Nov 13, 2009

NAIOP yearly review

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By: Chris Lamoreaux

HIGH DESERT COMMERCIAL REAL ESTATE SECTORS HIGHLIGHTED AT NAIOP ANNUAL REVIEW

Ontario, CA (November 12, 2009)  The NAIOP National Association of Industrial and Office Properties - Inland Empire Virtual Bus Tour was held at Citizen's Business Bank Arena in Ontario on November 11, 2009 for its annual review of the commercial real estate industry.

The Inland Empire chapter of NAIOP reported that of 27.4 million square feet of existing Southern California Office segment inventory, 6.9% of the total inventory is located in the Inland Empire.  Southern California vacancy rates for office space were reported as 23.5% with an asking average lease rate of $2.07 PSF.

The Inland Empire boasts 22.7% of the Industrial market, only second to the Los Angeles market.  NAIOP also reported that leasing activity in Southern California is slightly up this year with year-to-date figures at $15.3 million.

Figures on the Retail sector of the Inland Empire include total inventory of 106 million square feet with 608 total centers.  According to NAIOP, the overall Retail market vacancy rate is 11% and overall asking rate is $2.14 PSF.  It was reported that Housing sectors are having a massive impact on the Retail sector, however more recently, improvements in retail sales numbers and consumer confidence could begin to spell light at the end of the tunnel.

Coldwell Banker Commercial’s properties were among the 73 properties featured.  Attendee Colleen Butcher, Senior Sales Associate of Coldwell Banker Commercial Real Estate Solutions stated, “It was nice to see that for the first time the High Desert, within the Inland Empire, was featured as an independent market”. 

The presentation by NAIOP highlighted Victorville as one of California’s fastest growing cities and that Victorville affords opportunity to new and expanding businesses.  NAIOP also mentioned Victorville’s prominent portfolio, including the Southern California Logistics Airport. 

NAIOP mentioned that the Kosmont Companies-Rose Institute’s Cost of Doing Business Surveys named Apple Valley as one of the “least costly city for doing business” and NIOP added that Apple Valley is poised for medical office and industrial development.

NAIOP is a trade association for developers, owners, investors asset managers and other professionals in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises 18,000+ members in 57 North American chapters.

Colleen Butcher with Coldwell Banker Commercial in Victorville specializes in office, retail and industrial sectors and guides clients through every business objective, from site selection, entitlement, lease negotiations to project and construction management.  For more information, Colleen can be reached at 760-684-8000 or CB@cbcDesert.com