The Inland Empire industrial market has cooled off after a tough 2025. With availability still around 12% and vacancy sitting at 7.2% at the end of last year, rents have stabilized at about $1.00 PSF NNN.
How the Market Looks Right Now
How the Market Looks Right NowDemand from big distributors and e-commerce companies remains focused on modern, high-clearance big-box warehouses close to the ports and rail lines. Many tenants moved out of older buildings last year and upgraded to larger, more efficient spaces.
Subleases are still making up roughly 20% of available space, which is keeping rents steady and encouraging landlords to offer incentives like free rent and tenant improvements.
Key 2025 Year-End Stats:
- Vacancy: 7.2% (up from 6.2% the year before)
- Availability: 12.7%
- Average Asking Rent: $1.00 PSF NNN (down ~11% from 2024)
- Leasing Volume: 5.6 million SF
Outlook for the Rest of 2026
The good news is the market is expected to stabilize and gradually improve through the remainder of 2026. New construction deliveries have slowed significantly compared to previous years, while absorption is picking up.
Vacancy may bump up a little more in the coming months as a few final buildings finish, but prime logistics space — especially near the ports — should continue to lease up quickly. These hard-to-replicate locations are still in demand.
By late 2026, with large leases starting to occupy and new supply tapering off, the Inland Empire industrial market should feel much stronger.
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