IE Business Daily Business news for the Inland Empire.
The Inland Empire’s industrial market closed out 2021 on a high note, as total inventory rose to 615 million square feet as the year ended.
Vacancy in Riverside and San Bernardino counties dropped to 0.87 percent during the fourth quarter, the third straight quarter in which vacancy was under one percent, according to CBRE’s latest report on the local industry market.
Lease rates rose an average of 11 cents, to one dollar per square foot, between the third and fourth quarter, an increase the report called “astonishing.” For the year, lease rates rose by nearly 29 percent.
Net absorption – the difference in occupied space from one quarter to the next – declined slightly in the fourth quarter to just under 5.6 million square feet. Gross absorption, which measures total move-ins, more than doubled in the same period to 12.2 million square feet.
“The Inland Empire industrial market looks to stay on its current trajectory in 2022” the report states. “Developers can’t deliver new projects fast enough to meet what seems to be an insatiable appetite for space from the logistics sector.”
