Mike Lin, Retail Specialist at Progressive Real Estate Partners
Today’s QuantumListing Hot Spot is the Inland Empire. Located in Southern California, the Inland Empire, or “The IE” to locals, is comprised of Riverside and San Bernardino Counties, just east of Los Angeles County. The Inland Empire is home to 4.5 million people, making it the 16th most populous Metropolitan Statistical Area (MSA), ahead of regions such as Denver, Minneapolis, and San Diego.
In recent years, commercial real estate in the IE has grown steadily. Although the IE was hit in the Great Recession, the market has recovered strongly, and is near or has surpassed its pre-recession levels in many key commercial real estate measures, such as asking rents per square foot, vacancy rates, cap rates, and investment sales volume.
But why invest in the Inland Empire instead of its more glamorous neighbors, Los Angeles (LA) and Orange County (OC)? Here are several reasons why investors are looking to the IE to park their money:
Higher investment returns (cap rates) than LA and OC: A similar retail investment can be a half to a full percentage point higher cap rate in the Inland Empire versus LA or OC. For example, it is not unusual for an LA-area fast food restaurant building to sell for under a 4% cap rate, while a similar investment in the IE may sell for closer to a 4.5% cap. Bottom line, in most cases your investment dollar goes farther in the IE.
Stable, fast-growing population: As LA and OC get built out and the cost of housing continues to rise, many people are choosing to move to the Inland Empire to find more affordable housing, bigger yards, and a more relaxed lifestyle. The California Department of Finance projects that the area will see a population increase of 1.3 million people over the next 20 years.
Huge growth in industrial construction: The IE currently has over 20 million square feet of industrial space under construction, the most of any region in the country. This construction will bring more people and jobs to the area. The shopping network QVC recently opened a one million square foot facility in the city of Ontario that will bring 1,000 new jobs to the area. Amazon recently announced construction of a distribution center in San Bernardino, which will be their fifth distribution center in the Inland Empire and their seventh in California.
Strong job growth in multiple sectors: Since 2011, the local workforce in the IE has been growing at the rate of 3% per year. This is twice the national average and one of the fastest growth rates in California. Aside from the logistics and warehousing jobs mentioned above, the IE is seeing job growth in the healthcare, government, education, and construction industries.
The Inland Empire may not be as well-known as its Southern California neighbors, but it provides a great opportunity for real estate investors to receive strong returns in a dynamic, growing market.
Mike Lin is a Retail Specialist at Progressive Real Estate Partners (PREP). The firm specializes in the leasing and sale of retail real estate in the Inland Empire. You can reach Mike at 909.230.4500 regarding any of your real estate needs or to learn more about PREP visit www.progressiverep.com. You can also stay up to date on the latest IE news, trends and market data by following PREP on Linkedin, Twitter and Facebook.
With a little time to kill before my connecting flight from Korea to Vietnam, I decided to use it to post a new Twitter poll. The question is “Which social media platform do you think is the most valuable for commercial real estate. The poll has only been up for a few minutes and we already have a few answers. Please take the poll, share it with your friends and colleagues, and feel free to send me replies via Twitter to @QuantumListing, via email to [email protected] or just leave comments on this page.
Here’s the poll:
Which social media platform do you think is most valuable for commercial real estate?
As for me, I’m most active on Twitter. Probably because it is fast and easy. I use Buffer to send listings, and articles to Twitter, Facebook and LinkedIn. Occasionally I also send content to Instagram, too, but that takes a couple of additional steps, so that holds me back from using it more. I do have fun goofing around with my kids on Snapchat, but have not set up a separate account for business. Do any of you use Snapchat in a business context.
I know I should use LinkedIn more, but I just have not made it a part of my routine yet. Content syndication through The News Funnel is definitely part of my strategy, too, and although it is not officially social media, it kind of is, and I suspect that is part of the reason Sarah Malcolm is now part of their team.
Tony vanderBeek’s write in candidate, YouTube, is something I use, but mostly for instructional videos. I’ll continue to add to this article, and would love to get your thoughts too. Email me at [email protected], Tweet @QuantumListing or just add to the comments below. I know we all have a lot to learn from each other about how we can benefit from social media.
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I am a big fan of the Star Wars movies, and a big fan of Mel Brooks. Spaceballs is right up there with the best of his spoofs. If you haven’t seen the movie, its version of the Force is called the Schwartz. And I can’t help it, anytime I meet anyone name Schwartz, I think of Spaceballs, and naturally, one of its catchphrases, “Use the Schwartz.”
What does any of that have to do with QuantumListing and its new Private Notes feature. I was on the phone with Steven Schwartz of SB Schwartz in Queens, NY recently. I was wearing my Perlmutter Properties hat and we were talking about a deal in Staten Island for one of his customers. We’ve had previous conversations about QuantumListing, and during the course of the call, he said that a private note feature would be something that he would be interested in seeing added to the website. I thought it was a good idea and the tech team started to implement it. The first iteration of it is now available on the site. You have to be registered and logged in to use it.
If you don’t have the 42 seconds to watch the video below, here’s all you have to do to use the private notes feature.
Tap on the card of the listing you want to add a note to. It does not have to be one of your own listings.
When the property detail page opens, look for the Notes icon on the right side of the screen.
Tap on that, add your note, click Done.
To review your note later, go to your Profile page, look for the My Notes menu option, click on that and select the appropriate listing card. You can also edit or delete your note from here.
Here’s a short Youtube video that show’s you how to use it:
I hope you find this new feature useful. Even though it is officially called Private Notes, for me it will always be the Schwartz. If you have suggestions on how to improve it (I’ve already got a few in mind), please let me know. And if you have a feature you’d like to see added, send it to [email protected] or call me at 914-470-5719.