Leases over one million square feet prominent in first quarter
In the first quarter, net absorption totaled -804,288 square feet. Absorption would have been even lower for the quarter without five top lease transactions signed, each totaling over 1.0 million square feet (msf), two of which were renewals. The Inland Empire market vacancy increased 100 basis points (bps) from year-end 2023 to 7.8% in the first quarter. This is also up 490 bps from the total vacancy rate of just 2.9% recorded one year ago. This increase in vacancy is due to a large amount of available sublease space being added to the market as well as vacant construction deliveries. Overall construction deliveries recorded 5.9 msf, which is a change from last quarter’s record high of 12.2 msf. Large occupier move-ins included Constellation Brands occupying 1.4 msf in Jurupa Valley, Home Depot occupying 1.1 msf in Ontario and Kimco Staffing Services occupying 645,300 sf in Jurupa Valley.