E-commerce Continues to Fuel Industrial Demand
- The vacancy rate dropped to a historic low of 2.6%, with year-to-date net absorption totaling 23,805,058 square feet.
- Construction completions were 4,435,700 square feet, and construction activity has increased to 22,602,100 square feet.
- Asking rents continued to rise. They are up $0.02 PSF NNN to $0.75 PSF NNN, the current high-water mark for industrial rents in the region.
- The Inland Empire industrial market has shrugged off the negative impacts of the ongoing COVID-19 recession, moving full speed ahead. Online shopping over the 2020 holidays grew 30% compared to 2019, further fueling the demand for industrial space.
Inland Empire Industrial MarketThe Inland Empire continues to outperform neighboring infill markets due to the concentration of larger and better capitalized firms along with newer state-of-the-art facilities. With the majority of people still working from home and online shopping remaining the preferred option, the Ports of Los Angeles and Long Beach processed over 20% more cargo in November compared to November 2019.