Riverside County Property Management

The 2010 United States Census reported that Riverside County had a population of 2,189,641. The racial makeup of Riverside County was 1,335,147 (61.0%) White (40.7% Non-Hispanic White), 140,543 (6.4%) African American, 23,710 (1.1%) Native American, 130,468 (6.0%) Asian (2.3% Filipino, 0.8% Chinese, 0.7% Vietnamese, 0.6% Korean, 0.5% Indian, 0.2% Japanese, 0.1% Cambodian, 0.1% Laotian, 0.1% Pakistani), 6,874 (0.3%) Pacific Islander, 448,235 (20.5%) from other races, and 104,664 (4.8%) from two or more races. Hispanic or Latino of any race were 995,257 persons (45.5%); 39.5% of Riverside County is Mexican, 0.8% Salvadoran, 0.7% Honduran, 0.6% Puerto Rican, 0.3% Cuban, and 0.2% Nicaraguan. Source Wikipedia

Economy

The county is the location of the March Air Reserve Base, one of the oldest airfields continuously operated by the United States military. Established as the Alessandro Flying Training Field in February 1918, it was one of thirty-two U.S. Army Air Service training camps established after the United States entry into World War I in April 1917. The airfield was renamed March Field the following month for 2d Lieutenant Peyton C. March, Jr., the recently deceased son of then-Army Chief of Staff, General Peyton C. March, who was killed in an air crash in Texas just fifteen days after being commissioned. March Field remained an active Army Air Service, then U.S. Army Air Corps installation throughout the interwar period, later becoming a major installation of the U.S. Army Air Forces during World War II. Renamed March Air Force Base in 1947 following the establishment of the U.S. Air Force, it was a major Strategic Air Command (SAC) installation throughout the Cold War. In 1996, it was transferred to the Air Force Reserve Command and gained its current name as a major base for the Air Force Reserve and the California Air National Guard. Riverside county has also been a focus of modern Native American Gaming enterprises. In the early 1980s, the county government attempted to shut down small bingo halls operated by the Morongo Band of Cahuilla Mission Indians and the Cabazon Band of Mission Indians. The tribes joined forces and fought the county all the way to the U.S. Supreme Court, which ruled in the tribes' favor on February 25, 1987. In turn, Congress enacted the Indian Gaming Regulatory Act in 1988 to establish a legal framework for the relationship between Indian gaming and state governments. Naturally, both tribes now operate large casinos in the county: the Morongo Casino, Resort & Spa and the Fantasy Springs Resort Casino adjacent to Spotlight 29 Casino. The county's population surpassed one million people in 1980 when the current trend of high population growth as a major real estate destination began in the 1970s. Once strictly a place for long distance commuters to L.A. and later Orange County, the county and city of Riverside has become more of a place to establish new or relocated offices, corporations, and finance centers in the late 1990s and 2000s. More light industry, manufacturing and truck distribution centers became major regional employers in the county.

Costar:

The Inland Empire is one of the largest and most critical components of the supply-chain infrastructure in the U.S. Just inland from the busy ports of Los Angeles and Long Beach, with access to freeways and cheap, abundant product, this hub has grown by over 100% since China joined the World Trade Organization in December 2001, increasing trade and port traffic. With over 260 million SF of industrial space delivered since then, growth in the Inland Empire has been unmatched by that of any other market. Trade volume remains strong in the ports and developers continue to build with expectations that the Inland Empire will continue to grow exponentially. So far, demand has mostly kept up. About 25 million SF of supply are under construction as of the end of May 2018— a significant amount of it speculative including many very large buildings. Investment totals continue to exceed historical averages with sales volume reaching over $3 billion over the last 12 months—twice the metro's historic average.

Demand for warehouse space in the Inland Empire is strong as giants like Amazon, Walmart, and General Mills are gobbling up massive blocks. Thanks to its fantastic access to the ports of Los Angeles and Long Beach, and the associated trade links to the east (China, South Korea, Japan, etc.), the Inland Empire is positioned to take advantage of good economic conditions across the country. The market functions not only as a distribution hub for the bulk of California, but also as a major arterial connection to other hubs across the U.S., so when times are good nationally, the Inland Empire thrives.

Net absorption in 17Q4 and 18Q1 were outpaced by the amount of deliveries. As a result, the vacancy rate ticked up to 4.6% —yet still in line with the metro's three-year average. The amount of deliveries has started to approach prerecession highs, and much of the ongoing construction is speculative. Market fundamentals will be tested when the bulk of this speculative construction continues to deliver throughout 2018.