CALIFORNIA INDUSTRIAL PROJECTS YOU NEED TO KNOW ABOUT NOW

CALIFORNIA INDUSTRIAL MEGAPROJECTS 2025 by Marie Cappello, Broker Argossy International

California: A Mega-Project Constellation

California’s commercial landscape is dominated by megaprojects. These aren’t just buildings; they’re economic ecosystems. From infrastructure to mixed-use developments, the state is in a state of constant, transformative construction. This isn’t just about growth; it’s about a fundamental re-engineering of how Californians live, work, and move.

Infrastructure Reigns Supreme:

• High-Speed Rail: The $84 billion bullet train. Construction is focused on the Central Valley.
  The goal is to connect Los Angeles and San Francisco. First phase is expected to have
  passengers in 2029.
• BART Extension: The Bay Area’s most significant project. A $12.3 billion extension to San
  Jose. It includes a five-mile underground tunnel. A massive undertaking to reduce traffic
  and enhance connectivity in Silicon Valley.
• LAX LAMP: A $5.5 billion project will transform LAX. The centerpiece is the Automated
  People Mover (APM) to connect terminals, rental cars, and metro rail. The APM is now
  scheduled to open in early 2026 due to delays.

Office & Mixed-Use: The New Model:

• The Grand, Los Angeles: A $1 billion mixed-use marvel. Over 70% complete. Features
  luxury residences, retail, and a hotel. It’s not just a building; it’s a downtown revival.
• Related Santa Clara: A 9.2 million sq ft mixed-use development adjacent to Levi’s
  Stadium.
  The developer is swapping office space for light industrial due to market conditions,
  proving the pivot is real.
• Richards Boulevard Office Complex, Sacramento: A new government campus for state employees.
  This means energy efficiency and flexible workspaces. This is a key indicator of the future of
  government office space.

The Industrial & Renewable Revolution:

• Solar Canals: A revolutionary idea. Project Nexus is covering water canals with solar panels.
  The pilot project is complete and is a proof-of-concept for a potential statewide rollout that could
  save billions of gallons of water and generate vast amounts of clean energy.
• Undergrounding Power Lines: PG&E’s massive, multi-year project to bury electric lines to mitigate
  wildfire risk. Over 330 miles are planned for undergrounding in 2025 alone. This isa massive,
  decentralized industrial project.
• Green Hydrogen: Element Resources’ $1.85 billion Lancaster Clean Energy Center is North America’s
  largest hydrogen plant, powered by on-site solar and battery storage. It will serve the heavy-duty
  transportation sector.

• Mega-projects, infrastructure, high-speed rail, BART, LAX modernization, mixed-use, office
  conversion, renewable energy, industrial revolution, solar canals, industrial, jobs.