Inland Empire Industrial Continues Historic Run
After a strong start to 2021, the Inland Empire continued to show very solid market fundamentals in the second quarter with a new record-low vacancy of 1.2% and a $0.10 increase in overall average asking rents to $0.86 NNN. Net absorption closed out the quarter at 6.7 MSF, bringing the year-to-date total to 17 MSF. Overall vacancy dropped 70 basis points to 1.2%, and the market saw intense competition for well-located, Class A buildings. Historically, the Inland Empire was always a cheaper alternative with plenty of options compared to the infill markets of greater Los Angeles. In 12 months, asking rental rates increased 19%, and vacancy has dropped 210 basis points.