The Inland Empire retail market in Q4 2025 saw vacancy rates inch upward while asking rents continued to decline. Construction activity remained strong with a slight increase in projects under development, and sales pricing held steady. Despite ongoing negative absorption, investor interest persisted, supported by compressed cap rates. Explore our full Inland Empire retail market review for detailed trends and transaction insights.
4Q 2025 Inland Empire Retail Market: Key Data Points
- Vacancy Rate Rises Slightly: Vacancy reached 6.4%, up 60 basis points year-over-year.
- Asking Rents Decline: Average asking rent fell to $1.69 per SF per month, a 2.4% decrease from Q4 2024.
- Construction Pipeline Expands: Space under construction totaled 1,355,942 SF, up 4.8% year-over-year.
- Sales Pricing Holds Steady: Average sales price was $325 per SF, a 0.6% increase compared to last year.
- Cap Rates Compress: Average cap rate dropped to 5.3%, down 70 basis points year-over-year.
- Net Absorption Negative: Q4 absorption recorded -29,080 SF, continuing the trend of soft demand.
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