Stability Emerging, But Caution Remains
The Inland Empire industrial market continues to normalize after several years of unprecedented volatility, and while activity remains steady, the environment is far more selective than the peak-cycle conditions many owners and occupiers became accustomed to.
Four years removed from the post-pandemic surge, the market is still working through elevated vacancy caused by a significant wave of new development colliding with softer demand and economic uncertainty. Trade policy concerns, inflationary pressure, fuel costs, and ongoing supply chain disruptions continue to impact occupier decision-making throughout Southern California.
For users under 100,000 SF, the market currently presents a more tenant-favorable landscape than we’ve seen in years. Many transactions today are being driven by operational necessity rather than expansion, with occupiers focused on consolidation, efficiency, and cost control instead of aggressive growth.
According to the 1Q26 Industrial Rates Map:
• Inland Empire West vacancy stands at 7.55% with asking rents around $1.02 NNN for spaces above 50,000 SF
• Inland Empire East vacancy has climbed to 8.82% with asking rents averaging approximately $0.92 NNN
• Class A lease rates in many Inland Empire submarkets have stabilized but remain below prior peak pricing expectations
• Concessions and flexible deal structures continue to play an important role in lease negotiations
Owners should expect lease-up timelines to remain longer than historical norms, particularly for larger vacancies and speculative inventory. For tenants, however, the current market presents a meaningful opportunity to secure favorable economics before broader absorption improves.
If you would like updated lease comps, sale comps, or a property-specific opinion of value for your industrial asset or requirement, feel free to reach out.
John Viscounty | Senior Vice President, Partner
Voit Real Estate Services
3280 E Guasti Rd. Suite 100 | Ontario, CA 91761
D (909) 545-8002
jviscounty@voitco.com | www.voitco.com
Real Estate Salesperson, Cal BRE, License #02028915