Small blocks of industrial availabilities are in shorter supply these days. JLL’s Research team discovered that total Inland Empire availabilities in the 100,000 to 200,000-square-foot range are down by 20.8% on a volume basis.
JLL’s Jeff Bellitti notes, the impact of that dwindling space is “creating double-digit rent growth and challenges for tenants in the Inland Empire industrial market.” Developers have responded, as 2.75 million square feet of this product type is underway.
Contributing factors to limited availability and higher pricing include:
- Stronger economy
- Organic growth within the marketplace, as companies expand from smaller facilities and larger companies outgrow current facilities and take on secondary warehouses
- Low vacancy and higher pricing in surrounding regions has led to continued eastern migration
- Limited development in the smaller block segments in recent years
For comments, questions or concerns, please contact Dennis Kaiser