The San Fernando Valley industrial market in 2Q 2026 continued to soften as vacancy and availability rates increased, asking lease rates remained essentially flat, and negative net absorption persisted. Despite weaker occupancy fundamentals, leasing activity remained active with more than 1.28 million SF leased during the quarter and nearly 795,000 SF under construction, signaling continued long-term confidence in the market. Explore our full San Fernando Valley industrial market report for detailed trends, leasing activity, construction updates, and investment insights.
Frequently Asked Questions
What is the industrial vacancy rate in San Fernando Valley in Q2 2026?
The direct vacancy rate for San Fernando Valley industrial space was 5.4% in Q2 2026, up 110 basis points year-over-year from 4.1% in Q2 2025, according to Kidder Mathews research. The total vacancy rate stood at 6.1% for the market as a whole. Vacancy was highest in the East San Fernando Valley and West San Fernando Valley submarkets, both at 6.7% total vacancy, and lowest in Glendale at 2.1%.
What is the industrial availability rate in San Fernando Valley in Q2 2026?
The availability rate reached 7.8% in Q2 2026, an increase of 220 basis points from 5.9% in Q2 2025 (Data source: CoStar). The widening gap between vacancy and availability suggests more tenants are marketing space for sublease or future move-out ahead of actual vacancy.
What are asking rents for San Fernando Valley industrial space in Q2 2026?
The average NNN asking rental rate across San Fernando Valley industrial submarkets was $1.53 per SF per month in Q2 2026, down just 0.6% year-over-year, according to Kidder Mathews research. Rates ranged from $1.45 per SF per month in West San Fernando Valley up to $1.85 per SF per month in Burbank and Glendale.
How much industrial space was leased in San Fernando Valley in Q2 2026?
Industrial leasing activity totaled 1,283,999 SF in Q2 2026, bringing year-to-date leasing volume to 2,408,061 SF, according to Kidder Mathews research. Leasing activity for the quarter was down 8.1% year-over-year compared to the same period in 2025. West San Fernando Valley and East San Fernando Valley accounted for the bulk of quarterly leasing volume.
What is net absorption in the San Fernando Valley industrial market in Q2 2026, and what does it mean?
Direct net absorption was negative 525,180 SF in Q2 2026, bringing the year-to-date total to negative 1,138,026 SF (Data source: CoStar). Negative net absorption means more industrial space was vacated than occupied during the period, reflecting tenants giving back more square footage than they leased. East San Fernando Valley and West San Fernando Valley drove most of the negative absorption, while Burbank and Glendale posted positive absorption for the quarter.
How much industrial space is under construction in San Fernando Valley in Q2 2026?
There was 794,856 SF of industrial space under construction across San Fernando Valley as of Q2 2026, according to Kidder Mathews research. The majority of this pipeline, 769,914 SF, is concentrated in the East San Fernando Valley submarket, led by three Xebec projects on Roxford Street and Bledsoe Street in Sylmar.
What was the largest industrial sale in San Fernando Valley in Q2 2026?
The largest industrial sale of the quarter was 4690 Colorado Blvd in Glendale, a 96,948 SF building that sold for $43,333,500, or $446.98 per SF, according to Kidder Mathews research. Blue Owl Capital purchased the property from Eaton Corporation. Other notable Q2 2026 sales included 5775-5785 Lindero Canyon Rd in West San Fernando Valley ($19,300,000) and 7500-7536 Tyrone Ave in East San Fernando Valley ($10,550,000).
What was the largest industrial lease in San Fernando Valley in Q2 2026?
The largest lease transaction in Q2 2026 was Eaton Corporation’s 94,948 SF lease at 4690 Colorado Blvd in Glendale with landlord Blue Owl Capital, signed in April 2026, according to Kidder Mathews research. Other significant leases included Guitar Center’s 88,781 SF lease in West San Fernando Valley and 285 Logistics, LLC’s 83,462 SF lease in East San Fernando Valley.
What is the outlook for the San Fernando Valley industrial market?
Despite rising vacancy and availability and continued negative net absorption, leasing activity remained active in Q2 2026 and nearly 795,000 SF of new industrial space is under construction, signaling continued long-term investor and tenant confidence in the market, according to Kidder Mathews research. Asking rents have held largely steady even as occupancy fundamentals softened.
Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
2Q 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 Rate Increases: Direct vacancy rose to 5.4% in 2Q 2026, up 110 basis points year-over-year, reflecting continued tenant move-outs and slower space absorption.
- Availability Expands Across the Market: The availability rate climbed to 7.8%, an increase of 220 basis points from 2Q 2025, providing tenants with more leasing options across the region.
- Rental Rates Hold Steady: Average asking industrial rents registered $1.53 PSF per month NNN, down just 0.6% year-over-year, demonstrating continued rent stability despite softer demand.
- Negative Absorption Continues: Direct net absorption totaled negative 525,180 SF during the quarter and negative 1.14M SF year-to-date, indicating occupancy losses across the market.
- Leasing Activity Remains Active: Industrial leasing volume reached 1.28M SF in 2Q 2026, bringing year-to-date leasing activity to more than 2.4M SF.
- Construction Pipeline Persists: Nearly 795,000 SF of industrial space remained under construction at quarter-end, with the majority concentrated in the East San Fernando Valley submarket.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
2Q26 Direct Net Absorption (SF) |
YTD Direct Net Absorption (SF) |
SF Under Construction |
2Q26 Leasing Activity (SF) |
Average NNN Rental Rate |
|---|---|---|---|---|---|---|---|---|
| Burbank | 14,760,468 | 4.3% | 4.6% | 51,409 | 14,689 | 0 | 151,173 | $1.85 |
| East San Fernando Valley | 53,273,169 | 5.9% | 6.7% | -295,655 | -640,282 | 769,914 | 533,776 | $1.52 |
| Glendale | 8,106,572 | 1.6% | 2.1% | 24,216 | -9,485 | 0 | 141,805 | $1.85 |
| West San Fernando Valley | 47,629,924 | 5.8% | 6.7% | -305,150 | -502,948 | 24,942 | 457,245 | $1.45 |
| SFV Totals | 123,770,133 | 5.4% | 6.1% | -525,180 | -1,138,026 | 794,856 | 1,283,999 | $1.53 |
Data as of 2Q 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
Significant Sale Transactions 2Q 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| 4690 Colorado Blvd | Glendale | 96,948 | $43,333,500 | $446.98 | Blue Owl Capital | Eaton Corporation |
| 5775-5785 Lindero Canyon Rd | West San Fernando Valley | 107,391 | $19,300,000 | $179.72 | Arise Inv./Oak Park Inv./Nelnet | Guitar Center |
| 7500-7536 Tyrone Ave | East San Fernando Valley | 34,366 | $10,550,000 | $306.99 | Dunleer | Crosspoint Tyrone Ventures |
Significant Lease Transactions 2Q 2026
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| 4690 Colorado Blvd | Glendale | 94,948 | April 2026 | Blue Owl Capital | Eaton Corporation |
| 5775-5785 Lindero Canyon Rd | West San Fernando Valley | 88,781 | May 2026 | Nelnet | Guitar Center |
| 1245 Aviation Pl | East San Fernando Valley | 83,462 | April 2026 | Rexford Industrial Realty, Inc. | 285 Logistics, LLC |
Significant Under Construction
| Property | City | Submarket | SF | Owner | Delivery |
|---|---|---|---|---|---|
| 15825 Roxford St | Sylmar | East San Fernando Valley | 440,000 | Xebec | 2Q 2026 |
| 15827 Roxford St | Sylmar | East San Fernando Valley | 164,000 | Xebec | 3Q 2026 |
| 15191 Bledsoe St | Sylmar | East San Fernando Valley | 87,010 | Xebec | 3Q 2026 |
Data as of 2Q 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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