The summary, which reports activity and gross absorption exhibiting stabilized market trends, shows absorption in 2013 just under 14.8 million square feet surpassed the figures seen in 2012, and represents the largest amount of SF absorbed annually in the history of the marketplace. The report also indicates that investors will be extremely active in the new year as the industrial market in the East Valley is positioned extremely well as it reaps the benefits as a manufacturing and distribution hub.
“This report further indicates that we are well on our way to full recovery,” said Lee & Associates Riverside President David Illsley. “Demand is keeping pace with new supply, vacancy rates remain steady at 5.88 percent and we expect 2014 to continue on this path of growth and stabilization in the market.”
Gross activity in the fourth quarter was just under 7.8 million square feet, with investment purchases and lease renewals accounting for 34 percent of the total. The fourth quarter summary, which was prepared by Caroline Payan, director of marketing and research of Lee’s Riverside office, found that the average asking sale prices per square foot increased, and asking lease rates remained stable. Asking sales prices per square foot and asking lease rates are expected to increase steadily during 2014, driven by continued positive absorption. For more information on the Riverside industrial market, visit Lee & Associates Riverside’s website at: http://resources.leeassociates.com/asp/user/website/officeprofile.asp?officeid=4982
About Lee & Associates
Celebrating more than 34 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 49 locations across the nation including Arizona, California, Georgia, Idaho, Indiana, Illinois, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, Texas and Wisconsin. With a roster of nearly 750 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at www.lee-associates.com.