Inland Empire West Industrial Figures Q4 2024

MARKET HIGHLIGHTS

• Leasing activity decreased 2.7% quarter-over-quarter to 6.4 million sq. ft. newly leased in the IE West in Q4 2024. Year-over-year, new leasing increased 28% from 5 million sq. ft. in Q4 2023. User sales decreased 75% quarter-over-quarter with only 144,000 sq. ft. transacted in the IE West.
• Taking rates only fell 2.5% to $1.19 NNN per sq. ft. per month quarter-over-quarter in the IE West as competition among landlords to secure deals put downward pressure on rents. Year-over-year, taking rates decreased 21.3% from $1.51 NNN per sq. ft. per month in Q4 2023.
• Development continued to dwindle in Q4 2024 as only 5.4 million sq. ft. of industrial real estate was under construction at the end of the quarter, down from 6.2 million sq. ft. in Q3 2024. Only 38,000 sq. ft. new development broke ground in Q4 2024 despite 586,000 sq. ft. delivering in the submarket.
• The vacancy rate decreased to 5.5% in Q4 2024, a 10-basis point (bps) decrease from Q3 2024. Availability decreased 80 bps quarter-over-quarter to 8.6%. Vacancy and availability declined in Q4 2024 due to falling construction deliveries and strong leasing activity in the logistics sector.