California's Inland Empire is Distribution Central - How Did It Happen?

Why should you consider California's Inland Empire as an investment destination for 2023? Hosts Bill Condon and Matt McGregor sit down with Steve Bellitti, one of Colliers' top-performing brokers nationally, to discuss investment opportunities in The Inland Empire. They break down the investment opportunities in the Inland Empire from leasing activities, tremendous growth in rental rates, and the relentless demand for large industrial buildings.  The Inland Empire (IE) was built on the fact that Southern California has a population of 25 million people and the existence of two major ports in Long Beach and Los Angeles. Steve explains how e-commerce greatly influenced the growth of the Inland Empire.  Although IE is typically known for small trades, larger trades have occurred in the past 18 months due to sustained demand for warehouse distribution space. To keep pace with business growth and the relentless demand for additional warehouses, expect more industrial development projects in the Inland Empire.   Steve reveals that buildings over 5,000 square feet have a zero percent vacancy rate - a trend set to continue well into 2023.  Although there is demand for industrial buildings, nobody is buying or developing due to the unavailability of land and crazy prices.  According to Steve, the land supply issue will continue to push lease prices up no matter how many new buildings are completed.  Steve underlines how the pandemic caused massive delays for the buildings currently under construction. Buildings that took 12 months are now taking 18 months to complete. Transportation drives a lot more of the cost side of the expense equation than rent does.  What are green-certified buildings doing to lower their carbon footprint? Steve's outlook for 2023 - This is the year of change. Tenants will have more power over landlords who have continuously taken advantage of the supply shortage in IE.      Mentioned in this episode: Industrial Advisors - https://www.industrialadvisors.com