The Inland Empire’s industrial market continued to roar during the fourth quarter of 2019, with significant year-over-year jump in gross absorption along with solid vacancy and lease rates.
Total industrial absorption in Riverside and San Bernardino counties at the end of last year was 10,047,337 square feet, an increase of 10.4 percent compared with the last quarter of 2018, according to Voit Real Estate Services.
Net absorption was 2.8 million square feet, down from an estimated four million year-over-year.
Industrial vacancy was 3.8, percent, down from 4.5 percent year-over-year. Average lease rates were 77 cents per square foot, a nine percent increase compared with exactly one year earlier.
The local industrial market is expected to have another solid year in 2020: More construction is expected, and rents and lease rates should both rise by about three percent, according to Voit.