In 2024, the West Coast industrial real estate market has shown signs of stabilization. Despite a slowdown in new construction due to higher interest rates and moderated demand, the market remains resilient. Vacancy rates have normalized, and rental rates continue to grow in key markets, albeit at a slower pace. With strategic ports, a sizable workforce, and robust logistics infrastructure, the region continues to attract significant interest from investors and tenants alike.
The West Region Industrial Labor Report looks at the interplay between supply and demand for industrial labor in the warehouse and manufacturing sectors as well as supply and demand for industrial space in the region.
KEY TAKEAWAYS:
- The West region’s population has grown to 47.8 million over the past decade, with 2.8% growth projected over the next five years. A median household income of $97,806—well above the U.S. average of $76,141—provides a strong foundation for consumer spending and economic activity.
- Population growth, a healthy economy, and surging e-commerce have driven record demand for industrial space to meet consumer needs. While logistics has historically dominated, manufacturing demand is gaining momentum due to investments from major companies scaling operations.
- Since 2023, inflation, shifts in consumer patterns, and occupier consolidations have reduced overall demand. However, evolving workforce fundamentals and large-scale manufacturing investments are expected to spur further growth, attracting suppliers and secondary businesses.
The report highlights 15 key metropolitan areas in close proximity to major industrial markets in the West across California, Oregon, Washington, Idaho, Colorado, Nevada, Arizona and Texas.
Key industrial markets covered include:
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