The following reflects San Fernando Valley industrial market conditions as of 3Q 2026.
The San Fernando Valley industrial market in 3Q 2026 experienced rising vacancy and asking rental rates, a decline in net absorption, and steady construction deliveries year-over-year. Explore our full San Fernando Valley industrial market report for deeper insights into leasing activity, submarket performance, and investment trends.
Frequently Asked Questions
What is the industrial vacancy rate in San Fernando Valley in Q3 2026?
The direct vacancy rate in the San Fernando Valley industrial market was 5.4% in 3Q 2026, according to Kidder Mathews research. This is up from 5.3% in 2Q 2026 and up 100 basis points from 4.4% in 3Q 2025. Total vacancy, which includes sublease space, stood at 6.0% market-wide (Data source: CoStar).
What is the industrial availability rate in San Fernando Valley?
The availability rate in the San Fernando Valley industrial market was 7.6% in 3Q 2026, unchanged from 7.6% in 2Q 2026 but up 120 basis points from 6.4% in 3Q 2025, according to Kidder Mathews research. Availability includes space currently vacant or marketed for lease or sublease but not yet vacant.
What are average industrial asking rents in San Fernando Valley in Q3 2026?
The average direct NNN asking rate across the San Fernando Valley industrial market was $1.57/SF/month in 3Q 2026, up 4.0% from $1.51 a year earlier (Data source: CoStar). Rates vary by submarket, ranging from $1.43/SF/month in West San Fernando Valley to $2.23/SF/month in Glendale.
How much industrial leasing activity occurred in San Fernando Valley in Q3 2026?
Industrial leasing activity totaled 842,529 SF in 3Q 2026 across the San Fernando Valley market, according to Kidder Mathews research. Year-to-date leasing activity reached 3,562,253 SF through 3Q 2026, down 4.2% from 3,717,991 SF over the same period in 2025. East San Fernando Valley led all submarkets with 391,251 SF leased in the quarter.
What is net absorption and how did San Fernando Valley industrial perform in Q3 2026?
Net absorption measures the change in occupied industrial space and is a key indicator of demand; a negative figure means more space was vacated than leased. San Fernando Valley posted negative direct net absorption of -129,867 SF in 3Q 2026, bringing the year-to-date total to -1,037,546 SF (Data source: CoStar). Glendale and Burbank saw the largest quarterly negative absorption, at -73,135 SF and -65,970 SF respectively, while East San Fernando Valley was the only submarket to post positive quarterly absorption, at 47,271 SF.
How much industrial space is under construction in San Fernando Valley?
There was 865,098 SF of industrial space under construction in San Fernando Valley as of 3Q 2026, according to Kidder Mathews research, with all active development concentrated in East San Fernando Valley and West San Fernando Valley. The largest project underway is a 440,000-SF building at 15825 Roxford St in Sylmar, owned by Xebec and slated for delivery in 4Q 2026. Year-to-date construction completions totaled 113,354 SF.
What was the largest industrial sale in San Fernando Valley in Q3 2026?
The largest industrial sale in San Fernando Valley in 3Q 2026 was 12780 San Fernando Rd in East San Fernando Valley, a 100,000-SF building that sold for $18,500,000 ($185.00/SF), according to Kidder Mathews research. Xebec purchased the property from seller Robert Sussman. Total sale transaction volume for the quarter reached 634,510 SF, up 4.6% year-over-year.
What was the largest industrial lease signed in San Fernando Valley in Q3 2026?
The largest industrial lease signed in San Fernando Valley in 3Q 2026 was a 123,974-SF transaction at 12154 Montague St in East San Fernando Valley, according to Kidder Mathews research. IMANI Studio leased the space from landlord Rexford Industrial Realty, Inc. in August 2026.
What is the outlook for the San Fernando Valley industrial market?
San Fernando Valley industrial vacancy and asking rents are both trending upward, while net absorption has turned negative on both a quarterly and year-to-date basis, according to Kidder Mathews research. With only 865,098 SF under construction — concentrated in East and West San Fernando Valley — and limited new supply expected in Burbank and Glendale, tenant demand will continue to be shaped by available existing inventory across the market’s four submarkets.
Last updated: 3Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
3Q 2026 San Fernando Valley Industrial Market: Key Data Points
Explore our full San Fernando Valley industrial market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy Rising: Direct vacancy reached 5.4% in 3Q 2026, up 100 basis points year-over-year from 4.4%; total vacancy stood at 6.0% market-wide.
- Asking Rents Up: The average direct NNN asking rate rose to $1.57/SF/month, a 4.0% increase from $1.51/SF/month a year ago.
- Leasing Activity: 842,529 SF leased in 3Q 2026; year-to-date leasing of 3,562,253 SF trails 2025’s pace by 4.2%.
- Negative Net Absorption: Direct net absorption fell to -129,867 SF in the quarter and -1,037,546 SF year-to-date, led by declines in Glendale and Burbank.
- Construction Pipeline: 865,098 SF is under construction, entirely in East and West San Fernando Valley, led by Xebec’s 440,000-SF project at 15825 Roxford St in Sylmar.
- Biggest Sale of the Quarter: 12780 San Fernando Rd in East San Fernando Valley sold for $18,500,000 ($185.00/SF) to Xebec.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
3Q26 Direct Net Absorption (SF) |
YTD Direct Net Absorption (SF) |
3Q26 Leasing Activity (SF) |
SF Under Construction |
Avg NNN Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Burbank | 14,766,138 | 4.5% | 4.7% | -65,970 | -17,398 | 78,523 | 0 | $1.86 |
| East San Fernando Valley | 52,333,148 | 5.9% | 6.3% | 47,271 | -612,044 | 391,251 | 840,156 | $1.56 |
| Glendale | 8,109,855 | 2.1% | 3.0% | -73,135 | -68,619 | 45,552 | 0 | $2.23 |
| West San Fernando Valley | 46,613,136 | 5.6% | 6.5% | -38,033 | -339,485 | 327,203 | 24,942 | $1.43 |
| Total | 121,822,277 | 5.4% | 6.0% | -129,867 | -1,037,546 | 842,529 | 865,098 | $1.57 |
Data as of 3Q 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
Significant Sale Transactions 3Q 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| 12780 San Fernando Rd | East San Fernando Valley | 100,000 | $18,500,000 | $185.00 | Xebec | Robert Sussman |
| 9667 Owensmouth Ave | West San Fernando Valley | 52,360 | $10,600,000 | $202.44 | Hummer Properties EAT, LLC | Liteforms, Inc. |
| 12432 Foothill Blvd | East San Fernando Valley | 48,500 | $9,400,000 | $193.81 | Steven Roysner | Build Rehabilitation Industries |
Significant Lease Transactions 3Q 2026
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| 12154 Montague St | East San Fernando Valley | 123,974 | August 2026 | Rexford Industrial Realty, Inc. | IMANI Studio |
| 11149 Vanowen St | East San Fernando Valley | 60,233 | August 2026 | Goldrich Kest | Undisclosed |
| 19731 Nordhoff St | West San Fernando Valley | 35,000 | August 2026 | Lloyd Design Corporation | Lennon & Company |
Significant Under Construction
| Property | City | Submarket | SF | Owner | Delivery |
|---|---|---|---|---|---|
| 15825 Roxford St | Sylmar | East San Fernando Valley | 440,000 | Xebec | 4Q 2026 |
| 13149 Telfair St | Sylmar | East San Fernando Valley | 164,000 | Xebec | 2Q 2027 |
| 15191 Bledsoe St | Sylmar | East San Fernando Valley | 87,010 | Xebec | 4Q 2026 |
Data as of 3Q 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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