Overview of Torrance Office Market

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

Overview of Torrance Office Market

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Southern Section South Bay: A Market Overview

Torrance and Redondo Beach are the southernmost cities in the South Bay, while Manhattan Beach and El Segundo (LAX Area) lie to the north. The LAX Area, spanning roughly 10 square miles, has experienced rapid growth and strong tenant demand. Industries such as entertainment, technology, media, software, private equity, and financial services dominate this market.

Torrance and Redondo Beach Office Space Market

By contrast, the Torrance and Redondo Beach office markets span 25 square miles, offering significantly lower rental rates. Class A office buildings are limited, primarily located along Hawthorne Blvd in the financial district and the 190th Street Corridor. These premier properties command rents of approximately $3.50 or more per square foot.

Torrance: Strategic Location and Key Tenants

Located about 10 miles south of LAX, Torrance lacks direct access to the 405 Freeway but remains strategically important as the southernmost city in Los Angeles County. Torrance is home to major corporations such as ExxonMobil, Toyota Finance, Skechers, Honda’s North American Headquarters, Herbalife, Honeywell, Robinson Helicopter, Torrance Memorial, and UCLA Health.

Major Attractions and Amenities in Torrance

A highlight of Torrance is the fully renovated Del Amo Fashion Center, one of the ten largest malls in the U.S., featuring luxury brands including Tumi, Tesla, Dolce & Gabbana, Coach, and Nordstrom. Additionally, the Torrance office market is strengthened by developments such as The Crossing, enhancing the appeal of Hawthorne Boulevard and the financial district. Another notable project is The Enclave, recently renovated along the 190th Street Corridor near the 405 Freeway, significantly boosting the area’s attractiveness to office tenants.

Torrance Office Market Stability

Unlike the LAX Area, adversely impacted by downturns in tech, media, and entertainment sectors, Torrance maintains stability thanks to its diverse mix of traditional office tenants. Rental rates in Torrance remain highly competitive, typically $1.50 or more per square foot lower than comparable Class A and B+ buildings near LAX.

Explore Torrance Office Space for high-quality images of good building options with accurate highlighted amenities.

Visit the #WhyTorrance.gov website!

Below are three helpful Torrance maps and the South Bay

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

2025 Market Outlook for Torrance Office Space

DEL AMO CROSSING at 21515-21535 Hawthorne Blvd, Class A core office campus project in a prime location.

2025 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 2025, 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 2025

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.

 
Refer to our for market conditions “Overview of Torrance Office Space Market”
To find and secure office space in Torrance, visit: TorranceOfficeSpace.com