Lee & Associates – Ontario | 1Q22 Industrial Market Report

UNPRECEDENTED GROWTH stuns the industry in all terms of the market including demand, availability, vacancy, pricing, and development. The Inland Empire Industrial Market continues to prove its dominance as one of the top industrial markets in the nation. The ports of Long Beach and Los Angeles receive approximately 40% of the nation’s imports which solely create enough demand to sustain a prosperous market. When port congestion, labor shortages, increased transportation costs are thrown into the mix, extraordinary demand, witnessed this past quarter, begins to happen. These factors contributing to the supply chain lockup are on track to continue and potentially get worse, which will propel the industrial market further and further each quarter.

The past year’s chain of events has driven actual lease rates and user sale prices in both the east and the west up 75% since last year. Lease rates are up 15% from just last quarter while user sale prices are up over 20% from last quarter. Only 3.95% of inventory is available, compared to last year’s 5.67%. There is virtually no vacant space in the Inland Empire, as only 0.37% of existing inventory is vacant. Even with the lack of space to absorb, net absorption totaled over four million square feet as gross activity totaled over sixteen and a half million square feet.

Read the full report here. View our historical statistic comparison matrix here.