Net lease investors areheading to the Inland Empire for opportunities. According to arecent report from CBRE, net lease investmentvolumes grew 105% last year in the Inland Empire, the secondstrongest gains in the country and a total of $3.2 billion. In2018, net lease investment volumes totaled $1.5 billion.

"Development of commercial and residential projects ceased toexist after the Great Recession in 2008, while the market has beenin a 10-year bull run and housing growth and demand for industrialreal estate, particularly in the Inland Empire, have beenincredible strong," Ian Schroeder, an SVP at CBRE,tells GlobeSt.com. "So demand for this type of real estate has beenvery strong. We have seen a number of large net-leased industrialsales achieve record cap rates, which undoubtedly contributed tothe region's higher numbers, as well."

The retail market has also helped to drive investment activity."While the multi-tenant shopping center market has lagged the caprates of single-tenant properties especially in non-core marketslike the Inland Empire, owners are finding it accretive to break uptheir multi-retailer centers to maximize proceeds," saysSchroeder.