{"id":1004735061,"date":"2024-11-25T06:06:26","date_gmt":"2024-11-25T14:06:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004735061"},"modified":"2024-11-27T06:47:12","modified_gmt":"2024-11-27T14:47:12","slug":"inland-empire-industrial-assets-trade-for-more-less-often","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/inland-empire-industrial-assets-trade-for-more-less-often\/","title":{"rendered":"Inland Empire Industrial Assets Trade Less Often, but Fetch Top Dollar"},"content":{"rendered":"\n

The Inland Empire\u2019s industrial sector continued to be a key market for investors and developers in the first three quarters of this year. While some metrics recorded a considerable decrease compared to a year ago, mostly due to interest rates remaining high, the metro holds steady.<\/p>\n\n\n

\n
\"Rendering<\/a>
In September, DECA Cos. and Wildcat Capital Management obtained $135 million for the construction and lease-up of Perris Gateway, an 850,000-square-foot development in Perris, Calif. Image courtesy of DECA Cos.<\/em><\/figcaption><\/figure><\/div>\n\n\n

The market\u2019s under-construction pipeline at the end of September reached 10.3 million square feet. A total of 32 projects were underway, accounting for 1.5 percent of existing inventory.<\/p>\n\n\n\n

The Inland Empire also ranked as the fourth most expensive market in the nation, with an average price per square foot of $265, surpassed only by the Bay Area ($476 per square foot), Orange County ($319 per square foot) and Los Angeles ($297 per square foot). The total investment volume, however, clocked in at $1.5 billion year-to-date as of September, less than half the $3.8 billion registered during the same time frame in 2023.<\/p>\n\n\n\n

Inland Empire\u2019s pipeline still in the spotlight<\/h2>\n\n\n\n

At the end of September, the Inland Empire\u2019s industrial sector had about 10.3 million square feet of space underway. The 32 developments under construction account for 1.5 percent of the metro\u2019s total stock, slightly below the 1.8 percent U.S. average.<\/p>\n\n\n

\n
\"Shopoff<\/a>
Shopoff Realty is developing a 1 million-square-foot facility in Desert Hot Springs, Calif. Image courtesy of EMRI Group<\/em><\/figcaption><\/figure><\/div>\n\n\n

The market ranked fifth nationally in terms of pipeline, while Phoenix held onto first place, with 33.8 million square feet. Among other major industrial markets, the metro fared better than Chicago (8.9 million square feet), New Jersey (6.8 million square feet) and Indianapolis (2.3 million square feet).<\/p>\n\n\n\n

Year-over-year, the Inland Empire\u2019s industrial deliveries<\/a> increased significantly, showing that the market is still a hotbed for activity. In September, a joint venture between Wildcat Capital Management and DECA Cos. obtained $135 million to finance the construction<\/a> and lease-up of Perris Gateway, an 850,000-square-foot industrial property in Perris, Calif. The already underway facility is expected to be available for lease in 2025.<\/p>\n\n\n\n

Another notable project in the metro is Shopoff Realty Investments\u2019 1 million-square-foot facility<\/a>. The company acquired a 55-acre site back in June and plans to complete the distribution and warehouse space by the end of next year.<\/p>\n\n\n\n

Industrial completions rise year-over-year<\/h2>\n\n\n\n

The Inland Empire\u2019s industrial sector saw roughly 19.2 million square feet of space being delivered year-to-date as of September. A total of 57 properties came online, accounting for 2.9 percent of existing stock, more than double the 1.4 percent national average.<\/p>\n\n\n\n

Additionally, the metro\u2019s completion pipeline slightly grew compared to a year ago, when about 18.4 million square feet of space were delivered. Among peer markets, the metro fared better than Indianapolis (6.1 million square feet) and New Jersey (7.1 million square feet), but was surpassed by Phoenix (23.5 million square feet) and Dallas (25.2 million square feet).<\/p>\n\n\n\n

Earlier this year, Affinius Capital completed the almost 1.9 million-square-foot Building 1 at Beaumont Crossroads Logistics Park II in Beaumont Capital, Calif. The developer took out a $152 million construction loan last year, originated by Citizens Bank, CommercialEdge data shows.<\/p>\n\n\n\n

Inland Empire remains one of the priciest markets<\/h2>\n\n\n\n

The Inland Empire\u2019s industrial investment volume<\/a> year-to-date as of September reached north of $1.5 billion. Peer markets such as Dallas ($3.4 billion), the Bay Area ($2.8 billion) and Houston ($2.1 billion) surpassed the metro, while Orange County ($803 million) and Philadelphia ($687 million) were at the opposite pole.<\/p>\n\n\n

\n
\"Property<\/a>
Logistar Inc. inked a 146,816-square-foot leasing agreement at Airport Distribution Center, a 250,248-square-foot business park in Ontario, Calif. Image courtesy of Newmark<\/em><\/figcaption><\/figure><\/div>\n\n\n

Assets in the Inland Empire traded for $265 per square foot on average, well above the $130 U.S. index. The metro ranked as the fourth most expensive market, with only the Bay Area ($476 per square foot), Orange County ($319 per square foot) and Los Angeles ($297 per square foot) surpassing it.<\/p>\n\n\n\n

Following national trends, sales in the metro more than halved year-over-year, however. The Inland Empire registered $3.8 billion in transactions volume during 2023\u2019s first nine months. Despite this significant decline, the average price per square foot rose about $13.<\/p>\n\n\n\n

In one of the most notable deals of the year, Clarion Partners sold the 184,654-square foot North San Bernardino Business Park to Stockbridge Capital Group for $168.3 million, CommercialEdge data shows. The two-building campus traded for $911.43 per square foot.<\/p>\n\n\n\n

Rent growth tops national figures<\/h2>\n\n\n\n

As of September, the metro kept its position as national leader in terms of rent growth, with a 12.1 percent increase over the last twelve months, reaching $10.72. Peer markets such as Los Angeles ($14.98) and Orange County ($15.73) were some of the priciest, while Phoenix ($9.12) and Chicago ($6.17) were at the opposite end of the spectrum.<\/p>\n\n\n\n

The Inland Empire\u2019s industrial vacancy rate during the same month clocked in at 7.3 percent, slightly above the 7.0 percent national average and 290 basis points higher compared to year-ago figures. Among peer markets, Indianapolis (8.3 percent) and New Jersey (8.6 percent) fared worse, while Atlanta (6.1 percent) and Phoenix (5.6 percent) had less space available.<\/p>\n\n\n\n

In June, Logistar Inc. inked a 146,816-square-foot leasing agreement<\/a> at Airport Distribution Center, a 250,248-square-foot business park in Ontario, Calif. The company will occupy a full building at Alere Property Group\u2019s campus.<\/p>\n","protected":false},"excerpt":{"rendered":"

This market is the fourth most expensive nationally, according to CommercialEdge.<\/p>\n","protected":false},"author":3355,"featured_media":1004728482,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,21748,34027,21783,52420,21742,15],"tags":[51047,50674],"class_list":["post-1004735061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-industrial","category-inland-empire","category-investment","category-market-updates","category-latest","category-west","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nInland Empire Industrial Assets Trade Less Often, but Fetch Top Dollar - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"As of September, the Inland Empire\u2019s industrial sector was the fourth most expensive nationally, according to CommercialEdge.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/inland-empire-industrial-assets-trade-for-more-less-often\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inland Empire Industrial Assets Trade Less Often, but Fetch Top Dollar\" \/>\n<meta property=\"og:description\" content=\"As of September, the Inland Empire\u2019s industrial sector was the fourth most expensive nationally, according to CommercialEdge.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/inland-empire-industrial-assets-trade-for-more-less-often\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-25T14:06:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-27T14:47:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/Perris-Gateway-edited.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1377\" \/>\n\t<meta property=\"og:image:height\" content=\"1034\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vicentiu Fusea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/inland-empire-industrial-assets-trade-for-more-less-often\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/inland-empire-industrial-assets-trade-for-more-less-often\/\",\"name\":\"Inland Empire Industrial Assets Trade Less Often, but Fetch Top Dollar - 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