Western industrial markets continue to dominate the nation in terms of sales activity, with the region posting some of the highest prices per square foot, according to an analysis from CommercialEdge. Orange County recorded the highest price in the country at $340 per square foot, along with a strong $303 million in year-to-date sales, the third-largest volume in the country. The Bay Area and Los Angeles followed, with sale prices of $292 and $252 per square foot, respectively. Notably, Los Angeles saw a significant increase in sales volume, totaling $233 million during the first two months of 2025, compared to just $80 million during the same time last year. Phoenix remained the leader in industrial development while also seeing the largest year-over-year vacancy increase in the region.

MORE NEWS: Arizona economy keeps rolling: Here are the numbers

WANT MORE ECONOMIC INSIGHTS? Get our free newsletter here

Other key Metro Phoenix-related highlights: 

  • Phoenix and Portland saw in-place rents surpassing the national average of $8.43, with Phoenix at $9.43/sq. ft. and Portland reaching $10.26 /sq. ft. in February 
  • Phoenix saw the largest year-over-year vacancy increase in the region, its rate growing by 450 basis points Y-o-Y to 8.2% 
  • Orange County was one the tightest industrial markets in the nation with a 5.6% vacancy rate 
  • Phoenix remained the leader in industrial development in the West, with 16.1 million square feet under construction in February, the second-largest pipeline nationally 

Other key takeaways:

  • New tariffs on China, Mexico and Canada are set to cause delayed leasing decisions from industrial occupiers, while also increasing construction costs and leading to the uncertainty of planned projects. 
  • National in-place rents for industrial space averaged $8.43 per square foot in February, up 7.1% over the past 12 months. 
  • The national vacancy rate doubled in the past two years to reach 8.2% in February, amid stabilizing demand and historical levels of new supply. 
  • Los Angeles saw a major resurgence in industrial investment, with year-to-date sales reaching $233 million, nearly triple the $80 million recorded a year prior. 
  • Indianapolis witnessed a sharp rise in vacancies, reaching one of the highest rates nationally at 9.7%, up 710 basis points year-over-year. 
  • Dallas-Fort Worth remained the nation’s most active industrial sales market, with $415 million in year-to-date transactions.