E-Commerce Continues to Lead the Just-in-Time Charge

Sacramento continues to drive the majority of agricultural trade, some via rail (credit: McClellan Park).

OAKLAND, CA—Rising e-commerce activity has created new demand for just-in-time facilities near urban core markets, the Port of Oakland and Oakland airport, along with Central Valley fulfillment centers. The Central Valley/Sacramento area continues to drive the majority of agricultural trade (fruits, nuts and rice, for instance) for California and the nation, as well as a portion globally. However, these facilities were previously located near the ports and airport (Oakland/East Bay) and are now moving farther out due to rising costs of housing for the blue collar workforce.

In the third quarter of 2018, the US industrial market benefited from record-high port volumes, positive absorption and a vacancy rate that remained below 5% despite the addition of new inventory. The continued enthusiasm for industrial product is examined in Transwestern’s third-quarter industrial outlook, which revealed rent growth across nearly every market tracked.