Statistics by John Husing Ph.D
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.