Leasing of Industrial Space in Inland Empire Nearly Doubles

Leasing of industrial space in Riverside and San Bernardino counties rose to 4.6 million square feet in 1985, nearly double the 2.4 million feet of the previous year, while office space demand rose from 1.1 million feet to only to 1.2 million feet.

That was reported by Robert Dunham, president of the Newport Economics Group of Newport Beach, who added that the total inventory of office and industrial space is now 21.3 million feet, up 50% from the end of 1984.

Vacant space has remained stable, however, at 4.7 million feet, dropping the vacancy rate from 33% to 23%--a figure he conceded appears relatively high, but he called “not unusual” in a rapidly growing area of this sort. Estimating the 1986 absorption rate, he said the “months of inventory” (time required to absorb the vacant space) is now only 9 1/2 months, down from 14 months a year ago.

The area’s industrial development was led by Rancho Cucamonga with 1.3 million square feet, or 28% of the Inland Empire’s total for 1985, followed by Ontario with 800,000 square feet, or 17%, then Corona with 15% and Riverside with 10%.