IE Business Daily Business news for the Inland Empire.
The Inland Empire’s industrial sector posted spectacular numbers during 2014.
More than 16.7 million square feet of industrial space was added in Riverside and San Bernardino counties last year, and nearly 14 million square feet of industrial space was under construction as the year came to a close, according to Voit Real Estate Services’ fourth quarter report on the region.
Perhaps most encouraging of all, more than 50 million square feet of industrial projects are currently in the planning stages in the two-county market, a sign that the boom market isn’t likely to go away soon.
“It’s probably going to last at least a year or two more,” said Frank Geraci, executive vice president with Voit’s Ontario office. “The market is hitting on all 12 cylinders, and I don’t see that changing anytime soon.”
A lack of quality space in some surrounding markets will continue to drive some companies into the Inland logistics market, Geraci said.
“I was a little surprised at how well the year turned out,” said Geraci, a member of Voit’s local industrial team. “The whole e-commerce phenomenon, where something gets delivered the day its gets ordered, is obviously one of the things that is driving the market, but there are a lot of [incentives] for businesses to want to come here.”
Average industrial lease rates were 43 cents a square foot during the fourth quarter, unchanged from the third quarter and an increase of four cents year-over-year. Moderate increases in leasing and sales activity are expected during 2015 provided job creation continues, the report stated.
