Inland industrial market flexes its muscle
Even the worst public health crisis in anyone’s memory, and the economic slowdown that’s accompanied it, can’t hurt the Inland Empire’s industrial market.
During the third quarter, the region’s industrial vacancy rate fell, average lease rates were constant and absorption was up, according to data released by Voit Real Estate Services.
Vacancy at the end of September was 3.5 percent, with the biggest drop happening on the east end, where multiple speculative projects became occupied. Ontario experienced a drop of 119 points, the largest of any city on the west end.
Lease rates rose by three cents, to 75 cents per square foot. However, some new industrial properties went on the market without an asking price and were not included in the average rate calculations.
Had they been included, average lease rates likely would have been higher.
Total industrial absorption was 13.3 million square feet, up from 10.3 million in the second quarter and 9.5 million square feet year-over-year, according to the report.