Inland Empire Retail Figures Q1 2026

–Availability in the Inland Empire edged down to 6.9% in Q1 2026, a 10-basis-point decline from the prior quarter, as leasing momentum outpaced the addition of large-format space and tightened overall market conditions.

– Net absorption rebounded sharply to 418,000 sq. ft. of positive absorption in Q1 2026, reversing the negative 46,000 sq. ft. posted in Q4 2025. The recovery was driven by a shift toward larger lease transactions, with 44 deals exceeding 6,000 sq. ft. this quarter compared to 25 in the prior quarter.

– Construction deliveries accelerated in Q1 2026, with 185,000 sq. ft. delivering during the quarter, nearly double the 93,000 sq. ft. completed in Q4 2025, as sustained population growth continued to support demand for new retail projects.

– The overall average net asking rent remained unchanged at $1.71 NNN per sq. ft. per month quarter-over-quarter, as continued big-box space entering the market limited landlords’ pricing power.

– Total retail investment sales surged to $736.9 million in Q1 2026, up from $525.6 million in Q4 2025. The increase was driven by the sale of Victoria Gardens, a 38-property lifestyle mall, which sold for $530.9 million to private investors and significantly boosted quarterly volume.