Inland Empire Industrial Market
The West continued to outperform the East in leasing activity during the third quarter. Leasing remains most pronounced within the 100,000- to 499,999-SF segment, which boasts higher availability and steeper rent declines relative to other size thresholds. Current lease term lengths are higher than the historical average as tenants lock in today’s occupier-favorable conditions. The market posted close-to-zero net absorption gains this quarter amid largely due to move-outs by Home Depot (1.1 MSF) and Skechers (1.0 MSF). West IE boasted 2.1 MSF in net occupancy gains, while East IE sustained 1.4 MSF in losses. Sublet availability was roughly level with the previous quarter, as sublease signings were counterbalanced by new listings, including a 1.1 MSF offering by Home Depot.