The Inland Empire’s industrial market maintained its torrid pace during the first quarter of 2022, as inventory grew a little more than 618 million square feet during that time.
At the same time, industrial vacancy in Riverside and San Bernardino counties fell to 0.6 percent, a record low and the fourth consecutive quarter that number was below one percent, Voit Real Estate Services reported.
The west side fell to .52 percent vacancy, mainly because new deliveries from the fourth quarter of 2021 were taken in by expanding tenants. The east side crept up to 8.5 percent, mostly because new properties were leased but not yet occupied.
“The vacancy rate by size range is worth noting,” the report states. “For spaces greater than 250,000 feet in the Inland Empire east, vacancy remains at zero, while vacancy for buildings 100,000 to 250,000 square feet is 1.6 percent.
“This reflects the outsized demand from the largest logistics-sector users.”
Also during first quarter, average lease rates rose an average of 17 cents per square foot to $1.17 cents, while sales and lease transactions dropped to 10.1 million square feet, from 17.4 million square feet.
That drop was caused by not enough industrial properties being built, the report states.