West and Southwest Industrial Markets Register Record Demand for Industrial Space
Cushman & Wakefield’s new West/Southwest Industrial Labor Report highlights the key 15 metropolitan areas in close proximity to major industrial markets in the West and Southwest across California, Oregon, Washington, Idaho, Colorado, Nevada, Arizona, and Texas. It looks at the interplay between the supply and demand for industrial labor in the warehouse and manufacturing sectors as well as the supply and demand for industrial space in the region.
- Due to a rising population, healthy economic growth, and surging e-commerce sales, the West and Southwest industrial markets registered record demand for industrial space to satisfy the region’s consumer base, specifically within the key metros. Logistics, 3PL, e-commerce, and consumer goods occupiers expanded throughout the region at a record pace due in large part to strong consumer demand and population growth.
- More recently, manufacturing demand has gained momentum within the region as well. In recent months, the softening economy coupled with the recent shift of cargo imports from the West Coast to East Coast ports have tempered demand totals across most key industrial markets.
- The surge in population growth has propelled industrial activity for most occupier types, which has shifted the supply and demand fundamentals of the industrial workforce in the region. Meanwhile, investments in manufacturing from large companies will further accelerate growth with suppliers and others entering those markets.
- The Denver market has a labor participation rate of 96.7%, with the working age demographic (ages 16-84) accounting for 25.1% of the population, exceeding the West/Southwest region average and the U.S. average for both metrics.
- Despite strong population growth over the last 10 years, Denver’s target blue collar demographic concentration remains among the lowest in the West/Southwest region at 0.7, slightly below the national average of 1.0.
- However, the 5-year growth projections for both production workers and material movers in Denver — 6.5% and 8.4%, respectively — exceed the national average.
- With 38.4 msf in construction deliveries since 2017, the Denver industrial market has yielded significant growth. As a result, Denver has recorded a modest increase in vacancy over the last five years, despite strong annual absorption figures.
CLICK HERE to view the report for complete insights and statistics as well as each individual market summary.