The Inland Empire retail market took a bit of a hit during Q2 2018. Vacancy increased by 40 basis points (bps) due to the closure of several Toys/Babies “R” Us locations and other big box sized tenants, leading to negative 290,100 sq. ft. of net absorption.
A total of 63,695 sq. ft. of new shopping center space was added during Q2 2018, with just under 900,000 sq. ft. of new construction still in the pipeline.
The Inland Empire’s average asking lease rate increased 1.5% quarter over quarter ending Q2 2018 at $2.03 per sq. ft. Compared with the same period last year, the average asking lease rate climbed by 6.3%.