California logistics markets struggle as demand for large properties softens

California’s logistics real estate market is navigating a period of recalibration in 2025, with large-format industrial properties facing elevated availability and muted demand. While containerized import activity surged in late 2024 and early 2025, broader goods imports have remained flat, weighed down by cautious inventory strategies and supply chain shifts away from China. This has dampened demand for logistics space, especially near West Coast ports, where availability rates for large warehouse properties have climbed to their highest levels since 2007.