Inland Empire Industrial Market Outlook 4Q 2017
The Inland Empire remained one of the most active and desirable industrial markets at the end of 2017. Gains in asking rent normalized in the fourth quarter after an unusually steep rise in the third quarter. At the end of the year rents averaged $0.57/SF, steady over the prior quarter and up 21.3% from this time in 2016. The Inland Empire industrial market shows no signs of slowing down.
E-commerce set new records during the holiday shopping season, with e-commerce traffic increasing 111% on Black Friday in 2017 compared to 2016, according to Verizon’s Holiday Retail Index. These trends further entrench demand for warehouses and distribution centers. As the last remaining Southern California market with the capacity to construct massive distribution centers, the Inland Empire’s industrial market continued to attract interest from logistics companies including NFI and Warehouse Technology, Inc. as well as large retailer Walmart. Demand is expected to continue into 2018.