A lack of entitled land is the next hurdle for the IE
Power Centers and Shopping Centers have been at the forefront of retail activity in 2019 in terms of both occupancy growth and new deliveries.
October 30, 2019
- The red-hot IE industrial market is not slowing down any time soon. Construction in the IE is keeping pace with high demand from “big box” tenants – with steady delivery of buildings larger than 100,000 square feet. Big box buildings are snapped up quickly, with an average time on market of just four months. Even with more than 20 million square feet of big box property scheduled to deliver in the IE within the next year construction could begin to slow as entitled land grows scarce.
- Across the IE, there are currently 31 parcels of potential industrial land that are in the process of being entitled, along with 33 plots of industrial-zoned land that have yet to break ground on new construction. The entitlement process is only getting longer and more difficult, as the California state government has halted industrial development in key industrial cities due to the increased pressure to develop mixed-use, affordable housing projects.
- Regardless, the IE industrial market is still poised for additional growth with developers in a frenzy to get land developed and to the market.
Source: JLL Research, CoStar