West Coast Industrial

On today’s show, we’re looking at the industrial outlook across the Western United States, based on Marcus & Millichap’s second-quarter 2026 market reports.

We’ll examine ten markets: Las Vegas, Los Angeles, Oakland, Orange County, Phoenix, Portland, the Inland Empire, Sacramento, San Diego, and Seattle-Tacoma.

The broad theme is straightforward.

Western industrial markets are still digesting a major wave of construction. In many locations, vacancy rose not because demand disappeared, but because new supply arrived faster than tenants could absorb it.

This is similar to what we saw elsewhere in the SE and the NE.

Let’s begin in Las Vegas.

The metro added nearly 24 million square feet of industrial space over the past three years. Even with positive absorption, vacancy increased by more than 10 points.

That is a supply problem.

Construction is now falling sharply. Deliveries are expected to reach an 11-year low, expanding inventory by only 1 percent. Roughly 80 percent of the space scheduled for completion was already committed as of April.

In the Inland Empire, roughly 107 million square feet of industrial space was delivered over the past five years. That's a massive amount of new construction.

That pushed vacancy near a 15-year high.

The pipeline is now contracting sharply. About 10 million square feet is expected to be completed this year, the smallest total since 2012.

For several years, Phoenix experienced one of the country’s most aggressive industrial construction cycles. Deliveries exceeded demand, and vacancy rose.

Now, large tenants are beginning to absorb that inventory.

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