Vacancy continues to increase while asking rates decline
Vacancy in the Inland Empire reached 9.4% in Q4 2025, a 10-basis-point (bps) increase from the prior quarter and 50 bps higher than a year ago. The Inland Empire East recorded 1.2 million square feet (msf) of tenant move-ins, following the Inland Empire West at 519,239 square feet (sf) and the Inland Empire North at negative 871,300 sf, resulting in positive overall absorption of 883,472 sf. The largest move-in was Elogistek, taking 827,578 sf in Fontana, while Goodyear was the largest move-out, leaving 827,689 sf in Victorville.
Quarterly deliveries reached 3.8 msf, an increase from last quarter’s low of 1.8 msf. With construction activity projected to remain subdued, supply and demand are anticipated to come into balance over the next 18 months. Occupiers that delayed decisions due to economic uncertainty and shifting tariff costs are now approaching lease expirations, prompting renewals or new leasing decisions that will drive future leasing activity.