Inland Empire Industrial Market
The West has continued to outperform the East in leasing activity, though activity in the East is accelerating. West leasing remains most pronounced within the 100,000- to 499,999-SF segment, which boasts higher availability and steeper rent declines relative to other size thresholds. YTD lease term lengths are higher than the historical average; tenants are locking in today’s more-occupier-favorable conditions before effective rents meaningfully rise. Vacancy rose to 8.1% after 3.9 MSF in mostly unleased new construction delivered this quarter. Seventy-four percent of new deliveries were in the West. Quarterly net absorption totaled 44,669 SF. The occupancy of a 1.0 MSF+ Hesperia Commerce Center facility by Maersk helped counterbalance a wave of move-outs. Available sublease space totals 17.1 MSF, up 12.3% from the first quarter.
Download Inland Empire Industrial Market Report 3Q25