Industrial Property Leasing in Los Angeles County: Guide for 2025
- gloryanng8
- Nov 7, 2025
- 4 min read
Industrial real estate has become one of the most in-demand commercial property types in California, driven by e-commerce expansion, supply chain localization, and continued manufacturing growth.
In 2025, Los Angeles County remains the undisputed heart of industrial activity, hosting thousands of distribution centers, logistics firms, and aerospace facilities. Whether you’re expanding operations, relocating your warehouse, or launching a manufacturing startup, understanding the industrial property leasing landscape is key to long-term success.
This guide from RPM Real Estate Services explores current market conditions, prime locations, lease negotiation strategies, and how to avoid common pitfalls when searching for the right industrial space.
Why Los Angeles County Dominates the Industrial Market
Few regions offer the combination of infrastructure, location, and economic strength that Los Angeles County provides. It is the gateway to the Pacific Rim, connecting more than 40% of all U.S. imports through the Ports of Los Angeles and Long Beach.
Key Advantages Include:
World-Class Logistics Network: Access to I-5, I-10, I-405, and I-110 ensures direct routes to the rest of California and neighboring states.
Labor Force Availability: Over 10 million residents create an abundant workforce across manufacturing, packaging, and logistics.
Industrial Diversity: Properties range from small warehouses in Hermosa Beach to large-scale logistics centers in El Segundo and Torrance.
Proximity to Airports and Ports: Perfect for import/export and time-sensitive distribution.
Explore our listings:
2025 Market Overview – What Tenants and Investors Should Expect
According to CBRE’s Industrial Real Estate Report (Q4 2024):
Vacancy rates remain below 3.5%, with new construction struggling to meet demand.
Rental rates increased by 7% year-over-year, signaling sustained tenant competition.
Tenants are prioritizing energy-efficient spaces and EV infrastructure as sustainability incentives grow statewide.
For investors, this means long-term stability; for tenants, it underscores the need to act quickly and negotiate efficiently.
The E-Commerce Effect on Industrial Demand
The growth of same-day delivery has transformed the industrial real estate landscape. Distribution companies need to be closer to urban centers and major freeways, and Los Angeles County offers both.
Facilities now must accommodate:
High-clear ceilings (30–40 feet) for vertical storage
Multiple loading docks
Automated sorting and racking systems
Reinforced floors and warehouse Wi-Fi
External resource: CBRE 2025 U.S. Logistics Real Estate Outlook
The Best Industrial Submarkets in Los Angeles County
Each submarket offers unique advantages based on size, accessibility, and tenant mix.
El Segundo – The Innovation and Aerospace Corridor
Home to aerospace giants and startups alike, El Segundo offers modern, high-tech industrial facilities ideal for R&D, light manufacturing, and aviation logistics.
Torrance – The Logistics Powerhouse
Torrance provides spacious warehouses, affordable lease rates, and excellent freeway connectivity, making it a magnet for regional distributors.
Hermosa Beach & Redondo Beach – Niche Coastal Opportunities
These areas cater to creative manufacturers and marine-related industries seeking smaller footprints near affluent communities.
Manhattan Beach – Mixed-Use Industrial Growth
Manhattan Beach continues to see conversions of older warehouses into creative studio or light industrial hybrid spaces.
What to Know Before Leasing Industrial Property
Leasing industrial space involves far more than signing a contract. Consider:
Power Requirements: Manufacturing operations often need heavy power (480-volt, 3-phase).
Ceiling Height: Warehousing demands at least 24-foot clearance.
Accessibility: Ensure truck ingress/egress routes fit your fleet.
Zoning Laws: Confirm property zoning allows your intended use.
HVAC & Insulation: Essential for temperature-controlled operations.
Lease Negotiation Tips – Securing the Best Terms
Negotiating your industrial lease requires a broker who understands both market data and property functionality. RPM brokers help tenants:
Compare lease structures (Gross vs. NNN)
Identify potential hidden costs (maintenance, CAM, or tax increases)
Negotiate tenant improvement (TI) allowances
Protect renewal and expansion rights
Hybrid Industrial-Office Spaces on the Rise
Post-pandemic, many businesses want operational flexibility. Industrial-office hybrids—sometimes called “flex spaces”—offer administrative offices integrated with light manufacturing or warehousing zones.
They’re ideal for companies seeking efficiency, collaboration, and branding consistency under one roof. Office Space for Lease in Los Angeles
How RPM Commercial Real Estate Adds Value
RPM Real Estate Services is a local leader in commercial leasing, offering clients:
Access to exclusive off-market listings
Decades of South Bay real estate expertise
Guidance through zoning, permits, and environmental compliance
Expert negotiation for better lease flexibility and cost control
Meet your specialists:
Sustainability in Industrial Development
Sustainability is now a decisive factor for both investors and tenants. Properties featuring solar panels, LED lighting, water-efficient landscaping, and EV charging attract premium tenants and long-term stability.
Future Market Predictions (2025–2030)
Analysts expect:
Continued rent growth (3–5% annually)
Adaptive reuse of older properties near dense cities
Stronger incentives for energy-efficient industrial retrofits
AI and automation integration within warehouses
As demand outpaces supply, early lease negotiations and long-term planning are critical.
FAQs – Industrial Property Leasing in Los Angeles County
What is the typical lease term for industrial properties?
Most range from 3–10 years, depending on tenant investment in improvements.
Are NNN leases common for industrial spaces?
Yes, they’re standard for most warehouse and logistics properties.
Can tenants negotiate improvements before move-in?
Absolutely — tenant improvement (TI) allowances are often negotiable.
What’s the average ceiling height for industrial warehouses?
Between 26 and 40 feet, depending on usage.
Do landlords provide HVAC systems?
Some do, but tenants often share responsibility under NNN terms.
Are small warehouses available for startups?
Yes, RPM offers spaces as small as 1,500 sq. ft.
How can RPM help tenants find off-market properties?
Our local network grants early access to unlisted opportunities.
Are industrial leases suitable for e-commerce fulfillment centers?
Definitely — the majority of new industrial leases are logistics-driven.
Is environmental compliance a tenant or landlord responsibility?
Typically shared, depending on the lease agreement.
How soon should I start searching for a new lease?
At least 6–12 months before your current lease expires to secure ideal terms.
Los Angeles County’s industrial market remains a cornerstone for logistics, aerospace, and advanced manufacturing. With tight vacancy rates and rising competition, timing and expert representation are everything.
RPM Real Estate Services simplifies the leasing process from start to finish — helping you evaluate market options, negotiate fair terms, and secure the perfect industrial property to power your growth.
🔗 Visit www.rpmres.com or call 424.281.3701 to connect with a local broker today.
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