2026 Outlook for Torrance

2025 Outlook for Office Space in Torrance CA

2026 Outlook for Torrance Office Market

Torrance Office Market Stability Amid Regional Challenges

The current state of the Torrance office market remains notably stable and is projected to maintain this resilience through 2026, despite ongoing challenges impacting neighboring areas like the beach cities, El Segundo, and the LAX corridor.

Comparison with Neighboring Markets

An office space comparison with the El Segundo, Hermosa Beach, Manhattan Beach, Redondo Beach, and LAX Area provides valuable economic context. These areas have recently faced significant declines in demand due to factors such as layoffs, a shift toward permanent telecommuting, and disruptions within the tech and media sectors. Over the past decade, office space in these markets commanded premium rental rates, typically $1.50 to $2.00 or more per square foot compared to Torrance. In contrast, Torrance continues to thrive with a vacancy rate consistently below 11%.

Key Torrance Submarkets Thriving

Key Torrance office submarkets, namely the Hawthorne Boulevard financial district and the 190th Street Corridor, are performing well. These areas benefit from competitive rental rates, consistent tenant demand, and superior freeway accessibility. A significant strength of the Torrance market is its high tenant retention rate, with approximately 75% of Class A and B buildings successfully maintaining their tenants, thereby contributing significantly to the area’s market stability.

Market Outlook Through 2026

Looking ahead through 2025, Torrance is expected to sustain this positive momentum. Sublease availability remains limited, with only a few larger spaces on the market. Tenant retention continues to be robust even amid incremental rent increases.

Conversely, the LAX corridor is seeing new investments aimed at revitalizing Class A and B+ buildings. This may lead to reduced rents and increased leasing incentives as the area navigates its recovery

Torrance as a Stable Choice in a Volatile Market

While broader market volatility is anticipated to persist across Central Business Districts (CBDs) in Los Angeles County, Torrance stands out as a consistently stable and attractive option for businesses prioritizing value, consistency, and location advantages.

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Overview of Torrance Office Market

THE ENCLAVE at 970-990 W. 190th St in Torrance CA renovated modernized vibrant Class A office/retail project on 190th corridor

Overview of Torrance Office Market

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South Bay – Overview of Torrance Office Market

The South Bay office market spans several key cities, with Torrance/Redondo Beach at the southern end and Manhattan Beach/El Segundo (the LAX Area) at the north end. The LAX Area which covers approximately 10 square miles, has seen rapid development and strong leasing demand. This growth is fueled by industries like entertainment, technology, media, software, private equity and financial services.

Torrance and Redondo Beach Office Space

By contrast, Torrance and Redondo Beach offer a less expensive  option for renting office space across a 25 square-mile area. Class A office space is limited, but there are a few high-quality buildings in the  financial district on Hawthorne Boulevard and also along the 190th Street corridor. These premium offices typically lease for around $3.25 per square foot or more.

Why Torrance Stands Out: Location and Major Employers

Torrance is located about 10 miles south of LAX. It remains a strategic business hub as the southernmost coastal cities of Los Angeles County. Major companies and headquarters include:

  • Toyota Finance

  • GITAI 

  • Epirus, Inc. 

  • A2Z Drone Delivery

  • Skechers

  • America Honda Motor Corp

  • Herbalife

  • Honeywell

  • Robinson Helicopter

  • Torrance Memorial

  • UCLA Health

Business-Friendly Amenities and New Developments

Torrance is also known for an updated Del Amo Fashion Center, one of the largest malls in the country featuring brands like Tesla, Nordstrom, Coach, Dolce & Gabbana and Tumi.

The Crossing in the financial district and the Enclave on 190th adjacent to the 405 Freeway both attract businesses. These projects, especially Enclave, enhance the appeal of top locations for office space in Torrance.

Torrance Office Market: Stability and Value

Unlike the LAX office market, which has faced challenges from slowdowns in tech, media, and entertainment, Torrance remains steady thanks to its diverse mix of traditional industries. Office rents in Torrance are typically $1.25 or more per square foot lower than similar Class A or B+ properties in the LAX Area, making it a strong value play for tenants.

Browse Torrance Office Space Listings

Explore Torrance Office Space to view high-quality building images, accurate property highlights, and top leasing opportunities in the South Bay market.

TorranceOfficeSpace.com

Three Helpful Torrance and South Bay Maps

https://torranceofficespace.com/three-good-maps-for-southbay-and-torrance/

 

2026 Market Outlook

https://torranceofficespace.com/2026-market-outlook-for-office

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