Vacancy climbs as million-square-foot tenants exit Inland Empire market
Vacancy in the Inland Empire approached near double digits at 9.9% in Q1 2026, an 80-basis-point (bps) increase from the prior quarter and 140 bps higher than a year ago. Four tenants occupying more than 1.0 million square feet (msf) each vacated their spaces, driving overall absorption to -2.3 msf. The Inland Empire West recorded -1.7 msf of tenant move-outs, followed by the Inland Empire East at -332,400 square feet (sf). The largest move-out was Keeco, which vacated 1.3 msf in Moreno Valley, while Goodyear represented the largest move-in leasing 861,732 sf, also in Moreno Valley. Quarterly deliveries reached 3.0 msf, a decrease from last quarter’s 3.8 msf. With construction activity projected to remain subdued, supply and demand are anticipated to come into balance over the next 18 months. Occupiers that delayed decisions due to economic uncertainty and shifting tariff costs are now approaching lease expirations, prompting renewals or new leasing decisions.