After nine consecutive quarters of negative absorption, the Los Angeles industrial market recorded positive absorption in Q1 2025, totaling 2.8 million square feet (msf). Positive occupier activity was observed across nearly all submarkets, with the exception of Ventura County and Mid-Counties. The bulk of this positive movement came from San Gabriel Valley and Central Los Angeles. Notable occupier move-ins included US Elogistics occupying 694,400 square feet (sf) in City of Industry, Source Logistics leasing 374,400 sf in Montebello and YiTong Investments moving into 232,000 sf in City of Industry. The overall vacancy rate fell 20 basis points (bps) from the previous quarter to 6.5%. However, this represents a 100 bps increase compared to the 5.5% reported a year earlier. The recent drop in vacancy was largely driven by significant lease signings and a limited number of vacant construction deliveries.