The San Fernando Valley industrial market in Q3 2025 is experiencing a rise in vacancy rates and a decline in lease rates, while net absorption remains negative and construction activity continues across key submarkets. Explore our full San Fernando Valley industrial market report for detailed analysis, trends, and transaction highlights.
3Q 2025 San Fernando Valley Industrial Market: Key Data Points
- Vacancy Rate Rise Year-Over-Year: San Fernando Valley’s direct industrial vacancy rate increased to 4.4% in 3Q 2025, up 110 basis points from 3.3% in 3Q 2024.
- Lease Rates Decline: Average asking lease rate fell to $1.53 per square foot, marking a 10% year-over-year decrease.
- Net Absorption Remains Negative: Direct net absorption totaled -173,760 SF in 3Q 2025, continuing a negative trend from previous quarters.
- Construction Pipeline Active: 599,425 SF of industrial space is currently under construction across the San Fernando Valley, with major projects in Sylmar, Calabasas, and Van Nuys.
- Significant Sales Activity: The largest sale of the quarter was 100 E Graham Pl in Burbank, totaling 104,795 SF and selling for $29 million ($276.73/SF).
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