IE’s Q2 Industrial Vacancy is a Record Low

The Inland Empire industrial market had a 3 percent vacancy rate at the end of second quarter 2021, according to Avison Young’s recent report. That rate is a record 20-year low for this region.

With user demand surging, there was 15.3 million square feet of absorption in the first half of this year. As demand remains, asking rents have increased by 4.3 percent since March 2020 and a 50 percent growth in asking rents in the last six years, says Cody Lerner, principal in Avison Young’s Inland Empire office.

“The region’s capital markets have benefited since the pandemic hit as well, with $5.9 billion in industrial investment since 2020,” says Lerner. “Investor interest here has driven pricing up by 9.1 percent per-square-foot compared to the previous five-year average with an average per-square-foot pricing of $157 posting for the first half of this year. We believe the Inland Empire will continue to see user and investor demand well into the next couple of years.”