The Inland Empire shows signs of stabilization at year end
In the fourth quarter, net absorption totaled 3.8 million square feet (msf). Positive absorption was driven by occupier move-ins ranging from 200,000-500,000 square feet (sf) and fewer vacant construction deliveries. The vacancy rate in the Inland Empire market declined by 30 basis points (bps) from the previous quarter, reaching 8.7% in Q4 2024. However, this represents an increase of 190 bps compared to the 6.8% vacancy rate recorded last year. Total construction deliveries reached a low of 1.6 million square feet (msf), down from 5.5 msf in the previous quarter. The last time construction deliveries were this low was in Q4 2021, with just 1.5 msf recorded. As construction deliveries are anticipated to remain limited in the near term, vacancy rates are likely to stabilize.