Inland Empire Industrial Market
The West continued to outperform the East in leasing activity, though to a lesser extent than in 2024 as product availability in the West has begun to tighten. 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. Current lease term lengths are higher than the historical average as tenants lock in today’s more-occupier-favorable conditions. Market-wide vacancy rose to 7.8%, as larger move-outs outweighed limited move-ins. Quarterly net absorption totaled 607,351 SF. The delivery of a 1.5-MSF build-to-suit facility in the High Desert for Goodyear kept net occupancy positive. Available sublease space totals 15.9 MSF, up 5.1% from the first quarter.
Download Inland Empire Industrial Market Report 2Q25