Family Office Briefing on research byMarcus & Millichap·May 22, 2026

Los Angeles Industrial Market Report - 2Q 2026

Los Angeles industrial vacancy has reached the low-7 percent range for the first time since at least 2000, with 2020s-built properties at nearly 25 percent vacant, while ports of LA and Long Beach are projected to handle more than 20 million TEUs in 2026.

IndustrialLos AngelesCalifornia2026

Key Metrics

Metric	Value	Change / Context
Vacancy Rate (2020s-Built Properties)	25.0%	as of March 2026
Projected Port TEU Volume (LA + Long Beach)	20000000TEUs	projected 2026, described as 'more than'

Metrics extracted from the source report and independently fact-checked. Method →

How a family office could deploy

Co-GP / Platform Capital · share the promote

Partner with a sponsor that has tenant relationships in the five core LA industrial hubs to co-invest in value-add acquisition of vacant 2020s-built properties or stabilized port-logistics assets, sharing promote on lease-up and NOI growth as the supply overhang clears.

Direct / Separate-Account Ownership

Acquire a vacant or under-leased modern industrial asset in South Bay or Commerce-Vernon through a separate account, allowing full control over TI budgets, lease structures, and exit timing as port volumes stabilize and vacancy compresses.

LP Allocation

Commit to an LA-focused industrial value-add fund targeting the current dislocation in newer vintage properties.

How family offices deploy capital into real estate →

Full report

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