Research

"Net absorption remains negative, standing at negative 200,000 square feet (sf) year to date as of Q2 2025, as activity remains concentrated within renewals."

"Vacancy, while up 70 basis points (bps) year over year, began to stabilize in the first half of 2025. Net absorption totaling 3.6 million square feet (sf) year to date has helped offset the occupancy losses recorded in 2024."

"Net absorption slowed to 400,000 square feet (sf) in the first half of 2025, driven primarily by new leasing activity. The East submarket accounted for four of the five largest deals, led by National Tire Wholesale’s 264,431-sf lease at 2470 Airport Boulevard."

"The vacancy rate increased to 9.2% in Q2 2025, up from 6.5% a year earlier. Net absorption has been the primary driver of vacancy increases, with this quarter marking the sixth consecutive period of occupancy losses."

"Asking rents climbed 10.7% year over year, driven by new deliveries with higher face rates that continue to elevate the market average."

"Vacancy increased by 50 basis points (bps) in the first quarter to 7.9%. The Orange County industrial market returned to negative absorption, totaling -235,393 square feet (sf). The Airport Area led negative absorption totaling -432,023 sf."

"Nashville's vacancy rate held steady at 6.2% quarter over quarter, as 1.7 million square feet (msf) of net absorption in Q2 nearly offset 1.9 msf of new deliveries, reflecting a balanced market where supply and demand remain in healthy alignment."

"San Diego market vacancy has continued to climb, ending Q2 at 9.2%— a 250-basis point (bps) increase year over year. Year-to-date net absorption, measuring just shy of -1.0 million square feet (msf), has stemmed such growth."

"Vacancy rose to 8.3% in Q2 2025, up from 7.8% one year ago, as move-outs outpaced new demand. Net absorption turned negative, totaling -100,000 square feet year to date, compared with 3.0 million square feet (msf) of positive absorption in Q2 2024."

"Industrial vacancy in the region continued its upward trend, increasing 170 basis points (bps) over the past year to 8.3%, up from 6.6%, largely due to increased supply and weakening demand."