Industrial Market
The Inland Empire’s industrial vacancy rate rose to 1.89% in the third quarter, up 19.6% from the previous quarter but down from last year.
The Inland Empire east vacancy rate increased 60% to 2.12%, with the west region rising to 1.79% in the third quarter.
There was 12.5 million square feet of gross activity during the third quarter. Ontario led the Inland Empire with almost 3.2 million square feet of sale and lease activity in the period.
Demand in the industrial market resulted in 4.9 million square feet of positive net absorption for the quarter. There’s been more than 12 million square feet of net absorption in the region’s industrial market this year.
The industrial average asking lease rate for the Inland Empire increased to 39 cents per square foot from the second quarter’s rate of 37 cents. Lease rates ranged from a low of 28 cents to a high of 55 cents.
Industrial buildings larger than 100,000 square feet reported an average net lease rate of 37.5 cents per square foot. The Inland Empire east led the region with an average net lease rate of 42 cents per square foot.
The average asking sales price for the Inland Empire was $79 per square foot in the quarter. Perris had the highest sales price with an average of $150 per square foot.
Industrial buildings and complexes remain in demand as 178 projects with 21.8 million square feet are under construction.
There were two large buildings in the Inland Empire west region that completed construction in the third quarter. At the Kaiser Commerce Center in Fontana, an 849,900-square-foot building was finished along with Panattoni Development Co.’s 414,017-square-foot building in Rancho Cucamonga.
In the east there also were two large buildings bigger than 350,000 square feet that were completed. Sycamore Canyon Logistic Center completed construction on a 953,132-square-foot building in Riverside. San Bernardino saw a 758,374-square-foot building completed.
Office Market
The Inland Empire office market saw positive net absorption in the third quarter, producing a vacancy rate of 10.6%, up 0.9% from the prior quarter.
Office vacancy rates varied from the fully occupied markets in Chino and Chino Hills to a high of 20.4% in downtown San Bernardino.
The positive net absorption of 223,135 square feet of office space posted in the quarter brought the year-to-date total to 841,952 square feet. The Inland Empire east submarket saw 93,982 square feet of positive net absorption with the Inland Empire west submarket reporting net absorption of 129,153 square feet.
Inland Empire’s third quarter average asking gross lease rate remained the same for the second consecutive quarter at $1.74 per square foot.
The third quarter saw one class A office building totaling 30,000 square feet finish construction,Orange Tree Office Park in Redlands.
The Inland Empire has 1.6 million square feet of office space in the construction phase. Analysis provided by CB Richard Ellis Group Inc.’s Global Research and Consulting unit.
The Real Estate Watch Chart – Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
CLICK HERE
to download
REAL ESTATE WATCH CHARTS
Please note: to download the file, you will need Adobe Acrobat Reader installed on your computer. For a free copy of the software,
click here.
