Ontario’s Bradley Gates: “All Sectors Booming”

Connect Inland Empire returns this week, Wednesday, October 24, at the Ontario Convention Center. Leading up to the annual afternoon conference, we asked the Ontario Economic Development Agency’s Bradley Gates to share a few insights on the booming area in our latest 3 CRE Q&A.

Q: The Inland Empire seems to be firing on all cylinders. Can you give us a market overview of what you are seeing in Ontario?
A: The real estate market in Ontario is booming across all sectors. Ontario leads the region in office space absorption, with over 104,000 square feet leased year-to-date with an average rate of $2.14 PSF/MO. The industrial market is seeing historic lows in vacancy rates of less than 2%, with more than 3.5 million square feet of leasing activity this calendar year, and more than 10 million square feet of new industrial space under construction or proposed. Retail, entertainment and hospitality are also thriving, with low vacancy, rising lease rates, and new mixed-use projects coming to the table in 2019. (Data Source: CBRE, 3Q 2018)

Q: What are the big trends you are tracking?
A: The rise of e-commerce and demand for experiential retail and entertainment destinations is changing the face of traditional retail spaces as we know it. This evolution has the potential to transform our existing retail assets, as well as create additional demand for distribution space by e-retailers. In addition, with so much of Ontario’s industrial real estate, jobs, and economic output tied to the distribution and logistics industry, we are very interested in what impacts the rise of automation and artificial intelligence will have in this sector.

Q: What does Ontario’s economic picture look like?
A: The overall economy in Ontario continues to thrive, as business and employment growth reaches historic highs. Ontario employers currently provide more than 119,000 jobs, more than any other time in our history, and our unemployment rate is currently at 3.4%. Ontario International Airport will continue to serve as a catalyst for the regional economy, as air cargo and passenger growth continue to increase by double digits year-over-year. Population growth will also continue to stimulate the local economy, as thousands of new single and multi-family housing units come to market in Ontario Ranch.

For comments, questions or concerns, please contact Dennis Kaiser