IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market fell backward during the second quarter, amid fears of a trade war that has yet to happen.
The two-county region’s vacancy rate was 8.1 percent at the end of June, one point higher than it was one year, according to data released July 17 by Volt Real Estate Services.
“Sales activity continues to languish, and all eyes remain on Washington in an attempt to forecast the extent and duration of tariffs,” the report states in reference to the Trump Administration’s proposed taxes on imports from Canada, Mexico and other major U.S. trade partners.
The average lease rate in the second quarter was $1.03 per square foot, unchanged from the first quarter but down 27 cents year-over-year. That decline is a reprieve from the “out-of-control” rents that have plagued tenants in Riverside and San Bernardino counties for several years, the report states.
Sales and leases totaled 12.5 million square feet in the second quarter, a 45 percent year-over-year decline. Net absorption was minus 4.3 million square feet, which put a dent into the 3.2 million square feet of positive net absorption recorded in the first quarter.
Only 3.6 million square feet of new industrial space was delivered in the Inland region during the first six months of this year. That means the market is on pace to produce less than 10 million square feet of industrial development in 2025, according to Voit.
