Industrial Insights - July 2025
## Q2 Preliminary Results: Negative Net Absorption Across Southern California Industrial
The Southern California industrial market experienced significant headwinds in Q2 2025. Despite a strong Q1, the market shifted as "more buildings are coming back to the market then are leasing" in substantial volumes. Policy uncertainty prompted companies to delay decisions and, in some cases, close facilities entirely.
A comprehensive 12-page market analysis presentation is available detailing these trends and their implications for companies, properties, supply chains, and operational planning.
Owner User Report
This analysis examines the transition from leasing to property ownership for industrial companies. The past twelve months created favorable conditions for tenant purchases, with reduced competition in the buyer's market. The report evaluates financing feasibility for interested parties and includes connections to preferred lending partners nationwide.
Hundreds Report
This benchmark report focuses on industrial properties between 100,000-200,000 square feet across Los Angeles, Orange County, and the Inland Empire—representing the market's primary tenant segment. The latest edition provides critical data for warehousing decisions, with updated information forthcoming.
Podcast
An in-depth interview with Jesse Gundersheim of CoStar explores Southern California's industrial fundamentals. The discussion covers leasing volume, vacancy rates, absorption patterns, and pricing data. Episodes are available on YouTube and Apple Podcasts.
---
Contact: Justin Smith, Senior Vice President, Lee & Associates | Irvine Phone: 949.400.4786 | Email: jbsmith@lee-associates.com
