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Real estate
CityWatch | Inland Empire
Thriving industrial real estate
Our research team analyzed more than 4,000 cities and identified the top 2% we believe are most attractive to people and businesses, today and in the future. California’s Inland Empire is one of those cities.
The area around Riverside, California, benefits from strong growth in its economy, population and retail sales. For real estate investors, perhaps the most attractive quality is the proximity to the two largest U.S. ports: Los Angeles and Long Beach. It also serves as a key e-commerce distribution hub in Southern California.
Vacancy
1.6%
The lowest rate among the top 50 largest U.S. industrial markets.1
Rental rate growth
19.9%
The lowest rate among the top 50 largest U.S. industrial markets.2
Total return
79%
Consistently outpacing the national average3
New development
17.7 million square feet.
Slower development supports higher rents for existing buildings.4
Leasing
25.6 million square feet.
Fifth highest among all industrial markets.5
In this issue
For years, investors have held steady on their reasons to allocate to private real estate: return potential, income, volatility management, inflation hedging and diversification.
Today’s markets require specialized strategies to seek alpha while not overpaying for high demand assets.
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Our offices
Endnotes
1Data source: Costar, 30 Jun 2022.
2Data source: Costar. Growth over the last 12 months.
3Data source: National Council of Real Estate Investment Fiduciaries (NCREIF). Return over the last 12 months.
4Data source: Costar. Development over the last 12 months, down from a 5-year average of 23.7k sq. ft.
5Data source: Costar. Net absorption, which equals net of new leases and move outs, over the last 12 months.
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Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. Any changes to assumptions that may have been made in preparing this material could have a material impact on the information presented herein by way of example. Past performance does not predict or guarantee future results. Investing involves risk; principal loss is possible.
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Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well. Real estate investments are subject to various risks, including fluctuations in property values, higher expenses or lower income than expected, and potential environmental problems and liability. Please consider all risks carefully prior to investing in any particular strategy. A portfolio’s concentration in the real estate sector makes it subject to greater risk and volatility than other portfolios that are more diversified and its value may be substantially affected by economic events in the real estate industry. International investing involves risks, including risks related to foreign currency, limited liquidity particularly where the underlying asset comprises real estate, less government regulation in some jurisdictions, and the possibility of substantial volatility due to adverse political, economic or other developments.
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