RIVERSIDE, CA—The Riverside office of Lee &Associates, the nation's largest broker-ownedcommercial real estate firm, gave GlobeSt.com anexclusive sneak peak at the firm's third quarter2014 Industrial Market Summary for manufacturing/distributionbuildings for the East Valley Market in Southern California'sInland Empire.

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The summary reports that even with tremendous lack of inventory,the third quarter still posted strong activity and grossabsorption. Absorption in 2013 of just under 14.8 million squarefeet surpassed the figures seen in 2012, and represented thelargest amount of square feet absorbed annually in the history ofthe marketplace.

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The report also found that gross activity in the third quarterwas just under 4.6 million square feet, with investment purchasesand lease renewals accounting for 42% of the total.Demand for distribution buildingscontinues to outpace new supply due to increased port activity andincreased consumer confidence.

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“We continue to see a great deal of activity and a continuedrobust industrial market in the East Valley market,” saysDavid Illsley, president of Lee & AssociatesRiverside. “We expect this trend to continue into the fourthquarter and into 2015.”

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Vacancy rates decreased in the third quarter to 5.1%, tighteningthe market across almost all size ranges. Vacancy rates have nowbeen on a declining path for four years from when they reachedtheir peak at almost 20% in 2009. Year-end 2014 will show moresteady decreases in vacancy, as the market remains stable and newconstruction in smaller building sizes remains limited.

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The third quarter summary, which was prepared byCaroline Payan, director of marketing and researchof Lee's Riverside County offices, also found that constructionsupply companies are becoming extremely active as a result inincreased construction as well as logistics companies expandingtheir footprint and establishing new facilities in the market.“Given these factors, demand for industrial buildings in the InlandEmpire's East Valley is poised to continue to outpace new supplywith third quarter 2014 absorption figures at 2.7 million squarefeet.”

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.