GlobeSt.com Exclusive: Corona Market Provides Early I.E. Indicator
Corona Market Provides Early I.E. Indicator
By Natalie Dolce | Inland Empire
RIVERSIDE, CA—The Riverside office of Lee & Associates exclusively shared its third quarter industrial market summary for manufacturing/distribution buildings for the Corona market in Southern California’s Inland Empire with GlobeSt.com. The report showed that with the area’s close proximity to Orange County, Corona tends to respond to changes in the market ahead of the surrounding markets in the Inland Empire.
According to the firm, “this provides an early indicator to coming trends and allows some foresight into what may lie ahead for the Inland Empire market as a whole.” The summary reports that with the lack of available product, limited new construction, and
vacancy rates now below the 2% mark, the Corona market is exhibiting improving rates and significant increases in sales prices, a trend which will only continue throughout the remainder of 2014, and well into 2015.
The report also illustrated that there is just more than one million square feet under construction in 12 buildings, a relatively small amount for a market with historically low vacancy levels. Furthermore, there is only one additional planned building for this market. Despite the rather low production pipeline, the firm says, new development will likely remain limited due to the shortage of land available for new industrial development.
Among the projects currently under construction in the Corona market is the four building Magnolia Point project, which is expected to be completed in early November 2014. The project is located at the intersection of East 6th Street and Magnolia Avenue and totals 525,860 square feet.
Another indicator of the growing strength of the market is the repeated trend of lowering vacancy rates, the firm says. Vacancy rates decreased in the third quarter to 1.96% representing the 13th consecutive quarter that the rate has been below the 5% level, this trend has not been seen since 2008.
Indicative of this are several recent transactions all of which have a common theme of buildings leasing prior to ever becoming vacant, the firm says. The team of Larry Null, Matt Rossman and Justin Null of the Riverside office of Lee & Associates has completed transactions at 555 Promenade Ave., 283 Winfield Circle, 2891 Sampson Ave. and 238 Glider Circle, all leasing prior to becoming vacant and all occurring within a two week time period. “These transactions resulted in 97,000 square feet of activity and a total consideration of $3.2 million,” the firm says. “At this pace, vacancy rates are expected to remain at record low levels throughout the remainder of 2014.”