The following reflects Inland Empire retail market conditions as of Q3 2026.
The Inland Empire retail market in Q3 2026 experienced falling vacancy, easing unemployment, rising asking rents, and a pullback in construction deliveries year-over-year. Explore our full Inland Empire retail market report for deeper insights into leasing trends, sale activity, and submarket performance.
Frequently Asked Questions
What is the retail vacancy rate in the Inland Empire in Q3 2026?
The Inland Empire retail vacancy rate was 6.0% in Q3 2026, according to Kidder Mathews research. That is down from 6.2% in Q2 2026 and down 40 basis points from 6.4% in Q3 2025, reflecting steady tenant demand across the region (Data source: CoStar).
What are average retail asking rents in the Inland Empire right now?
Average retail asking rents in the Inland Empire were $1.77 per square foot per month in Q3 2026, according to Kidder Mathews research. That is up from $1.72 in Q2 2026 and up 4.16% year-over-year from $1.70 in Q3 2025 (Data source: CoStar).
How much retail net absorption did the Inland Empire see in Q3 2026?
The Inland Empire retail market posted positive net absorption of 402,499 square feet in Q3 2026, according to Kidder Mathews research. Net absorption measures the change in physically occupied retail space, and a positive figure means tenants occupied more space than they vacated. Year-to-date 2026 net absorption reached 1,245,186 square feet, compared to negative 408,751 square feet over the same period in 2025 (Data source: CoStar).
How much retail space is under construction in the Inland Empire?
There was 1,104,779 square feet of retail space under construction in the Inland Empire as of Q3 2026, according to Kidder Mathews research. That is up from 1,042,564 square feet in Q2 2026 but down 10.39% from 1,232,926 square feet in Q3 2025 (Data source: CoStar).
How much new retail construction was delivered in the Inland Empire in Q3 2026?
The Inland Empire retail market delivered 172,530 square feet of new construction in Q3 2026, according to Kidder Mathews research. Year-to-date 2026 deliveries total 695,990 square feet, down 26.64% from 948,709 square feet delivered over the same period in 2025 (Data source: CoStar).
What is the average retail cap rate in the Inland Empire?
The average retail cap rate in the Inland Empire was 7.0% in Q3 2026, according to Kidder Mathews research. That is up from 6.7% in Q2 2026 and up 110 basis points from 5.9% in Q3 2025 (Data source: CoStar).
What is the average retail sale price per square foot in the Inland Empire?
The average retail sale price was $300 per square foot in the Inland Empire in Q3 2026, according to Kidder Mathews research. That is up from $246 in Q2 2026 and up 0.78% from $298 in Q3 2025 (Data source: CoStar).
What was the largest retail sale transaction in the Inland Empire in Q3 2026?
The largest reported retail sale in Q3 2026 was The Shoppes at Chino Hills in the Chino/Chino Hills submarket, according to Kidder Mathews research. Stockdale Capital Partners | Hamilton Lane acquired the 358,317 SF property from Chino Dunhill, LLC for $157,000,000, or $438.16/SF. Other notable sales included Village West Shopping Center in Beaumont/Hemet (198,877 SF, $49,500,000, $248.90/SF) and Kendall Plaza in San Bernardino (66,433 SF, $16,750,000, $252.13/SF) (Data source: CoStar).
What were the largest retail lease transactions in the Inland Empire in Q3 2026?
The largest reported retail lease in Q3 2026 was a 103,525 SF lease signed by Babo Pai Adventure Park at Rancho Del Chino in the Chino/Chino Hills submarket, according to Kidder Mathews research. Other significant leases included Crunch Fitness taking 36,120 SF at 17575 Foothill Blvd in the Airport Area, and Rebirth Fitness taking 23,000 SF at The District at Moreno Valley in the Moreno Valley/Perris submarket (Data source: CoStar).
What retail projects are under construction in the Inland Empire?
The largest retail project under construction in the Inland Empire is The Ranch at Model Colony in the Airport Area submarket, at 206,043 SF with a delivery expected in 4Q 2026, according to Kidder Mathews research. Other notable projects include Bundy Canyon Plaza (185,682 SF, South Riverside) and Marketplace at The District – Jurupa Valley (130,000 SF, Riverside), both expected to deliver in 2Q 2027 (Data source: CoStar).
What is the outlook for the Inland Empire retail market heading into Q4 2026?
The Inland Empire retail market enters Q4 2026 with vacancy trending lower, rents trending higher, and construction deliveries pulling back year-over-year, according to Kidder Mathews research. With 1.1 million square feet still under construction and positive net absorption of over 1.2 million square feet year-to-date, the market shows continued tenant demand alongside a more measured development pipeline (Data source: CoStar).
Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
Q3 2026 Inland Empire Retail Market: Key Data Points
Explore our full Inland Empire retail market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy Rate: Retail vacancy fell to 6.0% in Q3 2026, down from 6.2% in Q2 2026 and down 40 basis points year-over-year from 6.4% in Q3 2025.
- Average Asking Rents: Average asking rents rose to $1.77/SF/month in Q3 2026, up 4.16% from $1.70/SF/month a year earlier.
- Net Absorption: The market posted 402,499 SF of positive net absorption in Q3 2026, bringing year-to-date 2026 absorption to 1,245,186 SF, compared to -408,751 SF over the same period in 2025.
- Construction Activity: 1,104,779 SF was under construction as of Q3 2026, down 10.39% year-over-year, while deliveries totaled 172,530 SF in the quarter and 695,990 SF year-to-date, down 26.64% from 2025 YTD.
- Investment Sales: The average sale price reached $300/SF in Q3 2026, up 0.78% year-over-year, while the average cap rate rose 110 basis points to 7.0% from 5.9% in Q3 2025.
- Notable Transactions: The Shoppes at Chino Hills in Chino/Chino Hills was the quarter’s largest sale at 358,317 SF for $157,000,000, acquired by Stockdale Capital Partners | Hamilton Lane from Chino Dunhill, LLC.
Market Breakdown — Quarterly Comparison
| Metric | 3Q26 | 2Q26 | 3Q25 | YOY Change |
|---|---|---|---|---|
| Vacancy Rate | 6.0% | 6.2% | 6.4% | -40 bps |
| Average Asking Rents/SF/Mo | $1.77 | $1.72 | $1.70 | 4.16% |
| Under Construction (SF) | 1,104,779 | 1,042,564 | 1,232,926 | -10.39% |
| Average Sales Price/SF | $300 | $246 | $298 | 0.78% |
| Average Cap Rate | 7.0% | 6.7% | 5.9% | 110 bps |
Market Breakdown — Year-to-Date Comparison
| Metric | 3Q26 | 2026 YTD | 2025 YTD | YOY Change |
|---|---|---|---|---|
| Construction Deliveries (SF) | 172,530 | 695,990 | 948,709 | -26.64% |
| Net Absorption (SF) | 402,499 | 1,245,186 | -408,751 | N/A |
Significant Sale Transactions 3Q 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| The Shoppes at Chino Hills | Chino/Chino Hills | 358,317 | $157,000,000 | $438.16 | Stockdale Capital Partners | Hamilton Lane | Chino Dunhill, LLC |
| Village West Shopping Center | Beaumont/Hemet | 198,877 | $49,500,000 | $248.90 | Brixmor Village West, LLC | Granite Village West, LP |
| Kendall Plaza | San Bernardino | 66,433 | $16,750,000 | $252.13 | ASBP, LLC | Kendall Plaza, LLC |
Significant Lease Transactions 3Q 2026
| Property | Submarket | SF | Transaction Date | Tenant |
|---|---|---|---|---|
| Rancho Del Chino | Chino/Chino Hills | 103,525 | July 2026 | Babo Pai Adventure Park |
| 17575 Foothill Blvd | Airport Area | 36,120 | July 2026 | Crunch Fitness |
| The District at Moreno Valley | Moreno Valley/Perris | 23,000 | July 2026 | Rebirth Fitness |
Significant Under Construction
| Property | Submarket | SF | Delivery |
|---|---|---|---|
| The Ranch at Model Colony | Airport Area | 206,043 | 4Q 2026 |
| Bundy Canyon Plaza | South Riverside | 185,682 | 2Q 2027 |
| Marketplace at The District – Jurupa Valley | Riverside | 130,000 | 2Q 2027 |
Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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