Assembly Bill 98<\/a>, which is set to impose new requirements on industrial projects. The bill mandates minimum distances between loading bays for both new developments and expansions, alongside fresh standards for buffers and parking. It also requires larger warehouses to disclose truck routes that pass through residential and community areas.<\/p>\nWhat\u2019s more, in markets like the Inland Empire, where industrial development coexists with densely populated residential zones, issues around increased truck traffic have fueled local concerns. Though logistics chains are most efficient when located near consumer hubs, the balance between meeting demand and maintaining livability is delicate. And, despite the fact that they\u2019re lauded by the California Chamber of Commerce and the Retailers Association, these regulations are likely to further tighten future supply, especially in constrained markets, like Inland Empire.<\/p>\n
For example, during the same time last year, Inland Empire had 29.58 million square feet under construction, compared to just 10.21 million by the end of September. Construction activity across Southern California has also noticeably slowed following a period of historic completions.<\/p>\n
Nationally, Prices Are Up to $130\/Square Foot, Sales Dip in Inland Empire<\/h2>\n
Sales of industrial assets have climbed throughout the last year with the average price per square foot increasing from $122 at the end of Q3 last year to $130 currently. In total, industrial sales have reached $43.7 billion through the first three quarters of the year.<\/p>\n
However, in some of the top markets (like the Inland Empire), sales volume has softened. Once ranked among the top few markets for sales volume for six consecutive years and leading the nation in 2023, the Inland Empire has seen a slight dip in 2024. Now, the market sits just outside of the top ranks in total sales volume, while the average price per square foot has dropped to $188 \u2014 a 16% decrease from its 2022 high of $225 per square foot.<\/p>\n
Even so, the Inland Empire continues to attract significant sales transactions. For instance, the market\u2019s largest deal this year was EQT Exeter\u2019s $197 million acquisition of a 177,750-square-foot distribution center at 13423 Santa Ana Ave. in the Fontana submarket. Fontana, in particular, has stood out by accounting for nearly half of the market\u2019s total sales volume so far this year with properties here trading above the broader market\u2019s average.<\/p>\n\n