Vacancy continues to increase while asking rates hold steady
Vacancy in the Inland Empire reached 9.3% in Q3 2025, a 50-basis-point (bps) increase from the prior quarter and 20 bps higher than a year ago. The Inland Empire West submarket recorded 2.1 million square feet (sf) of tenant move-ins, while the Inland Empire East posted -2.7 million sf, resulting in essentially flat overall absorption. The High Desert submarket posted 1.1 million sf of positive net absorption. The largest move-in was IDC Logistics, taking 844,311 square feet (sf) in San Bernardino, while Under Armour vacated 1.2 msf in Rialto.
Quarterly deliveries reached 1.8 million sf, an increase from last quarter’s historical low of just 431,613 sf. With construction activity projected to remain subdued, supply and demand are anticipated to come into balance over the next 18 months. However, as logistics companies face pressures from changing tariff policies and tenants continue to reassess their space.