The Inland Empire sees a spike in available sublease space
In the third quarter, absorption totaled 4.6 million square feet (msf) due to large occupier move-ins including preleased construction deliveries. The move-ins included Amazon occupying 4.1 msf in Ontario, Chedraui occupying 1.4 msf in Rancho Cucamonga and Target occupying 1.2 msf in Jurupa Valley. Despite the positive absorption, Inland Empire market vacancy increased 140 basis points (bps) in the third quarter to 5.2%. This is also up 470 bps from the total vacancy rate of 1.5% recorded one year ago. This increase in vacancy is due to a large amount of available sublease space being added to the market as well as vacant construction deliveries. In the third quarter, available sublease space jumped by 37.6% and now totals over 10.5 msf — the highest amount of available sublease space seen historically.