Expect West Coast Warehouse Development to Soar

Kurt Strasmann is a executive managing director at CBRE.

Warehouse development is booming across the country, and a recent report from CBRE shows that the West Coast is leading the country in new warehouse development. While experts expect the construction pipeline to continue to grow, so long as there isn’t a trade war or increased tariffs. Ultimately, strong warehouse demand is outpacing supply, which will continue to fuel construction activity.

“[Warehouse development will continue to rise] provided we do not have a prolonged tariff conflict,” Kurt Strasmann is the executive managing director of CBRE’s Orange County and Inland Empire operations at CBRE, tells GlobeSt.com. “Developers and capital are very bullish on industrial.  Demand is expected to keep up. In 2018, the West Coast market benefited from strong activity, pushing net absorption to over 48 million square feet. Given most markets are below the national vacancy average, supply must keep pace with demand.”