January 25, 2016
Connect Media caught up with Greg May, regional managing director, NGKF, and a panelist at the recent Connect Inland Empire, and Ron Washle, senior managing director, Industrial Services Group/Global Logistics, NGKF to find out what trends they believe will shape the region in 2016.
What are the major factors you see influencing CRE in the Inland Empire in 2016?
The major influence is the continued importation of goods through the ports of Long Beach and Los Angeles, as well as the the increasing e-commerce industry. To that end, more businesses are building in the Inland Empire. QVC is under construction on more than 1 million square feet of space in Ontario, and Amazon is adding another 1 million square feet in San Bernardino.
Keeping Pace: How will global logistics strategies impact the Inland Empire?
Most major companies are trying to distribute product out of more than one location in the U.S. This strategy maximizes the ease of getting product to the customer, and eliminates risk by having more than one supply chain with more than one point of entry for goods.
How are today’s industrial facilities different?
Buildings are larger in size with higher ceilings. This allows more cube capacity inside the warehouse. E-commerce users are pushing the requirements, adding the need for more employee parking and onsite trailer storage. This increases the footprint needed to accommodate operations, further pushing industrial development out to the IE where there is available land.