- November 15, 2023
Untapped Potential: Exploring the Thriving Inland Empire Industrial Market
Kind Reader, the Inland Empire industrial market is experiencing an exciting surge in activity. With an abundance of available land, prime location, and a growing economy, the region is attracting more businesses, investors, and developers than ever before. The Inland Empire, which spans across Riverside and San Bernardino counties, is home to several major industries, including logistics, manufacturing, and e-commerce, further fueling the demand for industrial spaces. As a result, the market is seeing a rise in construction, leasing, and sales, making it a hotbed for industrial real estate.
The Growth of Inland Empire Industrial Market
The Inland Empire industrial market has been experiencing tremendous growth in recent years. With the region’s strategic location, well-developed infrastructure, and increasing demand for goods and services, it has become a prime destination for businesses looking for space and opportunities.
The Strategic Location of Inland Empire
The Inland Empire is located in Southern California and comprises two counties – Riverside and San Bernardino. The region is strategically located near major highways such as I-10, I-15, and I-215, making it easily accessible to both the Los Angeles and San Diego metropolitan areas. Its proximity to ports, airports, and rail hubs have also made it easier for businesses to transport their goods and supplies to and from the region.
The Evolution of Inland Empire Industrial Market
Over the years, the Inland Empire has evolved from an agricultural and logistics hub to a diverse and vibrant economy. The region’s industrial market has seen significant growth in e-commerce, logistics, and warehousing. The demand for industrial space has also led to the construction of larger facilities to accommodate these businesses’ needs.
The State of the Inland Empire Industrial Market
The Inland Empire’s industrial market is currently robust, with high demand for space exceeding supply. The region has a total inventory of over 640 million square feet of industrial space, and the vacancy rate is at a historic low of 2.2%, according to a recent report by CBRE. This demand is driven by several factors.
The E-commerce Boom
The rise of e-commerce has led to an increase in the demand for warehouse and distribution centers. With consumers increasingly shopping online, companies need to be able to store and distribute their products quickly and efficiently. The Inland Empire’s strategic location and vast supply of industrial space make it a prime destination for e-commerce companies.
The Logistics Hub
The Inland Empire has long been a logistics hub, thanks to its proximity to ports, airports, and major highways. Companies that rely on logistics have chosen the region as a good place to set up their operations. Besides, the Inland Empire is well serviced by logistics firms like UPS, FedEx, and Amazon logistics.
The Availability of Inland Empire Industrial Space
The Inland Empire’s inventory of industrial space has been growing steadily over the years. Developers have been constructing modern facilities to meet the growing demand, resulting in more options for businesses looking for space. Although the demand for space has been high, developers have been working to meet the demand by constructing larger and modern facilities to accommodate these businesses’ needs.
| No | Inland Empire Industrial Market | LSI Keywords |
|---|---|---|
| 1 | The Growth of Inland Empire Industrial Market | Inland Empire, industrial market, growth |
| 2 | The Strategic Location of Inland Empire | Inland Empire, strategic location, highways, ports, airports, rail hubs |
| 3 | The Evolution of Inland Empire Industrial Market | Inland Empire, industrial market, growth, e-commerce, logistics, warehousing |
| 4 | The State of the Inland Empire Industrial Market | Inland Empire, industrial market, demand, supply, e-commerce, logistics, industrial space |
| 5 | The E-commerce Boom | Inland Empire, e-commerce, warehouse, distribution centers, industrial space |
| 6 | The Logistics Hub | Inland Empire, logistics, ports, airports, highways, logistics firms |
| 7 | The Availability of Inland Empire Industrial Space | Inland Empire, industrial space, developers, modern facilities, businesses |
The Inland Empire Industrial Market Overview
The Inland Empire, located east of Los Angeles, is one of the largest and most rapidly growing industrial regions in the United States. The Inland Empire industrial market is characterized by a diverse range of industries including manufacturing, logistics, distribution, and e-commerce.
Manufacturing Industry
The manufacturing industry in Inland Empire is one of the largest in California, accounting for more than 8% of the region’s total economy. The manufacturing sub-sectors that contribute significantly to the growth of the Inland Empire industrial market are food processing, aerospace, and defense, machinery, and fabricated metals. The rise of the e-commerce industry has also contributed significantly to the growth of the manufacturing industry in the region. Inland Empire’s strategic location has made it a hub for manufacturing industries that require access to both domestic and international markets.
Logistics and Distribution Industry
The logistics and distribution industry in the Inland Empire is thriving due to its strategic location at the crossroads of several major highways and railways that connect the region to the rest of the country. The e-commerce boom has also led to the growth of the logistics and distribution industry. Online shoppers expect fast, efficient delivery times, and Inland Empire’s location provides easy access to major population centers throughout the western United States. As a result, large logistics companies have established a major presence in the region, including Amazon, FedEx, UPS, and Target.
| No | Important Information |
|---|---|
| 1 | The Inland Empire industrial market is the largest industrial market in the United States after Los Angeles and Chicago |
| 2 | The Inland Empire has a total industrial inventory of over 635 million square feet |
| 3 | The Inland Empire is home to the Ports of Los Angeles and Long Beach, which are the busiest container ports in the United States |
| 4 | The Inland Empire’s industrial market has experienced rapid growth in recent years and is projected to continue growing |
| 5 | The industrial vacancy rate in the Inland Empire is currently at a historic low of 2.4% |
| 6 | The average asking rent for industrial space in the Inland Empire is $0.67 per square foot per month |
| 7 | The Inland Empire’s industrial market is dominated by logistics and e-commerce companies, due to its proximity to major ports and highways |
The Growth of Inland Empire Industrial Market
The Inland Empire industrial market has been showing continuous growth in recent years, and this trend is expected to continue in the coming years. According to a report by Colliers International, the Inland Empire is one of the fastest-growing regions in the country and is becoming a hub for logistics and e-commerce companies. The region has several advantages that make it attractive to businesses looking to set up shop, such as its central location, access to major highways and ports, and a large workforce.
Logistics and E-Commerce Companies Drive Growth
The Inland Empire’s central location and access to major highways and ports have made it a popular location for logistics and e-commerce companies. These companies require a large amount of warehouse and distribution space, and the Inland Empire has plenty of land available for development. In addition, the region’s proximity to the Port of Los Angeles and the Port of Long Beach has made it a strategic location for companies looking to import and export goods.
Focus on Sustainability
The Inland Empire industrial market is also focusing on sustainability and green initiatives. Many companies are incorporating environmentally friendly practices into their operations, such as using solar power, reducing waste, and implementing energy-efficient lighting. This trend is expected to continue as more companies become aware of the benefits of sustainability and the importance of minimizing their impact on the environment.
The Impact of COVID-19 on Inland Empire Industrial Market
The COVID-19 pandemic is one of the most significant events that have impacted the world economy in recent times. The Inland Empire Industrial Market is not exempted from the pandemic’s effects as it has caused a shift in the market dynamics. The pandemic’s outbreak has caused a surge in global supply chain disruptions that have affected the industrial market in the Inland Empire.
Supply Chain Disruptions
The COVID-19 pandemic has caused significant disruptions in the global supply chain, which has affected the Inland Empire Industrial Market. The closure of factories in China and other countries that supply raw materials has led to shortages in the supply of goods, which has affected the production of goods in the region (E-commerce reports). Many companies in Inland are heavily reliant on global supply chains for their operations, including manufacturing, logistics, and transportation.
Increase in Online Shopping
The pandemic has led to an increase in online shopping, which has boosted the growth of e-commerce businesses in the Inland Empire industrial market. With the closure of physical stores, consumers are now turning to online shopping platforms to get their goods. This has led to an increase in demand for industrial properties that are suitable for e-commerce businesses such as distribution centers, warehouses, and fulfillment centers (NREI online reports).
The COVID-19 pandemic has caused significant disruptions in the global supply chain, which has affected the Inland Empire Industrial Market.
| No | Source | Date |
|---|---|---|
| 1 | E-commerce reports | April 2021 |
| 2 | NREI online reports | May 2021 |
Industrial Real Estate in Inland Empire
Industrial real estate is a significant component of the Inland Empire’s economy. Low land and lease costs, favorable business environment, and access to a large consumer population are some of the factors that make the region an ideal place for industrial investment.
Logistics and Warehousing
The growth of e-commerce has fueled demand for warehouses in the Inland Empire. The region’s central location between Los Angeles and San Diego and proximity to ports make it an ideal location for logistics and warehousing facilities. The Inland Empire has several logistics centers, for example, Eastgate Industrial Park, Garey Distribution Center, and Riverside Commerce Center.
Manufacturing
The Inland Empire is home to several manufacturing companies. The region has a large labor pool, affordable rents, and a supportive business environment that allows manufacturers to thrive. Ontario, in particular, is a hub for manufacturing. The city’s industrial parks are home to companies such as Safariland, Mag Instrument, and Niagara Bottling.
Challenges to Inland Empire Industrial Market
The Inland Empire’s industrial real estate market is not without challenges. Several factors affect the region’s growth, development, and sustainability.
Infrastructure
The inadequate transportation infrastructure is a significant challenge. The region’s growth has strained its road networks, and the lack of public transportation makes it difficult for workers to access job centers. Improvements in transportation infrastructure are necessary to support the region’s growth.
Land Shortage
The availability of land is another challenge facing the Inland Empire’s industrial market. The region is running out of available land for development, which can constrain the growth of businesses that want to invest in the area.
Types of Industrial Properties in the Inland Empire
The Inland Empire industrial market is diverse in terms of the types of industrial properties available. These types include:
Warehouse Buildings
Warehouse buildings are the most common type of industrial property in the Inland Empire. They are typically used for storing and distributing goods, and can range in size from small facilities of a few thousand square feet, to large buildings of over a million square feet.
Manufacturing Buildings
Manufacturing buildings are constructed for the purpose of manufacturing goods. These buildings are usually larger than warehouse buildings and are equipped with high ceilings, heavy floor loads, and power systems to support machinery.
Flex Buildings
Flex buildings, also known as mixed-use buildings, are designed to accommodate multiple uses under one roof. These buildings typically have both office and industrial space, making them ideal for businesses that require both types of space.
R&D Buildings
R&D buildings are designed for research and development activities, particularly in the technology and life sciences industries. These buildings have specialized infrastructure and equipment to support testing, experimentation, and product development.
Cold Storage Buildings
Cold storage buildings are used for the storage and distribution of temperature-sensitive goods such as food, pharmaceuticals, and chemicals. These buildings are equipped with specialized refrigeration and climate control systems to maintain specific temperature and humidity levels.
Data Centers
Data centers are specialized industrial properties that provide space, power, and cooling for computer servers and related equipment. They are commonly used by companies in the technology and telecommunications sectors.
Transloading Facilities
Transloading facilities are used to transfer goods from one mode of transportation to another, such as from train to truck or truck to ship. These facilities often have specialized infrastructure and equipment to facilitate the transfer of goods.
Industrial Market Trends in the Inland Empire
The Inland Empire industrial market has experienced significant growth in recent years. Here are some of the current trends:
Strong Demand for Warehouse Space
There is currently a strong demand for warehouse space in the Inland Empire. This is due to the rise of e-commerce and the increased need for companies to store and distribute goods to customers quickly and efficiently.
Limited Supply of Available Space
Despite the strong demand for warehouse space, the supply of available space is limited. Many existing properties have been converted to other uses, and new construction is slow to keep up with demand.
Rising Rents
The combination of strong demand and limited supply has led to rising rents for industrial properties in the Inland Empire. Tenants are increasingly competing for a limited pool of available properties, which is driving up rental rates.
Focus on Sustainability
Many new industrial properties in the Inland Empire are being designed and built with a focus on sustainability. This includes the use of energy-efficient building materials, renewable energy sources, and water-saving technologies.
Growth in Cold Storage
The demand for cold storage space is growing in the Inland Empire, particularly due to the rise of online grocery shopping. This has led to the construction of new cold storage facilities, as well as the repurposing of existing properties for this use.
Warehouse Space Leasing Statistics in the Inland Empire Industrial Market
The Inland Empire industrial market has been a hotbed for warehouse space leasing in the recent past. According to Q1 2021 statistics, the asking rent for warehouse spaces in the Inland Empire industrial market was reported to be $0.72 per sq ft, which represents a 5.6% increase on a year-over-year basis. Also, the industrial vacancy rate in the Inland Empire stood at 3.6%, slightly higher than the national average rate of 4.7%, as reported by CBRE. The gradual reduction in vacancy rates, coupled with the steady increase in asking rents, is an indication that the Inland Empire industrial market is attractive to potential buyers and investors in the warehouse space sector.
Warehouse Space Leasing Activity Outlook
The warehouse space leasing activity outlook in the Inland Empire industrial market is expected to remain positive in the foreseeable future. In Q1 2021 alone, CBRE reports that leasing activity for industrial real estate properties in the Inland Empire numbered 11.4 million sq ft. Colliers International Reports that the region will see an additional 25 million sq ft by the end of the year.
Top Industries Leasing Warehouse Spaces in the Inland Empire
The warehouse spaces in the Inland Empire are mostly leased by industries such as logistics, e-commerce, and manufacturing. Due to the pandemic’s impact, the e-commerce sector has registered an increase in the demand for warehouse space.
Inland Empire Industrial Market FAQ
If you have any questions or concerns about the Inland Empire Industrial Market, then you’ve come to the right place. We’ve compiled some of the most frequently asked questions and have provided answers to them so that you can be better informed and feel less anxious or concerned about this market in general.
1. What is the Inland Empire Industrial Market?
The Inland Empire Industrial Market refers to the region in Southern California that consists of San Bernardino County and Riverside County. It is one of the largest industrial markets in the US, comprising of millions of square feet of warehouse and distribution space.
2. Why is the Inland Empire Industrial Market important?
The Inland Empire Industrial Market is important because it is a hub for the logistics, e-commerce, and transportation industries. It is geographically central to major population centers in the western US, making it an ideal location for companies to set up their operations.
3. What types of companies operate in the Inland Empire Industrial Market?
A wide variety of companies operate in the Inland Empire Industrial Market, including retailers, manufacturers, distributors, and logistics companies. It is home to major e-commerce companies like Amazon and Walmart.
4. What are the benefits of operating in the Inland Empire Industrial Market?
There are several benefits to operating in the Inland Empire Industrial Market, including its strategic location, abundant land, and access to major transportation networks.
5. Is the Inland Empire Industrial Market growing?
Yes, the Inland Empire Industrial Market is growing and has been for several years. The demand for industrial space in the region continues to increase as more companies establish a presence there.
6. What challenges does the Inland Empire Industrial Market face?
One of the main challenges facing the Inland Empire Industrial Market is the infrastructure needed to support the growth of the region. As more businesses move in, there is a need for more roads, highways, and other types of infrastructure to support the increased traffic.
7. What is the average price per square foot for industrial space in the Inland Empire Industrial Market?
The average price per square foot for industrial space in the Inland Empire Industrial Market varies depending on several factors, including the location, type of space, and amenities. As of 2021, the average price per square foot is around $0.72.
8. What is the vacancy rate in the Inland Empire Industrial Market?
The vacancy rate in the Inland Empire Industrial Market has been decreasing steadily over the past few years and is currently around 2.9%. This is due to the high demand for industrial space in the region.
9. What types of properties are available in the Inland Empire Industrial Market?
A variety of properties are available in the Inland Empire Industrial Market, including warehouses, distribution centers, manufacturing facilities, and data centers.
10. What is the outlook for the Inland Empire Industrial Market in the future?
The outlook for the Inland Empire Industrial Market is positive, with continued growth expected in the coming years. Its strategic location and access to major transportation networks make it an attractive location for businesses in a variety of industries.
11. How can I invest in the Inland Empire Industrial Market?
There are several ways to invest in the Inland Empire Industrial Market, including investing in real estate investment trusts (REITs), purchasing property, or investing in a fund that specializes in industrial real estate.
12. What is the economic impact of the Inland Empire Industrial Market?
The Inland Empire Industrial Market has a significant economic impact, not only in Southern California but in the US as a whole. It creates jobs, generates tax revenue, and supports numerous industries.
13. What role does technology play in the Inland Empire Industrial Market?
Technology plays a significant role in the Inland Empire Industrial Market, with companies leveraging automation and other technologies to improve their operations and increase efficiency.
14. How has COVID-19 affected the Inland Empire Industrial Market?
COVID-19 has had a mixed impact on the Inland Empire Industrial Market. While some businesses have experienced a slowdown, others, such as e-commerce companies, have seen an increase in demand for their products and services.
15. Where can I go for more information about the Inland Empire Industrial Market?
There are several resources available if you’d like to learn more about the Inland Empire Industrial Market, including industry publications, real estate brokers, and economic development organizations.
Learn about the latest trends and insights in the inland empire industrial market with GBTHolding.com’s comprehensive report.
Thank You for Exploring the Inland Empire
Kind Reader, we hope that you’ve enjoyed reading about the thriving industrial market in the Inland Empire. From the bustling cities to the beautiful mountains, this region offers a vast amount of opportunities for both businesses and residents. As always, we encourage you to continue exploring the area and discovering all that it has to offer. Remember to check back soon for more exciting updates on the Inland Empire and thank you for your continued support!