Rexford Industrial Realty Reports Strong Third Quarter Operating Results

Strategic Insights -

Rexford Industrial Realty, Inc., a real estate investment trust focused on creating value by investing in and operating industrial properties throughout infill Southern California, has reported robust operating results for the third quarter to date. The company's Co-Chief Executive Officers, Michael Frankel and Howard Schwimmer, attributed the strength of their operating results to improving fundamentals in their markets and the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets.

Key Takeaways:

  • Rexford Industrial executed 77 new and renewal leases comprising 1.9 million square feet, with an average unit size of 25,000 square feet, in the third quarter to date.
  • Comparable rental rates on new and renewal leases increased by 30% compared to prior rents on a net effective basis and by 15% on a cash basis quarter to date.
  • Year-to-date average leasing spreads were 24% and 13% respectively, with annual contractual rent increases averaging 3.5% for leases executed quarter to date.
  • Same Property Portfolio ending occupancy reached 96.6% as of August 31, 2025, a 50-basis-point increase compared to June 30, 2025.
  • The company leased 407,000 square feet of repositioning and redevelopment projects quarter to date, totaling approximately 1.1 million square feet year to date.
  • Notable leases include a five-year lease with a solar turbine tenant at 8888 Balboa Avenue, San Diego, and a seven-year lease with a logistics and transportation provider at 3071 Coronado Street, Anaheim.
  • Rexford Industrial's differentiated platform, strategic approach to capital allocation, and substantial embedded growth position the company to drive shareholder value.

Statistics:

  • 1.9 million square feet of leases executed in the third quarter to date with an average unit size of 25,000 square feet.
  • Average leasing spreads of 24% and 13% year-to-date, respectively.
  • Annual contractual rent increases averaging 3.5% for leases executed quarter to date.
  • Same Property Portfolio occupancy reaching 96.6% as of August 31, 2025.
  • 407,000 square feet of repositioning and redevelopment projects leased quarter to date, totaling approximately 1.1 million square feet year to date.

Sources:

  • Rexford Industrial Realty's investor update for the third quarter to date as provided by the company.
  • Interviews with Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of Rexford Industrial.