Rexford Industrial Realty Reports Strong Second Quarter Operating Activity and Disposition Activity

Strategic Insights -

Rexford Industrial Realty, a leading real estate investment trust focused on industrial properties in infill Southern California, has provided an update on its second quarter operating and transaction activity. The company executed 1.2 million square feet of new and renewal leases, with an average unit size of 17,000 square feet, including approximately 652,000 square feet of renewal leases and 571,000 square feet of new leases. Comparable rental rates on new and renewal leases increased by 17% on a net effective basis and by 4% on a cash basis. The company also leased a 191,000-square-foot repositioning project at 218 Turnbull Canyon Road in the Los Angeles -- San Gabriel Valley submarket, generating a projected unlevered stabilized cash yield of 9.2%.

Key Takeaways:

  • Rexford Industrial executed 1.2 million square feet of new and renewal leases in the second quarter, with an average unit size of 17,000 square feet.
  • Comparable rental rates on new and renewal leases increased by 17% on a net effective basis and by 4% on a cash basis.
  • The company leased a 191,000-square-foot repositioning project at 218 Turnbull Canyon Road in the Los Angeles -- San Gabriel Valley submarket, generating a projected unlevered stabilized cash yield of 9.2%.
  • The five-year lease at Turnbull Canyon Road includes 3.8% embedded annual rental rate increases.
  • Rexford Industrial disposed of 2270 Camino Vida Roble in the San Diego -- North County submarket for $31 million, or $289 per square foot, generating an 11.9% unlevered IRR to the Company.
  • The company has $32 million of dispositions under contract or accepted offer.
  • As of March 31, 2025, Rexford Industrial's high-quality portfolio comprised 424 properties with approximately 51.0 million rentable square feet occupied by a stable and diverse tenant base.

Statistics:

  • 1.2 million square feet of new and renewal leases executed in the second quarter
  • Average unit size of 17,000 square feet
  • 652,000 square feet of renewal leases
  • 571,000 square feet of new leases
  • 17% increase in comparable rental rates on a net effective basis
  • 4% increase in comparable rental rates on a cash basis
  • 9.2% projected unlevered stabilized cash yield on the 191,000-square-foot repositioning project
  • 11.9% unlevered IRR on the disposition of 2270 Camino Vida Roble
  • $32 million of dispositions under contract or accepted offer
  • 424 properties in Rexford Industrial's high-quality portfolio
  • 51.0 million rentable square feet occupied by a stable and diverse tenant base

Sources:

  • Rexford Industrial Realty, Inc., "Operating and Transaction Activity Update" (PRNewswire, May 29, 2025)
  • Rexford Industrial Realty, Inc., "Form 10-K for the year ended December 31, 2024" (SEC filing)