Quarterly Report Q3 2025

Jones Industrial Team  /   April 3, 2026

The Inland Empire industrial market concluded the fourth quarter of 2025 exhibiting clear signs of normalization following several years of accelerated growth and historically tight conditions. Overall vacancy increased modestly on a quarter over quarter basis as newly delivered inventory outpaced leasing activity and tenant decision making slowed. Despite this softening, the region remains one of the most active industrial markets in the United States, supported by its scale, infrastructure, and proximity to the Ports of Los Angeles and Long Beach. Market conditions are increasingly reflective of a shift toward equilibrium rather than contraction.

Leasing activity moderated during the quarter, with gross leasing volume declining from earlier periods and year-over-year levels. Net absorption turned slightly negative in Q4 2025 although the East was stronger than West, as tenant move outs and space consolidations offset new leasing transactions. Demand, however, remained present, particularly among logistics, e-commerce, and third-party distribution users seeking modern, high-clear warehouse facilities. Transaction activity continued to favor larger blocks of space, indicating that occupiers are prioritizing operational efficiency and long-term strategic positioning over rapid expansion.

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