Why Industrial Users Are Flocking to the Inland Empire

Geiger: “I often joke with my friendly competitors in other markets that if they aren’t showing their clients buildings in the Inland Empire, they are doing their client a disservice, and another broker most probably will.”

INLAND EMPIRE, CA—Southern California industrial users who historically would have turned up their noses at the Inland Empire are now being forced to consider all options in the face of an ever-tightening market with climbing rents, Voit Real Estate Services associate Adam Geiger tells GlobeSt.com. We spoke with Geiger, who is based in the firm’s Inland Empire office, about the appeal of this market and the factors that have led to its strength.

GlobeSt.com: How would you characterize the Southern California industrial sector’s fundamentals?

Geiger: If you have even somewhat been paying attention to what is going on in the industrial real estate world, then you are already aware that Southern California industrial real estate continues to outperform pre-recession metrics on every front. Land prices are as high as they’ve ever been. Building prices are as high as they’ve ever been. Lease rates are as high as they’ve ever been. Cap rates and vacancy rates are as low as they’ve ever been. There has actually never been a better time in history to be an industrial landlord or owner/user, particularly if you purchased your building(s) 4-7 years ago.

GlobeSt.com: What does this mean for users?