SoCal Industrial Market Shifts Into Lower Gear: Research Insights with AIR CRE

Summer 2023 Brought Positive News of Increasing Cargo Volumes and Signed New West Coast Labor Agreement  

Earlier this year, there was some concern for the level of port volume that had shifted from the West Coast to the East Coast as suppliers adjusted to supply chain challenges over the course of 2022. Market watchers in the southern California industrial market already had an eye toward rising interest rates, possible construction moratoriums, and wavering consumer demand as potential speed bumps. In addition, unease surrounding 13-month union negotiations added to those concerns and whether those forces would put additional downward pressure on industrial space demand, slowing the market in the process.