California’s Central Valley, which stretches from Bakersfield in the south to Sacramento in the north, accounts for 8 percent of U.S. agricultural output. In addition to farming, the Central Valley supports more than 1,650 food and beverage manufacturing operations that drive demand for logistics real estate.
Beyond agriculture, the Central Valley is emerging as a center for big-box retail and industrial warehouses. The northern part of the Central Valley is within a two-hour drive of the San Francisco Bay Area’s large, high-income population, making it well situated as a hub for distributors, including e-commerce companies. About 50 miles from the Port of Oakland, the northern part of the Central Valley is an important hub for regional distribution. The area’s strong labor pool is a significant factor for companies choosing to operate in the market.
The Central Valley has excellent access to interstate highways, running on both a north-south and east-west axis. These roadways facilitate distribution of agricultural products, consumer packaged goods, and manufacturing up and down the West Coast and throughout the northwestern U.S.
Prologis has numerous warehouses in Tracy and industrial real estate properties in the Central Valley region.