Inland Empire Stays Steady
The Inland Empire’s rental market continued to exhibit most of the same patterns established during the past decade, with the only major curveball being an oscillation in rent growth on a trailing three-month basis. Rents in Riverside and San Bernardino counties were down 0.2% on a T3 basis as of October, while national rates saw a 0.2% uptick. However, rent development on a year-over-year basis was at a solid 7.7%, showcasing the heightened rate of improvement recorded at the end of 2021 and at the start of this year. The average occupancy rate in stabilized assets was down 100 basis points year-over-year, to 96.9%.
The Inland Empire’s economy is heavily reliant on its logistics sector, which added 32,400 jobs in the 12 months ending in August. Overall, employment growth totaled 89,300 new jobs, up 5.8% on a year-over-year basis, outpacing the national rate by 150 basis points. The metro’s industrial sector had the lowest vacancy rate in the nation as of September, at 1.1%. Demand in the market is still very high, with a bustling pipeline driving further growth in the local economy, while leisure and hospitality’s comeback also fueled job gains.
Investment activity was solid, recording $1.7 billion through the year’s first 10 months. Property values increased during that time, as activity included a large number of Lifestyle assets. Rent growth is moderating, with improvement at 3.8% for the year.
Read the full Matrix Multifamily Inland Empire Report-December 2022