Digital Economy Powers Industrial Development | Winter 2025

The industrial development pipeline in Northern California shows a notable uptick in the next 12 months, highlighting continued strength in the sector there, particularly for last-mile delivery and AI-driven facilities. Southern California’s development pipeline is also healthy, with 54% of respondents expecting more than one new project in the next year. E-commerce is the second largest development driver at 28%, down from 50% in the previous survey. While e-commerce has been the largest development driver of industrial space across previous surveys, it’s now in second place for new development behind data centers and digital infrastructure. Allen Matkins' Partner Spencer B. Kallick, sat down with Allen Matkins Partner Jonathan Shardlow and Scott Sowanick, managing director and partner, Stream Realty Partners to talk about these and other themes impacting the industrial sector in the Winter 2025 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.