A brewery scene is sprouting up in Riverside County. The market has already been home to wineries, but in the last few years, breweries have taken up industrial and retail space in the Inland Empire market, these users concentrated in Murrieta and Temecula. In 2018, the industry grew 5%—even as beer sales in the US climbed only 1%, according to research from JLL. Population growth in the Inland Empire and a growing gastronomy trend is driving this trend.
“Every landlord wants the new, the exciting concept and is willing to provide contributions in tenant improvement allowance to bring that to their projects,” Blake Kaplan, VP at JLL, tells GlobeSt.com. “Brewery is hot priority for Southern California and the growth is happening all over. Being able to eat, drink and have fun within a restaurant is the trifecta for customers.”
This is a new trend in this market, but breweries have become a staple of the San Diego market. The Temecula and Murrieta markets are proximate to San Diego near the 215/15 corridor, and this activity is likely an extension of the growth, according to the JLL report. “It's just starting in the Inland Empire and we are going to see this grow out organically throughout the greater markets,” Kaplan adds. “Breweries that bring an experience are going to be strong in sales.”
San Diego is considered one of the top 10 beer destinations in the country. To the north, Los Angeles has also become a popular brewery destination, and the industry has been a driver of retail space in the market. However, the drivers in each market are different. “Each market is completely different,” explains Kaplan. “The larger breweries are jumping into industrial buildings so that they can service a larger brew-op and have a small retail tasting room/restaurant a part of it. We are seeing a combination of this throughout the IE for users who are really looking to push sales through the beer component. Other operators are serving food and beer with opening retail locations and doing tremendously well.”
Now, the Inland Empire is home to 13 breweries, and with the surrounding success in San Diego and Los Angeles, Kaplan expects strong future growth. “We are going to see large growth in this category,” he says. “No one wants to grab a drink at an outdated restaurant/QSR. They want to have an experience and the breweries are bringing that.”
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Kelsi Maree Borland
