Figures
Inland Empire East Industrial Figures Q4 2024
Challenges persist as vacancy ticks up and rates decline continues
January 27, 2025 4 Minute Read
Looking for a PDF of this content?
MARKET HIGHLIGHTS
- Leasing activity decreased 76% quarter-over-quarter to 1.4 million sq. ft. newly leased in the IE East in Q4 2024. Year-over-year, new leasing decreased 34% from 2.1 million sq. ft. in Q4 2023. User sales activity decreased 41% quarter-over-quarter with only 115,000 sq. ft. transacting in Q4 2024.
- Taking rates decreased 4.4% to $1.09 NNN per square foot per month quarter-over-quarter in the IE East. Year-over-year, IE East taking rates declined 25.9% from $1.47 NNN per square foot per month in Q4 2023.
- Development decreased in Q4 2024 as only 6.1 million sq. ft. of industrial real estate was under construction at the end of the quarter. Quarter-over-quarter, construction declined 4.7%. Over 841,000 sq. ft. of construction delivered while only 540,000 sq. ft. broke ground in Q4 2024.
- Vacancy increased 20 basis points (bps) quarter-over-quarter to 8.4% while availability increased 110 bps to 11.8% quarter-over-quarter. Year-over-year, vacancy increased 340 bps in the IE East, driven largely by big-box occupiers consolidating or downsizing their industrial footprint.