Investment activity has grown in Western US secondary markets, like Las Vegas and Phoenix, as investors have chased better yields. The Inland Empire, however, is an opportunity to gain attractive yields in a Southern California market. That is an attractive dynamic for investors. “Investors looking to invest in Southern California see that the Inland Empire has good fundamentals today and good long-term fundamentals in the future,” adds Shafer. “They also see that there are good opportunities compared to Southern California markets like Orange County and San Diego.”

Specifically, residents of Orange County, San Diego and even Los Angeles are migrating to the Inland Empire to take advantage of the rapidly growing job market as well as better housing affordability, especially compared to the coastal markets. “When you have an increase of jobs, people are going to move to fill those jobs,” says Shafer.

Rancho Cucamonga, Corona and Chino Hills have been the biggest beneficiates of the market growth. But other markets further east are primed for a boom. “Markets that are close to Orange County or adjacent to Orange County have seen some significant rent growth,” says Shafer. “Areas like Riverside and Ontario are going through a renaissance and are benefiting from the logistics and warehouse distribution centers. All of those markets are benefitting tremendously.”

With new deliveries expected next year, the vacancy rate may tick up slightly, but rents are expected to climb again alongside job gains.