Inland Markets Rise: How Phoenix, Reno, and Las Vegas Are Redefining Western U.S. Logistics
West Region Industrial Markets Leasing Activity
- Port Cities Decline: Leasing for large distribution centers (500K+ SF) in West Coast port cities like LA, Inland Empire, Portland, and Seattle dropped 52% (2019–2024) as companies shift to smaller, cost-efficient spaces to reduce expenses and risks.
- Phoenix Growth: In 2024, Phoenix leased 3.4M SF of large distribution space (1M+ SF), while small-box leasing (50K–100K SF) surged 136% since 2019. Its strategic location on I-10 and I-17, strong rail links to LA ports, and Sky Harbor’s cargo capacity make it attractive for large and mid-sized occupiers seeking flexibility without port reliance. Meanwhile, the Inland Empire has experienced a rising demand for mid-sized spaces (100K–500K SF), as leasing activity is up 23%.
- Emerging Powerhouses: Phoenix, Reno, and Las Vegas thrive as industrial hubs, serving diverse regions (CA, TX, UT, Mexico). Their stability comes from e-commerce, regional distribution, and manufacturing, and are less affected by global trade fluctuations.
- Cost Benefits: Inland markets like Phoenix, Reno, and Las Vegas provide lower rents, tax incentives, and business-friendly policies, optimizing costs while staying close to major consumer markets.
December 4, 2024
