First quarter market trends for the Inland Empire industrial market

SRS Real Estate Partners’ National Net Lease Group completes $3.3 million ground lease sale of a McDonald’soccupied property near Temecula

Sale is part of a break-up strategy of French Valley Marketplace valued in excess of $40 million

TEMECULA – The rise of e-commerce has brought a significant impact on the industrial real estate market in the Temecula Valley. As consumers continue to shift toward online shopping, the demand for industrial spaces has increased exponentially. The trend is expected to continue in the coming years, which could impact the real estate industry in Temecula.

According to recent reports, e-commerce sales in the U.S. are expected to reach $900 billion by 2023, with an annual growth rate of 17.9%. It has resulted in a surge in demand for industrial real estate, particularly for warehouse and distribution facilities. The Temecula Valley has seen an increase in the number of industrial real estate developments, especially along Interstate 215 and Interstate 15, including the construction of new distribution centers and logistics facilities, to cater to the growing demand.

The influx of e-commerce has brought a significant economic impact on the region, boosting job growth and providing new business opportunities for local entrepreneurs. The declining economy, however, has raised concerns about the real estate market’s stability in the coming years. A primary concern arises from the substantial rise in the vacancy rate during the first quarter in 2022 to the first quarter in 2023, 194.57%. Despite the rate remaining at a historic low of 2.7% Inland Empire-wide, this development has caused apprehension among certain investors with regards to the market’s future trajectory.