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Follow on Google News | Lee & Associates Riverside Releases Third Quarter Industrial Market SummaryThe 3Q summary reports strong activity and strong gross absorption
By: Lee & Associates The summary reports that even with tremendous lack of inventory, the third quarter still posted strong activity and gross absorption. Absorption in 2013 of just under 14.8 million square feet surpassed the figures seen in 2012, and represented the largest amount of square feet absorbed annually in the history of the marketplace. The report also found that gross activity in the third quarter was just under 4.6 million square feet, with investment purchases and lease renewals accounting for 42% of the total. Demand for distribution buildings continues to outpace new supply due to increased port activity and increased consumer confidence. “We continue to see a great deal of activity and a continued robust industrial market in the East Valley market,” said David Illsley, president of Lee & Associates Riverside. “We expect this trend to continue into the fourth quarter and into 2015.” Vacancy rates decreased in the third quarter to 5.1%, tightening the market across almost all size ranges. Vacancy rates have now been on a declining path for four years from when they reached their peak at almost 20% in 2009. Year-end 2014 will show more steady decreases in vacancy, as the market remains stable and new construction in smaller building sizes remains limited. The third quarter summary, which was prepared by Caroline Payan, director of marketing and research of Lee’s Riverside County offices, also found that construction supply companies are becoming extremely active as a result in increased construction as well as logistics companies expanding their footprint and establishing new facilities in the market. Given these factors, demand for industrial buildings in the Inland Empire’s East Valley is poised to continue to outpace new supply with third quarter 2014 absorption figures at 2.7 million square feet. -##- About Lee & Associates Celebrating more than 35 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the country with 50 locations across the nation including California, Arizona, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, South Carolina, Texas, and Wisconsin. With almost 800 brokers nationwide, Lee & Associates provides a wide range of specialized commercial real estate services on a local, regional and national level. Additional information can be found at http://www.lee- End
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