The Inland Empire continues to see large occupier move-ins
In the third quarter, net absorption totaled 1.1 million square feet (msf). Positive absorption was driven by large occupier move-ins located in the Inland Empire West submarket. The Inland Empire market vacancy increased 50 basis points (bps) from the first quarter to 9.0% in the third quarter. This is also up 380 bps from the total vacancy rate of just 5.2% recorded one year ago. This increase in vacancy is due to a large amount of available space added to the market in buildings ranging from 100,000 to 500,000 square feet (sf). Despite positive tenant movement, vacant construction deliveries also increase vacancy rates. Overall construction deliveries recorded 5.4 msf, which is a decrease from last quarter’s 9.5 msf. Large occupier move-ins included Western Post occupying 927,700 sf in Rialto, The Campbell’s Company occupying 690,900 sf in Fontana and eFulfillment Services occupying 651,800 sf in Bloomington.