Inland Empire Industrial Market Report — Q1 2026
Vacancy, asking rents, sale pricing, absorption, construction, and the Mudge Team’s broker-level read on the Inland Empire industrial market in Q1 2026.
The market was split by geography and building size
The Inland Empire was really two markets in Q1 2026. The West reached 6.09% vacancy while the East climbed to 10.31%, producing an inventory-weighted regional vacancy rate near 8%. Asking rents reset to approximately $1.05/SF/month NNN in the West and $0.95 in the East. Tenants were still transacting, but they were negotiating harder.
The story owners needed to watch was segmentation. Buildings under 100,000 SF, and especially under 50,000 SF, continued to trade and lease at a fraction of the vacancy carried by the big-box segment. Owner-user demand backed by SBA financing remained the most resilient bid in the market.
Industrial Outdoor Storage moved differently from conventional warehouses. Inland Empire IOS rents held near $0.10–$0.13 per land square foot per month, and tighter entitlement standards made legal yards increasingly difficult to replace.
Q1 deal-weighted sale averages were $277/SF in the IE West and $254/SF in the East, but the same quarter produced a much wider range by class and building size. Averages were context, not a substitute for comparable sales.
Where conditions differ
| Submarket | Vacancy | Asking NNN | Sale $/SF | Construction |
|---|---|---|---|---|
| Ontario / Airport | 6.2% | $1.08 | $275 | 1,050,000 SF |
| Rancho Cucamonga | 5.4% | $1.12 | $290 | 310,000 SF |
| Fontana | 6.3% | $1.04 | $265 | 780,000 SF |
| Jurupa Valley / Rialto | 6.6% | $1.01 | $255 | 500,000 SF |
| Riverside | 9.2% | $0.96 | $250 | 340,000 SF |
| Corona | 7.8% | $1.05 | $270 | 120,000 SF |
| Moreno Valley / Perris | 12.8% | $0.89 | $225 | 820,000 SF |
| San Bernardino / Redlands | 11.4% | $0.92 | $235 | 440,000 SF |
Submarket figures are Mudge Team estimates calibrated to the published regional reports listed below.
The average does not describe every building
Under 25,000 SF
The tightest segment in the market. Owner-user demand on SBA debt keeps multiple offers common; effectively no new small-bay supply has been built since the 1980s.
25,000 – 50,000 SF
Strong owner-user and regional-logistics demand. Availability runs well below the big-box segment.
50,000 – 100,000 SF
Mid-bay holds up well: large enough for serious distribution, small enough to dodge the big-box supply glut.
100,000 – 250,000 SF
Institutional territory. Q1 pricing split sharply by class, with new Class A product clearing well above older buildings.
250,000+ SF
The big-box segment drove the soft Q1 headlines. Published transactions showed a wide spread between older Class B and new Class A buildings.
Use the report to make a property decision
Regional figures are context. A lease, purchase, or sale decision still turns on the building, the submarket, and the live comparable set. Start with the inventory or ask the team for a building-specific analysis.
Sources and methodology
Regional fundamentals are drawn from published Lee & Associates Inland Empire East and West research. IOS benchmarks use the cited sector research. Mudge Team submarket and size-segment figures are estimates anchored to those publications and direct transaction experience.