IE Business Daily Business news for the Inland Empire.
Inland Empire industrial lease rates rose 24.1 percent year-over-year in the second quarter of this year, the second-highest increase of any U.S. submarket in that time, according to a report.
Only Northern New Jersey, which recorded a 33.3 percent increase, was higher, according to a report released Thursday by CBRE.
Philadelphia [19.7 percent], Louisville [19 percent], and Orange County [16.9 percent] made up the rest of the top five.
Sacramento [14.1 percent], East Bay [8.3 percent], and Los Angeles County [7.6 percent] were the other three California submarkets to make the top 15.
Tight vacancy rates and increasing demand, much of it brought on by the pandemic, have started bidding wars for industrial space throughout the United States, driving rental rates to new highs.
“The increase in e-commerce demand has been immense,” said Dan de la Paz, executive vice president with CBRE-Ontario, in a statement. “Given the COVID effect, companies have changed from just-in-time inventory prior to the pandemic to wanting to better control inventory supplies, as many ran out of product during last year’s surge in online shopping.
“Plus, in much of Southern California, we’re running out of space,” de la Paz added. “In the Inland Empire, we’re officially out of land. Rents are spiking, particularly for the bigger buildings.”
