Big-Box Warehouse Leasing Surges in SoCal
What happened
Large warehouse leases (>500,000 sq. ft.) in Southern California jumped 32% YoY in 2025, with vacancy dropping 140 bps Cushman & Wakefield. Landlords can expect upward pressure on lease rates.
Why it matters
E-commerce continues to be a major force, with projections indicating that e-commerce companies will account for approximately 25% of all new warehouse leasing in the U.S. in 2026. This is up from roughly 20% in 2025. Online sales require roughly three times as much logistics space as traditional brick and mortar retail. Southern California's ports remain vital, handling significant container volumes, although there were year-over-year declines in Q4 2025. The ports of Los Angeles and Long Beach continue to be the nation’s trade powerhouses, driving industrial demand in nearby submarkets. The industrial market in Southern California is showing signs of normalization. Vacancy rates have been rising, and asking rents have softened, although they remain above pre-pandemic levels. This shift indicates a move towards a tenant market, providing more negotiating power for those seeking warehouse space.
Key numbers
- ft.) in Southern California jumped 32% YoY in 2025, with vacancy dropping 140 bps Cushman & Wakefield.
- E-commerce continues to be a major force, with projections indicating that e-commerce companies will account for approximately 25% of all new warehouse leasing in the U.S.
- Southern California's ports remain vital, handling significant container volumes, although there were year-over-year declines in Q4 2025.
What happens next
- E-commerce continues to be a major force, with projections indicating that e-commerce companies will account for approximately 25% of all new warehouse leasing in the U.S.
- Landlords can expect upward pressure on lease rates.
Sources
Quick answers
What happened in Big-Box Warehouse Leasing Surges in SoCal?
Large warehouse leases (>500,000 sq. ft.) in Southern California jumped 32% YoY in 2025, with vacancy dropping 140 bps Cushman & Wakefield. Landlords can expect upward pressure on lease rates.
Why does Big-Box Warehouse Leasing Surges in SoCal matter?
E-commerce continues to be a major force, with projections indicating that e-commerce companies will account for approximately 25% of all new warehouse leasing in the U.S. in 2026. This is up from roughly 20% in 2025. Online sales require roughly three times as much logistics space as traditional brick and mortar retail. Southern California's ports remain vital, handling significant container volumes, although there were year-over-year declines in Q4 2025. The ports of Los Angeles and Long Beach continue to be the nation’s trade powerhouses, driving industrial demand in nearby submarkets. The industrial market in Southern California is showing signs of normalization. Vacancy rates have been rising, and asking rents have softened, although they remain above pre-pandemic levels. This shift indicates a move towards a tenant market, providing more negotiating power for those seeking warehouse space.
