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The Inland Empire industrial market experienced rising vacancy and negative net absorption in Q1 2026, with the overall vacancy rate increasing to 8.5% and year-to-date net absorption turning sharply negative at 3.4 million square feet, driven primarily by four large tenant move-outs exceeding 1 million square feet each. Regional employment growth remained modest at 0.9% year-over-year with declines in industrial-relevant sectors including construction, professional services, and manufacturing, while direct asking rents declined 6.2% quarter-over-quarter to $1.05 per square foot per month as elevated vacancy continued to pressure pricing across all submarkets.

Kidder Mathews' first-quarter 2026 retail market report for the Inland Empire shows a vacancy rate of 6.3%, up 30 basis points year-over-year, with average asking rents declining 1.59% to $1.71 per square foot per month and average sales prices falling 17.85% to $285 per square foot. Construction deliveries totaled 268,162 square feet with net absorption of 287,027 square feet, while significant transactions included the sale of AMC Victoria Gardens 12 for $40.8 million and lease activity from retailers including Ross Dress for Less and Walmart Depot.

This is a quarterly data report published by CBRE on March 31, 2026 presenting office sector figures for the Inland Empire region in California for the first quarter of 2026.

This is a first-quarter 2026 industrial sector data report covering the Inland Empire region of California, published by CBRE.

Cushman & Wakefield's Q1 2026 MarketBeat report examines the Inland Empire office market, which recorded an 8.9% overall vacancy rate, negative net absorption of 35,016 square feet year-to-date, and average asking rents of $2.25 per square foot on a full-service basis. Employment in the region grew modestly by 0.9% year-over-year to 1.7 million jobs, with job gains concentrated in healthcare and education while office-relevant sectors including professional and business services declined, and new leasing activity totaled 206,189 square feet across 107 transactions, down 43.6% year-over-year.

This Kidder Mathews report analyzes the Inland Empire multifamily market in fourth quarter 2025, presenting rental rates by unit size (studio to 3-bedroom ranging from $1,379 to $2,255 monthly), transaction data, and construction activity across the region. Key findings show vacancy increased 40 basis points year-over-year to 6.3%, average asking rents rose 1% to $1,937 per unit monthly, average sales price per unit declined 7.8% to $214,901, and cap rates increased 40 basis points to 5.9%, while construction deliveries for the year totaled 5,575 square feet, up 14% from 2024.

The Inland Empire industrial market experienced a cooling phase in Q4 2025, with direct vacancy rising to 7.2%, total availability reaching 12.7%, and average asking rents stabilizing at $1.00 per square foot on a triple net basis, while leasing activity totaled 5.7 million square feet with net absorption of 1.7 million square feet. Market trends indicate continued demand from major distributors and e-commerce companies for modern, high-clear facilities near ports and rail connections, though subleases representing roughly 20% of available space are moderating rents through improvement allowances and rent-free periods, with forecasts suggesting market stabilization and improvement in 2026 as new construction completions remain below historical norms.

The Inland Empire office market in 4Q 2025 showed a vacancy rate of 5.0%, down 15.25% year-over-year, with average asking rents at $2.04 per square foot monthly and average sales prices of $149.74 per square foot. Significant transactions included The Grove Business Park selling for $12.3 million and Victoria Commons for $12 million, while approximately 197,774 square feet remained under construction with expected deliveries through April 2026.