Industrial Market
The industrial vacancy rate in the Inland Empire was 3% in the first quarter, a slight increase from the fourth quarter.
The availability rate was flat at 6.1%, versus a year earlier, but up from 4.8% in the fourth quarter.
The completion of 12.2 million square feet of space helped raise the vacancy rate in the county. About 3.3 million square feet of the space completed is taken.
There were 74 buildings that were finished in the quarter. The Inland Empire east market completed development on 37 projects totaling 7.8 million square feet, with the west seeing 37 projects totaling 4.5 million square feet wrap up.
There was 10.8 million square feet of total activity in the Inland Empire in the period.
The Inland Empire added 6,600 industrial jobs in the first quarter. The sector accounts for 19% of all non-farm jobs in the region.
The trucking, warehouse and wholesale sectors saw an increase in job growth, while the manufacturing sector posted a slight decline. There are 230,300 industrial jobs in the Inland Empire.
Office Market
The Inland Empire office market posted 389,221 square feet of positive net absorption in the first quarter.
The Inland Empire east market, which includes San Bernardino, Riverside and Corona, recorded 327,799 square feet of absorption in the period.
The Inland Empire west market produced 61,422 square feet of positive net absorption in the quarter.
Inland Empire’s first-quarter average asking gross lease rate increased to $1.80 per square foot, full-service gross. For the seventh consecutive quarter, Corona and Ontario produced the highest lease rates in the Inland Empire with an average of $2.08 and $1.99 per square foot, respectively.
Vacancy rates fell across the board. The average vacancy rate was 7.9% in the quarter, down 31.3% from a year ago. The Inland Empire west’s vacancy was 5.5%, with the east market recording a 9% vacancy rate.
The unemployment rate for the Inland Empire was 4.7% during the first quarter, down 0.3% from the previous quarter. The Inland Empire’s office sector has a total of 185,500 jobs.
The engineering and management sector saw the highest growth in the first quarter with 4,400 new jobs. Total office employment accounts for about 15% of the entire Inland Empire total non-farm employment.
Analysis by CB Richard Ellis Group Inc.’s Global Research and Consulting.
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