California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Inland Empire Industrial Vacancies Tick Upward Amid Wave of Completions
The Inland Empire’s industrial market remains competitive despite the steady rise in vacancies and decline in lease rates, Kidder Mathews reported. The market ended the first quarter with vacancies averaging 4.9%.
“Construction deliveries have boosted the market’s net absorption as tenants move into a wave of new inventory,” wrote Kidder Mathews director of research Gary Baragona. “The statistics on building development indicate that the completion of buildings is still outpacing the increase in occupancy. Landlords face pressure from both the supply and demand sides. As the completion of a wave of new inventory approaches, tenants in older industrial buildings are leaving.”
Inland Empire leasing activity is being affected by tenants’ shifting needs, “which is slowing down the process as companies reassess their space needs,” Baragona wrote. “The Inland Empire’s industrial sector prediction for 2024 will be shaped by several factors, including economic circumstances, technology breakthroughs, and numerous trends, developments and evidence.”
- ◦Lease
- ◦Development
