Quarterly Report Q4 2023

Jones Industrial Team  /   December 31, 2023

While 2023 posed a strong pause in many sectors, the Inland Empire industrial market remained stable all things considered. Certain fundamentals have reached levels not seen in over a decade due to the extreme spike in development of certain size ranges and cities: development spurred by the previous, extremely-low vacancy coupled with the heightened demand in 2020 and following quarters. Most of that heightened development is now delivering, as almost 29M square feet of industrial product will bear the label “Built in 2023.” In Q4 alone, the Inland Empire delivered the most industrial product in the West submarket in at least fifteen years, if not the most in the history of the sector.

Radical demand was fulfilled with an extreme amount of development, leading to an oversupply, resulting in the sudden and substantial increase in available space. Availability is up year-over-year over 60%, weakening the landlord’s leverage in the market. Sublease space continues to deepen its market share, as subleases currently take up nearly 20% of all available space on the market. The I.E. industrial market hasn’t seen an availability rate this high since 2012, with vacancy being the highest in ten years.

Download Quarterly Report Q4 2023

« Previous   Next »