What’s New: Industrial & Related Developments in California’s Central Valley
Visalia & Industrial Land Expansion
The city of Visalia is considering expanding its industrial land supply. A report by consultants (4‑Creeks) was shared with the City Council suggesting that industrial‐park zoning be expanded in areas south of Highway 198 (near the airport) and west of Highway 99 around the city’s wastewater treatment plant. centralcalifornia.org
Currently, much of the industrial park space is in the northwest corner of the city, east of Highway 99. There’s consideration for new “reserve” industrial areas: ~405 acres near the airport and adjacent areas, contingent on infrastructure, environmental review, zoning, etc. centralcalifornia.org
The reasoning: there’s rising demand but low vacancy / low inventory of industrial parcels. Also, the city expects demand could grow significantly (they estimated up to ~6.4 million square feet of industrial space demand by 2033) if supply is made available. centralcalifornia.org
“Good Jobs” Workforce & Training Programs
The Fresno County EDC (Economic Development Corporation) is pushing “Good Jobs Challenge” programs, funded via federal grants (American Rescue Plan) to train and place workers in manufacturing, logistics, transportation, etc. The Business Journal
As of Q1 2025, in counties like Fresno, Madera, Tulare, and Kings: ~600 graduates; ~342 job placements. Sectors include manufacturing, transportation, logistics, business services, construction. The Business Journal
The goal is to have around 2,500 job placements by fall 2027, indicating both a need and a plan for scaling up industrial / infrastructure workforce. The Business Journal
Industrial Absorption Trends
“Industrial absorption” (i.e. leased or occupied industrial space) in the Central Valley has had mixed signals: • Some large deals have driven positive absorption in earlier 2025. Globest • But other reports say absorption has plunged to near 10‑year lows in some submarkets of the Central Valley. Globest
Carbon Capture / Environmental Projects
A big one: Carbon Terra Vault by California Resources Corp. got key approval in Kern County. This project will capture CO₂ and inject it underground (via several wells) in the San Joaquin Valley (western part, near Buttonwillow). The Telegraph • Planned capacity: millions of tons of CO₂ per year. The Telegraph • It links to pipelines, new infrastructure, regulatory and environmental clearances. The Telegraph
This suggests that industrial projects with environmental / climate mitigation front and center are being considered seriously. Could open up industrial options tied to energy, emissions, hydrogen, etc.
Gas Storage & Infrastructure Deals
Sixth Street’s Caliche (a real estate / infrastructure investment group) completed acquiring Central Valley Gas Storage, which is an underground storage facility in Princeton, California. It handles natural gas and possibly industrial gases, hydrogen, helium, and is also relevant for carbon storage. Hart Energy
Such infrastructure assets are important for industrial growth, especially for energy, chemical, or other heavy / mid‑heavy industries that need reliable gas / energy storage or feedstock.
Implications & What This Means
Land & Zoning Bottlenecks: Many Central Valley cities are running low on industrial‐zoned land or vacant parcels. Proposals and planning efforts are underway to open up more land (zoning changes, environmental impact assessments). This is a common bottleneck for industrial expansion. (Visalia is a good example.)
Infrastructure & Utilities: For industrial options to succeed, you need water, power, transportation access. Some projects (like gas storage, carbon capture, etc.) indicate interest in infrastructure investment. Also, water supply allocations are being adjusted (which matters for industrial uses, though especially for agriculture).
Workforce / Human Capital: There is conscious effort to align workforce training with industrial needs. Training in modern manufacturing, apprenticeship, logistics, robotics, etc., is being expanded.
Environmental / Regulatory Considerations: Projects like Carbon Terra Vault show there’s interest (and regulatory momentum) in combining industrial development with decarbonization / emissions mitigation. But they also face scrutiny, especially from environmental justice / local health perspectives.
Market Demand is Mixed: While some large leases are driving positive absorption (so demand is present), there are signs that the market is cooling or that in some areas, space is unleased / absorption is dropping. So there is risk: demand might not always justify expansion, especially if costs (land, construction, environmental compliance) are high.
