CBRE’s Joe Cesta on Investing in the Inland Empire
By Dennis Kaiser
Investment opportunities are abundant in the Inland Empire with e-commerce and the need for fulfillment infrastructure, as well as industrial manufacturing and warehousing, driving interest. CBRE’s Joe Cesta is slated to participate in Connect Inland Empire coming up on October 18th when top dealmakers and investors will discuss the investment climate and how it fares compared to the full SoCal market. We asked him to share a few insights as we gear up for another afternoon of robust conversations in our latest 3 CRE Q&A.
Q: What are the main trends you see driving the Inland Empire market?
A: The Inland Empire is a dynamic region and a leader in job growth and development. The industrial market is expected to deliver approximately 21 million square feet, while at the same time lowering the overall industrial vacancy rate. In addition, the area continues to be a highly sought-after location for corporate tenants looking to access the 24 million people that call Southern California their home. That in turn is helping to drive construction and absorption across all product types. In addition to the strong fundamentals that exist in the Inland Empire, the public and private sectors are also doing more to effectively work together to enhance the quality of life for residents in the two counties.
Q: What are the biggest changes you’re seeing transpire over the past year?
A: One of the biggest changes I have seen in this region is taking place in the retail sector. Retail ownership has shown a willingness to adapt and create innovative ways to utilize vacant big box sites in the area. In addition, we have seen retail tenants such as Sprouts and Aldi become more aggressive in their expansion plans, while food hall concepts have started to make their way into the Inland Empire. Outside of retail, the continual growth and evolution of big box e-commerce, warehousing and logistics users have and will continue to impact the area immensely.
Q: What are the hottest investment property types you see in the coming year?
A: All investment sectors seem to be hitting on all cylinders in this region. We have seen many Class A office projects sell this year, and there has been a continued healthy appetite for multifamily, industrial and well-located retail projects. It all relates to our strong fundamentals: we have not over-built, we boast strong job growth, affordable housing and a well-trained workforce that desires to stay closer to home rather than make the commute to LA or Orange County.
For comments, questions or concerns, please contact Dennis Kaiser