Inland Empire Retail Figures Q4 2024

MARKET HIGHLIGHTS

• Increased consumer confidence among retail shopping, and a positive retailer outlook allowed for a stronger demand quarter-over-quarter. Leading to a negative 1% decrease in availability rate quarter-over-quarter to 6.5% in Q4 2024.
• The total net absorption in Q4 2024 was 280,000 sq. ft., compared to negative 267,000 sq. ft. in Q3 2024. The East End saw the largest space absorbed at 236,000 sq. ft. while the West End and Low Desert were the only submarkets with negative net absorption at negative 54,000 and negative 32,000 respectively.
• Increased construction costs in a volatile construction market decreased construction deliveries and starts quarter-over-quarter as retailers navigate their online and physical stores presence. There was 58,000 sq. ft. delivered in Q4 2024, compared to 93,000 sq. ft. in Q3 2024.
• Landlords offered deals to retailers to incentivize new leases, leading to the average NNN asking rate shrinking $0.02 quarter-over-quarter from $1.79 in Q3 2024 to $1.77 in Q4 2024.
• Owners waited for a more stable market before making decisions on the future of their asset. The total retail investment sales in Q4 2024 amounted to $120.6 million in total volume, compared to $279.6 million in Q3 2024.