Inland Empire Warehouse Vacancies Hit 15-Year High as Tenants Move Out

Once the crown jewel of U.S. logistics, California’s Inland Empire is now flashing warning signs.

In Q2 2025, the region recorded the largest industrial space move-out in the country, with over 4 million sq. ft. vacated — pushing Inland Empire warehouse vacancies to 8%, a 15-year high, and marking a sharp reversal from years of aggressive growth.

This shift isn’t just about empty buildings — it signals broader disruptions in retail, logistics, and real estate strategy across Southern California.

Why So Many Companies Are Leaving

From Home Depot to Forever 21, major tenants are pulling out.10 large warehouses (each over 500,000 sq. ft.) closed in Q2Only 3 new large occupancies replaced themNet absorption: –4 million sq. ft., wiping out a year’s worth of gains

Driving this:

• Retail bankruptcies

• Inventory cuts

• Tariff-driven import slowdowns at SoCal ports

• Weakened housing demand, dragging down furniture and materials storage

Empty Giants: Who’s Out?

1.1M sq. ft. in Jurupa Valley (Home Depot vacated)970K sq. ft. in San Bernardino (Kohl’s exit)844K sq. ft. listed at $0.95/sq. ft. NNN660K sq. ft. in Perris (Forever 21 gone)Chino & San Bernardino: NFI & CJ Logistics moved out

This isn’t isolated — it’s structural.

Oversupply Meets Demand Shock

Even as demand softens, new warehouses keep hitting the market. That mismatch is fueling the Inland Empire warehouse vacancies spike.The only buffer? New construction starts are slowing sharply in 2025, which may ease future pressure — but not fast enough for some landlords.

What This Means for You

If you’re looking to lease, invest, or reposition in SoCal logistics:

✅ More vacancy = stronger negotiating power

✅ Stalled projects = chance to buy time or enter cheaper

✅ Know where the exits are — and why they happened

This isn’t just a dip — it’s a reset. And those who read it right will move ahead.