In our meeting; we discussed the industrial market in the Inland Empire (IE). It was a very optimistic meeting in regards to the market showing positive signs of a recovery. Industrial inventory in the >350,000 sf is low (12 properties in total) in the IE West. Over half of these properties are under contract.
Owner/Users are taking advantage of historically low interest rates and the abundance available space. Per square foot buyers are purchasing buildings on lower than replacement cost prices and going long on their investments.
CBRE also stated that buildings under 100,000 sf have been hit the hardest. Prices are 50-70% off of peak values. Conversely residential land has increased in value by 30% above its all time low.
We see rents coming off the bottom at the end of 2010 and increasing throughout 2011.
Data supplied for the Inland Empire West:
6.1% vacancy that is trending down to an expected 5.5% in Q2