Inland Empire Retail MarketView Insert Q1 2021

Year-over-year vacancy spiked 80 basis points (bps) to 9.4%. However, vacancy is down 30 bps since the peak of 9.7% during the pandemic. 

The region’s vacancy grew by 10 bps quarter-over-quarter to 9.4%. Due to move-outs in the West End, vacancy increased the greatest in the submarket, jumping up 180 bps year over year to 8.8%. 

The IE’s average asking lease rate decreased by -0.7% year-over-year to $2.05 per sq. ft. Improved leasing activity coupled with a positive outlook on the economy could favor lease appreciation in the near future as CBRE EA forecasts lease rates to increase 3.9% by the end of 2021.