How Much Does It Cost to Lease Commercial Property in Southern California?

Leasing commercial space in Southern California can vary widely based on location, property type, and market demand. Whether you're looking for office space in Los Angeles or an industrial warehouse in San Diego, understanding current rates can help you negotiate smartly and stay within budget.

Average Lease Rates by Region (2025 Estimates)

Location	Office (Class A)	Retail	Industrial
Los Angeles	$3.80–$4.80/sqft	$2.50–$4.50	$1.40–$1.95
Orange County	$3.20–$4.20/sqft	$2.70–$4.00	$1.20–$1.85
San Diego	$3.00–$4.10/sqft	$2.30–$3.90	$1.10–$1.75
Inland Empire	$2.80–$3.60/sqft	$1.90–$3.00	$1.00–$1.60

💡 Rates are based on gross lease estimates unless otherwise stated. Always confirm with a local broker.

Key Factors That Affect Lease Pricing

1. Location & VisibilityPrime areas like Downtown LA or Costa Mesa command higher rents.

2. Property TypeRetail space near high foot traffic is more expensive than industrial warehouses.

3. Lease TypeNNN leases might have a lower base rent but add extra costs (CAM, taxes, etc.).

4. Tenant Improvements (TIs)Spaces requiring major upgrades may offer lower rent in exchange for long-term commitment.

5. Building ClassClass A = premium finishes and locations. Class C = lower rates but fewer amenities.

Southern California Leasing Trends (2025)

• Retail is rebounding in beach cities and suburban shopping centers.

• Office leasing is stabilizing with hybrid work demand.

• Industrial space near ports and logistics hubs remains highly competitive.

Tips for Business Owners

• Always compare rentable vs. usable square footage.

• Ask about free rent months or tenant improvement allowances.

• Use a broker familiar with your industry needs and zoning laws.

FAQ: Lease Costs in Southern California

Q: What's the cheapest place to lease commercial space in SoCal?

A: Inland Empire and East San Diego offer the most competitive industrial and warehouse rates.

Q: Can I negotiate commercial rent?

A: Yes. Many landlords offer incentives for long-term leases, especially in less competitive zones.

Q: How often do lease rates change?

A: Every quarter depending on the local economy, demand, and property availability.

Knowing the going lease rates in your desired area is key to negotiating a fair deal. With the right information and expert guidance, you can secure space that fits both your business needs and your budget.