As market conditions shift, vacancy rises as rental rates begin to decrease
As market conditions begin to shift due to economic uncertainty, the Inland Empire’s overall vacancy increased 60 basis points (bps) in the first quarter to 2.8%. This is also up 150 bps from the total vacancy rate of 1.3% recorded one year ago. Despite this increase in vacancy, the Inland Empire market still has one of the lowest vacancy rates in the nation. Much of the quarter’s leasing activity was seen in the Inland Empire West submarket, with two deals signing over 1.0 million square feet (msf). Constellation Brands signed a 1.4 msfdeal in Jurupa Valley and Francisco Street LP signed a 1.1 msfdeal in Fontana. The largest lease deal in the Inland Empire East submarket saw NFI signing 864,000 square feet (sf) in Perris and Nordstrom renewing 606,300 sf in San Bernardino.