1% year-over-year, reflecting post-pandemic supply pressures that have yet to subside. Rising regulatory pressures, including tighter rent controls, are also shaping investor strategy and leasing dynamics across the region.
What’s Next
As interest rates stabilize and buyer confidence returns, private capital is expected to play an even larger role in SoCal industrial market activity in 2026. Market observers anticipate a further uptick in sales velocity, though leasing conditions will be watched closely as vacancy lingers above pre-pandemic levels.
