Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.
TOP INDUSTRIAL MARKET TO WATCH : Inland Empire, California
Demand is mushrooming in this vital industrial market. Companies absorbed nearly 15 million square feet of space in 2013, almost double the roughly 8 million square feet of absorption in 2012. Construction introduced almost 6 million square feet of new supply in the past year, and another 16 million square feet are nearing completion in 2014. Users have already committed to more than a third of the buildings currently under construction. The Inland Empire’s vacancy rate of a little more than 4 percent, although tight, offers greater flexibility and lower average lease rates than users can find closer to the ports of Los Angeles and Long Beach. Developers are depending on those competitive advantages to help lease the tremendous volume of new space in the works. As new projects come online, however, the average lease rate of will increase, narrowing the rent rate differential that has helped to offset the added cost of transporting shipped goods between the ports and distribution centers in the Inland Empire.
To read more on Inland Empire, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below.
It’s a different world out there.
It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.
Download the Top Trends and Markets to Watch Reports