The Inland Empire West was once an outlying industrial market. Now, it is an infill market with strong demand from industrial users in all size categories and a tightening supply of both product and land for new development. Move further east, however, and demand starts to waver. Despite this dichotomy between the two halves of the Inland Empire, both sides are responsible for strong new development activity. According to research from JLL, more than 7 million square feet of product came to market in the Inland Empire West last year, while more than 14 million square feet delivered in the Inland Empire East.

“The Inland Empire West, for all intents and purposes, is now an infill market where we continue to experience historically low levels of supply and strong demand by occupiers across all size categories,” Patrick Wood, managing director at JLL, tells “But as you move further east, demand typically becomes more unpredictable. Specific size and geographic segments in the IE East will get soft for an extended period, then without rhyme or reason, a number of transactions will occur in a short period of time, and that segment will clean itself up.  The IE East requires much more patience than the West.  The exception in the East has been the mega-box of 700,000-plus square feet segment where demand has been continually fueled by the ecommerce boom. The coastal markets in Southern California are all running on low single-digit vacancy rates, with little land available for new development. In general, that has made the Inland Empire an attractive alternative, fueling this massive construction pipeline. This demand driver coupled with a laundry list of obstacles for new construction has helped to keep building in check. “It’s a challenging climate for developers to obtain entitlements for new development projects,” says Wood. “Coupled with the rapid increase in construction costs and appreciation of land values, it is not easy to get projects out of the ground.  As a result, I think the building pipeline is much more in equilibrium with user demand compared to the prior development cycle of the mid-late 2000’s.”

With so much construction activity, however, the availability of developable land is now limited in the Inland Empire, and construction activity could begin to slow in the future. For now, however, construction activity will remain strong. “We’re running low on large parcels of industrially zoned land that is unspoken for in the Inland Empire proper,” says Wood. “But there are several large developments in burgeoning areas such as the Chino Airport submarket that will keep the construction pipeline strong thru 2019.  We benefit from attracting the country’s most prolific pool of developers, who with aid of a talented brokerage community, continually churn out new development projects.  I think the prospects for new development in the Inland Empire is strong.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.