Report sees weak 2010 market
The Inland Empire's industrial real estate market will continue struggling in 2010, according to a report by Voit Real Estate Services. "Lease rates are expected to remain soft for the near future, and concessions should continue to increase in the forms of free rent, relocation funds and tenant improvement allowances to 'incentivize' tenants to act now," it states. About 6.2 million square feet came onto the market in 2009. Vacancy for direct/sublease unoccupied space ended last year at 11.65 percent. And "the average asking triple net lease rate was 34 cents per square foot each month last quarter. The report further states: "The primary concerns ... are increasing vacancy, tenant delinquencies, scarce financing, economic uncertainty and volatility, and the gap between 'ask' and 'bid' pricing between buyers and sellers."
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