Inland Empire Industrial Slows Due to Availability Dearth

The industrial real estate segment of the Inland Empire’s East Valley slowed just slightly in second quarter 2021 due to the lack of vacant warehouse and distribution buildings available on the market, according to Lee & Associates’ second-quarter 2021 industrial market report. Gross absorption for 2020 totaled 22.7 million square feet, continuing on the heels of the record-breaking absorption performances in 2019 of 21.2 million square feet, 2018 of 27.3 million square feet, 2017 of 16.9 million square feet and 2016 of 19.3 million square feet.

Gross activity in the second quarter of 2021 was 11.1 million square feet, with investment purchases and lease renewals accounting for 64.3 percent of the total. Second-quarter 2021’s absorption figures were 4 million square feet, compared to 4.9 million square feet during the same period last year. With total absorption for 2020 outpacing the previous year, the industrial market is expected to hold strong throughout the remainder of 2021.

The report was prepared by Caroline Payan, director of marketing and research of the Lee & Associates Riverside office.