IE Business Daily Business news for the Inland Empire.
The Inland Empire’s industrial market recorded 2.7 percent negative absorption in the second quarter, the first negative posting in that category since the fourth quarter of 2008, according to CBRE.
Activity remained strong on the east side, where 2,093,363 square feet of space went online, according to CBRE.
However, on the west side, 2,690,390 square feet were negatively absorbed, while the market’s north end experienced an additional 475,267 square feet of negative absorption.
That represented a net loss of nearly 600,000 square feet compared with the first quarter.
Fears of a recession were likely one reason for the downturn, along with vacant deliveries, relocations, and an increase in sublease space.
The total industrial vacancy was up 2.7 percent in Riverside and San Bernardino counties compared with the first quarter. On the positive side, 33.6 million square feet of space were under construction when the second quarter ended, an increase from the end of the first quarter.
Average lease rates were flat, at $1.51 per square foot, and unemployment fell slightly to 4.4 percent, CBRE reported.
