Inland Empire Commercial Market Update, Q3 2026
Here is where the Inland Empire commercial market stands as of fall 2026, pulled from the latest published research. Every number below links to its source.
Industrial: the big picture
| Measure | Figure | Source / period |
|---|---|---|
| Vacancy | 7.2% (IE West 5.9%, IE East 8.7%) | CBRE, Q3 2026 |
| Vacancy / availability | 8.7% / 12.5% (15-year high) | CoStar via RivCoED, Q3 2026 |
| Vacancy | 8.8% | Cushman & Wakefield, Q2 2026 |
| Direct vacancy | 7.6% (8.6% with sublease) | Kidder Mathews, Q2 2026 |
| Asking rent | $1.08/SF/mo NNN, flat; signed rents $1.01, down 3.8% from Q2 | CBRE, Q3 2026 |
| Asking rent | $1.03/SF/mo, down 0.9% year over year | CoStar via Apex, Q3 2026 |
| Asking rent | $0.98/SF/mo NNN, down 4.85% year over year | Kidder Mathews, Q2 2026 |
| New leasing | 11.2M SF in Q3, after a record 15.5M SF in Q2 | CBRE, Q3 2026 |
| Net absorption | ~2.5M SF for the quarter; ~6M SF over 12 months vs. ~17M SF 10-year average | CoStar via RivCoED, Q3 2026 |
| Under construction | 8.3M SF, up 34.8% from Q2 | CBRE, Q3 2026 |
| Under construction | ~14.0M SF | CoStar via Apex, Q3 2026 |
Industrial sales and cap rates
- 453 sales totaling $4.4B over the past 12 months, at an average 5.9% cap rate; 2026 sales so far average 6.2% ( CoStar via Apex, Q3 2026).
- CoStar's market-wide cap rate estimate is 4.9%, with an average price of $258/SF ( CoStar via Apex, Q3 2026).
- Average sale prices: $258/SF in IE West and $256/SF in IE East ( Lee & Associates via Mudge Team, Q2 2026).
- CoStar forecasts industrial vacancy easing to about 8% in 2027 ( Apex, Q3 2026).
Retail
Retail vacancy is 6.0%, asking rent is $2.29/SF/mo (up 3.1% year over year), 1.6M SF was absorbed over 12 months, the market cap rate is 6.5%, and the average price is $289/SF ( CoStar via Apex, Q3 2026).
Truck yards and outdoor storage (IOS)
Yards are trading around a 6.5% cap rate ( SoCal Industrial Group, Q2 2026). Yard rents are about $0.10–$0.13 per SF of land per month, with 6–8% growth projected for 2026, and the state law AB 98 is making new yards harder to approve ( Mudge Team, Q2 2026). These figures come from broker commentary, not the major research firms.
Industrial and yard owners in Ontario, Fontana and Rialto: the short version
- The west side is tighter. CBRE puts IE West industrial vacancy at 5.9% in Q3 2026, versus 8.7% in IE East ( CBRE, Q3 2026).
- West-side asking rents averaged $1.15 per SF per month NNN, and $1.04 on the east side ( CBRE, Q3 2026).
- Leasing cooled from a record. About 11.2 million SF of new leases were signed in Q3, after a record 15.5 million SF in Q2 ( CBRE, Q3 2026).
- Construction is picking back up, mostly big-box buildings: 8.3 million SF was under construction in Q3 ( CBRE, Q3 2026). Small buildings and legal yards are a different market and stay scarce.
- Retail is getting stronger: 6.0% vacancy in Q3 2026, down from 6.4% a year earlier ( Kidder Mathews, Q3 2026).
Recent deals I’ve closed
- 398 S. San Antonio Ave., Pomona – industrial land, $7,350,000 (represented the seller)
- 2280 S. Riverside Ave., Bloomington – industrial building, $2,260,000 (represented the buyer and the seller)
- 1200 Jefferson Ln., Colton – 1.645-acre M1 yard, $2,000,000 (represented the seller)
- 121 N. Cactus Ave., Rialto – yard lease (represented the landlord and the tenant)
See all of them on my closed deals page. Want numbers for your own property? Call (909) 641-0582 or text me. Se habla español.
What this means for you
Building owners
There is more empty space than usual, so tenants have choices. Pricing and presentation matter. Well-located, leased buildings are still selling, but buyers are paying closer attention to cap rates.
Tenants
This is a good time to negotiate. Rents are flat to slightly down, and landlords often offer free rent or other incentives on longer leases.
Yard owners
Truck and contractor yards are the strongest corner of the market. New yards are hard to approve, so a legal, permitted yard is scarce and valuable.
What is your property worth today?
Get a free, no-obligation valuation in English or Spanish.