Industrial Real Estate Company Issues Statement On Q4 Tends
Market insight is the key ingredient for any commercial real estate transaction. Knowing what has taken place in the market historically, in the recent past, and the projections for the future will allow investors and buyers to make accurate purchases and help sellers determine accurate pricing for their properties. Understanding market trends also allows landlords to accurately price their properties, and allows renters to anticipate the costs for future space. All of this information is relevant in the real estate industry.
Having access to all of this information is easy in the Internet Age. However, interpreting this information and understanding what the current and future trends in the commercial real estate industry will be based off of that information is another story. Unless you are a professional industrial real estate company, it is unlikely that a lot of the information you will find will provide you with the data you need to make a good real estate decision.
With this in mind, most individuals seek industrial commercial real estate look for an experienced broker to help them locate, purchase, lease, or sell their industrial properties. An experienced and knowledgeable broker will have access to all of the information they need about past, present, and future market trends.
Future Market Trends In The Inland Empire — 2017 And Beyond
There is a large amount of data that has finally emerged regarding Q4–2016. All of this data is very promising for the Inland Empire. Some of the key facts that should be noted include;
• 20.6 million square feet of space was added to inventory in the Inland Empire area during calendar year 2016.
• Despite this addition of space, vacancies dropped 130 basis points from the previous year to 4.4 percent vacancy. This is a significant indicator of future trends.
• Q4 saw 8.1 million square feet of space leased in the Inland Empire.
• Figures for the year show that the Inland Empire led the nation in leasing activity with a total of 37.8 million square feet for the year.
• The Inland Empire has had 30 consecutive quarters with positive absorption rates.
• Leasing rates increased $ .57 per square foot over the year to meet the high demand for properties.
• Unemployment rates for 2016 dropped 20.1 basis points from the previous year and have stayed at a steady 6.1 percent for two quarters.
• San Bernardino and Riverside Counties are seeing unemployment rates of near 5 percent.
• 40,800 new jobs were created in the Inland Empire area alone in 2016.
• The Ports of Los Angeles and Long Beach reported a 1.8 percent increase in 2016 and recorded their third busiest year on record, despite the Hanjin collapse.
• Vacancy rates in the Greater Los Angeles area for commercial properties are at one percent or lower, forcing more people to seek properties in the Inland Empire.
All of these facts, combined with recent announcements by major retailers that they are seeking more commercial properties to help boost their online sales, and new government policies taking place that is encouraging manufacturing in the United States, the demand for commercial and industrial properties is continue to be in high demand throughout the Inland empire and the United States.
Internet retail giant Amazon has already secured additional properties in the Inland Empire as they begin to push for faster delivery services. This brings a total of seven properties that Amazon is using in this area alone. Recent announcements from the company indicate that they are searching for several hundred properties during 2017 in an effort to offer same day shipping on many of their products.
Wal-Mart has also declared in their annual report that they will be focusing on Internet based sales instead of building new stores for the next five years. At the same time they made this announcement, Wal-Mart launched their online grocery shopping service. This service alone will increase the demand for space that the retail megastore will need to meet demand.
The demand for properties will continue to increase for the foreseeable future within the Inland Empire. Buyers, sellers, landlords and tenants will benefit from using an industrial real estate company to help them secure the right properties to meet the demands of their business while remaining affordable and profitable.