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Market Report

Riverside-San Bernardino Industrial Market Report

Midyear 2023

Vital Link in the Southwest Supply Chain Grapples With
Yet Another Influx of Speculative Deliveries

Demand for large facilities lessens the impact of additions. Dubbed an industrial hub, Riverside-San Bernardino entered April with one of the nation’s lowest vacancy rates, despite adding 36 million square feet over the prior 24 months. Strong tenant demand for modern warehouses and distribution facilities has refilled the local construction pipeline, with the volume of space slated for 2023 delivery representing a 17-year high. Projects being built are larger in scope, averaging nearly 240,000 square feet. Fortunately, the local marketplace continues to exhibit a need for these sizable facilities. The number of 200,000-square-foot-plus leases executed during the 12-month interval ending in June of this year was comparable to the total from the prior yearlong period, suggesting a portion of speculative deliveries should secure commitments over the near term. 

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