Industrial Real Estate Update
Southern California's Inland Empire Industrial Real Estate Update
By: Nathan Bragg, Commercial Division Managing Broker and Commercial Realtor® RE/MAX Time Realty
The Southern California Industrial market is over 2 billion-SF with the Inland Empire being the fastest growing segment of this market, it also has one of the lowest vacancy rates in the United States.
Currently there is over 25.8 Million Square feet of Industrial Space under construction in the Inland Empire. Our commercial team in Rancho Cucamonga in the heart of the Inland Empire monitors activity, sold and for sale properties on an ongoing basis and gives our clients, market reports, valuations and property evaluations. The availability of existing inventory is scarce, tenants and buyers are relying on new construction to meet their space requirements.
Key Inland Empire Industrial Market Sales and Leasing Statistics Q-3 2021
AVG SALE PRICE RANGE PSF - $177 to $288
LEASE RATE RANGE - $10 TO $15 PSF / ANNUAL
AVG VACANCY RATE - 1.8%
AVG CAP RATE - 4.8%
12 MONTH DELIVERIES - 16.8 Million Square Feet Total
Demand and Rising Rents Drive Industrial Building Activity in the Inland Empire:
Below are forecast for the next several years, import activity, comparative low industrial land cost and availability, consumer demand and the shift in supply chain has made the Inland Empire one of the strongest industrial markets in the United States and the fastest growing industrial real estate market in California.
Pictured Above: Inland Empire Industrial Market Rent. Data Source Costar
Economic Activity is Positive for Industrial Real Estate:
Consumer personal consumption has driven demand for more imports and as a result the ports of Los Angeles and Long Beach are experiencing a back up with ships not being able to dock or unload for weeks. As the U.S. Economy grows the Inland Empire is the most likely beneficiary for continued industrial growth as as the distribution portal for the Western United States.
Pictured Below: Economic Projections for Rancho Cucamonga CA and U.S
Contact our team in Rancho Cucamonga, the "epicenter of growth" in the Inland Empire for a detailed market report or valuation on your property, we have access to professional research data costing thousands of dollars per year that we give our clients access too and tools to help you or your clients get the best value if you are considering a disposition. Get general market and economic research data on our site as well.
All information was obtained from sources believed to be reliable but is not guaranteed, the market changes frequently. Each RE/MAX office is independently owned and operated.