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The Inland Empire industrial market is experiencing market conditions not seen in two decades, according to one of the region’s prominent industrial brokers.
“The combination of high demand, low vacancies, and a shortage of land for new construction is driving up prices of industrial land and buildings in most submarkets,” said Joe Lin, senior vice president with Voit Commercial Real Estate Services Ontario. “[But] as soon as product arrives on the market, you’re seeing multiple offers, which further boost prices.
“It’s a Catch-22,” Lin said.
Lin, who in January was installed as president of the Glendale-based AIR Commercial Real Estate Association, made his comments during an interview with Ansoorian and Associates, a Ventura public relations firm that specializes in industrial real estate clients.
The same trend is happening throughout the greater Los Angeles market but is especially prevalent in Riverside and San Bernardino counties, Lin said.
He also noted that industrial development on the east end of the Inland Empire is restricted to “big-box” projects, which he defined as anything 250,000 square feet or larger.
