The Inland Empire continues to see large occupier move-ins
In the second quarter, net absorption totaled 3.6 million square feet (msf). Positive absorption was driven by large occupier move-ins located in the Inland Empire West submarket. The Inland Empire market’s vacancy increased 70 basis points (bps) from the first quarter to 8.5% in the second quarter. This is also up 420 bps from the total vacancy rate of just 4.3% recorded one year ago. This increase in vacancy is due to a large amount of available space being added to the market in buildings ranging from 100,000 to 400,000 square feet (sf). Despite positive tenant movement, vacant construction deliveries also increase vacancy rates. Overall construction deliveries recorded 9.5 msf, which is an increase from last quarter’s low of 5.9 msf. Large occupier move-ins included Home Depot occupying 2.8 msf at the Merrill Commerce Center in Ontario, Amazon occupying 1.2 msf in Fontana, and Sketchers reoccupying 643,263 sf in Perris.