Defense, Space Tenants Drive South Bay Industrial Rents Above $3.00 NNN as Class A Supply Tightens

Defense technology, space and advanced manufacturing users are competing for a shrinking pool of new Class A industrial buildings in the South Bay, pushing NNN rents into the $2.40 to $2.75 per square foot range and setting up higher rents for quality Class B space, according to Kidder Mathews' third-quarter 2026 report.