Snapshots

Inland Empire development stays strong to meet growing logistics demand

January 31, 2019
  • With 12 MSF of construction completing in the first quarter, developers hope to see the record absorption from 2018 continue into the beginning of 2019.
  • There is a high concentration of construction in the East IE submarket due to larger amount of available land. Eight projects, each over 600,000 sf, account for nearly half of all development in East IE.
  • The average size of under construction projects is just over 300,000 sf with 30 projects in the 100,000-500,000 sf range completing this year. Developers are hopeful to fill gaps in demand for the smaller range of big box warehousing.
  • Continued growth in logistics supply within the Inland Empire will produce more blue-collar jobs bolstering the Inland economy.
  • Although the outlook looks generally positive, there are several roadblocks that could hinder the growth of the logistics sector, such as running out of sites for new warehouses and a shortage of workers in the construction industry. On top of this rising electricity costs and property taxes could push logistics companies out of California altogether. 

Source: JLL Research, The Press-Enterprise

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