The pace of activity in the Inland Empire increased significantly during the third-quarter industrial market, as an increase in leasing offset a drop in sales.
Year-to-date gross activity now stands at 23.5 million square feet, with third-quarter deals accounting for 9.1 million square feet of the total. Overall activity in the third quarter increased 49% over the prior period, and 23% over the same quarter last year.
Sales declined to 900,000 square feet in the third quarter, about 1 million square feet less from the prior period. A 374,760-square-foot food-processing building in Corona was the largest sale in the third quarter.
Leasing nearly doubled in the third quarter, to about 8.2 million square feet.
Watson Development Co. leased a nearly completed 616,542-square-foot building in Redlands to IDS Logistics, representing the largest new transaction in the region this quarter. Kimberly Clark renewed a lease for 699,350 square feet in Redlands, and Dal Tile renewed a lease for 410,515 square feet in Ontario.
Year-to-date net absorption increased to 8.9 million square feet, with 3 million square feet added in the third quarter.
The Inland Empire’s availability rate dropped to 11.7% in the third quarter from 12.2% in the prior period. The availability rate has been coming down steadily since it reached a high of 22.4% in the third quarter of 2009.
The vacancy rate increased to 6.4% in the third quarter from 6.3% in the prior period.
Analysis provided by CBRE Research.
The Real Estate Watch Chart
Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
