Warehouse Development Hitting Peak Levels
Warehouse development on the West Coast is at its highest level in decades. A new report from CBRE shows there is currently 57.7 million square feet of warehouse development in eight top West Coast markets. The activity accounts for 40% of total warehouse development among the top 20 industrial markets in the country. Ecommerce—including retailers, wholesalers and third-party logistics companies—are driving the increased demand for warehouse space.
Among all of this development activity, most is speculative. “Nearly 75% of the current West Coast development is speculative due to developers’ confidence in demand levels across all markets,” Jamil Harkness senior industrial analyst at CBRE, tells GlobeSt.com. “Both spec and build-to-suit have been exceptionally strong, and we expect this to continue for the foreseeable future, the next 12 to 18 months.”