Is the Inland Empire SoCal’s Top Retail Growth Market?

The Inland Empire is one of the top growth markets in Southern California. With substantial inward migration—especially as affordability issues become more severe in coastal markets—the Inland Empire has an expanding residential market and a need for more retail options to serve them. According to research from CBRE, the retail vacancy in the market decreased 20 basis points in the third quarter with leasing transactions totaling 327,665 square feet. Lease rates also increased during the quarter to $2.05 per square foot.

“The Inland Empire is a rapidly expanding residential market and one of the only true growth markets in Southern California,” Ian Britton, the managing director of the Ontario office for CBRE, tells GlobeSt.com. “In Ontario Ranch alone, 8200 acres are currently being developed for residential with a diverse mix of inventory and was recently recognized as number 11 of the best-selling new communities nationwide. The Inland Empire offers an affordable outlet to Orange County and the San Gabriel Valley, and the new buyer pool consists primarily of millennials. These young professionals and families are looking for connectivity, fun and specialization when it comes to retail.  There has been a movement towards neighborhood centers offering local entertainment and dining options, bringing people of all age groups together.”

Both the Riverside and San Bernardino markets have benefitted from the increased demand for retail. In particular, demand is focused in Fontana, Corona and Rialto. “The City of Fontana with City Center Place, 101,77 square feet; Metro at Main in Corona, a 70,000-square-foot-plus shopping center in Corona near the Metrolink Station as part of a 868 unit high rise residential project; and the Renaissance Marketplace in Rialto, 361,000 square feet, are prime examples of the expanding retail presence in the Inland Empire,” says Britton. “Each project incorporates a unique mix of tenants and design elements that are specific to the communities they serve.”