3 Reasons to Buy High-Yield Rexford Stock Like There's No Tomorrow

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Reuben Gregg Brewer, The Motley FoolSun, November 2, 2025 at 2:54 PM GMT+1 5 min readRexford leases out industrial properties in Southern California.The company has been able to increase lease rates at a rapid clip.The dividend is well supported and has been growing quickly.10 stocks we like better than Rexford Industrial Realty ›The S&P 500 (SNPINDEX: ^GSPC) is providing a tiny yield of just 1.2%. That's just not enough to get the job done for most income-focused investors. In fact, it's not even close to the 4% withdrawal rate rule of thumb that investors use in retirement.But Rexford Industrial Realty's (NYSE: REXR) 4.1% yield is right in the sweet spot. Here are three reasons to consider buying Rexford like there's no tomorrow.Rexford operates in Southern California and owns industrial real estate, such as warehouses. The vacancy rate in the region where the real estate investment trust (REIT) operates is around 4.8%, versus an average of roughly 6.6% for other major U.S. industrial markets. Having a lower vacancy rate is the norm for this region, at least partly because it is a key gateway between Asia and the United States.Image source: Getty Images.In fact, demand is so strong that industrial vacancy rates in Southern California tend to trend in a pretty tight band of around 420 basis points. That compares to 880 basis points for other industrial markets, which would represent a swing that's more than twice as large. Simply put, Rexford's 421 properties are in a very attractive market.Some other key benefits of the region where Rexford calls home include limited supply and a trend for industrial properties to be converted to other uses, such as housing. And, as a REIT with access to capital markets, Rexford also has a leg up on smaller players in the space when it comes to inking and closing property deals.Operating in a strong regional market for industrial assets isn't the whole story. It also provides Rexford with the leverage to raise lease rates. In the third quarter of 2025, the REIT signed 69 new leases with an effective rent increase over the previous lease of 25.6%. It signed 54 renewal leases, with an average increase of 26.5%. Clearly, the company's properties are in high demand.That rental growth helped to push the REIT's core funds from operations (FFO) up 9% year over year in the third quarter. That's a strong number for a REIT, backed by an occupancy rate of 96.8%, up 60 basis points from the prior quarter.All in, Rexford has been performing well as it makes good use of its many advantages.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,851.97 +11.77 (+0.17%)Dow 3047,336.68 -226.19 (-0.48%)Nasdaq23,834.72 +109.77 (+0.46%)Russell 20002,471.24 -8.14 (-0.33%)VIX17.17 -0.27 (-1.55%)Gold4,013.70 +17.20 (+0.43%)PortfolioSign in to access your portfolioSign inTop gainersCIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)AMKR Amkor Technology, Inc. 37.84 +5.56 (+17.22%)LUMN Lumen Technologies, Inc. 11.83 +1.55 (+15.08%)IDXX IDEXX Laboratories, Inc. 722.94 +93.43 (+14.84%)FRPT Freshpet, Inc. 56.25 +7.04 (+14.31%)Top losersQURE uniQure N.V. 34.29 -33.40 (-49.34%)RGC Regencell Bioscience Holdings Limited 13.56 -3.09 (-18.56%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)UUUU Energy Fuels Inc. 17.80 -2.71 (-13.21%)QS QuantumScape Corporation 16.21 -2.23 (-12.09%)Most activeKVUE Kenvue Inc. 16.14 +1.77 (+12.32%)NVDA NVIDIA Corporation 206.88 +4.39 (+2.17%)CIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)PFE Pfizer Inc. 24.66 +0.01 (+0.04%)ONDS Ondas Holdings Inc. 6.15 -0.29 (-4.50%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPLTR Palantir Technologies Inc. 207.18 +6.71 (+3.35%)HIMS Hims & Hers Health, Inc. 44.39 -1.07 (-2.35%)BTC-USD Bitcoin USD 105,910.68 -4,048.17 (-3.68%)NVTS Navitas Semiconductor Corporation 12.25 -1.21 (-8.99%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)Top economic events