Warehouse Space

Inland Empire Industrial Leasing Report: Q1 2014

Posted on June 24, 2014 ยท Posted in News

Every quarter we provide a look at the health of the Inland Empire industrial market and today we look at the first quarter of 2014.

Overall Leasing Activity

The area continues to see strong absorption with leasing activity being particularly strong in spaces under 100,000 square feet. Whereas the market would often be dominated by large building leasing activity, we’re beginning to see more leasing in the 10,000 to 50,000 square foot market and expect the trend of smaller spaces driving overall leasing to continue into Q2/Q3.

Rental Rates

We recently updated our rental rates and found a number of markets that still represent great opportunities for businesses seeking inexpensive space in the Riverside-San Bernardino area. Rates are now more stable than in previous years and it’s likely the market will experience slow but steady growth in asking rates through the next two years.

Construction

Nearly 3 million square feet of space was delivered to market in Q1 with construction crews breaking ground on another 2.2 million square feet in Q1 2014. Overall nearly 16 million square feet of industrial space is currently under construction and even with the new space coming online, it is unlikely to impede rate growth.

From a business perspective, the market is in a very different place than it was just a few short years ago. If you signed a lease in 2008-2009 and you’re up for renewal soon, you’ll find that landlords will be very firm in terms of their concessions because of overall market demand. Hiring an experienced tenant representation firm like Synergy Real Estate Group will allow you to leverage the market to your advantage and secure terms and concessions that otherwise may not have been available.

If you’d like more information about our services or are currently looking for space, please contact us today at (909) 509-4244 and we’ll be happy to begin looking for the perfect space for your business.