Industrial market
Source: Kidder Mathews Research Group, Q2 2026 Los Angeles Industrial Market Report (data: CoStar, EDD).
| Metric | Q2 2026 | Context |
|---|---|---|
| Direct vacancy | 6.0% | Up from 5.9% in Q1 2026 and 5.6% in Q2 2025 |
| Total vacancy (incl. sublease) | 6.9% | Availability 8.2% |
| Average asking rent | $1.37/SF NNN | Down 6.2% year over year |
| Direct net absorption | −863,475 SF | Q2; year to date −2,559,239 SF |
| New deliveries | 184,000 SF | Q2, a historically thin supply quarter |
| Leasing volume | 6.2M SF | Q2, led by aerospace, manufacturing, logistics, 3PL |
| Average sale price | $283.59/SF | Average cap rate 5.7% |
| Total inventory | 755.5M SF | All LA submarkets combined |
The Bell and Vernon corridor
The Central Los Angeles submarket cluster, which includes Bell, Vernon, and Commerce, holds roughly 263.1 million square feet, about a third of the county's industrial inventory, at 6.2% direct vacancy and $1.34 average asking rents (Kidder Mathews, Q2 2026).
| Submarket | Inventory | Direct vacancy | Avg asking (NNN) |
|---|---|---|---|
| Vernon | 45.0M SF | 6.3% | $1.23 |
| Commerce | 45.5M SF | 6.6% | $1.29 |
| Central cluster total | 263.1M SF | 6.2% | $1.34 |
The quarter's largest Los Angeles industrial sale was in Vernon: the 238,457 SF Golden West Food building traded for $87,142,000, or $365.44 per square foot, acquired by New Mountain Capital (Kidder Mathews, Q2 2026).
Encore manages roughly half a million square feet in this corridor, including a 307,101 SF distribution center and a 25,194 SF cold storage facility, detail on the Vernon and Bell industrial management page.
Office market
Source: Kidder Mathews Research Group, Q2 2026 Los Angeles Office Market Report.
| Metric | Q2 2026 | Context |
|---|---|---|
| Direct vacancy | 16.4% | Up from 16.0% in Q1 2026 and 15.8% in Q2 2025 |
| Total vacancy (incl. sublease) | 17.8% | Market-wide |
| Submarket range | 5.6% to 28.6% | Southeast LA lowest; Miracle Mile highest |
| Downtown LA direct vacancy | 23.7% | Average direct asking rate $2.97/SF |
The spread is the story. A 5.6% submarket and a 28.6% submarket are different markets that happen to share a county, which is why owner-user demand for well-located smaller buildings can stay healthy while towers struggle.
Retail market
Source: Kidder Mathews Research Group, Q2 2026 Los Angeles Retail Market Report (data: CoStar); Matthews Real Estate Investment Services, Q2 2026.
| Metric | Q2 2026 | Context |
|---|---|---|
| Vacancy (Kidder / CoStar) | 5.6% | 5.7% in Q1 2026; 5.5% in Q2 2025 |
| Vacancy (Matthews) | 5.83% | A 10-year high on Matthews' dataset |
| Investment volume (Matthews) | $4.9B | Up 40% year over year |
Two research houses, two vacancy figures, one lesson: always ask which dataset a quoted statistic comes from before comparing it to another one.
Multifamily market
Source: USC Lusk Center for Real Estate, Casden Multifamily Forecast (published December 2025).
- Los Angeles County vacancy sits near 5%, temporarily 4.8% after a rare wave of new deliveries; it has historically held below 5% due to limited construction
- LA expanded its rental inventory by only 1% last year, and units under construction have dropped sharply
- Rents are forecast to rise about 2.5% annually over the next two years
- By October 2027 the forecast puts LA County vacancy at 5.17% with average rents around $2,350 (LA Business Journal summary of the same forecast)
Residential rent regulation caps
The allowable annual increase depends on which regime governs the parcel, and the swing is roughly four and a half times between state law and the strictest local cap. Figures below are current as of August 2026; the full breakdown, notice mechanics, and jurisdiction method are in what California landlords can legally raise rent in 2026.
| Regime | Current limit | Period |
|---|---|---|
| AB 1482 (state law), LA metro | 8.7% | Aug 1, 2026 to Jul 31, 2027 |
| Unincorporated LA County, fully covered | 1.919% | Jul 1, 2026 to Jun 30, 2027 |
| Unincorporated LA County, Small Property Landlord | 2.919% | Jul 1, 2026 to Jun 30, 2027 |
| City of Los Angeles RSO | 3% | Through Jun 30, 2027 |
| Glendale | 8.7% (state cap) | Relocation assistance triggers above 7% if the tenant vacates |
Commercial property carries no rent cap in any of these jurisdictions. General information, not legal advice; verify current figures with the governing agency before serving any notice.
From Encore's own book
Portfolio figures from Encore Realty's managed and transacted properties, current as of August 2026:
- Roughly half a million square feet of industrial space managed in the Bell and Vernon corridor, spanning eight buildings from a 307,101 SF distribution center to individual industrial condos
- Closed sales from $350,000 to $3,425,000 across Glendale, La Cañada Flintridge, Sun Valley, and Granada Hills
- More than 125,000 SF of industrial, retail, and commercial space leased, including a 56,000 SF Vernon industrial building at $0.85/SF
- Most recent buyer representation closed $150,000 under the asking price (9658 Wheatland Ave, Sun Valley)
Quoting these figures? Cite the underlying source named next to each number, or for Encore portfolio figures cite Encore Realty. For press inquiries or market commentary on the LA industrial, retail, or multifamily market, call or email .
Sources
- Kidder Mathews Research Group, Los Angeles Industrial Market Report, Q2 2026 (data: CoStar, EDD)
- Kidder Mathews Research Group, Los Angeles Office Market Report, Q2 2026
- Kidder Mathews Research Group, Los Angeles Retail Market Report, Q2 2026 (data: CoStar)
- Matthews Real Estate Investment Services, Los Angeles Retail Market Report, Q2 2026
- USC Lusk Center for Real Estate, Casden Multifamily Forecast, December 2025
- California Tenant Protection Act (AB 1482), Los Angeles County RSTPO (DCBA), City of Los Angeles RSO (LAHD), Glendale Municipal Code § 9.30.033 — figures verified against Encore's 2026 rent increase guide
- Encore Realty portfolio and transaction records, August 2026
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