Inland Empire developers continue to meet sustained, historic demand for big box product
The Inland Empire construction pipeline has skewed toward the larger end of the size spectrum.
April 02, 2019
- As the premier big box industrial market serving the southwestern U.S., the Inland Empire construction pipeline has skewed toward the larger end of the size spectrum with, perhaps, unsurprising consistency during the current real estate cycle. Developers have responded reciprocally to market demand in general and more specifically to size segments and building specifications. In 2016, total net absorption exceeded 20 MSF for the first time in the Inland Empire. The following year, construction pipeline ballooned to a new all-time high with 25 MSF of product under construction and 500,000+ square foot projects accounting for 56 percent of that total.
- While construction has slightly waned during the past several quarters, developers continue to meet market demand which has remained steady, especially for the 1.0+ MSF segment. These projects rarely sit on the market long after delivering and many tenants are pre-leasing early on during construction and customizing to their own specifications.
Source: JLL Research