The industrial market in Southern California's Inland Empire, which in the middle of 2022 had a vacancy rate that was too low to measure, continued to normalize in the fourth quarter of 2023, as the vacancy rate grew to 5.2%, the sixth consecutive quarter of increased vacancy.
For the first time since the middle of 2021, construction of new Inland Empire warehouses dipped below 21M SF in Q4, while deliveries surged to more than 15M SF, nearly half of the 33M SF of new supply that arrived in 2023 across the market, according to a new market report from CBRE.
Pre-leased buildings delivered across Inland Empire added 9.3M SF of positive net absorption in the fourth quarter, enabling overall net absorption in the market to remain positive at 1.67M SF.
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