The Inland Empire retail market in Q3 2025 experienced rising vacancy and declining rents, while construction activity and sales pricing continued to climb. Despite a slowdown in absorption, the market remains active with a robust development pipeline. Explore our full Inland Empire retail market report for detailed insights into leasing, investment, and construction trends.
3Q 2025 Inland Empire Retail Market: Key Data Points
- Vacancy Rate Rises: Retail vacancy increased to 6.4%, up 80 basis points year-over-year.
- Asking Rents Decline: Average asking rent fell to $1.72/SF, a 3.33% decrease from Q3 2024.
- Construction Pipeline Expands: Space under construction rose to 1.13M SF, a 16.5% increase year-over-year.
- Sales Prices Increase: Average sales price per square foot climbed to $290, up 26.8% year-over-year.
- Construction Deliveries Surge: YTD deliveries reached 1.1M SF, a 37.2% increase from the prior year.
- Net Absorption Remains Negative: The market recorded -431,883 SF in net absorption YTD.
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