Retail Booms in Inland Empire
Connect Inland Empire is planned for Wednesday, October 18th. Here’s where to register for the conference.
Contrary to popular belief, brick-and-mortar retail activity remains strong, particularly in the Inland Empire. A recent CBRE review of year-to-date retail lease transactions shows since the beginning of the year, nearly half a million square feet of retail space leased in the Inland Empire region.
Despite recent bankruptcies such as Toys R Us, consumer sentiment is at a 17-year high. And brick-and-mortar performance runs counter to a perceived big shift to e-commerce, which is growing, yet only accounts for 9% of total retail sales in the U.S., with half of that figure attributed to online sales from brick-and-mortar chains.
Key report findings:
- Supermarket chains accounted for nearly one-fourth of the leasing activity (roughly 125,000 square feet), including ALDI and Sprouts, which opened several new stores over the past 12 months
- Discount retail chains leased a little more than 100,000 square feet this year alone, while small medical tenants also took a significant portion of retail space
- Community centers remain a pricier option, but leasing activity totaled 242,519 square feet in this quality-space type
- Big Box space resurged with vacancy dropping to 7.9% for the first time in years, due to new tenants in the market and landlords willing to find alternatives for vacancies to satisfy the needs of smaller tenants
For comments, questions or concerns, please contact Dennis Kaiser