Activity Remains Strong Despite Economic Headwinds
At the close of the third quarter of 2022, historically tight market conditions continue to exist throughout the region despite overall economic uncertainty. Total new leasing activity ticked up 15% to 11.7M SF due to several large transactions over 1M SF. However, availability is on the rise, jumping up 90 basis points and closing out the quarter at 2.0%. Vacancy also ticked up 20 basis points to 0.7% but is still 10 basis points below the mark from one year ago. The hottest topic in the Inland Empire continues to be the tremendous rental rate growth. Average asking rents posted a new record high rate of $1.56 NNN, a 58% jump from 12 months ago. Average asking rents in the East have doubled in 24 months, while rents in the West are up 116% over the same period.