IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market continued to slow during the fourth quarter of 2023, with vacancy on the rise and leases and sales in decline.
Vacancy rose a “whopping” 94 basis points in the last three months of 2023, to 4.8 percent, with total vacant space rising to 32.2 million square feet, Voit Real Estate Services reported.
To put those numbers in perspective, Inland industrial vacancy was 1.4 percent in the fourth quarter of 2022, while the amount of vacant space rose by 6.6 million square feet between the third and fourth quarters of last year.
Leasing rates were unchanged quarter-over-quarter – $1.41 per square foot – but were down from $1.51 year-over-year.
Net absorption remained positive during the fourth quarter: a gain of 1.3 million square feet, but still down from the 1.5 million square feet added in the third quarter. Lease and sales transactions fell to 7.4 million square feet from just under 8.5 million square feet in the third quarter, according to Voit.
