Inland Empire industrial real estate market report

Q1 2022

Considered one of the most sought-after markets for industrial space, the Inland Empire has not lost any momentum as market fundamentals remain steady. The rise in ecommerce and occupiers looking to perfect their logistical channels have kept demand at high levels, further pushing rental rates to new all-time highs. Developers remain extremely active throughout the market in order to supplement demand with over 36.2M SF under construction, the highest the market has ever experienced.

546M SF


The Inland Empire industrial sector received over 5.4M SF of new construction in the first quarter, bringing the total inventory to 546M SF for the market. Over 36.2M SF remains under construction, the highest the market has ever experienced, of that over 4.0M SF is going to Amazon’s new multi-level project in Ontario.

5.2M SF

Net Absorption

Net absorption was positive for the 20th straight quarter with over 5.2M SF recorded in 1Q 2022. Considered a logistical hub, the Inland Empire industrial market has attracted many companies to the market due to its location to the ports, growing inventory, and abundance of developmental land, which has kept demand robust.


Direct Asking Rent

Direct asking lease rates continue to climb throughout the metro, but it has become difficult to quote pricing as it is common for listings to remain unpriced. Current trends show that rental rates can be within the range of $1.20/SF - $1.50/SF triple-net.

31.0M SF


Total available industrial space decreased nearly 2.0M SF from the year prior to 31.0M SF in 1Q 2022. This is down 6.0% from 1Q 2021 and 8.9% since 1Q 2020, respectively.



Vacancies continue to decrease throughout the Inland Empire, falling to 1.3% at the end of the first quarter. Currently, 6.5M SF of direct and 739K SF of sublease space remains vacant.


Investment Sales

Coming off a hot year in sales in 2021, 1Q 2022 experienced a slowdown in activity, due to a lack of supply, with 26 transactions at an average sale price of $236.58/SF.

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