IE Business Daily Business news for the Inland Empire.
The Inland Empire’s industrial market’s vacancy rate rose to 8.8 percent during the fourth quarter of 2025, a 1.1 percent year-over-year increase, according to a recent report.
At the same time, the average monthly lease rate was $1.00 per square foot, a two-cent decrease from the previous quarter, and down 10.7 percent from the fourth quarter of 2024, according to Voit Real Estate Services.
“There has been a sharp shift in the balance of negotiating leverage in recent years, with the average asking rate declining for three consecutive years, placing tenants in
the driver’s seat.” Voit’s fourth quarter Inland industrial report states, “This has resulted in elevated leasing concessions, such as rental abatement, as landlords are getting aggressive in pursuing tenants.
Net absorption of industrial space in Riverside and San Bernardino counties last quarter was 1.8 million square feet, compared to 5.2 million square feet in the fourth quarter of 2024, Voit reported.
