Inland Empire Industrial Market Report — Q2 2026
Q2 2026 Inland Empire industrial vacancy, asking rents, absorption, sale pricing, construction, and the Mudge Team’s broker-level interpretation.
Vacancy improved while tenants retained leverage
The Q2 numbers improved on both sides of the Inland Empire. West vacancy fell from 6.09% to 5.16%, while East vacancy eased from 10.31% to 9.86%. On an inventory-weighted basis, that puts the region near 7.2% vacancy. Asking rents still softened to about $1.04/SF/month NNN in the West and $0.92 in the East, so tenants retain leverage even as the amount of empty space begins to recede.
Demand also moved in the right direction, but the two Lee reports use different absorption measures and should not be combined. West 12-month net absorption swung from negative 1.77M SF in Q1 to positive 2.56M SF in Q2. East 12-month gross absorption remained substantial at 6.94M SF, down from 7.85M SF. Small and mid-size users remain the most dependable segment, while large requirements still have more choices and negotiating room.
Industrial Outdoor Storage is the outlier in the other direction. IOS rents in the IE grew again to roughly $0.10–$0.13 per land square foot per month, with another 6–8% of growth projected for 2026. AB 98’s truck-route, setback, and buffer requirements, now in force across the twelve Warehouse Concentration Region cities, make new yard entitlements harder every quarter. If you own a CUP-approved yard, you own something the market structurally cannot replace. Price it accordingly.
Sale-price averages converged in Q2 at $258/SF in the IE West and $256/SF in the East, but individual transactions still ranged from roughly $150/SF to $260/SF. Size, class, loading, power, land coverage, and entitlement remain more useful than a single regional average.
Where conditions differ
| Submarket | Vacancy | Asking NNN | Sale $/SF | Construction |
|---|---|---|---|---|
| Ontario / Airport | 5.2% | $1.07 | $260 | 1,640,000 SF |
| Rancho Cucamonga | 4.5% | $1.11 | $275 | 483,000 SF |
| Fontana | 5.3% | $1.03 | $250 | 1,215,000 SF |
| Jurupa Valley / Rialto | 5.6% | $1.00 | $245 | 775,000 SF |
| Riverside | 8.8% | $0.93 | $252 | 340,000 SF |
| Corona | 7.4% | $1.02 | $272 | 120,000 SF |
| Moreno Valley / Perris | 12.3% | $0.86 | $230 | 820,000 SF |
| San Bernardino / Redlands | 10.8% | $0.89 | $240 | 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. Q2 West included a 133,115 SF Class A sale at $226/SF, while smaller owner-user buildings continued to command a premium.
250,000+ SF
The big-box segment still carries the widest pricing spread. Q2 East sales from 356,791 to 809,322 SF ranged from roughly $150 to $260/SF.
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.