Industrial Real Estate in San Francisco

Prologis San Leandro

Prologis San Leandro

San Leandro, California

This industrial warehouse facility is 101,880 SF (9,465 SQM). Special features include energy efficient lighting and skylights for enhanced indoor...

Oakland Global Logistics Center 1

Oakland Global Logistics Center 1

Oakland, California

±256,136 SF cross loading, State-of-the-Art Warehouse. Situated on ±16.12 acres. Office to Suit. 179 auto spaces. 56 dock high loading positions. 4...

San Francisco Contact for Industrial Real Estate

Elizabeth Kauchak
Market Officer

What is Industrial Real Estate?

Industrial real estate is an umbrella term for the research, development, construction and maintenance of distribution facilities. While industrial real estate is sometimes overshadowed by glitzier sectors, such as residential, commercial and retail, industrial properties are an essential enabler of global commerce and a resilient, income-generating asset class.

Industrial real estate makes the global economy hum. Well-located, high-quality industrial real estate keeps the world’s supply chains working, enabling the efficient movement of goods—including next-day and same-day delivery—from makers to markets in San Francisco.

Aren’t industrial real estate facilities, like warehouses, mostly used for storing stuff?

No. Most industrial real estate facilities are dedicated to keeping the world’s goods in motion. Very few of the goods in industrial real estate buildings are in storage. Where industrial real estate warehouse spaces are used as distribution centers, their contents are in motion from one location to the next—to retail stores, businesses or end consumers via e-commerce fulfillment channels. Where industrial real estate is used for manufacturing, operations are often tuned for just-in-time production and immediate distribution that keeps pace with end-user demand—which means little inventory sits in storage.

What drives demand for industrial real estate in San Francisco?

Consumption is the main driver of industrial real estate demand, which comes as no surprise because consumption accounts for the majority of all economic activity. Then there’s supply chain modernization: in many markets including developing markets, companies are upgrading from smaller, outdated industrial real estate facilities to newer, larger distribution centers with modern features. At the same time, consumer expectations of next-day and same-day delivery drive demand for infill distribution facilities proximate to major population centers. Trade is another driver of demand. Industrial real estate facilities are a key component of the global trading system, allowing the convenient and efficient movement of goods through the supply chain to end consumers. Across all geographies, as the relative attractiveness of manufacturing locations and transit routes shifts, as new consumer markets rise to prominence, and as same-day and next-day delivery become the new normal, companies adjust nodes in their supply chains, stimulating demand for new industrial real estate buildings in San Francisco.

Where are industrial real estate facilities located?

There are two basic location strategies for industrial real estate. Many industrial real estate warehouses are located adjacent to key transportation hubs—seaports, highways, rail junctions and airports. Increasingly, in response to burgeoning e-commerce and consumer demand for same-day and next-day fulfillment, industrial real estate facilities are located in infill locations within or proximate to large population centers, such as San Francisco.

Who has the largest portfolio of industrial real estate?

Prologis, a publicly-held company based in San Francisco, is the world’s largest owner, manager, and investor of industrial real estate, with more than $77 billion in assets. The company has a global reach:  687 million square feet in 3,307 facilities, spread throughout 19 countries on four continents. The company has industrial real estate operations in countries that represent more than 70 percent of global GDP. Many of the world’s largest retailers and manufacturers are numbered among Prologis’s 5,200 customers.

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Prologis Portfolio of Industrial Real Estate in San Francisco

This is a photo of San Francisco Bay Area, United States

San Francisco Bay Area, Industrial Gateway to the Pacific and Silicon Valley

The San Francisco Bay Area, which includes Oakland and San Jose, is a vibrant, densely populated, high-income region that serves as the high-technology industry’s global capital. With a population of more than 7 million, it is the nation’s fifth-largest metropolitan area. As such, it is an engine of consumption and an industrial property power...