Inland Empire Commercial Office Space for Rent

Q3 2026

Q3 2026 Inland Empire Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

The Inland Empire is a market in transition. Industrial is working through a record supply wave, office is softening modestly, and retail is strengthening with vacancy falling to 6.0% in Q3. The biggest shift came from tenants: office space accounted for 68.7% of all Inland Empire tenant searches on TenantBase in Q3, more than eight times its 8.1% share in Q2.

Sector Snapshot

  • Office: Softening. Vacancy rose to 6.6% in Q2, while office became the dominant TenantBase search category in Q3.
  • Industrial: Rebalancing. Direct vacancy was 7.6% with 6.9 million SF under construction, as the market absorbs recent supply.
  • Retail: Strengthening. Vacancy fell to 6.0% in Q3 on 402,499 SF of net absorption.
  • Multifamily: Improving. Rents reached a new high as absorption began to offset new deliveries.

Inland Empire Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across Riverside and San Bernardino counties are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 68.7%
  • Retail/Storefront: 27.7%
  • Warehouse/Industrial: 3.6%

Three-Quarter Trend

  • Office: 9.8% in Q1, 8.1% in Q2, 68.7% in Q3
  • Retail/Storefront: 50.9% in Q1, 53.2% in Q2, 27.7% in Q3
  • Warehouse/Industrial: 39.7% in Q1, 40.1% in Q2, 3.6% in Q3

Key Takeaways

  • Office overtook retail and industrial as the Inland Empire's top search category, after accounting for less than 10% of searches in both Q1 and Q2.
  • Short-term office demand is now the norm. Office searches for terms under one year rose from 23.1% in Q1 to 51.7% in Q2 and 52.6% in Q3.
  • Retail tenants shifted to flexibility. Retail searches for terms under one year jumped from 10.0% in Q2 to 45.0% in Q3.
  • Industrial searches fell sharply, from 40.1% to 3.6% of searches, as the market absorbs a record supply wave.

Office Market

Inland Empire office vacancy remains low by Southern California standards but rose for the second straight quarter in Q2 2026, the most recent quarter with published metro data.

Key Metrics (Q2 2026)

  • Vacancy: 6.6%, up from 6.0% in Q1 (CBRE)
  • Net absorption: negative 149,600 SF (CBRE)
  • Average asking rent: $2.28/SF per month full service (CBRE)
  • Leasing activity: 128,000 SF, down 32.5% from Q1 (CBRE)

TenantBase Office Activity

Demand share: 68.7% of Inland Empire tenant searches, up from 8.1% in Q2 and 9.8% in Q1.

Lease term preferences:

  • Less than one year: 52.6%
  • 3 to 5 years: 19.3%
  • 2 to 3 years: 17.5%
  • 5+ years: 8.8%
  • 1 to 2 years: 1.8%

Space requirements by term:

  • Less than one year: 550 to 1,150 SF
  • 2 to 3 years: 1,875 to 4,000 SF
  • 3 to 5 years: 1,857 to 3,786 SF

Top locations: Riverside was the most requested area across all space types in Q3, often paired with Corona. Ontario and Fontana, Corona, Murrieta and Temecula, and Chino followed.

TenantBase data vs. the market: The surge in Inland Empire office searches is coming from small users, with most requirements under 4,000 SF and more than half seeking terms under one year. At the same time, market leasing slowed and vacancy rose to 6.6%. That combination gives small office tenants more leverage than they have had in several years, particularly on flexible terms and concessions.

Industrial & Warehouse Market

Inland Empire industrial continues to absorb the supply wave of recent years, with leasing activity slower than 2025 but large users still committing to big-box space.

Key Metrics (Q2 2026)

  • Direct vacancy: 7.6%, with total vacancy including sublease at 8.6% (Kidder Mathews)
  • Availability: 12.9% (Kidder Mathews)
  • Year-to-date net absorption: positive 1,387,417 SF (Kidder Mathews)
  • Average asking rent: $0.98/SF per month NNN, down 4.85% year over year (Kidder Mathews)
  • Under construction: 6,853,803 SF (Kidder Mathews)
  • Largest lease: Medline Industries, 1,020,657 SF at Perris Logistics Center North (Kidder Mathews)

TenantBase Industrial Activity

Demand share: 3.6% of Inland Empire tenant searches, down from 40.1% in Q2 and 39.7% in Q1. Industrial tenants searching in Q3 sought 3 to 5 year terms and averaged 3,750 to 7,983 SF.

TenantBase data vs. the market: With asking rents down nearly 5% year over year and availability at 12.9%, small and mid-size industrial users have more negotiating power than they have had in recent years.

Retail Market

Inland Empire retail strengthened through Q3 2026, with vacancy falling and absorption well ahead of 2025.

Key Metrics (Q3 2026)

  • Vacancy: 6.0%, down from 6.2% in Q2 and 6.4% a year earlier (Kidder Mathews)
  • Average asking rent: $1.77/SF per month, up 4.16% year over year (Kidder Mathews)
  • Q3 net absorption: positive 402,499 SF (Kidder Mathews)
  • Largest sale: The Shoppes at Chino Hills, 358,317 SF, for $157.0 million (Kidder Mathews)

TenantBase Retail Activity

Demand share: 27.7% of Inland Empire tenant searches, down from 53.2% in Q2 and 50.9% in Q1.

Lease term preferences:

  • Less than one year: 45.0%
  • 3 to 5 years: 30.0%
  • 5+ years: 25.0%

TenantBase data vs. the market: Retail tenants on TenantBase are split between short-term and long-term commitments. With vacancy falling to 6.0% and rents rising more than 4% a year, long-term tenants should lock in space before conditions tighten further, while short-term operators will find the most options in older centers.

Multifamily Market

Inland Empire apartment rents set a new high in Q2 2026, and vacancy moved lower as absorption began to offset new deliveries, according to Northmarq. About 12,000 units have delivered since the start of 2023, and deliveries are expected to ease through late 2026 and into 2027.

Q4 2026 Outlook

  • Office: Expect vacancy to stay in the mid-6% range, with small-suite demand from TenantBase searches supporting leasing.
  • Industrial: Expect continued rebalancing, with tenant-friendly rents for small and mid-size users.
  • Retail: Expect vacancy to keep tightening and rents to keep rising.
  • Multifamily: Expect rent growth to firm as new deliveries slow.

Frequently Asked Questions

What type of commercial space are Inland Empire tenants searching for in 2026?

In Q3 2026, office space made up 68.7% of Inland Empire tenant searches on TenantBase, followed by retail/storefront at 27.7% and warehouse/industrial at 3.6%. Office accounted for less than 10% of searches in both Q1 and Q2.

What lease terms do Inland Empire office tenants want?

52.6% of Inland Empire office tenants on TenantBase sought terms under one year in Q3 2026, and 28.1% sought terms of 3 years or longer.

Which Inland Empire cities are tenants searching most?

Riverside was the most requested city among Inland Empire tenants on TenantBase in Q3 2026, followed by Ontario, Fontana, Corona, Murrieta, Temecula, and Chino.

What is the office vacancy rate in the Inland Empire?

Inland Empire office vacancy was 6.6% in Q2 2026, up from 6.0% in Q1, with an average asking rent of $2.28/SF per month full service, according to CBRE.

What is the industrial vacancy rate in the Inland Empire?

Inland Empire industrial direct vacancy was 7.6% in Q2 2026, with total vacancy including sublease at 8.6%, according to Kidder Mathews.

How can I find commercial space in the Inland Empire at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across Riverside and San Bernardino counties at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Inland Empire, July 1 to September 30, 2026
  2. TenantBase, Inland Empire Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Inland Empire Commercial Real Estate Market Report, Q1 2026
  4. CBRE, Inland Empire Office Figures, Q2 2026
  5. Kidder Mathews, Inland Empire Industrial Market Report, Q2 2026
  6. Kidder Mathews, Inland Empire Retail Market Report, Q3 2026
  7. Northmarq, Conditions Improve as Supply Growth Slows for the Inland Empire Multifamily Market (August 18, 2026)

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.