Murrieta's Industrial Space
Murrieta
is a part of an Inland Empire industrial real estate market that is
among the strongest in the
United States
. For the 4-quarters ended
in 1st quarter
2006, 21.6 million square feet of space was absorbed by manufacturers
and distributors. This
occurred despite the challenges that firms have faced in finding space
in a market with only a 2.8% vacancy rate.
In March 2006, Murrieta had 2.8 million square feet of
manufacturing space completed or under construction according to Grubb
& Ellis. This was 0.8%
of the
Inland Empire
’s total of 355.4 million square feet.
Firms
can find space in Murrieta. In
March 2006, it had 467,774 square feet of industrial space either vacant
or under construction. This
ranked 12th among
the 19 inland sub-markets. These
two categories meant that 16.5% of the city’s space was likely
available, 5th most
in the inland area. This
included 152,792 square feet of space that was vacant and 314,982 square
feet of new space under construction.
Interestingly, Murrieta’s developers appear to be sensing a
need for more industrial space. In
2005, the city’s industrial permits totaled $16.4 million representing
13.7% of
Riverside
County
’s permit valuation.
Southwest
Riverside
County
’s industrial space is relatively costly, even when compared to
Southern California
’s coastal counties. The
area’s average asking lease rate was $0.65 per square foot a month in
March 2006. That was equal
to
South
Bay
near LAX and the western
Orange
County
market. It was more than
several coastal markets starting with L.A.-Central ($0.51 sq. ft./mo.)
and Orange North plus the
San Gabriel
Valley
($0.53 sq. ft./mo.). Fortunately,
it was less than the three nearest
San Diego
County
markets:
San Marcos
($0.68 sq. ft./mo.), Vista ($0.78 sq . ft./mo.),
Escondido
($0.91 sq . ft./mo.).
In the
Inland Empire,
Southwest California
is at a price disadvantage. Its
$0.65 per square foot a month average lease rate was well above the
region’s average of $0.41 per square foot.
The nearest lease rate was in
Corona
($0.47 sq. ft./mo.). Closer
to Murrieta, the
Perris-Moreno
Valley
rate was $0.39 per square foot. The
high lease rates in Southwest Riverside County underscore why much of
the blue collar job base that will provide jobs to its residents will
likely be located by March Air Reserve Base.
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