According to a report published by real estate giant CBRE, the Inland Empire has taken away a huge share of the market in industrial leasing. In fact, 21 of the 100 industrial leases in the USA were bagged by the Inland Empire region. The real estate of this business totals to an area of about 17.5 million square feet.
Riverside takes the Lion’s Share
Riverside was home to two of the largest leases. One of these is the Sycamore Canyon Business Park, owned by Dedeaux Properties and has an area of about 1 million square feet. While the Sycamore Canyon Business Park was leased by Cardinal Health, another 1 million square foot property called the Columbia Business Park was leased by Nordstrom. ASB Allegiance Real Estate Fund currently owns Columbia Business Park, which is valued at approximately $124 million.
Bustling E-Commerce Activity A Major Player
About 13 transactions that involved the leasing of these industrial spaces were a result of high e-commerce activity in the IE region. Since the Inland Empire’s location also favours logistics for other regions nearby, it has become the most sought after region for industrial leasing. CBRE also reports that an area of about 25 million square feet was leased in the Inland Empire in 2019, just by e-commerce firms.
Food and beverage companies also contributed to IE’s industrial leasing business last year. Though they share the same 13 transactions as e-commerce, the real estate leased totalled to 13 million square feet. While this is not as big as the area leased by e-commerce firms, it is quite large for the food and beverage industry.
Demand to Increase in the Future
Due to Inland Empire’s ports and good infrastructure development, the demand for industrial leasing is set to increase in the forthcoming years. This not only means that industrial leasing will become more profitable, but it also prompts tenants to renew their leases in advance. While this is great news for the Inland Empire’s industrial leasing business, it also widens the horizon for future prospects.