IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market posted solid growth during the third quarter, with 10.1 million square feet of transactions during that time.
That was nearly a four percent increase compared with the second quarter of this year, with 5.9 million square feet of construction on the region’s east side and 4.2 million square feet on the west end, according to CBRE Group Inc.’s third-quarter report on Riverside and San Bernardino counties.
That marked the second straight quarter that the east side – Redlands, Rialto, Moreno Valley, Hemet – outperformed the west side, according to the report, which was released last week.
With more projects coming online and vacancy rates tightening, the market is returning to one that favors landlords.
The average asking rate during the third quarter was essentially unchanged, dropping one cent to 38 cents per square foot, and concession packages offered by landlords to entice potential tenants became less generous in all size categories, the report stated.
Vacancy was 4.6 percent at the close of the quarter, and increase of 30 base points compared with the second quarter and a jump of 20 base points year-over-year, according to the report.
About 12.3 million square feet of industrial space was under construction in the Inland region at the end of the third quarter, and more construction is expected at least through of next year given the amount of available land in both counties, the report stated.
