At the Goodman Commerce Center in California’s Inland Empire, warehouse workers aren’t stuck with vending machine snacks or microwaved meals. Instead, they can stroll next door to the Cravings at Eastvale food hall for sushi or fresh oysters.
It’s just one sign of how industrial real estate is evolving.
Warehouse employees at Goodman Group’s Goodman Commerce Center in Eastvale, California, have easy access to the adjoining food hall. (PHOTO CREDIT: CoStar)
Developers like Goodman Group, Prologis, and Link Logistics are reimagining warehouse complexes. No longer just rows of forklifts and pallets, these spaces now include day care centers, libraries, walking trails — even pickleball courts. Amenities once reserved for tech campuses are becoming standard as competition for labor and tenants heats up.
“The old-school warehouse isn’t cutting it anymore,” said Charlotte Elstob of JLL. “Amenities matter when you’re trying to attract and keep talent.”
After 10 straight quarters of rising vacancies in U.S. industrial space, tenants have more negotiating power — and they’re demanding better environments for their employees. With 67% of manufacturers citing worker retention as a top challenge, developers are responding with wellness-focused upgrades and sleek designs
Pickleball and tennis courts at Lincoln Property Co.’s Park303, a distribution and warehouse complex in Glendale, Arizona. (PHOTO CREDIT: Lincoln Property)
In Glendale, Arizona, Lincoln Property Co.’s Park303 campus features pergolas, gas grills, and lounges beside a pickleball court. Red Rock Developments is incorporating outdoor parks, EV charging stations, and day cares — amenities that appeal to both tenants and local communities.
At Altitude Business Center in Chino, California, tenants get access to walking and equestrian trails that are part of the master-planned community surrounding the industrial park. The project won a CoStar Impact Award for commercial development of the year for the Inland Empire. (PHOTO CREDIT: CoStar)
Tenants like Amazon and Walmart are also investing heavily in modern facilities. Some buildings include full HVAC systems, premium break rooms, and even mass timber construction for its natural aesthetic and mood-boosting benefits.
Yet, with roughly 60% of U.S. industrial buildings built before 2000, there’s a major supply challenge. Retrofitting is becoming essential. Developers are converting parking lots into outdoor spaces and painting interiors to create more inviting environments. Even small changes — like windows and natural materials — can boost appeal.
Tenants are increasingly clustering in newer, high-functioning buildings. Since 2020, tenants in Southern California have occupied over 100 million square feet of new logistics space — while older properties have seen over 30 million square feet vacated.
Ultimately, it’s not just about making workers happy — it’s about staying competitive.
“It helps win the business,” said John Barker of Red Rock Developments. And with millions of warehouse jobs expected to open by 2033, creating workplaces people want to be in is no longer optional — it’s essential.