Lisa Anderson was quoted in IE Business Daily recently on the state of the Inland Empire as a new year starts – will it be boom or bust? What’s in store for the industrial market in 2024? Anderson says you could be in for a bumpy ride.
The days of a perpetually red-hot industrial market in the Inland Empire – record sales and leases, high vacancy rates, plenty of speculative development, and an endless absorption of open space – may be a thing of the past.
At the very least, with the start of a new year less than one month away, growth of the logistics manufacturing sector in Riverside and San Bernardino counties has been put on hold, and it might stay that way for a while.
The Inland Empire’s industrial market won’t be at full strength as it heads into 2024 if the most recent data is any indication.
Rather than boom or bust, 2024 will probably be an erratic year for the Inland industrial market, according to Lisa Anderson, founder and president of LMA Consulting Group Inc. in Claremont.
Absorption and lease rates probably will be flat during the next 12 months, while vacancy will be up, but only slightly, Anderson predicted.
“I expect an up and down year, for several reasons,” said Anderson, whose firm specializes in management strategies and publishes a monthly online newsletter on supply chain issues. “Interest rates remain a little high, and there is still a lot of concern about the economy and the direction it’s going. Also, more people are starting to understand that it’s difficult, and a little risky, to operate a global supply chain.”
Owners of Inland industrial properties should prepare for a bumpy ride in 2024.
“I expect the [Inland] industrial market to be up and down in 2024,” Anderson said. “There will be good news and bad news, and the market will react to both.”
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