SNAPSHOT – Q3 2025

The Inland Empire is primarily an industrial market with about 650 million square feet of warehousing and manufacturing space. The overall vacancy rate climbed to 7.8% even as activity increased. There were 3 million square feet of positive net absorption, although it was outpaced by construction completions that added 4.5 million square feet of vacant space. New construction is limited, with the smallest pipeline in more than a decade. Despite some challenges to market fundamentals from tariffs, high construction costs and high interest rates, the Inland Empire remains among the most active industrial markets in the country.

The office vacancy rate in the Inland Empire held steady at 8.6%, which is the lowest of the major Southern California markets. Medical office development is a bright spot in the area, but overall leasing activity has slowed this year compared to the prior year. Affordability is a key driver of the market, but the office tenant base is limited to small and mid-sized local businesses.

OFFICE Data provided by Cushman and Wakefield, a global commercial real estate services firm. The company tracks commercial real estate market activity including supply, demand and pricing trends.