The Inland Empire’s industrial market stayed strong during the third quarter, recording a one percent vacancy rate, .2 percent lower than Los Angeles County’s, according to data released Tuesday.
The market is performing so well that most tenants agree to a lease extension without negotiating, and logistics buildings in good locations usually get occupied quickly, causing rents to rise, Newark reported.
There were 651.3 million square feet of industrial space in the Inland region in the third quarter, up from 631.4 million square feet in the third quarter of 2020.
Net absorption was 5.9 million square feet, down from 6.6 million square feet year-over-year. Average lease rates were 83 cents a square foot, up from 68 cents one year earlier, and there were 27.4 million square feet of industrial space under construction in Riverside and San Bernardino counties as the third quarter ended, according to Newmark.