Shifting Preferences: Growing Demand for Smaller Spaces in Western Industrial Hubs
West Region Industrial Markets: Market Activity by Leased Square Feet
- Shift in Inland Empire Demand: Traditionally a hub for large occupiers due to its proximity to West Coast ports, the Inland Empire is seeing increased demand for smaller industrial spaces. By 2024, leases for 100K-250K SF accounted for 25% of all leases, up from 17% in 2019, reflecting evolving business needs.
- Reno and Las Vegas Growth: Leasing for mid-sized industrial spaces (100K-250K SF) is booming. In Reno, these leases made up over 40% of total leases in 2024, rising from 30% in 2019. In Las Vegas, the figure surpassed 30% in 2024, up from under 20% in 2019. This growth highlights strong demand for regional distribution and manufacturing facilities.
- Phoenix’s Smaller Space Surge: Phoenix is seeing increased leasing activity for spaces between 50K-100K SF, driven by e-commerce growth, small-bay distribution, and light manufacturing. In 2024, this segment accounted for 29% of total leases, up from 13% in 2019.
December 19, 2024
