Southern California's LogisticsBased Real Estate Market Stabilizes

The logistic-based real estate market in Southern California is cooling off after the end of COVID-based buying. Factors such as labor disputes, interest rate hikes, and slower absorption rates are pushing the market back to normal. Vacancy levels are returning to pre-pandemic conditions, signaling a less constricted supply chain. The warehouse vacancy rate in the Inland Empire has increased to 3.8 percent, compared to 1.2 percent a year earlier, due to reduced tenant demand. Despite increased vacancies, new capacity is coming to the market, with over 1 million square feet of new product planned for 2023 and 2024. However, the market is facing headwinds such as higher interest rates and more selective tenants. Developers must consider tenants' needs and wants to stay competitive. Electrified trucks are bringing changes to the industry, but locating switchgear is challenging. Rising hard costs and longer construction schedules, along with zoning changes, are also affecting the market. Chinese imports have been declining since last October, impacting Western ports and forcing shippers to seek alternative locations. However, the Southern California market for logistic real estate remains strong.

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Frequently Asked Questions

Q: What is the current status of Southern California's logistics-based real estate market?

A: According to the article "Southern California's Logistics-Based Real Estate Market Stabilizes" on REBusinessOnline, the market is currently stabilizing.

Q: Where can I find more information about Southern California's logistics-based real estate market?

A: For more information about Southern California's logistics-based real estate market, you can refer to the article "Southern California's Logistics-Based Real Estate Market Stabilizes" on REBusinessOnline.

Q: Are there any specific factors contributing to the stabilization of the market?

A: The article does not mention any specific factors contributing to the stabilization of Southern California's logistics-based real estate market.

Q: Is the stabilization expected to continue in the future?

A: The article does not provide information regarding the future expectations for the stabilization of the market.

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