Future Cities
Inland Empire Market
2025 North America Industrial Big-Box Review & Outlook
April 16, 2025 5 Minute Read
Supply & Demand
Rents stabilized to 9.5% annual growth in 2023 after record-breaking growth in 2022. More space became available due to completed construction and tenant move-outs, increasing the overall vacancy rate from 0.1% in 2022 to 3.7% in 2023. This vacancy rate is still relatively low compared to other cities, ranking fourth lowest in this report behind Mexico City, Los Angeles County and Nashville. Construction completions were strong in 2023, totaling 26.5 million sq. ft., with the majority of it in facilities over 750,000 sq. ft. 3PLs dominated big-box leasing volume in the IE, accounting for over 58% of the activity, the highest among the markets in this report.
The IE continues to be one of the most in-demand big-box industrial markets, with leasing surpassing 30 million sq. ft. for four consecutive years. This trend is expected to continue throughout the year as occupiers aim to strengthen their storage and distribution capabilities. Despite continued demand, vacancy rates should remain steady. This is because occupiers are consolidating their operations out of older big-box spaces in the market, and most of the 14 million sq. ft. currently under construction will become available. Although rental rate growth is expected to be minimal, the IE will to continue to command some of the highest rents in North America for the foreseeable future.
Figure 4: Share of 2023 Leasing by Occupier Type
Source: CBRE Research.
Figure 5: Lease Transaction Volume by Size Range
Source: CBRE Research.
Figure 6: 2023 Construction Completions vs. Overall Net Absorption by Size Range
Figure 7: Direct Vacancy Rate by Size Range
Figure 8: Under Construction & Percentage Preleased
Figure 9: First Year Taking Rents (psf/yr)
Source: CBRE Research.
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Industrial & Logistics Research
James Breeze
Vice President, Global Industrial and Retail Research
John Morris
President, Americas Industrial & Logistics, Advisory Services
