California Centers

MAY 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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36 California Centers Magazine | May 2018 C C W hether you are a retailer, developer or an investor, if SoCal's Inland Empire isn't high on your radar, you are likely missing out on substantial opportu- nity to grow your retail presence. The area known as the Inland Empire is made up of Riverside and San Ber- nardino counties and the region has recently been enjoying a constant flow of positive headlines and eco- nomic reports as the market grows in popularity. Here are "10 Facts" you should know about the Inland Empire econ- omy: 1. 13th largest MSA in the U.S. – Out of more than 380 MSAs in the U.S., the Inland Empire is the 13th largest with a population of over 4.5 million people and the market is growing by 50,000 to 100,000 per year. The region is bigger than the MSAs of Seattle/ Tacoma, Minnesota/St. Paul and Tampa/St. Petersburg. 2. Job growth of 3.4 percent in 2017 – The Inland Empire had the fastest job growth rate compared to any other region in California in 2017. The un- employment rate is 4.1 percent and leading job producing industries in- clude education, logistics, healthcare, hospitality and construction. 3. Housing starts up last year – There were 15,000 housing starts in 2017 which is 46 percent higher than in 2016, but below the 23,000 hous- ing starts per year that is the region's historical average. The industry had been virtually stagnant until just the past few years despite substan- tial population and job growth over the past decade. However, it is very much expected that housing starts will head north of their historical av- erage in the next year or two. 4. Median homes prices up double digits – The median home price in Riverside County was $370,000 (up 12.1 percent in 2017) and $312,500 in San Bernardino County (up 10.8 percent in 2017). The Inland Empire continues to be the most affordable re- gion of SoCal but due to a shortage of inventory and high demand prices con- tinue to increase. 5. Ontario inter- national airport is growing - Since the City of Ontario took back local con- trol of the airport it has been all good news. In 2017 passenger traffic in- creased 7 percent to over 4.5 million and cargo shipments were up 15 per- cent over 2016. Even bigger news is that China Airlines started daily non- stop trips from Ontario to Taiwan in March and is marketing Ontario as SoCal's new gateway to Asia. Other major carriers are also taking note of Ontario's new status and considering additional routes and destinations. 6. Almost 21 million square feet of industrial space under construction – There has been over 100 million square feet of industrial space built in the Inland Empire over the past five years and there is currently another 21 million square feet of space under construction. That represents a huge number of construction jobs plus the new jobs created to staff these busi- nesses to operate all the machinery, automation, and transportation that serves the 600 million total square feet of industrial in the region. 7. Strong Amazon impact – Al- though we all know the challenge TEN FACTS ABOUT SOCAL'S INLAND EMPIRE ECONOMY It's a great time to be doing business in the Inland Empire. By Brad Umansky Haven City in Rancho Cucamonga is planned to be a grocery-anchored food hall designed as a one stop destination for people to eat, play and shop. In addition to the grocer, the center will feature up to 30 boutique food concepts and a 10,000-square- foot outdoor park/patio area. Brad Umansky President Progressive Real Estate Partners

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