County of San Bernardino: Economic Development Agency

Record Expansion Rates

The Inland Empire’s industrial market posted another record year for expansion. Construction activity in 2005 was 48 percent above the prior year. Investors showed particular confidence in the market, planning nearly 20 percent of all speculative industrial projects in this region.

Even with the accelerated construction rate, demand is overpowering supply levels and pushing vacancy rates to unprecedented lows. By the end of 2005 the industrial vacancy rate plunged to 2.7 percent as users moved into 13 million square feet of new construction.

The Inland Empire’s emerging office market is following closely behind. The sector outperformed expectations when users absorbed 74 percent of new office construction. Office vacancy dropped to 7 percent at the end of 2005, putting the Inland Empire among the nation’s strongest.