Figures

Inland Empire Industrial Figures Q4 2023

January 5, 2024 4 Minute Read

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Net absorption bolstered by pre-leased deliveries
Pre-leased buildings delivered across the Inland Empire (IE), adding 9.3 million sq. ft. of positive absorption for Q4 2023. Both the IE East & IE West experienced positive absorption this quarter despite rising vacancy with the IE East realizing 403,000 sq. ft. of positive absorption and the IE West realizing 1.2 million sq. ft. of positive absorption.

 

Developers pushed projects to complete in Q4 2023
Over 15 million sq. ft. completed in the Inland Empire in Q4 2023, bringing the total deliveries for 2023 to over 33 million sq. ft. of new product. Construction deliveries outpaced new starts as only 12.2 million sq. ft. broke ground in 2023.

 

Lease rates declined slightly due to increased availability and sublease options
Lease rates fell slightly quarter-over-quarter to $1.49 NNN per sq. ft. per month in Q4 2023 from $1.50 per sq. ft. per month in Q3 2023 as landlords opted to negotiate rates and abatements to secure tenants in place. Year-over-year, rates increased $0.02 from $1.47 NNN per sq. ft. per month in Q4 2022.