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Los Angeles industrial market continues to see negative absorption
In Q1 2026, the Los Angeles industrial market recorded 632,511 square feet (sf) of negative net absorption. Most of the negative absorption stemmed from the San Gabriel Valley, San Fernando Valley and Central Los Angeles submarkets. Notable tenant moveouts included Freight Horse Logistics vacating 370,600 square feet (sf) in Torrance, Leopard Transnational Inc. vacating 363,414 sf in El Monte and Lakeshore vacating 228,000 sf in Long Beach. As a result, vacancy increased by 20 basis points (bps) from the previous quarter to 7.3%. Vacancy remains up 70 bps from one year ago and is highest in buildings over 300,000 sf.