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Inland Empire Industrial Demand Shows No Sign of Slowing
After eclipsing 600 million square feet of inventory in the third quarter of 2020, the Inland Empire industrial market finished the year with an outstanding 26.6 million square feet of net absorption, in competition with 2019’s record high 30.6 million square feet, according to commercial property brokerage firm, Lee & Associates. Despite the economic shutdown, e-commerce related industrial demand surged and was the primary driver for activity, expected to continue through 2021.
Driven by strong renewal activity and expansions from e-commerce and logistics companies, gross absorption stood at its highest, 97.7 million square feet. Although construction remained near record levels through the fourth quarter, many projects have been pushed back, maintaining tight inventory while development activity starting to increase once again.
More than 4.8 million square feet of Class-A industrial product completed construction in Q4, standing at 20.6 million square feet, compared to 2019’s 19.6 million square feet construction completion, says Lee & Associates.
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