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2019 Could Be Last Run Before an Industrial Slowdown26 Oct 2018
Next year could be the final run for the Inland Empire industrial market before a slowdown; however, for the next 12 months, demand for industrial product will outweigh supply. Demand is currently strong across size ranges, particularly from 100,000 square feet to 1 million square feet.
“I believe the next 12 months are going to be strong in the Inland Empire region,” Cody Lerner, senior associate at Avison Young, tells GlobeSt.com. “With the larger development sites ranging from 100,000 square feet to 1 million square feet, my sense is that there is going to be more demand than what is available. This next year could possibly be the last push before we see a slight slowdown.”
Ecommerce and business growth is driving much of the demand for industrial product in the Inland Empire, and there continues to be a supply-demand imbalance. “The industrial market continues to be strong,” says Lerner. “With all the development largely resulting from the ecommerce boom, businesses are growing and are needing more space. With the lack of product type in the market, it is creating a great deal of competition and making the sales price per square foot and rental rates rise.”
Lerner has completed 500,000 square feet in lease transactions in the Inland Empire and Southwest Riverside market this year, helping to earn him the title of Avison Young’s Rookie of the Year. Lerner is in his second year of brokerage, working formerly at Wilson Creek Winery as a relationship manager. “My initial thought was to start in residential real estate and eventually make my way into commercial real estate,” says Lerner about getting his start in commercial real estate. “While serving a guest at Wilson Creek, who was the office manager of a local commercial real estate company, she mentioned that I should start in commercial real estate right away. Being 23 at the time, I thought it was a crazy thing to do because the people that I was going to end up cold calling have been in business since before I was born. I wasn’t sure how I was going to relate to business owners. I ended up sending my resume to the woman I met and she got me an interview with a team that was looking for a junior position. They thought I was a good fit and hired me.”
While the strong market activity has certainly helped to drive activity, Lerner also says that hard work and mentorship have been crucial to his early success. “There are no shortcuts in this business. You have to grind and work 12 to 14 hour days,” he explains. “Every day is going to be tough and you will want to quit, but you have to look at the end goal and be able to work through the tough times to see the success in the future. If you put in the time, things will start happening and the feeling you’ll get when you close that first large deal will make it all worth it.”
Written by Kelsi Maree Borland and published on October 25, 2018 in GlobeSt.com - Click here for original publication