What counts as industrial real estate
Industrial real estate is property used to make, store, move or service goods. In Southern California that covers a wide range of buildings, and each one rents and sells differently:
- Warehouse and distribution: large open space with dock-high doors, high ceilings and room for trucks.
- Manufacturing: heavier power, cranes or special ventilation, often in older buildings close to suppliers.
- Flex and R&D: a mix of office and light industrial space, common in Orange County business parks.
- Truck yards and outdoor storage: paved land for trucks, trailers, containers or equipment, also called IOS.
- Cold storage and food: insulated rooms, floor drains and extra power, the hardest space to find ready to use.
How the Los Angeles market is laid out
Location decides most of the price, because every mile from the ports and freeways costs truck time. The main areas:
- South Bay and the port area: Carson, Torrance, Compton, Rancho Dominguez, Wilmington and Long Beach, closest to the ports of Los Angeles and Long Beach.
- Central LA: Vernon, Commerce and the downtown industrial district, near the rail yards and downtown.
- Mid-Counties: Santa Fe Springs, Cerritos, Downey and Norwalk, between LA and Orange County.
- San Gabriel Valley: City of Industry, El Monte and Irwindale, with larger distribution buildings.
- San Fernando Valley: Sun Valley, Sylmar and Chatsworth, with smaller buildings for manufacturing and service companies.
- Orange County: smaller buildings, business parks and industrial condos, from Anaheim and Fullerton to Irvine and Santa Ana.
Leasing industrial space: what to check
The asking rent is only part of the cost. Before you sign, compare the full picture:
- Clear height, column spacing and floor strength for your racking or machines.
- Dock-high and grade-level doors, truck court depth and trailer parking.
- Power at the panel, in amps and voltage, not just what the flyer says.
- Zoning and a business license for your exact use.
- Lease type: in an NNN lease you pay rent plus your share of taxes, insurance and maintenance; in a gross lease most of those are included.
Our commercial lease cost calculator compares two spaces on total cost over the full term, including NNN charges, free rent and move-in costs.
Buying an industrial building
Owner-users often buy with an SBA 504 loan, which can allow about 10% down when the business occupies at least 51% of an existing building. Investors buy for income and compare the cap rate with borrowing costs. Our Market Pulse sample shows Los Angeles County industrial cap rates near 5.7% in Q2 2026 (Kidder Mathews, CoStar data), while the 10-year Treasury averaged about 5.13% in October 2026 (Federal Reserve via FRED). That thin gap means buyers price carefully and negotiate. This reading is Exponential Acquisition's own analysis; others may read the data differently.
Two costs surprise buyers in Los Angeles: property taxes reset to the purchase price under Proposition 13, and the City of Los Angeles adds a transfer tax (Measure ULA) on sales above set price levels. Run the numbers with the lease or own calculator or the cap rate and DSCR calculator.
Truck yards and outdoor storage
Yards are among the hardest assets to find, because many cities limit where trucks can park and often require a conditional use permit. Confirm zoning, paving, drainage and any stormwater permit before you sign. See truck yards in Los Angeles County.
How we help
Ben Kaviani is a commercial real estate agent with eXp Commercial. He works with tenants, buyers, investors and owners across Los Angeles, Orange County and Long Beach, and coordinates lenders, attorneys and inspectors so one person keeps the deal on schedule.