The Inland Empire Climbs to the Top of Investment Lists

The Inland Empire is becoming the next frontier for multifamily investors looking for opportunities in Southern California. The region has seen tremendous job and population growth—thanks in large part to the industrial sector—and it has created strong fundamentals for the multifamily market. According to a recent report from NorthMarq Capital, the vacancy rate fell to 3.2% last year, and asking rents grew 3.5% year-over-year to an average of $1,349 per month.

“A strengthening job market has sparked demand growth,” Shane Shafer, managing director with NorthMarq Capital, tells GlobeSt.com. “The Inland Empire has been adding jobs at a faster pace than California and the US as a whole. We are seeing job gains recorded across several different industries, the largest being the warehouse and logistics industry followed by the education and health services sector. Whenever you bring jobs, you bring population and create some good apartment fundamentals. That has led to interest and rent growth in the area. These phenomenal fundamentals are driving the market and driving investors to invest.”

In 2019, investment activity is expected to rise in the market as investors already active will increase their market exposure and new capital will look to break in.