Inland Empire
Total Stock (million sq. ft.)
522.4
Vacancy Rate
3.6%
Availability Rate
6.1%
NNN Lease Rate
$6.72
Net Absorption (million sq. ft.)
4.7
522.4
Vacancy Rate
3.6%
Availability Rate
6.1%
NNN Lease Rate
$6.72
Net Absorption (million sq. ft.)
4.7
*The NNN lease rate is displayed on a per sq. ft. per annum basis consistent with the U.S. Industrial & Logistics Quarterly Figure reports.
Metro Area Population
4.6 million
Unemployment Rate
4.6%
Annual Salary - Warehouse
$28,122
% of Pop - Associate Degree and Below
78.5%
% of Pop - Bachelor's Degree and Above
21.5%
4.6 million
Unemployment Rate
4.6%
Annual Salary - Warehouse
$28,122
% of Pop - Associate Degree and Below
78.5%
% of Pop - Bachelor's Degree and Above
21.5%
Airport
Los Angeles International Airport
Total Cargo (millions of U.S. tons)
2.38
Seaport
Port of Los Angeles & Long Beach
TEU Volume - 2017 (millions)
15.64
Major Highways
I-15, I-91, I-10, I-15, I-215, I-210, I-60
Number of Intermodal Rail Hubs
1
Number of Class I Rail Lines
2
What is the term of a typical lease?
5-7 years
How is the rent quoted?
Net monthly
What is the tenant's option for termination or break?
Typically, the tenant has the right to terminate the lease with 6 months’ notice.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew, with an average length of 5-10 years
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 6 to 12 months in advance.
What is the typical rent-free period, if any?
Usually a rent-free period of 2-3 months for 5-year lease
What is the typical rent escalation?
Annual rent bump of 3%-4%, on average
Does the tenant have the right to sublet?
Yes, but must have landlord's approval.
5-7 years
How is the rent quoted?
Net monthly
What is the tenant's option for termination or break?
Typically, the tenant has the right to terminate the lease with 6 months’ notice.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew, with an average length of 5-10 years
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 6 to 12 months in advance.
What is the typical rent-free period, if any?
Usually a rent-free period of 2-3 months for 5-year lease
What is the typical rent escalation?
Annual rent bump of 3%-4%, on average
Does the tenant have the right to sublet?
Yes, but must have landlord's approval.
What is the unit of measurement of a typical lease?
Per sq. ft. per month
Does the leasable area include the common area?
No
Per sq. ft. per month
Does the leasable area include the common area?
No
What is the average rent for a warehouse greater than 50K sq. ft.?
$0.52 per sq. ft. per month ($6.24 per sq. ft. per year)
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
Manufacturing $0.53 per sq. ft. per month ($6.36 per sq. ft. per year)
Is there a rent review during the lease?
Yes
What are the average service charges (OPEX)?
$2.00-$3.00 per sq. ft. year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$1.25-$1.75 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord
What is the typical security deposit?
1-3 months’ rent for lease, depending on credit. Usually paid in cash and refunded to tenant when landlord takes back the space at the end of lease.
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
N/A
$0.52 per sq. ft. per month ($6.24 per sq. ft. per year)
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
Manufacturing $0.53 per sq. ft. per month ($6.36 per sq. ft. per year)
Is there a rent review during the lease?
Yes
What are the average service charges (OPEX)?
$2.00-$3.00 per sq. ft. year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$1.25-$1.75 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord
What is the typical security deposit?
1-3 months’ rent for lease, depending on credit. Usually paid in cash and refunded to tenant when landlord takes back the space at the end of lease.
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
N/A
What are typical agency fees? Who pays them?
1-3 months rent, paid by landlord
Who is responsible for legal fees?
Each party is responsible for their own legal fees
Any other transaction costs?
N/A
1-3 months rent, paid by landlord
Who is responsible for legal fees?
Each party is responsible for their own legal fees
Any other transaction costs?
N/A
What is the typical land tenure?
Short-term tenure is 18 to 36 months, long-term tenure is 25 years
What is the terminology of the purchase agreement?
Sale & Purchase Agreement
What is the average cost?
Warehouse: $20-$30 per sq. ft.
Manufacturing: $20-$30 per sq. ft.
What is the agency fee and who pays?
3% paid by seller
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4%-7%
What is the mode of payment?
Part of the payment is paid when the transaction contract is signed, and the remainder is paid when the transaction is completed 30-60 days later.
What are the average transaction (closing) costs?
Transfer tax of 1%-2% plus attorney and title fees.
Short-term tenure is 18 to 36 months, long-term tenure is 25 years
What is the terminology of the purchase agreement?
Sale & Purchase Agreement
What is the average cost?
Warehouse: $20-$30 per sq. ft.
Manufacturing: $20-$30 per sq. ft.
What is the agency fee and who pays?
3% paid by seller
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4%-7%
What is the mode of payment?
Part of the payment is paid when the transaction contract is signed, and the remainder is paid when the transaction is completed 30-60 days later.
What are the average transaction (closing) costs?
Transfer tax of 1%-2% plus attorney and title fees.
What is the average clear ceiling height?
32' - 36'
Average number of dock doors?
1 / 10,000 sq. ft.
Typical column spacing?
50' x 60'
Average parking ratio?
0.50 - 1.00 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
800-1,200 amps
32' - 36'
Average number of dock doors?
1 / 10,000 sq. ft.
Typical column spacing?
50' x 60'
Average parking ratio?
0.50 - 1.00 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
800-1,200 amps
CBRE Americas Industrial & Logistics Occupier Guide