Industrial Insights - The Hundreds Report Expanded
What 12 Months of Change Data Tell Us
The Southern California industrial market for spaces between 100,000 and 200,000 square feet continues experiencing correction. This analysis introduces a rolling 12-month change report tracking supply, rate adjustments, investment activity, and brokerage shifts across the Inland Empire, Los Angeles, and Orange County regions.
The data reveals distinct corrections occurring simultaneously across different markets, each with its own characteristics and pace.
Signs of Correction
Supply Imbalance: Over the past year, 220 new listings entered the market while only 64 were removed. This represents a 4-to-1 ratio of new supply to removals. Q1 2026 is tracking toward significant new inventory, with 52 listings added in January and February alone.
Accelerating Rate Cuts: Lease rate reductions are deepening rather than stabilizing. The regional median shifted from a 5.8% decline to 11.2%. The Inland Empire experienced the most dramatic swing, moving from rate increases in Q4 to an 8.6% median cut in the first quarter.
Concessions Masking True Decline: Free rent spanning five to six months has become standard on five-year deals. Landlord tenant improvement allowances of $1 to $3 per square foot now appear where previous offerings were nonexistent. Published rates show 7% decline; actual economics fall significantly lower when accounting for concessions.
Properties Removing Pricing: Fourteen properties eliminated asking rates entirely, with nine in Orange County. Owners are negotiating individual pricing rather than advertising market declines, indicating market pressure.
Leadership Changes: Twenty-four landlords changed leasing teams. The Inland Empire led with twelve changes, followed by Los Angeles with eight and Orange County with four.
Market Implications
Tenants in this size range now hold substantially increased leverage and options. Concession packages mean actual costs are better than advertised rates.
Property owners benefit from teams with strong data analysis, rapid pricing adjustments, and effective marketing execution. The competitive environment leaves minimal room for error.
