IE Business Daily Business news for the Inland Empire.
The Inland Empire industrial market had a solid first quarter this year, posting positive net absorption and decreasing vacancy for the first time since the third quarter of 2022, according to a report.
While the market showed signs of a recovery during the first three months of 2025, “declining lease rates and stubborn sublease space in the Inland Empire east and west underscored a reason for continued pragmatism among owners and investors,” according to CBRE.
Vacancy in Riverside and San Bernardino counties fell to 6.6 percent during the first quarter, a break from the “tumultuous” vacancy increases of the past two and a half years.
Lease rates fell for the seventh consecutive quarter, by four cents, to $1.12 per square foot, in the Inland region.
Development continued to decline in the first quarter: only 9.5 million square feet of industrial space was being built during that time. That was a 75 percent decline from the second quarter of 2022, when 38.9 million square feet was under construction.
Twenty three point two percent of the space that was under construction during the first three month of this year was pre-leased, according to CBRE.
