Industrial

The Inland Empire industrial market signaled that it may be transitioning toward slower growth in the second half of the year. Leasing volume declined sharply to nearly 7.8 million square feet, which is the lowest volume seen in a single quarter since 2011. New construction deliveries pushed the average rent to the highest level on record — $0.86 per square foot. Of the 13.7 million square feet completed year to date, 32 percent remained available at the end of the quarter. Despite the deliveries, vacancy remained steady at 4.5 percent since the third quarter of 2018, proving demand for industrial space in the Inland Empire is still present. The U.S. economy may be facing a drop off after climbing steadily for the past 10 years. The trade war and tariffs are undoubtedly influencing the ports’ cargo volume, which supports industrial demand in the Inland Empire. Retailers usually prepare for increased sales during the holiday season by increasing imports in July and August. However, imports through August 2019 were down 2.4 percent from 2018. Imports had increased 3.1 percent last year at this time. The U.S. is dependent on imported goods, though, so cargo volume is unlikely to take a significant …