Vacancy remains elevated in the Inland Empire market
Vacancy in the Inland Empire remained elevated at 9.9% in Q3 2026, 20 basis points (bps) higher than last quarter and 90 bps higher than a year ago. The Inland Empire East recorded 1.4 million square feet (msf) of tenant move-outs, followed by the Inland Empire West with 192,400 square feet (sf). In contrast, the High Desert and Menifee/Temecula submarkets recorded positive absorption, resulting in overall absorption of -894,200 sf. Occupiers that delayed decisions due to economic uncertainty and shifting tariff costs are now approaching lease expirations, prompting a wave of renewals or new leasing decisions. As a result, renewal transaction activity totaled more than 3.6 msf