RIVERSIDE, CA-GlobeSt.com got an exclusive sneak peak at the Riverside office of Lee & Associates' third quarter 2013 Industrial Market Summary for manufacturing/distribution buildings for the East Valley Market in Southern California's Inland Empire. As one of the first industrial regions in the US to recover from the economic downturn, the summary reports that the third quarter continued its stabilization with positive activity and absorption figures to continue through the end of the year.
“In addition to its ongoing stability, the Inland Empire's industrial property will continue to reap the benefits of its interaction with the International ports of Los Angeles and Long Beach,” says Lee & Associates Riverside president David Illsley. “With more than 40% of the nation's consumer goods coming from the Asian markets and passing though our local ports, about 75% of those goods are handled in the Inland Empire before reaching its final destination.”
Demand for industrial buildings in the Inland Empire's East Valley continued its momentum in the third quarter 2013. Absorption in 2012 of just over 12 million square feet surpassed the figures seen in 2011, a trend that is expected to continue throughout 2013, with third quarter's absorption posting 1.9 million square feet, and year-to-date absorption at almost 9.6 million square feet.
Gross activity in the third quarter was over 2.1 million square feet, with investment purchases and lease renewals accounting for only 12.6% of the total. Vacancy rates remained steady in the third quarter at 5.7% exhibiting a stabilized marketplace. Vacancy rates have now been on a declining path for four years from when they reached a peak at almost 20% in the second quarter 2009. The end of 2013 will show more steady decreases in vacancy as the market remains stable and new construction in smaller building sizes remains limited.
The report, which was prepared by Caroline Payan, director of marketing & research at Lee & Associates Riverside, also shows that both average actual and average asking sales prices per square feet increased in the third quarter, a trend that is expected to continue throughout the remainder of 2013 as REO sales have dried up and the supply of quality buildings available for sale remains limited.
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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.
