Inland Empire Retail Figures Q4 2025

– Availability in the Inland Empire edged up to 7.0% in Q4 2025, a slight 10 basis-points (bps) increase from Q3 2025, as new supply and slower leasing activity kept space on the market longer.

– Net absorption declined to negative 11,000 sq. ft. in Q4 2025 from positive 138,000 sq. ft. in Q3 2025. The 50% decline in leasing volume reflected a year-end slowdown and a shift toward smaller deals following the absorption of remaining big-box availabilities.

– Development activity normalized this quarter, with 106,000 sq. ft. delivered in Q4 2025 compared to 363,000 sq. ft. in Q3 2025. Despite the pullback in quarterly deliveries, development interest remained strong as the region’s rising population density continued to support demand for new retail projects.

– The overall average asking rent rose by $0.02 quarter-over-quarter to $1.73 NNN in Q4 2025, as leasing activity was concentrated in premium spaces while demand softened in older, lower‑quality buildings.

– Total retail investment sales jumped over 70% in Q4 2025 to $356.7 million, up from $208.2 million in Q3 2025. The increase was fueled by several large transactions, including four deals above the $30 million mark. Among them was Murrieta Town Center, which sold for more than $93 million.