Inland retail shows growth

The Inland Empire’s retail market showed steady improvement during the third quarter, with nearly 160,000 square feet of positive net absorption recorded during that time.

More than 304,000 square feet of retail space was under construction in Riverside and San Bernardino counties as the quarter ended, according to Voit Real Estate Services’ third quarter report on the Inland retail market.

In addition, more than 10.9 million square feet of new development was proposed for the two-county region, mostly on the east side, with an even split between shopping centers and general retail shops, the report stated.

The region’s vacancy rate during the third quarter was 7.7 percent, and the average lease rate for a square foot of retail space was $1.36 a square foot. Both of those figures were essentially unchanged year-over-year.

“What we’re seeing is slow, steady growth, which is exactly what we want to see,” said Jerry J. Holdner Jr., vice president of market research with Voit and a co-author of the report. “The fact there is so much construction is planned shows how strong the market is getting, although it’s hard to say when all of that will be built.”

Should the local employment picture continue to improve – the Inland Empire added 44,500 non-agricultural jobs between August of 2014 and August of this year, according to the California Employment Development Department – and lease rates remains stable, demand for retail space in the Inland Empire should continue to grow, the report stated.