Top Takeaways: Inland Empire CRE Conference
The Annual Inland Empire Commercial Real Estate Conference was held last week at the City of Moreno Valley conference center in Moreno Valley, California. The in-person event is hosted by Western Real Estate Business, Shopping Center Business, California Centers, Western Multifamily & Affordable Housing Business, and the InterFace Conference Group. The event covers the retail, industrial and multifamily sectors, and connects the industry players who are buying, selling, developing, redeveloping, leasing or financing properties in the Inland Empire and Southern California.
Slatt Capital team members Wendy Wang, Stephen Lee, Dean Weinstock, and Joseph Pellizzon were in attendance. The following are their key takeaways:
- There is a huge need for multifamily in the Inland Empire as remote work continues to stay. Many people are migrating to the Inland Empire for increased space and more affordable housing.
- Rents have risen but not to the extent of the increases Los Angeles and Orange County have seen.
- Rent growth is projected to be approximately 5% in 2023—higher than the national average of 3%.
- Occupancy rates are currently still in the mid 90% range.
- Multi-tenant retail has been experiencing a rise in rental rates with a 6% increase in rents over the last year.
- The vacancy rate in the Inland Empire is currently below 6%.
- Shopping centers with single-tenant and multi-tenant pads are working in the Inland Empire.
- There is a lot of untapped consumer base that could drive business to grocery-anchored shopping centers in the Inland Empire.
- Service stations and express car washes were the most active property types being constructed in 2022 in the Inland Empire.
- Some tenants are looking to move away from malls and into power centers.
- More than 60 environmental, labor, community and academic groups are calling for a moratorium of up to two years on new warehouse development in Southern California’s Inland Empire.
- Still strong demand for industrial by companies needing warehouse space.
- Due to the Inland Empire being a major gateway between the ports of Los Angeles, Long Beach and the rest of the country, the delta in Inland Empire rents vs. Los Angeles, Orange County, and San Diego have contracted.