California’s Central Valley Defies Broader Weakness in West Coast Industrial Rent Growth

After grappling with soaring rents and record-low space availability during the pandemic, West Coast industrial tenants have finally begun to regain bargaining power in lease negotiations. Throughout 2023, a slowdown in imports, combined with a more cautious economic outlook, has led retailers and third-party logistics providers to shutter several large distribution centers across major West Coast port markets, leaving large blocks of available space and causing the average industrial rent advertised on active space listings to flat-line or in some cases decline.