IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market continued to roar during the second quarter, with properties of 500,000 square feet and larger leading the charge.
Nearly 11 million square feet of gross industrial activity was recorded in Riverside and San Bernardino counties during that three-month period, according to CBRE Group Inc.’s quarterly report on the region, which was released this week.
The Inland region recorded 20.8 million square feet of during the first half of this year, with approximately 13 million of that happening on the west end, specifically Ontario, Rancho Cucamonga and Corona.
At its current pace, the two-county region could match or exceed 36 million square feet of industrial activity by the end of this year, a level it hasn’t reached since 2000, the report stated.
“Overall, the market is in good shape,” said Jamil Harkness, research analyst with CBRE Group Ontario. “Whatever gets built gets occupied immediately, and there is a lot of [construction] in the pipeline. It’s a strong market, and I don’t see it slowing down anytime soon.”
Industrial vacancy stood at 3.6 percent at the end of last month, down 50 basis points since the end of the first quarter. That decline means supply and demand are keeping pace with each other, another sign of a healthy market.
A basis point is the equivalent of one one-hundredth of a percentage point.
Fifty three buildings were under construction in the two-county region at the end of the second quarter. When those buildings are completed they will cover close to 20 million square feet, according to the report.
