Year Ends With Record Net Absorption
- Industrial demand recorded 6,403,700 square feet of positive net absorption this quarter and 25,390,100 square feet of positive net absorption for all of 2018. This is the highest yearly rate of positive net absorption ever recorded for this market.
- Sales and leasing activity this quarter was 14,569,300 square feet broken out into 18 sales (2,797,500 square feet) and 98 leases (11,771,800 square feet). Total gross absorption for 2018 totaled 47,792,400 square feet, which is the highest amount of annual gross absorption recorded for the Inland Empire.
- Construction declined this quarter as 10,794,300 square feet was brought to market. On going construction activity totaled only 20,543,000 square feet at the end of 2018. New supply is currently meeting growing industrial demand.
Inland Empire Industrial Market:
The Inland Empire market remains the most sought-after warehouse and distribution market in the United States with the lowest vacancy rate and highest rental rate of comparable major distribution hubs.
Above average levels of construction occurred this quarter, with a significant portion leased upon completion. Upcoming quarters will see less construction going forward.