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Second quarter marks a shift in Los Angeles leasing activity
In Q2 2026, the Los Angeles industrial market saw a shift in occupier movement, recording 4.0 million square feet (msf) of net absorption. This marked the highest quarterly absorption total since 2021. Most of the positive absorption occurred in the South Bay, San Gabriel Valley and Central Los Angeles submarkets. Notable tenant move-ins included Valar Atomics occupying 512,500 square feet (sf) in Torrance, Amazon occupying 504,800 sf in Long Beach and Divergent Technologies occupying 415,300 sf in Long Beach. As a result, vacancy decreased by 40 basis points (bps) from the prior quarter to 6.8%. Vacancy remained 110 bps higher than two years ago and was highest in buildings ranging from 100,000 to 300,000 sf.