Inland Empire Industrial Update: Rent Reset, Space Givebacks, and Asian 3PL Demand

Live from the IAMC conference in Columbus, the Industrial Advisors podcast interviews Steve Bellitti about the Inland Empire industrial market's post-COVID reset. After rents surged about 100% in two years during COVID, the IE has seen four straight years of declining rents, down roughly 45–50% from peak, with higher vacancy and a tenant-favorable environment. Despite very limited new construction, availability remains elevated due to widespread "give backs" as companies shed excess space taken during COVID. Bellitti notes big-box, high-clear cross-dock buildings are performing better, and the west IE is outperforming the east largely because Asian (including Chinese) 3PLs have become a major demand driver, comprising 55% of 200,000+ SF deals since January 2024 and leasing 38.1 million SF. Port volumes have stabilized and are forecast up 4–6% year over year, supporting optimism into 2027 as COVID-era leases roll.

00:00 IE Market Whiplash

00:25 Podcast Intro Live at IAMC

00:51 From Boom to Correction

02:01 Rents Down Tenant Market

03:44 Givebacks Not New Supply

04:31 West vs East Submarkets

04:59 Chinese 3PL Demand Surge

06:35 Ports Tariffs and Volumes

07:55 Big Box Tenant Leverage

09:10 Crystal Ball IE On Sale

10:11 Wrap Up and Thanks

Northwest Tech Boom: Shield AI, Space Deals, and Waymo Move-In

Industrial Advisors podcast hosts Matt McGregor and Kyle Beck discuss a fast-emerging tech boom in the Pacific Northwest—AI, defense, and space—calling it the most significant since the COVID boom and noting similar momentum seen in San Francisco 6–12 months earlier. They highlight Shield AI leasing all of Panattoni's Des Moines Creek West building to manufacture autonomous vertical takeoff/landing fighter jets, with plans to add up to 1M more square feet locally, major VC backing, job growth estimates, and production targets starting in 2028. Other rumored or active moves include a 300–400K square foot north Kent Valley deal possibly tied to Blue Origin, Stoke Space potentially acquiring Pacific Raceways for loud rocket testing, Kupper expanding in Everett by 91K square feet, Pierce County's "Project RAM" seeking 150K square feet plus 50–100 acres and heavy power, and Waymo rumored for a 145K square foot South Seattle service center; they also mention Cowboy Space taking 300K square feet.

00:00 The Northwest Tech Boom Overview

02:15 Shield AI and Autonomous Fighter Jets

04:45 Space Tech and Rocket Testing Sites

06:30 Waymo and Autonomous Vehicle Infrastructure

08:15 Comparing Today to Six Months Ago

Portland Industrial Market Update: Vacancy, Submarkets, Capital Interest, and the I-5 Corridor

On the Industrial Advisors podcast, hosts Bill Condon and Kyle Bach interview Colliers Portland industrial broker Tom Knecht about the Portland metro industrial market. Knecht says the market is regaining conviction with increased leasing activity, but vacancy is about 8% versus 3.5% five years ago, and tenants currently have leverage, requiring landlords to be creative with concessions and rates. He notes a wide spread between Class B/C Northeast Portland and Class A Southwest Washington, with Southwest Washington, Washington County (Hillsboro), and Clark County (Vancouver) leading rent growth while other submarkets plateau. Capital markets remain thin, with some investors still hesitant due to Portland's COVID-era reputation and business-tax environment, though less competition can mean better basis. Discussion also covers expanding I-5 corridor development into Ridgefield, Woodland, and Kelso (including a 1.2M SF Amazon lease), limited new construction starts, and cautious optimism through 2027.

00:00 Portland Perception Check

00:36 Podcast Intro and Guest

01:19 Tom Knecht Background

01:56 Market Today vs Past

03:13 Leasing Momentum and Sizes

04:38 Capital Markets and Investors

05:57 Submarkets Driving Rents

07:34 Business Climate and Taxes

09:38 Choosing Portland vs Vancouver

11:00 I-5 Corridor Development

14:03 Outlook Through 2027

16:14 Optimism and Wrap Up