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Strong Activity Continues Despite Lack of Inventory

RIVERSIDE, CA—GlobeSt.com received an advance copy of one report, which shows that demand for distribution buildings continues to keep pace in the East Valley Market of Southern California's Inland Empire.

By Natalie Dolce | nataliedolce | Updated on April 06, 2016

Lee & Associates Riverside President David Illsley Lee & Associates Riverside President David Illsley

RIVERSIDE, CA—According to a recently released industrial summary from the Riverside office of Lee & Associates that GlobeSt.com exclusively received, manufacturing/distribution buildings for the East Valley Market in Southern California’s Inland Empire are lacking in inventory but have shown strong activity and gross absorption.

This trend continued on the heels of the great absorption performances in 2015 of 15.3 million square feet, 2014 of 11.4 million square feet and 2013 at 14.8 million square feet, the report says. Gross activity in the first quarter was just over 8.1 million square feet, with investment purchases and lease renewals accounting for 38% of the total. Demand for distribution buildings continues to keep pace with new supply as there are enough buyers and potential tenants in the market to absorb both existing space and new development. Absorption is expected to continue to be steady throughout 2016. First quarter 2016′s absorption figures were just under 5.1 million square feet, compared to 3.2 million square feet during the same period last year.

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