Looking Ahead to 2027
Indications are that the Q4 2026 & 2027 Office Market Outlook for the coming year with new momentum from space, defense and advanced manufacturing, which accounted for over 700,000 SF of leasing in 2026.
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%.
Thriving Torrance Submarkets
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.
2nd Half of 2026 Market Outlook
Looking ahead, 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.