Link Logistics offloaded a 265,418-square-foot industrial building in Torrance for $123 million in an off-market deal arranged by The Klabin Co.

Klabin represented the buyer, a private investor, who had been on the hunt for “a premier South Bay location,” said Tyler Rollema, principal at The Klabin Co.

Located at 588 Crenshaw Blvd., the Class A building has 15,000 square feet of office space in addition to its industrial facilities.

“Torrance has become a destination for growing aerospace, high-tech, automotive-EV and advanced manufacturing users,” Rollema said. “Part of this draw is due to the city’s amenities, overall image and safety, business friendly environment and proximity to beach cities for their high-skilled employee base.”

Based on fourth-quarter industrial submarket statistics from Colliers, Torrance had an elevated vacancy rate compared to other South Bay metros and the county as a whole. Overall, South Bay’s vacancy rate stood at 5.7% while Torrance has a 8.4% rate.

Rollema said the differences in the submarkets was more to do with an influx of new industrial product completed in the area last year than a decline in interest.

“There are a couple larger industrial buildings – one 420,000-square-foot building in particular – that are available, which elevates the ‘vacancy rate’ on paper,” he said. “(However) overall, Torrance has seen better activity due to the tenant base, and the demand we’ve seen that has propped up the South Bay industrial market as a whole.”

Currently, the Crenshaw Boulevard building which just traded is 100% occupied by a single tenant, an apparel distributor.

State of the market

The purchase landed at about $463 per square foot, which is fairly higher than the typical industrial transaction. For the fourth quarter of 2025, Kidder Mathews reported an average sale price of $385 per square foot for industrial sales in the county.

“My client admittedly paid a premium for the opportunity to buy a building of this class and size in a premier location,” Rollema said.

That said, when looking specifically at Class A industrial, Rollema said the rents end up balancing out the acquisition cost.

“Based on the leasing activity and rates we’ve seen specifically in Torrance for Class A buildings – and, again, the tenant pool that is pushing rates to over $2 per square foot net – $463 per square foot is actually supportable and once the building is stabilized, will result in a market return on investment,” he said.

As for what’s on the horizon for largescale industrial sales in Southern California, Rollema sees the potential for increased activity this year compared to last year, but he doesn’t anticipate a major boom.

“The market is still rebounding after the unprecedented demand for warehouse space that we saw during (the Covid-19 pandemic),” he said. “That demand has gone back to pre-Covid levels over the last 18 months, particularly from logistics and warehousing users, (which) has reduced lease rates and overall asset values; and now investors and landlords are accepting the new reality of the market.”

As for who will be making these acquisitions, Rollema said it will largely be institutional investors looking to rebalance their portfolios.