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Business Growth Helps Inland Empire Industrial

INLAND EMPIRE, CA-Owners are becoming comfortable with business plans that include expansion and acquisition, and many industrial users are implementing those plans while interest rates are low, says Voit's Gutierrez.

By Juan Gutierrez, a senior associate at Voit Real Estate Services | Updated on March 22, 2013

INLAND EMPIRE, CA-The Inland Empire industrial market continued to witness a sustainable recovery in 2012 from the depths of the recession in late 2009, and business growth has emerged as a key driver of that recovery. Initially the Inland Empire’s recovery was based predominantly on absorption required by consolidation and cost reduction efforts.  Today however, as the economy continues to stabilize, business owners are becoming increasingly comfortable with business plans that include expansion and acquisition, and many industrial users are implementing those plans while interest rates are low and before vacancy rates become so low that rental rates spike significantly higher.

The Inland continues to be a low cost alternative to more gentrified markets such as Los Angeles and Orange County, and offers a strong option for industrial users seeking an opportunity to expand, while at the same time lowering costs into product that is state-of-the-art. 

  • Speculative Big-Box Development Brings New Class A Product and Class A Tenants

Demand for for-lease industrial space is high in the Inland Empire, especially in the 500,000 square-foot plus size range. There has been a lack of supply in this size range for some time, which spurred speculative development of class-A industrial product. As such, five million square feet of new construction was delivered in 2012, and another eight million square feet is currently under development and planned for completion in 2013. 

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