Inland Empire Industrial Market
Lease terms for the year exceeded historical averages as tenants capitalized on occupier-favorable conditions to secure longer commitments. New construction deliveries outpaced net absorption for the fourth consecutive year, driving vacancy to 8.1%—a 100 bps increase from 2024. Available sublease space reached 17.4 MSF, up 5.2% from the third quarter, primarily due to new listings in the western portion of the market. New leasing activity on a square footage basis was nearly identical in the West and East I.E. this quarter. Lower rents and a larger pool of available space over 500,000 SF is luring some tenants east. For the West, most leasing remains concentrated in the 100,000- to 499,999-SF segment
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